• Medicare Rx Bill Up in the Air
• AFT Opposes Vastly Expanded Medical Savings Accounts
• 39,000 Losing Medicare+Choice Coverage Next Year
• 200 AFT Retiree Leaders Tackle Issues, Organizing
• Alliance Activists Defy Rain to Lobby Congress
• Health Insurance Premiums Rose 13.9 percent in 2003
• Labor Scores Overtime Victory in Senate Vote
• Lieberman's Health Plan Calls for Coverage for 31 million in 10 Years
• Bad Meetings Manners Damage Credibility
• Save More Now on AFT PLUS Computers
• Quote of Note
• Web site of the Week: http://www.naic.org

Medicare Rx Bill Up in the Air
House and Senate conferees continue to hammer away at a bill with no end date in sight. Members of the conference committee met Sept. 9 and agreed on a discount card for seniors and on more aid for rural healthcare providers. The drug discount card would give Medicare beneficiaries a choice of government-endorsed cards costing up to $30 per year, with a $600 credit and no fee for low-income retirees. Supporters claim the card would save seniors between 15 percent and 25 percent on prescriptions until 2006, when more comprehensive Medicare coverage would begin. Opposition to both bills continues to mount. A September USA Today poll found that 72 percent of seniors wanted a stronger bill. An August Kaiser Family Foundation and Harvard School of Public Health poll, 76 percent of seniors said they are worried about paying too much for prescription drugs even if Congress approves a Medicare drug benefit. In addition, according to the Kaiser/Harvard poll, while most support Medicare drug legislation, that support erodes to 37 percent after respondents hear arguments for and against the bills, with 57 percent saying Congress should wait to enact a bill that provides more help to seniors. Negotiations, scheduled to be completed in October, may take considerably longer as more seniors check the fine print in the 1,000-page bills. The Congressional Budget Office (CBO) estimates that, if the Senate measure is approved, employers would end up reducing drug benefits for 37 percent of current retirees. If the House version is approved, CBO predicts that more than 4 million retirees would lose their benefits. The AFT continues to urge members to reinforce the need for a much stronger bill that would include no gap in coverage, stronger incentives for employers to maintain current prescription drug coverage and maintenance of Medicare as a provider. The union strongly opposes efforts to privatize Medicare and cut existing benefits. Contact your senators and representative via AFTs toll-free hotline, 800-839-5276, or Legislative Action Center, http://www.unionvoice.org/legislativeaction/home.html.


AFT Opposes Vastly Expanded Medical Savings Accounts
The AFT has joined the AFL-CIO, NEA and 23 labor, healthcare, seniors, religious and public interest groups in opposing $174 billion in tax breaks for medical savings accounts. H.R. 1, the House Medicare prescription drug bill, would establish new tax-favored savings accounts known as Health Savings Security Accounts and expand, make permanent and rename the existing Medical Savings Account demonstration project. In a Sept. 10 letter to Senate and House conferees on the Medicare prescription drug bill, the groups said that such accounts would significantly weaken the employer-based health insurance system through which the vast majority of Americans obtain their health coverage and further encourage employers to move away from the health insurance plans they traditionally offer. Such a move would disproportionately harm low- and moderate-income workers who are older and sicker--those least able to take advantage of the tax benefits of these accounts but who most need healthcare. The letter concluded that these accounts constitute "yet another costly tax cut in a time of worsening budget deficits that substantially benefits high-income people."


39,000 Losing Medicare+Choice Coverage Next Year
The rate of health plans leaving Medicare+Choice will slow next year, with about 39,000 beneficiaries expected to lose M+C coverage in 2004, according to an American Association of Health Plans survey. Between 1999 and 2003, 2.4 million beneficiaries lost M+C coverage as health plans scaled back or ended their participation in the program. M+C includes 11.5 percent of the 40 million people enrolled in Medicare. Private plans participating in M+C had until Aug. 31 to tell CMS if they intended to end coverage in certain areas, as well as if they planned any changes to benefits, premiums and co-payments. Blue Cross and Blue Shield of Georgia, Georgia's largest health insurer, accounts for 19,000 of the total number of beneficiaries who will lose M+C coverage. The health plan dropped M+C coverage in the Atlanta area. Private health plans say that the 2 percent annual increases in payment rates are too small to keep pace with medical costs. According to HHS, HMOs dropped 407,000 beneficiaries in 1999, 327,000 in 2000, 933,600 in 2001, 536,000 in 2002 and 198,315 this year.


200 AFT Retiree Leaders Tackle Issues, Organizing
Nearly 200 AFT activists gathered in Washington at the AFT's Third Retiree Leadership Conference Sept. 5-7, catching up on the latest Medicare prescription drug plans, the coming election and trends in pension and healthcare issues. At workshops and roundtables, they also swapped strategies and shared information on issues ranging from recruiting new members and adding spice to meeting programs to winning representation in local union governance structures and helping members deal with end-of-life-issues. The group heard an inspiring address by U.S. Rep. Elijah Cummings, chair of the Congressional Black Caucus, who told a compelling personal story of his rise from poverty to a seat in Congress, in no small part due to his public school teachers. Assistant to the secretary-treasurer Paul Devlin hailed the retiree leaders as the vanguard of the fastest-growing constituency in the AFT and warned of the radical right's efforts to undermine the American social fabric. Alliance for Retired Americans executive director Ed Coyle updated participants on the alliance's battle for a strong Medicare Rx bill. Devlin presented the Jeannette B. DiLorenzo retiree of the year award to Ray Ferraro, past president of the Public Employees Federation Retired. AFTers also honored UFT retiree activist Luisa Kaufman for her activism on Medicare Rx drugs in Arizona. Kaufman, along with four other seniors, was arrested while attempting to request a meeting with Sen. Jon Kyl (R-Ariz.), a member of the Congressional conference committee on Medicare Rx drugs.


Alliance Activists Defy Rain to Lobby Congress
Nearly 1,000 older Americans from all parts of the nation braved soaking rain to participate in the Alliance for Retired Americans' Rally and Lobby Day on Capitol Hill last week. The 700 attendees at the alliance's National Legislative Conference, including some 60 AFT activists, were joined by several buses filled with seniors from New York and scores of allies from area labor unions and community groups. The purpose was to communicate a very vocal message to their elected representatives that privatization of Medicare is unacceptable and that the two bills (S.1 and H.R 1) now being considered by a conference committee need to be revamped or die in committee. After a rain-shortened rally addressed by alliance president George Kourpias, AFL-CIO president John Sweeney and Sen. Jay Rockefeller IV (D-W.V.), the seniors spread out across Capitol Hill for meetings with their members of Congress. In all, the seniors lobbied 43 senators and 103 representatives. The 2004 elections were also an important part of the agenda. Participants heard from two Democratic candidates for president--Rep. Richard Gephardt (Mo.) and Rep. Dennis Kucinich (Ohio)--and viewed video presentations from three others--former Vermont Gov. Howard Dean, Sen. John Kerry (Mass.) and Sen. Joe Lieberman (Conn.). Other speakers included Linda Chavez-Thompson, executive vice president of the AFL-CIO, and Helen Thomas, former White House bureau chief for United Press International and now a syndicated columnist for Hearst News Service. At a special Sept. 4 breakfast, AFT secretary-treasurer Ed McElroy thanked the AFT activists for their dedication and urged them to step up their activity in the battle for a strong prescription drug bill and in the coming elections.


Health Insurance Premiums Rose 13.9 percent in 2003
Private health insurance premiums rose 13.9 percent between spring 2002 and spring 2003, the third consecutive year of double-digit increases and the largest such increase since 1990, according to a survey by the Kaiser Family Foundation and the Health Research and Educational Trust. The survey includes responses from 2,800 public and private firms of three to more than 300,000 employees. Healthcare costs increased six times as fast as the estimated inflation rate for the rest of the economy. Despite the rise in health insurance costs, 66 percent of companies provided health benefits in 2003, about the same as did in 2002, the survey says. Average premiums for family coverage rose to $9,068, with employers paying 73 percent of that cost on average. Average premiums for family coverage rose to $9,068, with employers paying 73 percent of that cost on average. Employees with individual coverage paid an average of $508 per year in premiums, up 52 percent from $334 in 2000. Employees with family coverage paid an average of $2,412 this year, up 49 percent from $1,619 in 2000. The survey also says that 65 percent of companies increased employees' share of health costs in 2003. In the future, 10 percent of firms said they would reduce eligibility and 16 percent said they would drop coverage entirely.


Labor Scores Overtime Victory in Senate Vote
The Senate last week rejected the Bush administration's plan to strip some 8 million professional, technical and other workers of their overtime rights. Voting 54-45, the Senate approved an amendment by Sen. Tom Harkin (D-Iowa) barring the Labor Department from taking overtime away from these workers--including healthcare workers, public employees and school support staff. The fight isn't over, however, because the bill now goes to conference, where opponents will try to strip the amendment. The House will be asked to vote on a similar measure as well. Still, the Senate vote "sends an important message that organized labor will fight to protect the rights of our members," says AFT president Sandra Feldman. "A special thank-you to all AFT members, leaders and staff who worked so hard on these issues. These votes reflect our strength both in the field and in Washington." All Senate Democrats except Sen. Zell Miller (Ga.) voted for the amendment, as did Independent James Jeffords (Vt.). Six Republicans broke ranks: Ben Nighthorse Campbell (Colo.), Lincoln Chaffee (R.I.), Lisa Murkowski (Alaska.), Olympia Snowe (Maine), Arlen Specter (Pa.) and Ted Stevens (Alaska). For more details, go to the Contact Congress area of AFT Online.


Lieberman's Health Plan Calls for Coverage for 31 million in 10 Years
Presidential candidate Sen. Joseph Lieberman (D-Conn.) on Sept. 2 outlined an incremental plan to reduce the number of uninsured U.S. residents by three-quarters. The plan, which would cost about $53.4 billion per year for the first five years, would offer care to 31 million uninsured U.S. residents within 10 years. It includes several parts. MediKids would offer coverage to individuals up to age 25; with free coverage for low-income families and a premium cap of $1,600 a year for families with annual incomes above $50,000. MediChoice would allow self-employed people and employees of small businesses to buy insurance coverage on a sliding scale through a system modeled after the Federal Employees Health Benefits Plan. No one would pay more than 7.5 percent of their income for health coverage. Both the MediKids and MediChoice programs would cap insurer profits at 2 percent. Lieberman's proposal would also give states the authority and funding to expand Medicaid to adults with annual incomes up to 150 percent of the federal poverty level. A third program would help laid-off workers and employees of companies that go out of business with the cost of coverage by requiring that all employer-sponsored health plans extend at least two months after an employee leaves; offering tax credits to cover 65 percent of COBRA premiums for workers between jobs; and creating new insurance pools to which COBRA recipients and workers receiving unemployment insurance would have access for one year. Lieberman would fund his healthcare proposal by repealing portions of tax cuts implemented by President Bush. According to The Wall Street Journal, one of the main differences between Lieberman's plan and those proposed by other Democratic presidential candidates is that Lieberman focuses more on extending coverage to the uninsured and less on lowering insurance costs for workers.


Bad Meetings Manners Damage Credibility
Clipping fingernails, twisting paper clips and exhibiting other bad habits can detract from your professional image in office meetings, says communication expert Barbara Pachter (http://www.pachter.com). Many people do these things without realizing the silent impact their behavior makes. Even with a familiar group, it's important to be aware of your behavior. Here are some behaviors to avoid: 1. Not greeting others when you arrive. Say hello to those who arrived before you and introduce yourself to anyone new. 2. Not greeting others who arrive after you. At least make eye contact and smile if you are in a large group and can't speak directly with a new arrival. 3. Arriving late. If you are unavoidably delayed, enter quietly and make a discreet apology. 4. Performing personal grooming tasks. 5. Not maintaining proper posture. Avoid slouching or leaning on your elbows. 6. Inattention. 7. Leaving early without a reason. If you know you have to leave early, make sure others know in advance what time you have to leave, and apologize for any inconvenience this may cause.


Save More Now on AFT PLUS Computers
The temperature is finally cooling down and the leaves will be falling soon. There's no better time to get a laptop through the AFT PLUS Member Computer Purchase Program. All laptop prices have been reduced by 10 percent in September. Buy now and save right away! Get your laptop bundle. Qualified buyers can pay it off over 12 months through automatic bank account deductions with no finance charges and no credit checks. Bundles come with Dell or Gateway computer, monitor, multifunction color printer that copies and scans, speakers, software, three-year warranty, a gift card and much more. In addition to laptop bundles, desktop bundles and great accessories including digital cameras, flat panel monitors and handheld computers (PDAs) are available. To learn about these products and to order, visit http://aft.ecp2.com or call (877) 208-7167. Save with the AFT PLUS Computer Purchase Program.


Quote of Note
"For all of us, the world changed two years ago on Sept. 11. Even as we were confronted by attacks worse than we could have imagined, we were blessed to see the ordinary working people of America turn hurt into heroism and terror into triumphs of unity. In many ways, we're a changed nation. We're reminded of the strength we draw from our core values, our communities and our loved ones. And we recognize that every day, every hour, counts. In other ways, little has changed. Lip service is still paid to the contributions of working people, including the heroism of so many police, firefighters, health workers, construction workers and others. Investments in the well-being of working families still take a back seat to the agenda of moneyed special interests. That's why for many of us, Sept. 11 has deepened our drive and commitment to make this country a better, safer, healthier and happier place for working families."



Web Site of the Week: http://www.naic.org
The National Alliance of Insurance Commissioners offers shopper's guides to many kinds of insurance as well as handy fact sheets and information on long-term care, home and auto insurance.

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Contributors and sources: Bill Cunningham, Shantel Edmonds, Congress Daily, Boston Herald, Inside AFT, Alliance for Retired Americans Friday Alert, Medicare Rights Center, Los Angeles Times, The Washington Post, Philadelphia Inquirer, AFT PSRP Electronic Newsletter, Hartford Courant, This Active Life, The New York Times, The Wall Street Journal, Kaiser Health Policy Report. Frank Stella, editor; Annette Licitra, copy editor; Renee Turner, design.