• AFT Activists Join Alliance's National Day of Action
• Medicare Negotiations Slow; Oct. 17 Target Unlikely
• AARP, Business Roundtable Urge Passage of Medicare Bill
• AFL-CIO, AFT Defer Presidential Primary Endorsement
• FEA Blasts Planned Edison Buyout Using Pension Fund
• Texas Legislature Closes with Hyperpartisan Election Map
• Retirees Elect Three to NYSUT Executive Board
• Canadian Rx Drugs Pouring into U.S.
• Companies Reversing Trend of Reducing Benefits Cuts, Survey Says
• Number of Uninsured Americans Rises to 43.6 Million
• Managed Care Plans Push Generic Drug Use
• Nebraska Alliance Gets Charter
• New Student Loan Consolidation Program
• High Fiber Diets Help Keep You Healthy
• Quote of Note: Texas Redistricting
• Web Site of the Week: http://www.naela.org

AFT Activists Join Alliance's National Day of Action
AFT activists in California, Oregon, Washington and Arizona joined other union and community retirees in a massive National Day of Action Oct. 10 sponsored by the Alliance for Retired Americans. Events around the country targeted members of the U. S. House of Representatives and Senate who support the Medicare prescription drug bills (H.R. 1 and S. 1) now in conference committee. Members were thanked for supporting the alliance's position opposing both bills in their current form. "The time for action is now," says alliance president George Kourpias. "We cannot wait any longer. This National Day of Action showed our elected officials that seniors are united on this issue. We must make them understand that seniors will not accept any legislation that privatizes the traditional fee-for-service Medicare program or fails to control the costs of prescription drugs. Nor will they stand by and see their existing employer-provided benefits cut or eliminated."


Medicare Negotiations Slow; Oct. 17 Target Unlikely
Members of the conference committee charged with reconciling the two Medicare prescription drug bills (H.R.1 and S.1) are making little headway on settling major differences. The issue of "dual eligibles" is causing lots of friction. The House bill--but not the Senate's--would provide prescription drug benefits for the 6.2 million Medicare recipients who are poor enough to qualify for Medicaid as well. Late last month, conferees arrived at a tentative agreement to accept the House position. Then, last week, according to the Washington Post, President Bush called Senate Majority Leader Bill Frist (R-Tenn.) to oppose the change in direction. Frist then told conferees at a closed-door session that he does not favor the tentative agreement and considers it an open issue. Other key issues still unresolved include: the privatization or competition provision in the House bill, which calls for direct competition between fee-for-service Medicare plans and private plans beginning in 2010; the means-testing provision in the House bill, which calls for Medicare beneficiaries with higher incomes to pay more out-of-pocket for their drug costs, necessary additional assistance for employers to help them continue existing retiree health care coverage and drug reimportation provisions in both bills which, in effect, would give the Food and Drug Administration veto power over reimporting U. S.-made prescription drugs from Canada. With all these issues outstanding, it is highly unlikely that the conferees will meet their self-imposed deadline of Oct. 17 for agreeing on a final bill and sending it to the full House and Senate. AFT retiree e-news will keep you posted.

AARP, Business Roundtable Team Up To Urge Passage of Medicare Bill
Starting with a full-page ad Oct. 14 in the Washington Post, New York Times, USA Today and Roll Call, AARP and the Business Roundtable together have launched a campaign for a Medicare prescription drug benefit. The same ad ran Oct. 15 in The Hill, like Roll Call a leading newspaper for congressional members and staff. Under the slogan: "Medicare reform. Do it right. Do it right now," the giant seniors group and major corporate coalition are urging passage of a compromise Medicare drug bill that offers:

• Improved preventive and wellness services and chronic care management;
• Coverage of all beneficiaries;
• The option to stay in traditional Medicare without paying more; and
• Incentives for employers to continue providing high-quality drug coverage.

The only certainties in this position are universal coverage for all those now in Medicare and a level playing field for traditional Medicare to compete with private plans. Unaddressed are such key AFT and Alliance for Retired Americans issues as means testing, a continued role for Medicare as a provider of prescription drugs and coverage gaps.


AFL-CIO, AFT Defer Presidential Primary Endorsement
AFL-CIO president John Sweeney will not bring together the federation's general board this month to consider an endorsement in the Democratic presidential primary race. Although some 15 unions already said they will endorse U.S. Rep. Richard Gephardt of Missouri, others say they're not ready to decide, Sweeney announced on Sept. 30. At its August meeting, the AFL-CIO executive council authorized a mid-October meeting if a consensus emerged, but it became clear that the two-thirds vote among affiliates needed to endorse a candidate would not be reached. Only twice has the federation endorsed a candidate before the start of the nomination process. Affiliated unions are free to make an endorsement anytime, Sweeney noted, and the AFL-CIO will revisit the question. Meanwhile, the AFT's executive council decided at its Oct. 8 meeting not to make an endorsement at this time. AFT president Sandra Feldman told council members that there was no clear favorite among AFT members and that the union needed more time to consider the candidates and the views of our members. To view candidate responses to the AFT questionnaire, go to www.aft.org/legislation/questionnaires.html.


FEA Blasts Planned Edison Buyout Using Pension Fund
The Florida Education Association has joined other public employee unions in the state to fight a plan that would use as much as $182 million from the state retirement system to help bankroll a buyout of Edison Schools. In a letter to Gov. Jeb Bush, FEA president Andy Ford joined other union leaders to call the deal "an unsound economic decision" by the pension administration board that Bush chairs. Edison Schools, a for-profit school management company and leading charter school provider, has lost more than $354 million and has operated at a loss in most years since its 1992 launch. "We shouldn't be gambling with the retirement fund," Ford said, pointing to its other disastrous holdings. The Florida Retirement System was by far the largest state retirement fund stakeholder in Enron before fraud at that company made its shares worthless. If bankrolling Edison seems a shaky-at-best investment for public employees, it would be a bonanza for company CEO Christopher Whittle and other officers. Whittle would remain CEO, receive $4.2 million for his shares plus a new $1.69 million loan, and earn at least $600,000 a year, according to a Bloomberg news report based on a U.S. Securities and Exchange Commission filing.


Texas Legislature Closes with Hyperpartisan Election Map
The Texas Legislature has finally adjourned, probably not to meet again until next April and quite possibly not until January 2005. The final Sunday of the third special session, Oct. 12, was steeped in the bitterness that has marked much of this year. A congressional re-redistricting bill finally passed and is certain to be challenged vigorously in court. Two Republicans, Bill Ratliff of Mount Pleasant and Troy Fraser of Horseshoe Bend, joined all 12 Democrats in voting against the remapping, which if upheld in court would most likely knock off 10 Texas Democrats now serving in the U.S. House. The measure was the brainchild of U.S. House majority leader Tom DeLay, a bareknuckles hard-right partisan whose AFT voting record in the last Congress was zero. DeLay returned to Texas to personally broker the final deal. Democratic state senators twice left the state to avoid voting on the measure, which overrides an earlier court-ordered redistricting plan based on the 2000 census.


Retirees Elect Three to NYSUT Executive Board
New York State United Teachers retiree leaders made history Oct. 9 when they elected three from their ranks to the NYSUT board of directors. The new board members are Loretta Donlon of Syracuse, Judith Rudman, Retiree Council 18 president from Nassau County, and UFT Retiree Chapter chair Tom Pappas. All were chosen regionally. A fourth, at-large retiree director will be elected by the full board of directors at its December meeting. All retiree directors' terms expire at the 2005 Representative Assembly when a new board will be elected. All will then serve the traditional three-year term. Earlier this year, NYSUT delegates approved constitutional changes granting retirees expanded representation on the 75-member board and increasing the voting strength of the 42 retiree councils from one to three delegates each. The election marks the first time leaders representing retirees will enjoy full voting rights on the board. Previously, retirees were represented by one nonvoting delegate.


Canadian Rx Drugs Pouring into U.S.
Three years ago, U.S. residents spent just a few million dollars on reimported prescription drugs from Canada. Today, about a million of them are doing so at an expected cost of about $800 million this year. In a recent USA Today/CNN/Gallup Poll, 71 percent of U.S. residents said they support legalizing reimportation of prescription drugs from Canada. More consumers are reimporting drugs because of a rapid rise in drug costs, lack of drug coverage, the economic downturn and rising unemployment. Further, the ease of buying medications over the Internet and increased awareness of lower prices in Canada also are contributing to reimportation in spite of the federal government’s insistence that the practice is unsafe and illegal.


Companies Reversing Trend of Reducing Benefits Cuts, Survey Says
Fewer U.S. companies expect to pursue aggressive cost-cutting of employees' health benefits, salaries and bonuses next year, according to a survey by human resources consulting firm Watson Wyatt Worldwide. The survey was based on 358 companies' responses about their actions on employee benefits and compensation in the past 12 months and actions they planned to take next year. Completed in June and July, the survey found that 18 percent of the companies planned to require employees to pay more for health benefits next year, compared to 56 percent that reported doing so this year. In addition, 6 percent of companies planned to decrease employee benefits in 2004, a significant improvement from the 12 percent of employers that cut benefits in 2003.


Number of Uninsured Americans Rises to 43.6 Million
A new study by the U. S. Census Bureau finds that the number of people in the United States without health insurance is now 43.6 million, an increase of 2.4 million, or 5.8 percent, since 2001. The increase is the steepest since the early 1990s. Fueled by a decline in job-based health coverage, the number of Americans without health insurance grew by 2.4 million from 2001 to 2002. About 15.2 percent of Americans lacked health coverage for all of 2002, compared with14.6 percent in 2001. According to the newest report released Sept. 30, 61.3 percent of Americans were covered by job-based health plans for 2002, compared with 62.6 percent for 2001. Meanwhile, the percentage of people covered by government health insurance programs increased in 2002, from 25.3 percent to 25.7 percent, largely because of an increase in Medicaid coverage. According to the report, the percentage of U.S. children without health coverage held steady at 11.6 percent. The proportion of uninsured people in 2002 varied widely by state: Texas had the largest percentage of uninsured residents, at 24.1 percent. Minnesota, Rhode Island and Wisconsin had the smallest percentage, at about 8 percent. These numbers are likely to stoke the growing healthcare debate. More info: http://www.census.gov/prod/2003pubs/p60-223.pdf.

Managed Care Plans Push Generic Drug Use
Managed care plans have launched a tough new offensive to encourage enrollees to use generic drugs rather than their brand-name equivalents. Currently, generics are prescribed in about 40 percent of the cases in which generic drugs are available, according to an analysis from Health Net of the Northeast. Aetna, Health Net, Cigna and Anthem are among the insurers that offer or are planning to offer coupons or vouchers for over-the-counter drugs and generics. Others are temporarily waiving co-payments for generics. Some insurers are placing all brand-name prescriptions within certain classes in their highest co-payment bracket to discourage their use. Prescriptions targeted for generic use include drugs to treat depression, acid reflux, high cholesterol and other ailments. The efforts to steer patients toward generics could help insurers save 30 percent to 90 percent on prescription drug costs, according to Jeffrey Casberg, pharmacy director at ConnectiCare. Insurers say the savings could help them reduce premium increases.


Nebraska Alliance Gets Charter
The Alliance for Retired Americans has chartered its 13th state affiliate, the Nebraska Alliance for Retired Americans. The new group got its charter at its founding convention held in conjunction with the Nebraska AFL-CIO constitutional convention in Grand Island, Neb., Sept. 25-27.


New Student Loan Consolidation Program
AFT PLUS now offers the Student Loan Consolidation Program as a new benefit to AFT members and eligible family members who are paying off student loans. This program is guaranteed by the U.S. Department of Education and offers superior benefits and customer service compared to those offered by other loan consolidators. The benefits of consolidating through the program are significant for those who have more than $10,000 in outstanding eligible federal education loans. The program lets borrowers lock in a fixed interest rate for the life of the loans and lower monthly payments by as much as 54 percent. You can reduce your interest rate by up to 1.85 percent and simplify repayments by making only one monthly payment. Student loans still in repayment may be eligible for consolidation, even if repayment began years ago. Interest rates on student loans are currently low. Recent graduates may be able to lock in a rate as low as 2.225 percent. For more information, go to http://aftplus.slcp.com or call 800/936-4976.


High Fiber Diets Help Keep You Healthy
A high fiber diet is one of the most important elements in maintaining health, dietitians note. Besides reducing the risk of constipation, a diet rich in fiber may reduce the risk of diverticulitis and certain types of cancer, help control the level of blood sugar in diabetics, and may help lower the level of total blood cholesterol. Bran cereals and pinto beans lead the list of high fiber foods, while apples, dried figs, brussels sprouts, lentils, pears and strawberries are also good fiber sources.


Quote of Note: Texas Redistricting
"Black and Hispanic voters are complaining of being electorally ghettoized into fewer districts. They have a strong case to make, and we hope the Bush administration's Justice Department can consider it fairly. If not, the redistricting plan's zigzags, and nips and tucks, chart a partisan willfulness that should come to haunt Mr. DeLay in the next elections."

--New York Times

Web Site of the Week: http://www.naela.org
The National Academy of Elder Law Attorneys is a nonprofit association that helps lawyers and others who work with older clients and their families. Established in 1987, the academy provides information, education, networking and assistance on many specialized issues concerning legal services to the elderly and disabled. Although primarily aimed at attorneys, the site provides basic information on elder law and a referral service for its member attorneys.