• Action Alert: Support Dorgan-Snowe Reimportation Bill
• Canadian Internet Pharmacies Measure Up, Says GAO
• Drug Industry/HMO Army of Lobbyists Pushed Medicare Bill
• House Rejects Bill Exempting Tax Cuts from Spending Curbs
• New Accounting Standards Threaten Retiree Health Coverage
• Kerry, Bush Square Off on Patients' Rights, Veterans' Benefits
• AFT, NEA Win Vote at Central Washington University
• Keep Active, Live Better
• Stay at the Hotel Royal Plaza and Save Big
• Quote of Note: Will Rogers on Growing Older
• Web site of the Week: www.medicarerights.org/rxframeset.html
  

ACTION ALERT: SUPPORT DORGAN-SNOWE REIMPORTATION BILL
With just a few weeks remaining on the legislative calendar, Congress is running short of time to legalize drug imports. The AFT is calling on retired members to contact your senators and tell them to support S. 2328, a bill introduced by Sens. Byron Dorgan (D-N.D.) and Olympia Snowe (R-Maine). This bipartisan measure would allow Americans to fill prescriptions from Canada and eventually from 20 industrialized countries. It includes safeguards to guarantee drug safety and would penalize any drug company that interfered with imports. "Reimportation isn't the final answer to rising drug prices," says Bill Cunningham, AFT associate director of federal legislation. "But President Bush's Medicare law gives little real relief to this national problem. Reimportation will help seniors get the drugs they need today at a price they can afford now." Legislation to legalize imports is up against stiff opposition from the powerful pharmaceutical lobby and the Bush administration. They are pushing a competing bill sponsored by Sen. Judd Gregg (R-N.H.) because it would allow drug companies and the federal government to manipulate the distribution of drugs. Use AFT's toll-free number 1/800-839-5276 to call the Capitol switchboard and urge your senators to support the bipartisan Dorgan-Snowe bill, S. 2328.

CANADIAN INTERNET PHARMACIES MEASURE UP, SAYS GAO
Prescription drugs purchased from Canadian online pharmacies pose fewer risks than drugs obtained from online pharmacies in other countries and, in some instances, U.S.-based online pharmacies, according to a General Accounting Office report released June 17. The report found that 24 of 29 online U.S. pharmacies and 21 online pharmacies based outside of Canada or the United States sold medications without a doctor's prescription; all 18 Canadian sites included in the report required prescriptions. Prescription drugs from U.S. and Canadian pharmacies typically came with proper labeling and included patient instructions and warnings, according to the report. The biggest problem with drugs shipped from Canada is that they are not FDA-approved because of production or labeling concerns. As with previous reports, GAO found instances of online pharmacies that relied solely on online questionnaires to screen buyers, and of pharmacies that sent medications improperly labeled or stored and shipped without patient pamphlets. However, the report noted that the samples from U.S. and Canadian pharmacies exhibited few problems otherwise, and the drugs had comparable chemical compositions to FDA-approved medicines.

DRUG INDUSTRY/HMO ARMY OF LOBBYISTS PUSHED MEDICARE BILL
In the final drive for Medicare prescription drug legislation, the pharmaceutical industry, HMOs and related interests spent more money and hired more lobbyists in 2003 than ever before, according to a report Public Citizen issued in June. The pharmaceutical and managed care industries together spent $141 million last year, according to Public Citizen's analysis of newly released federal lobbying disclosure records. Drugmakers and HMOs hired 952 individual lobbyists in 2003, nearly half of whom had revolving door connections to Congress, the White House or the executive branch. In all, 431 of these lobbyists, or 45 percent of the total, previously worked for the federal government. Among them were 30 ex-U.S. senators and representatives: 18 Republicans and 12 Democrats. The revolving door spins both ways. Three prominent drug industry and HMO lobbyists have recently moved into senior health policy positions at HHS. Another is now a spokesperson for the Bush campaign. And the lead White House negotiator on the Medicare bill--presidential adviser Doug Badger--formerly represented half a dozen drug companies as a lobbyist.

More info: http://www.citizen.org/congress/reform/rx_benefits/
drug_benefit/articles.cfm?ID=11852

HOUSE REJECTS BILL EXEMPTING TAX CUTS FROM SPENDING CURBS
The AFT won an important victory in Congress June 24 when the House of Representatives defeated legislation that would have severely curbed spending on programs that help America's neediest citizens. By a 268-146 vote, the House rejected H.R. 3973, the Spending Control Act (SCA) of 2004, a bill that would have employed seriously defective "pay-as-you-go" rules to enforce budget limits. This flawed provision applied only to increases in entitlement spending--including Medicare, Medicaid and student loans--or increases in refundable tax credits, such as the child tax credit that benefits low-income parents. By exempting tax cuts from the pay-as-you-go rules, these essential programs would have been cut some $1.8 trillion to accommodate overly generous tax breaks for the wealthiest taxpayers, the union noted in a letter to House members. The bill also would have imposed five-year caps for discretionary spending, forcing Congress to "lock in" spending levels requiring deep cuts in many important domestic programs, including education and healthcare. "The AFT recognizes that Congress will need to make difficult choices as it moves the country toward fiscal responsibility," said the union. "However, the SCA will do little to stem the flow of red ink because it facilitates the extension of more fiscally irresponsible tax cuts." The AFT, AFL-CIO, Alliance for Retired Americans and the Leadership Council of Aging Organizations all lobbied hard to defeat both the amendment and the overall bill.

NEW ACCOUNTING STANDARDS THREATEN RETIREE HEALTH COVERAGE
Nationwide public accounting standards approved June 22 will require state and local governments to project the full cost of retiree health benefits promised to their employees, putting immense pressure on public employers to reduce their liabilities by scaling back benefits or shifting more of the cost to retirees, government officials and accountants say. Supporters say the rules will help state and local officials, investors and taxpayers understand the magnitude of these commitments to current and future retirees. But public employees and their unions predict that the rules, combined with the soaring cost of healthcare, will speed the erosion of health insurance in the public sector, as happened at many private companies in the early 1990s. Developed by the Governmental Accounting Standards Board (GASB), the major accounting industry trade group, the rules apply to all state and local governments. They require employers to estimate and report the long-term costs of retiree health benefits while employees are still working. Under current practice, most public employers do not report such costs until they pay for the promised benefits when employees retire. State and local governments have a strong incentive to follow the new standards because compliance helps them borrow money in the bond market at favorable rates. The AFT and other unions and health plan administrators believe the standards could jeopardize health benefits for millions of retired public employees, as well as jeopardize bond ratings.

The Financial Accounting Standards Board, a sister organization of GASB, issued similar standards for private employers in 1990. Many companies have cited those standards as a reason for cutting retiree health benefits. "The new standards will put major new strain on public budgets, and tempt employers to drastically cut or eliminate retiree benefits," says John Abraham, AFT deputy research director. “Unlike pensions, it's virtually impossible to project healthcare costs over the long term. Will we cure cancer or heart disease? Will there be a new epidemic like AIDS? No one knows. Thanks to this rule, we'll have to fight even harder at the bargaining table and in state legislatures to preserve retiree health benefits."  About three-fourths of state governments and more than half of local governments provide health benefits to retirees, but the prevalence of retiree coverage in general has been declining. In a survey of large private and public employers, the Kaiser Family Foundation found that 38 percent offered retiree benefits last year, down from 66 percent in 1988. "The new accounting rules will accelerate those trends," says Mel Aaronson, treasurer of the United Federation of Teachers and a trustee of the New York City Teachers Retirement System. The AFT has opposed the new rule since its inception, organizing a coalition of unions and pension groups and testifying at hearings on the measure.

KERRY, BUSH SQUARE OFF ON PATIENTS' RIGHTS, VETERANS' BENEFITS
Renewed debate over patients' rights legislation and veterans' benefits has dominated the presidential campaign as presumptive Democratic presidential nominee Sen. John Kerry (Mass.) and President Bush traded barbs over the issues. The renewed debate on patients' rights comes in response to a U.S. Supreme Court decision on June 21 that limited the ability of patients to file suit against HMOs in state court. In a speech at the SEIU convention June 23, Kerry criticized Bush for helping defeat bipartisan legislation that would have allowed patients to sue HMOs in state court for unlimited damages. Kerry said that Bush opposed the Texas law involved in the Supreme Court case when he served as governor of the state, praised the law in his 2000 presidential campaign, and, as president, sent the solicitor general to fight the law at the Supreme Court. Aides to Kerry said that if he's elected, he will make patients' rights a major focus of his healthcare agenda. The day before, Kerry cancelled campaign appearances to return to Washington, to vote for a veterans' healthcare measure--only to see the vote delayed by the Senate Republican leadership. The veterans' health measure, sponsored by Senate Minority Leader Tom Daschle (D-S.D.), would have increased spending for veterans' healthcare by 30 percent percent next year and required continued funding increases related to the number of veterans and the cost of healthcare. The bill would have expanded access to full health coverage to an additional 500,000 veterans. A spokesperson for the Bush campaign said, "mandatory spending increases are the wrong approach for America's veterans."

AFT, NEA WIN VOTE AT CENTRAL WASHINGTON UNIVERSITY
Full- and part-time faculty at Central Washington University have formally voted for representation by the NEA and AFT, becoming the state's first faculty union at a public four-year college or university under a new collective bargaining law passed in 2002. "It marks a new era," said Susan Donohoe, president of United Faculty of Central, a dual affiliate of the AFT and NEA. "We're very proud that we took this step so we can now work with the administration to help improve our wages and working conditions." The union won 63 percent of the vote in the mail-in balloting June 2-23. The United Faculty of Central will represent 563 faculty members, librarians and coaches. Under a law signed in 2002 by Washington Gov. Gary Locke, four-year higher education institutions are required to recognize a union if a majority of the faculty votes for union representation. Since the law's enactment, AFT Washington and the Washington Education Association, with support from both the AFT and NEA, have undertaken a joint campaign to organize nearly 8,000 full- and part-time faculty at six of the state's public four-year and research institutions affected by the new law.

KEEP ACTIVE, LIVE BETTER
"Activity -- A Choice You Can Live With" was this year's slogan for National Senior Health and Fitness Day. It's true that being healthy is not about making temporary changes, such as going on a diet, but about making lifestyle changes that will improve your health for the long run. Here are three tips to help you get and stay active.

• Exercise...a different way. Jogging isn't the only activity that gives your body the cardiac workout it needs. In fact, jogging can be hard on the knees, back and heart. Gyms, senior centers and workout videos now cater to seniors by offering workouts (such as tai chi) that are gentle on the joints while still stimulating the heart and muscles. New research shows that even 10-minute walks help your heart.

• Mix it up. If you're bored with exercising, you're likely to give up. Keep your workout exciting by trying something new, varying your activities (walk one day, swim the next) and exercising with a friend.

• Keep your mind active, too. A healthy mind is an integral part of a healthy body. Stimulate those brain cells by doing word puzzles, writing letters and submitting your entry for next year's Senior Health and Fitness Day theme--and winning the $250 first prize. To enter, go to www.fitnessday.com.

STAY AT THE HOTEL ROYAL PLAZA AND SAVE BIG
AFT members can save big at Hotel Royal Plaza in Orlando, Fla. The Hotel Royal Plaza is unionized and located in the heart of Downtown Disney, with complimentary transportation to the Disney theme parks. The Royal Plaza is offering a special union leisure rate to AFT members and their families. Simply call 800/248-7890, ext. 2500, to check rates, or visit www.royalplaza.com to learn more about this wonderful hotel right in Downtown Disney. Call early to secure your discount and rooms. Happy traveling!

QUOTE OF NOTE: Will Rogers on Growing Older
"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."

-- Will Rogers

WEB SITE OF THE WEEK: www.medicarerights.org/rxframeset.html
This site lists programs that can help you keep your drug costs down. Check to see if your state has a program that offers good discounts, and research mail-order, Internet, pharmacy and pharmaceutical programs that often offer deeper discounts than the Medicare drug discount cards.

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