• AFT Retirees Mark 70th Anniversary of Social Security
• Celebrate Social Security’s 70th with a
  Message to Privatizers
• AFT Weighs in on Social Security, Estate Tax,
  Energy Assistance
• Marketing Blitz Marks Opening of ‘Education’ Phase of New Prescription Drug Benefit
• Rising Drug Prices Continue To Outpace Inflation
• New York State Creates Web site on
  Drug Prices Statewide
• Patient Safety Legislation Signed into Law
• Medicare Appeals May Be Lost in Transition
• WHCoA Resolutions from the Leadership Council of Aging Organizations
• Retiring into Work: Alliance Releases New Issue Brief
• Save on Auto Insurance with AFT PLUS
• Quote of Note: The AFL-CIO Split
• Web site of the Week: http://www.seniornet.org

AFT RETIREES MARK 70th ANNIVERSARY OF
SOCIAL SECURITY
More than 300 AFT retirees assembled in Hyde Park, N.Y., at the home of President Franklin Delano Roosevelt, on Aug. 13 for events marking the 70th anniversary of the signing of the Social Security Act by FDR. NYSUT and UFT retirees were decked out in hats and T-shirts carrying the anti-privatization theme urging Congress to “Fix, Not Risk” Social Security. In addition, Americans United to Protect Social Security, a coalition strongly backed by the AFT that includes labor, senior, community and activist groups, is holding a series of events around the country to mark the occasion. The birthday parties are focusing on traditional Social Security’s unbroken record of providing benefits and pulling millions of seniors out of poverty. AFT retirees in Wisconsin, Pennsylvania, Florida and other states participated in events during the week leading up to and following Aug. 14, the actual date of the signing.
 
CELEBRATE SOCIAL SECURITY’S 70TH WITH A MESSAGE TO PRIVATIZERS
Congressional supporters of privatization are home for the August recess with a propaganda packet on how to sell Social Security private accounts dressed up in a fresh coat of paint. Don’t let them succeed. As Retiree e-news reported last month, Rep. Jim McCrery (R-La.) has introduced a bill (H.R. 3304) that privatization proponents are trying to pass off as a new idea to stop the “raiding” of Social Security by Congress. That’s baloney: The McCrery bill is the first step toward President Bush’s plan to privatize Social Security—nothing more. When Congress comes back from vacation in September, the push for private accounts will begin quickly with the House Ways and Means Committee taking up the McCrery measure. The bill creates private accounts, cuts guaranteed benefits and increases the national debt. And it does nothing to stop the raids on the Social Security surplus or to keep the program solvent. Members of Congress need to strengthen Social Security—America’s most successful family security program—not privatize it. Now is the time to send a loud and clear message: No Social Security privatization, no way. Tell your members of Congress to oppose privatizing Social Security and not to be fooled by the McCrery bill. Click http://www.unionvoice.org/campaign/socsec022205 to send AFT’s letter to your representative and senators.
 
AFT WEIGHS IN ON SOCIAL SECURITY, ESTATE TAX, ENERGY ASSISTANCE
Congress may be in recess, but the AFT is still hard at work. Recently, the AFT joined other senior and labor groups in the Leadership Coalition of Aging Organizations sending letters to Congress backing strengthening traditional Social Security and opposing any form of private accounts paid for by Social Security funds; opposing the complete elimination of the federal estate tax; and seeking release of $47.6 million in federal funds for low-income Americans in the wake of this summer’s record-breaking heat wave. In the Phoenix area alone, there have been 24 heat-related deaths from the blistering temperatures. Only 1.4 percent of all Americans (the country’s wealthiest households) now pay any federal estate tax, and two-thirds of all estate tax revenues come from the top 0.2 percent. LCAO members called on Congress to keep the estate tax for this group and oppose any cosmetic compromise that would retain only a fraction of the tax as a token gesture toward fiscal responsibility. Both the president and Republican congressional leaders support complete repeal of the tax, which would add $1 trillion to the federal deficit in just the first 10 years. 
 
MARKETING BLITZ MARKS OPENING OF ‘EDUCATION’ PHASE OF NEW PRESCRIPTION DRUG BENEFIT
As preparations for the new Medicare drug benefit pick up steam, reports of misleading and high-pressure tactics are beginning to surface. In one case, an insurance salesman pressed a local senior center to let him set up a time to sign up seniors for the new prescription drug plans. Major health plans such as Humana and UnitedHealth Group have teamed up with chains like Walgreen’s and Wal-Mart to launch in-store educational campaigns about the Medicare drug benefit, handing out brochures and information stamped with their company names and logos. UnitedHealth has partnered with Walgreen’s, CVS, Rite Aid, Brooks, Eckerd and Target to distribute a “guide” to the new law. Beginning Aug. 15, Humana will put company representatives at tables near pharmacies in 2,600 Wal-Mart stores. Critics contend these "educational" promotions are just tactics used to lure seniors into the healthcare industry’s biggest money-making opportunity in decades. Although the Centers for Medicare and Medicaid Services allow providers and other groups to educate consumers about the general Medicare Prescription Drug Benefit and insurers and plans may say that they have applied to be a Medicare Prescription Drug Plan and have submitted a bid to CMS, they are not allowed to market or discuss enrollment in their specific plan or identify themselves as a Medicare Approved Prescription Drug Plan until Oct. 1. Enrollment for the new Medicare drug benefit opens Nov. 15.
 
RISING DRUG PRICES CONTINUE TO
OUTPACE INFLATION
Pharmaceutical companies raised prices for the top 100 brand-name drugs by another 5.5 percent in the first half of 2005, according to Delta Marketing Dynamics. Comparatively, inflation rose by 2.5 percent in the first half of the year. Not surprisingly, the drug industry continues to rake in huge profits. Pfizer, the nation’s top pharmaceutical company, made $50.9 billion in 2004, according to IMS Health. As Medicare prepares to begin its drug benefit in 2006, drug companies are looking to increase profits even more. A study by the Boston University School of Public Health found that under the 2003 Medicare law, drug companies would realize $139 billion in new profits over eight years. The flawed legislation prohibits Medicare from negotiating discounts with drug makers. For more information on the Boston University study, visit their Web site at http://www.healthreformprogram.org/.
 
NEW YORK STATE CREATES WEB SITE ON DRUG PRICES STATEWIDE
New York Gov. George Pataki (R) has signed legislation (S. 1936) requiring the state Health Department to create a Web site displaying retail prices for 150 prescription drugs at every pharmacy in the state. The prices posted on the Web site will be based on reports that pharmacies are currently required to submit to the Health Department. Under the new law, pharmacies will be required to provide consumers with their price lists and post notices of the availability of the data. Assemblyman Richard Gottfried, Democratic chair of the Assembly Health Committee and the chief sponsor of the bill in the House, said the online database would be the most comprehensive in the U.S. He called the new site a more comprehensive and up-to-date version of the site now maintained by the state’s attorney general.
 
PATIENT SAFETY LEGISLATION SIGNED INTO LAW
Legislation recently signed into law will make it easier for hospitals to report medical errors and improve the quality of healthcare and patient safety. The Patient Safety and Quality Improvement Act of 2005 establishes a national network of patient safety organizations, maintained by the U.S. Department of Health and Human Services, for hospitals to report medical mistakes. The reports would be voluntary and confidential, and the patient safety organizations would use the information to develop ways to improve patient safety and reduce medical errors. The new law also contains strong whistleblower protection to prevent loss of a job, promotion or work-related benefits for nurses and health professionals who “in good faith” report errors to a patient safety organization. In addition, it provides a right of civil court action to protect healthcare workers. State employees are also covered by the provision. The AFT, along with other unions, worked diligently to assure these new protections were in the final legislation. President Bush signed the bill into law on July 29.
 
MEDICARE APPEALS MAY BE LOST IN TRANSITION
A newly released analysis by the Government Accountability Office (GAO) found that the U.S. Department of Health and Human Services (HHS) is unprepared to take over Medicare appeals as mandated under the 2003 Medicare law. The report noted that HHS has not ensured people with Medicare and providers sufficient access to hearings. While the Social Security Administration, which currently conducts hearings, maintains 141 hearing rooms, HHS has only four. HHS is relying heavily on videoconferencing technology but, according to the GAO, “has not provided convincing evidence” that videoconferencing is an adequate substitute for in-person hearings. In addition, HHS has hired only 23 out of 49 administrative law judges, the final arbiters in the appeals process. In fiscal year 2004, there were about 5 million Medicare appeals, with 113,000 denied claims appealed to administrative law judges. SSA estimated that 3,000 to 5,000 claims will be pending on Oct. 1 when the appeals transition is expected to be complete.
 
WHCOA RESOLUTIONS FROM THE LEADERSHIP COUNCIL OF AGING ORGANIZATIONS
The Leadership Council of Aging Organizations (LCAO), a coalition of more than 50 national aging organizations including the AFT and the Alliance for Retired Americans, has presented a number of resolutions to the White House Conference on Aging (WHCoA). The resolutions address issues such as health and long-term care services, pensions and savings, the Social Security and Supplemental Security Income programs, and older workers. LCAO will push for adoption of its resolutions at the WHCoA Dec. 11-14, 2005, meeting in Washington, D.C. The resolutions are available on the LCAO Web site at http://www.lcao.org/press/docs/051705letter.pdf.
 
RETIRING INTO WORK: ALLIANCE RELEASES NEW ISSUE BRIEF
Working in later life often supplements retirement income, such as Social Security, pensions and savings, and is likely to become even more important in the future. The latest installment of the Alliance for Retired Americans Educational Fund’s issue briefs explores the advantages and disadvantages of working longer and the practices that can encourage continued participation in the labor force. The brief is available at http://www.retiredamericansfund.org. 
 
SAVE ON AUTO INSURANCE WITH AFT PLUS
AFT members get exclusive savings with GMAC for auto insurance. GMAC understands that you depend on your vehicle to live the life you choose. The auto insurance program features coverage for almost every make and model of vehicle—including RVs, guaranteed claims satisfaction or GMAC will waive your deductible (up to $250), nationwide towing coverage to the nearest repair facility, emergency expense allowance of up to $500, $50 for locksmith service, 24-hour, toll-free claims hotline and nationwide network of claims representatives, and a lot more. To request a free, no-obligation quote, call 888/847-9991. GMAC insurance is rated "A" (excellent) for financial strength by A.M. Best Company. 
 
QUOTE OF NOTE: THE AFL-CIO SPLIT
"This coalition of unions [Change to Win], representing 30 percent of the membership of the AFL-CIO, sought to dictate who would succeed John Sweeney as president of the federation. They wanted to do this without putting forward a candidate and without an open and public debate within the AFL-CIO. . . . While there was some room for accommodating these unions on money, there was simply no principled way to go along with what they wanted in terms of subverting the democratic process. I was among those who tried to find ways for keeping these unions in the federation, but at some point it became clear to me that they were determined to leave, no matter what the consequences."

AFT president Edward J. McElroy
Letter to AFT Leaders
August 8, 2005

WEB SITE OF THE WEEK: http://www.seniornet.org/
SeniorNet is a nonprofit organization of computer-using adults, age 50 and older, providing education for and access to computer technologies.