EEOC HEALTHCARE DECISION WILL SPUR COORDINATION, NOT CUTS
A high-profile decision by the Equal Employment Opportunity Commission has been mischaracterized by some media as a threat to the rights of Medicare-eligible retirees. In fact, the AFT-backed decision simply allows retiree health benefits to be coordinated with Medicare without violating federal law. The commission voted on April 22 to modify the effect of a court decision (Erie County Retirees Association v. County of Erie) that threatened employers' ability to offer continued healthcare coverage to employees who choose to retire before they are eligible for Medicare. The health benefits provided to these "early retirees" are often negotiated through collective bargaining. Specifically, the EEOC clarified that employers are not in violation of the Age Discrimination in Employment Act (ADEA) when they provide health benefits solely to retirees who are not eligible for Medicare, or when they do not provide the same benefits to retirees who are over age 65 and are eligible for Medicare. The EEOC decision was crucial because the prior court ruling held that providing such benefits to early retirees violated ADEA. As a result of the court ruling, and to comply with the ADEA, employers were faced with an all-or-nothing choice: Assume the potential cost of providing healthcare benefits to all retirees (whether Medicare-eligible or not) or don't provide coverage to any early retirees. The union, in concert with the AFL-CIO, the National Education Association and the UAW, helped persuade the EEOC to reverse its stand and will continue to work with congressional leaders for a long-term legislative fix to the problem.
 

Rx DRUG CARDS AVAILABLE IN MAY
As Medicare drug discount cards go on sale May 3, beneficiaries should bear in mind these five flaws:
1. The cards do not guarantee any particular discount, despite previous claims they would offer discounts of 10 percent to 25 percent on the costs of your drugs.
2. There is no guarantee you will continue to get a discount on the drugs you buy after enrolling.
3. There is no guarantee that advertised discounts won’t change after you select a card.
4. Be careful which pharmacy you patronize under the discount card. Different pharmacies will charge different prices, even with any discount offered by the card.
5. There is no guarantee that these new cards will save you more than other discount cards now available.
If you already have some drug coverage – either as a retiree or through a state assistance program – that coverage is likely to be a better deal than these new cards.
 

PHARMACISTS MAY NOT BE BEST ADVISORS ON DRUG DISCOUNT CARDS
Local pharmacies' marketing could affect Medicare beneficiaries' selection of prescription drug discount cards. As Medicare beneficiaries begin enrolling in the program, many will turn to their local pharmacies for advice on which card best suits their needs. However, with major pharmacy chains such as CVS and Walgreens offering their own discount cards, beneficiaries may find their local pharmacists actively marketing certain cards. For example, Walgreens will carry only applications for the company's own discount card. Independent pharmacists also are expected to promote certain cards. In a recent letter, Bruce Roberts, CEO of the National Community Pharmacists Association, advised member pharmacists that the effort to enroll Medicare beneficiaries in NCPA's own drug discount card program is a race that will help position community pharmacists for 2006, when private insurers will begin marketing comprehensive health coverage to Medicare beneficiaries. "Our overriding goal is to keep your Medicare patients in your pharmacy," Roberts said in the letter. In addition, NCPA had planned to pay pharmacists $12 for every beneficiary who signed up for an NCPA card until the U.S. Department of Health and Human Services said that such incentives might be considered illegal kickbacks.
 

AFT GETS BEHIND BIPARTISAN Rx DRUG REIMPORTATION BILL
On April 22, a bipartisan group of senators introduced a bill, S. 2328, that would allow the reimportation of prescription drugs from other nations. The group includes Senate Minority Leader Tom Daschle (D-S.D.) and Sens. Edward Kennedy (D-Mass.), Byron Dorgan (D-N.D.), Debbie Stabenow (D-Mich.), Tim Johnson (D-S.D.), Mark Pryor (D-Ark.), Russell Feingold (D-Wis.), John McCain (R-Ariz.), Olympia Snowe (R-Maine), Lincoln Chafee (R-R.I.) and Trent Lott (R-Miss.). The Pharmaceutical Market Access and Drug Safety Act would allow U.S. residents to reimport a 90-day supply of prescription drugs from Canada for personal use, but U.S. residents could reimport medications only from FDA-approved Canadian pharmacies listed on the agency’s Web site. In addition, U.S. residents could bring back up to a 90-day supply of prescription drugs for personal use from Australia, Japan, New Zealand, Switzerland or current European Union nations. After 90 days, the bill would allow licensed pharmacists and prescription drug wholesalers to reimport medications from Canada. After one year, pharmacists and wholesalers could reimport drugs from Australia, Japan, New Zealand, Switzerland or E.U. nations that were members as of Jan. 1, 2003. Pharmacists and wholesalers who reimport prescription drugs would have to register with the FDA and pay fees of as much as 1 percent of the price of the medications to fund the cost of additional federal inspectors and customs agents. Pharmacists and wholesalers also would have to track and document the "chain of custody" of medications from manufacturer to consumer. “Until people in Medicare have comprehensive drug coverage and Medicare can negotiate prices, we will support legitimate stopgap measures such as this bill to bring down the cost of drugs,” says AFT associate director of legislation Bill Cunningham.
 

PhRMA CRASHES IOWA MEDICARE MEETINGS
Sen. Chuck Grassley (R-Iowa) says representatives from the pharmaceutical industry intruded on town meetings in Iowa held to provide beneficiaries with information about the new Medicare law, and they lobbied against a reimportation bill he has introduced. "We had drug company representatives show up and try to denigrate my efforts for the importation of drugs." He said the drug company representatives, who at first did not identify themselves, tried to take over four of the 12 meetings he held the week of April 12.
 

ANOTHER TOP GOP AIDE LOBBYING FOR PhRMA
The revolving door continues to spin as another government official involved in crafting the Medicare Rx law has left to lobby for the drug industry. John McManus, a former staff director for the House Ways and Means Committee on Health, worked closely with Chairman Bill Thomas (R-Calif.) on the bill. Although under federal law McManus is prohibited from directly lobbying Ways and Means for a year, his knowledge of the law is an obvious boon for the industry. Several healthcare aides left the Hill to lobby after the bill passed in December, notably Tom Scully, former head of the Centers for Medicare and Medicaid Services.
 

MANY WOMEN COVERED BY MEDICARE NOT GETTING ANNUAL MAMMOGRAMS
Six years after Medicare began covering annual mammograms for women over age 40, only 51.8 percent of eligible women over age 50 received mammograms in 2001 or 2002, according to data from the Centers for Medicare and Medicaid Services. Across the United States, mammography rates for Medicare-eligible women are inching up at a snail's pace, and some states have recorded no change at all, CMS officials said. Organizations in some states have begun campaigns to raise mammogram awareness. Florida Medical Quality Assurance, a Tampa-based group that examines Medicare claims, has distributed mailings and articles and held outreach fairs, health fairs and exhibits at conferences. The New Mexico Medical Review Association targeted older women with an aggressive media campaign and reminder phone calls. As a result, mammography rates among women ages 52 to 69 increased from 55.7 percent to 60 percent statewide in the last three years. Some 30 million mammograms are performed yearly in the United States. The American Cancer Society recommends annual mammograms for women beginning at age 40.
 

WILL ROGERS ON GROWING OLDER

• Eventually you will reach a point when you stop lying about your age and start bragging about it.
• The older we get, the fewer things seem worth waiting in line for.
• Some people try to turn back their odometers. Not me. I want people to know why I look this way. I've traveled a long way and some of the roads weren't paved.
• You know you are getting old when everything either dries up or leaks.
• I don't know how I got over the hill without getting to the top.
• One of the many things no one tells you about aging is that it is such a nice change from being young.
• One must wait until evening to see how splendid the day has been.
   

REMEMBER SOMEONE SPECIAL ON MOTHER'S DAY
Mother’s Day is May 9. Make someone's day and save money. Convenient, money-saving floral deliveries are just another reason it pays to be an AFT member. Save 15 percent on every order (minimum $34.99). To have flowers, plants, or a gift basket delivered, call 888/667-7779 or click on the AFT PLUS member benefits area online.
 

QUOTE OF NOTE
"The EEOC proceedings underscore the need to give everyone over age 55 a stable, comprehensive form of primary health insurance, relatively impervious to rising health costs or fluctuations in the business cycle. To do this, Congress should permit adults ages 55 to 64 to purchase health coverage through Medicare and should close holes in Medicare, including the gaping 'donut hole' in the new Part D prescription drug benefit."

--Ben Beck, Medicare Rights Center
 

WEB SITE OF THE WEEK: http://www.medicare.gov
You can now compare prices for Medicare-approved drug discount cards on the Medicare Web site. But remember, if you have employer or state drug coverage, you probably already are getting deeper discounts. You can also check how Medicare drug card discounts compare to other programs, such as state assistance, mail-order and Internet programs, at http://www.medicarerights.org/rxframeset.html.
 

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