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Friday Alert
Friday, September 5, 2008(Alliance for Retired Americans)
Republican Convention Platform
Raises Concerns
The Republican
Party held its nominating convention in
Minneapolis-St. Paul, Minnesota this week,
officially nominating Sen. John
McCain of Arizona for President and
Gov. Sarah Palin of Alaska to
be Vice President. As a U.S. Senator,
McCain has a 29% voting record with the
Alliance on issues important to retirees,
including a score of 0% in 2007. Gov.
Palin offended many by mocking community
organizers during her speech. "Community
organizers help bring food and health care to
senior citizens. They educate and
mobilize seniors and others who are often
forgotten in this country. It was deeply
offensive to hear their work belittled and
turned into a cheap punch line," said
George J. Kourpias, President
of the Alliance.
The Republican platform mentions Medicare, focusing on its “out of control growth.” In citing Social Security, the platform calls for “reform” while touting “personal investment accounts.” “Beware seemingly innocent buzzwords that mask true intentions,” continued Mr. Kourpias. “Because the wording in their platform does not mention any of the positive developments that Social Security and Medicare have brought, there is reason for seniors to be concerned. Words like ‘reform’ can be used to mask continuing attempts to privatize Social Security and Medicare.”
Drug Company Advertisements
Slipping Through FDA
Loophole
Pharmaceutical companies
such as Sanofi Aventis SA and Pfizer Inc. have
been using a loophole in Food and Drug
Administration (FDA) rules to promote their
drugs without outlining the possible side
effects, according to a recent report by
The Wall Street Journal. Under
the FDA’s regulations, advertisements that do
not explicitly name a drug do not have to
include a listing of the product’s potentially
negative consequences. To avoid paying
for longer television commercials that would
require these lists, big pharmaceutical
companies are airing ads that simply describe
symptoms and direct the viewer to a
website. There, consumers can find
information about the drug, including its brand
name and side effects. Called “unbranded
product advertising,” the technique has
recently become more popular with drug makers
as they face increased Congressional scrutiny
about their marketing practices.
“Retirees have played by the rules their entire
lives,” said Edward F. Coyle,
Executive Director of the Alliance. “It
is up to the FDA to make sure big drug
companies do the same so that cheaters don’t
prosper.”
New Report Shows Private Insurers’
Marketing Materials Misinforming
Seniors
Senate Finance Chairman
Max Baucus (D-MT) commented on
Thursday about a new and alarming report from
the Office of the Inspector General at the
Department of Health and Human Services that
indicates 85% of “marketing” materials
presented to American seniors by private
insurers selling Medicare benefits do not meet
standards set forth by the Centers for Medicare
and Medicaid Services. Sen. Baucus, who
has held hearings in the Committee on
unscrupulous marketing to seniors by private
plans, said action must be taken to improve
service to seniors now. The full report is
online at http://www.oig.hhs.gov/oei/reports/oei-01-06-00050.pdf.
“This report reveals a near-total failure by
CMS, where officials have insisted that they
can regulate the marketing of plans to seniors
as well as or better than experienced state
insurance agencies. The evidence now
shows that’s not the case,” said Sen.
Baucus. “It’s unconscionable that CMS has
let the insurance industry’s materials –
including essential items like pharmacy
directories and summaries of benefits – fail to
properly inform seniors 85 percent of the
time…and you’d better believe the Finance
Committee will move to make sure seniors get
better service one way or the other,” he
continued. The senator’s own Medicare
improvement bill, enacted into law this year,
contained prohibitions on unscrupulous
marketing practices by private plans, including
unannounced visits and cold calls by plan
agents.
Skyrocketing Number of Older
Americans Seeking Bankruptcy
While
fewer Americans under 55 are facing bankruptcy,
filing rates for older workers and retirees are
skyrocketing. According to a Consumer
Bankruptcy Project analysis of non-commercial
bankruptcies, Americans 55 and over made up
only about 8% of filers in 1991; by last year,
they accounted for 22%. Moreover,
financial situations worsened with age.
People ages 55-64 became 40% more likely to go
bankrupt, but those 65-74 ended up more than
twice as likely, with their filing rate
increasing 125%. The bankruptcy rate more
than quadrupled for Americans over 75, soaring
433%. The increase is due largely to the
difficulty seniors on fixed budgets are having
with the rising costs or ordinary goods like
food and fuel. A greater number of
retirees are facing debt left over from
mortgages, some have been victims of financial
scams, and for some older Americans below or
near the poverty level, one catastrophic
medical bill is the catalyst for
bankruptcy. “Seniors should never have to
choose between seeing a doctor and keeping
their homes,” said Ruben
Burks, Secretary-Treasurer of the
Alliance.
Retirees with the Write
Stuff
The Letters to the Editor
page is often the most widely read section of a
local newspaper, and for Alliance members it is
a forum to tell our stories and show how deeply
we care about the issues. “Retirees with
the Write Stuff” is a project of the Alliance
for Retired Americans to encourage more
retirees to write letters to their local
newspaper. Write a Letter to the Editor
to your local newspaper, giving a retiree’s
perspective on a local, state or national
issue. If it runs, send us a copy at letters@retiredamericans.org
or fax it to 202/637-5398, and we will send you
a “Retiree with the Write Stuff” pen, plus
print your name here and at www.retiredamericans.org.
Congratulations to Charlie
Averill, Shane Fox
and Charles Rike on their
recent publications!
Did You Know…
On
average, health care costs will go up by an
estimated 5.7% next year for both workers and
their employers. The growth of health
care costs has hovered at around 6% since 2005
(Houston Chronicle).