• President Bush Says He Wants Medicare Bill This Year
• Call Now on Medicare Rx Drug Plan
• AFT Leaders and Pension Experts Gather on GPO/WEP
• Alliance Launches National Medicare Ad Campaign
• Bush Administration to Overpay Private Medicare Plans 19.3 Percent
• Americans Support Drug Reimportation
• Bush Slips with Older Voters
• Eli Lilly Moves To Limit Prescription Drug Sales to Canada
• Kaiser Permanente M+C Plan To Stop Covering Brand-Name Drugs
• Clark Releases Healthcare Plan
• 2004 Social Security Benefits To Rise 2.1 Percent, Medicare
  Part B Premiums, $7.90
• FDA Approves New Alzheimer’s Drug
• Union Plus Scholarship Applications Now Available
• Quote of Note
• Web Site of the Week: http://www.findaflushot.com/lungusa

President Bush Says He Wants Medicare Bill This Year
President Bush ascended the bully pulpit on Oct. 29 to push for a privatized Medicare prescription drug benefit. He called on Congress to finish work on the Medicare bills so he could sign a bill by the end of the year. Although short on details, the President’s remarks underline the importance of the bill in next year’s election race. The key Republican Congressional leadership agenda remains some form of “premium support” program that would eventually privatize Medicare (with an assist from means-testing to discourage the wealthiest Americans from participating in the plan); preventing Medicare from negotiating drug prices; and reducing the federal role in delivering healthcare to older Americans. On Nov. 3, the Bush White House weighed in supporting House Republicans who want a spending cap for Medicare. This fundamental change in the program’s financing would likely increase costs and cut benefits for Medicare beneficiaries. It would also make it much more difficult for Congress to improve drug benefits, raise payments to doctors and hospitals or provide coverage for more services.

In other developments:

• Conferees decided not to include a House-passed provision that would have given tax breaks to U. S. residents who set up Health Savings Security Accounts (HSAs), and decided against adding co-payments for home healthcare visits. The original House proposal reportedly would have cost an estimated $163 billion in tax breaks that would have largely benefited upper-income people. The conferees have not eliminated the possibility of allowing less-expensive health savings accounts.
  
• Negotiators were near agreement on including the provision in the Senate bill that would speed generic prescription drugs to market. Major unresolved issues include: cost containment (limiting Medicare spending if future cost increases are larger than expected); privatization of Medicare (traditional Medicare would be forced to compete directly with private health plans, which would receive generous subsidies and could tailor plans to younger, healthier and cheaper-to-cover seniors); means-testing (charging different Part B [doctor] premiums based on income); reimportation (allowing U. S. residents to purchase lower-cost medications from Canada and other nations); and incentives for employers to encourage them to continue offering retiree prescription drug coverage.

Call Now on Medicare Rx Drug Plan
Republican congressional leaders are poised to unveil a Medicare prescription drug bill that labor and retiree groups warn would raise drug costs for millions of seniors while opening the door to privatizing one of the nation's most successful programs for the elderly and people with disabilities. The AFL-CIO notes that under the Republican-backed plan, costs would rise for 32.5 million Medicare participants through higher premiums, co-payments and deductibles. The bill also would do nothing to rein in soaring prescription drug costs and threatens the employer-provided drug benefits of as many as 4.5 million retirees. The Republican conferees on the Senate and House bills have shut out nearly all Democrats on the conference committee. Their bill is expected to go to the full House and Senate shortly. Now is the time for AFT members to contact their representatives and senators and urge them to vote against any bill that includes provisions such as the House "premium support" or other approaches that would privatize traditional Medicare, as well as means testing for Medicare benefits, which would undermine the universal nature of the program. Further, any acceptable bill must provide additional assistance to employers who provide retiree health insurance (both House and Senate bills would eliminate about one-third of existing retiree health insurance, reports the Congressional Budget Office). Contact your members of Congress via AFT's Legislative Action Center, http://capwiz.com/amft/mail/oneclick_compose/?alertid=2704816, or on the AFT toll-free hotline to the Capitol switchboard at 800/839-5276.

The AFT program on retirement and retirees joined other major senior and labor groups in three recent letters from the Leadership Council of Aging Organizations to the conferees opposing premium support and spending caps and backing more generous subsidies for low-income seniors. “Medicare has brought peace of mind and security to tens of millions of Americans over the past 38 years,” the coalition of some 50 aging groups wrote the conferees in October. “Requiring Congressional action if and when Medicare spending exceeds an estimated target would bring fear and uncertainty to millions of Americans at a time in their lives when they need security—not anxiety.”


AFT Leaders and Pension Experts Gather on GPO/WEP
Some 30 AFT leaders and pension advocates met at AFT headquarters on Oct. 30 for a one-day briefing session on the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP). They heard Ken Manella, an official of the Social Security Administration and staff from GPO/WEP reformers Sen. Dianne Feinstein and Barbara Mikulski, Reps. Howard McKeon, Robert Matsui and House Social Security chair Clay Shaw. All addressed the prospects for repealing and reducing the draconian penalties suffered by nearly 1 million public employee retirees and their spouses whose pension systems are not part of Social Security. (The average widow or widower loses $300 per month in Social Security benefits under the GPO, and retired public employees lose over $250 a month on average due to WEP).The AFT leaders then lobbied Congress for repeal of both provisions, concentrating on two sections of current bills that would penalize even more retirees in the 15 affected states. The best news came from the Texas delegation: Texas Federation of Teachers president John Cole, secretary-treasurer John O'Sullivan and Fort Bend Employees Federation president Karrie Washenfelder (joined by TFT legislative director Eric Hartman) delivered petitions from more than 10,000 school employees in hundreds of school districts in that state. The petitions asked the lawmakers to support repeal of the GPO/WEP and to block Section 418 of H.R. 743, which would subject even more Texas public sector retirees to the GPO. Sen. Kay Bailey Hutchison (R.-Tex.) responded by telling the TFT leaders that she had placed a “hold” on H.R. 743 until her concerns about the inequities of Section 418 could be addressed by an amendment she intends to offer.


Alliance Launches National Medicare Ad Campaign
As House-Senate conference committee negotiators continue to wrestle with details of a final Medicare bill, the Alliance for Retired Americans purchased television ads in key media markets aimed at educating the public about the proposed prescription drug benefit. The ads, which began airing on Oct. 28, urge viewers not to let Congress turn Medicare over to private insurers. State alliances in Washington, Ohio, Pennsylvania, Oregon, Arizona and Florida also sponsored events the week of Oct. 27 to publicize the ads and mobilize seniors to fight the bill. “Millions of retirees could lose their existing employer-provided coverage,” warns alliance president George Kourpias, who notes that under the legislation, "Seniors will end up with thousands of dollars in out-of-pocket costs." He adds that drug companies will be the big winners because the legislation would do nothing to control the costs of prescription drugs. A new study released Oct. 30 by Boston University’s School of Public Health finds that the pharmaceutical industry stands to make a profit of at least $139 billion over eight years under the Medicare plan now being considered.


Bush Administration to Overpay Private Medicare Plans 19.3 Percent
The Bush administration next year is expecting to pay private Medicare health plans 19.3 percent more than traditional Medicare spends to provide coverage, according to government data in a report issued Oct. 24 by the Medicare Rights Center, a consumer organization. These overpayments will expand to $75 billion over the next 10 years, under legislation being considered by congressional negotiators on overhauling Medicare, according to "Medicare Private Plan Overpayments: An Anti-Competitive Practice that Hurts Medicare." The report is posted at http://www.medicarerights.org/faircompetition.html.

Americans Support Drug Reimportation
Recent polls demonstrate that support for the reimportation of U.S.-made prescription drugs from Canada is gaining among Americans. A Wall Street Journal Online/Harris Interactive poll found the following:

• The number of people who have bought prescription drugs from Canada is up from 5 percent to 7 percent since last November.
• The number of people who say they would shop for prescription drugs abroad if they could rose from 40 percent to 48 percent during the same period.
• 77 percent of people polled say it is unreasonable for drug companies to stop Canadian pharmacies from selling prescription medication over the Internet.

A second poll by USA Today/CNN/Gallup finds that about a million people in the United States will spend about $800 million on reimported prescription medications from Canada in 2003. The survey also found that 71 percent of those polled support legalizing the reimportation of prescription drugs from Canada.


Bush Slips with Older Voters
An October New York Times/CBS News poll finds that older voters are less than pleased with the job that President Bush is doing. His overall approval rating among 65-and-older voters plunged from 63 percent in May to 44 percent in July to 41 percent in October, the lowest among any age group. This is similar to a Gallup poll released in late October, which finds that only 49 percent of 65-and-older voters approve of the president’s performance, compared with 60 percent of those ages 30 to 49.


Eli Lilly Moves To Limit Prescription Drug Sales to Canada
Eli Lilly has limited prescription drug sales to Canadian pharmacies as part of an effort by U.S. pharmaceutical companies to prevent reimportation of their products from Canada. GlaxoSmithKline in January, AstraZeneca in April, Wyeth in June and Pfizer in August took similar actions. In a letter to 24 Canadian prescription drug wholesalers, Lilly officials said that the company will limit product sales to an amount sufficient to supply the Canadian market only. Members of a Lilly task force formed in 2001 to examine drug reimportation said they found a steady increase in counterfeit and improperly stored Lilly products sold to U.S. consumers by Canadian pharmacies. Lilly contracts with Canadian prescription drug wholesalers prohibit the sale of company products to U.S. consumers.


Kaiser Permanente M+C Plan To Stop Covering Brand-Name Drugs
Effective this coming Jan. 1, Kaiser Permanente's Medicare+Choice plan, called Senior Advantage, will stop covering brand-name prescription drugs and raise co-payments for various services. The insurer will offer unlimited coverage for generic drugs and will lower beneficiaries' monthly premium to $80 from $85, said Denise Hanson, director of Medicare and state programs for the California division of Kaiser. The insurer also will begin charging co-pays of $10 to $50 for radiology and laboratory tests, services that previously did not have co-pays, and will start charging members $200 per day for inpatient care, with a $3,000 cap on out-of-pocket costs, instead of $500 per admission. The insurer's action is part of the continuing shrinking Medicare HMO coverage nationwide.

Clark Releases Healthcare Plan
Democratic presidential candidate Wesley Clark would spend roughly $695 billion over 10 years to provide all U.S. children with health insurance and increase access to coverage for adults, according to a plan released Oct. 28. Clark said he would legally require parents to insure their children. To ease the costs, the retired general said he would give families that earn up to five times the federal poverty limit a tax credit they could apply to their children's insurance premiums. Clark also said that he would offer financial assistance to people in need of aid to buy health insurance, give incentives for disease prevention and look to cut costs through improved efficiency in the healthcare system. Clark would repeal tax cuts for Americans who make more than $200,000 annually and use some of that money to improve veterans' healthcare and make education more affordable, which in turn could encourage students to pursue healthcare careers. Clark joins Sens. John Edwards and Joe Lieberman in proposing modest increases in coverage. Sen. John Kerry, former Vermont Gov. Howard Dean and Reps. Dick Gephardt and Dennis Kucinich all propose universal or near-universal health coverage.


2004 Social Security Benefits To Rise 2.1 Percent,
Medicare Part B Premiums, $7.90
The Social Security Administration announced in October that Social Security benefits will increase 2.1 percent, effective January 2004. That’s a rise of $19 per month for the average recipient. The average monthly benefit for an individual retiree will go from $903 to $922, while the benefit for the average couple will increase from $1,492 to $1,523. More than 47 million retirees, survivors and people with disabilities will receive the annual cost-of-living adjustment. Medicare Part B, which pays for doctors’ services and other outpatient care, will increase by $7.90 a month next year. That’s an increase of 13.5 percent, one of the largest in the history of the program. The new premium, effective January 2004, will be $66.60 per month. The Part A (hospital) deductible will rise from $840 to $876 for each benefit period, a 4.3 percent increase.

More info: http://www.sssa.gov and http://www.medicare.gov


FDA Approves New Alzheimer’s Drug
In October, the Food and Drug Administration approved memantine (Namenda) for treatment of moderate to severe Alzheimer’s disease, the first drug approved for the treatment of patients with more severe Alzheimer’s. Memantine helps treat symptoms in some patients but is not a cure, nor does it affect the underlying pathology. Memantine will be marketed under the trade name Namenda by Forest Labs. Alzheimer’s disease, which affects about 4.5 million Americans, is a degenerative condition affecting memory, judgment and the ability to reason.
More info: http://www.fda.gov.

Two AFT PLUS Programs Help Save on Vet Bills
AFT PLUS offers AFT retiree members two programs to help save on veterinary bills. The first option allows you to continue with your current veterinarian. Policies available include older pets, accident-only coverage and more. For details, call 866/473-7387 or visit http://www.unionplus.org/pets and click on Pet Health Insurance. The second option, Pet Assure Veterinary Care, saves 25 percent off your bill at participating veterinarians. AFT members save 40 percent on the plan's monthly premium. Covered services include preventive care, shots, surgery, medications and more. To sign up or to find participating veterinarians in your area, call 888/789-PETS (7387) or go to http://www.unionplus.org/pets ;and enter coded UP2003.


Quote of Note
“The proposed Medicare drug benefit grows skimpier over time. Given the rate of growth in drug prices, the benefit under consideration would be worth less when it would take effect three years from now. The average Medicare beneficiary is going to be deeply disappointed.”

 --Gail Shearer, Consumer’s Union

Web Site of the Week: http://www.findaflushot.com/lungusa The American Lung Association is offering a new flu shot locator with information on more than 17,000 flu shot clinics across the country offering vaccinations between Oct. 1 and Nov. 15. The site also describes who should get the shot and links to other relevant resources and news.

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Contributors and sources: Bill Cunningham, Shantel Edmonds, Medicare Rights Center, Administration on Aging Electronic Newsletter, BNA Health Policy Report, Inside AFT, Alliance for Retired Americans Friday Alert, TFT Legislative Hotline, Medicare Rights Center, Caregivers USA Electronic Newsletter, USA Today, San Francisco Chronicle, Newark Star-Ledger, Wall Street Journal, Associated Press, Fort Worth Star-Telegram, Los Angeles Times, Washington Post, New York Times, Kaiser Health Policy Report. Frank Stella, editor; Annette Licitra, copy editor; Renee Turner, design.