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Friday Alert
Friday, June 6, 2008(Alliance for Retired Americans)
Competing Medicare Bills Proposed in
Senate
Democrats and Republicans on
the Senate Finance Committee have released
competing Medicare proposals to prevent the
10.6 percent cut to physician payments that is
scheduled to take effect July 1. Should the pay
cut be allowed to go through, numerous seniors
will likely have a difficult time finding
doctors to treat them, as many physicians have
threatened to stop accepting Medicare at the
reduced rate. Each plan proposes to raise
general physician payments and contains
provisions so that beginning in 2009, doctors
will receive higher Medicare payments for
reporting quality of care information, writing
electronic prescriptions, and practicing in
rural areas where there are few doctors. The
legislation sponsored by Finance Chairman
Max Baucus (D-MT), would go
further by including assistance for low-income
Medicare beneficiaries, ensure prompt payment
to pharmacies for drugs they dispensed under
Medicare Part D, and pay for the changes by
cutting overpayments to the private insurance
companies operating Private Fee For Service
(PFFS) Medicare Advantage (MA) plans. In a May
22 letter, Health and Human Services Secretary
Michael O. Leavitt wrote that
President Bush plans to veto
any Medicare bill cutting payments to the
private MA plan insurers. According to
CQ, Charles E.
Grassley (R-IA), the Finance
committee’s ranking Republican, may have
introduced the alternate version in an attempt
to prevent moderate Republicans from supporting
the legislation proposed by Baucus. “The Bush
Administration is continuing to play politics
with the health of our seniors,” said
Edward Coyle, Executive
Director of the Alliance. “We must send a
signal that this type of behavior is
unacceptable, and what the American people want
is real leadership to resolve these issues
now.”
Medicare Drug Premiums Up 16% Over
One Year
Most seniors in the
Medicare Part D prescription drug program are
paying higher monthly premiums this year, with
the three-quarters of beneficiaries signed up
for the ten largest plans paying an average
$26.39 per month – 16% higher than in 2007.
According to the Los Angeles Times,
the cost for AARP MedicareRx Preferred, the
program’s most popular plan, rose by 15% to
$32.08 a month, while premiums for the second
and third most popular options, Humana PDP
Standard and Humana PDP Enhanced, rose by 69%
and 6%, respectively. The average percentage
increase for these Part D plans is greater than
both the hike in Medicare's Part B premium for
outpatient care, up 3% for 2008, and the
average premium cost for workers’
drug-benefits, up just more than 9% over last
year for large employers. The newest increases
are likely to be viewed as a hardship by many
retirees; the combined costs of Medicare
premiums already total almost one-third of the
average monthly Social Security check.
“Medicare beneficiaries are already struggling
to afford the rapidly rising costs of food and
gas,” said George J. Kourpias,
President of the Alliance. “Seniors on fixed
incomes are being forced to make unacceptable
choices, as there is simply no way to cope when
the price of basic needs increases and income
does not.”
Most Americans Describe Themselves
as “Worse Off” Than One Year Ago
A
new Gallup poll shows that a record 55 percent
of Americans believe they are financially
“worse-off” today than one year ago. This week
marks the first time in the 32-years Gallup has
taken this measure that more than half of the
country has expressed negative feelings, and
the highest number since 47 percent of
respondents felt “worse-off” in 1982. Looking
forward, 52 percent of those questioned believe
their financial situation will improve over the
next year, but 31 percent say their situation
will continue to worsen. “Retirees are worried
not only about their future, but also that of
their children and grandchildren,” said
Ruben Burks,
Secretary-Treasurer of the Alliance. “We are
afraid we may be the last generation to ever
retire.” A recent survey conducted by the
Alliance found that only 12 percent of seniors
believe that their children and grandchildren
will have a better life than they enjoy.
New Regional Board Members Elected
in Florida
On Wednesday and
Thursday of this week, the Alliance held its
Southern Regional Meeting - the last of 2008’s
four regional meetings - in Orlando,
Florida. Speakers included Tony
Fransetta, President of the Florida
Alliance. Alliance President
George J. Kourpias swore in
the following newly-elected regional board
members to the Alliance Executive Board for
their sub-regions: Kenneth Stevens,
William Cea, C.L. “Connie” Entrekin,
and Wallace Baldwin.
Ballot Measure Victory in
California
Tuesday, Californians
voted against Proposition 98, a state ballot
measure to end rent control and prevent the
government from taking private residences and
business for other private development, in
favor of Proposition 99, a more specific
measure dealing with eminent domain reform
while leaving rent control measures intact. The
California Alliance for Retired Americans
(CARA) President Nan Brasmer
expressed CARA’s support for Proposition
99.
Alliance Hits the Road for Casino
Workers
On Saturday, June 21, the
Alliance will join dozens of other
organizations in rallying for nearly 5,000
Atlantic City, NJ table game dealers and slot
machine technicians who were involved in
representation elections at six casinos last
year. While an overwhelming majority of workers
at four of the casinos voted to join the United
Auto Workers, they remain without a contract.
Over the past year, these workers have lost
their healthcare, their wages have been
steadily eroding and working conditions have
deteriorated as the casino executives have seen
their compensation rise. Contact Kevin
Byrne at 202-639-6232 or kbyrne@aflcio.org to reserve
a seat on one of the buses departing
Washington, DC at 8:00 AM. A bus will also be
leaving from the Central Labor Council in New
York City; for more information, contact
Meg Cooch at 202-637-5272 or
mcooch@retiredamericans.org.
Did You Know…
Seniors
are seven times more likely to experience drug
errors - mistakes in administering medications
- than people under age 65
(CNN.com).
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