• AFT Weighs in against Healthcare, Education Cuts
• Beware the Latest Medicare Scam
• Drug Seizures Designed To Force People into Part D, Says Florida Senator
• Kennedy, Stabenow Propose Bill To Overhaul Medicare Rx Benefit
• Tauzin Denies Allegations about PhRMA Job
• AARP Drug Plan Tops Part D Enrollment
• NY Rx Drug Price Web site Saves $17 per Prescription
• Feeling the Heat, Wal-Mart Offers More Health Coverage
• Key Republican Breaks with Bush on Health Savings Accounts
• AFT, NEA Affiliates Tackle '65 Percent' Mandate
• Save Now on Theme Park Tickets
• Quote of Note
• Web site of the Week: http://www.irs.gov/pub/irs-pdf/p554.pdf

AFT WEIGHS IN AGAINST HEALTHCARE,
EDUCATION CUTS
In a strongly worded letter to U.S. senators, the AFT urged rejection of more than $55 billion in cuts to key healthcare and education programs proposed by the White House, including $36 billion in Medicare cuts and $14 billion in cuts to Medicaid over the next five years. "Budgeting is about priorities," federal legislation director Tor Cowan wrote, "and this budget has them wrong. The AFT urges you to. . . pass a budget that helps fulfill the aspirations of students, teachers and other school staff, healthcare professionals, the elderly, the poor and the disabled." The union also challenged the president's proposed $7 billion in cuts to funding for key education programs such as No Child Left Behind and the Individuals with Disabilities Education Act (IDEA), the largest cuts in these programs in the last 26 years. The Bush budget would also freeze the maximum Pell Grant (which helps pay college tuition for low-income students) at $4,050 for the fifth consecutive year. The AFT urged support for bipartisan amendments to increase funding levels for education, health and social services.

BEWARE THE LATEST MEDICARE SCAM
A ring of unscrupulous companies is scamming older Americans and people with disabilities by posing as a legitimate Medicare prescription drug plan. The Centers for Medicare & Medicaid Services (CMS) is calling this scheme the "$299Ring" for the amount of money targets of the scam are typically asked to withdraw from their checking accounts for the nonexistent drug plan. CMS reports receiving complaints from Indiana, Michigan, Pennsylvania, Massachusetts, New Jersey and Georgia. Legitimate Medicare drug plans will not ask for payment over the telephone or Internet.

DRUG SEIZURES DESIGNED TO FORCE PEOPLE INTO PART D, SAYS FLORIDA SENATOR
Some 13,000 packages of prescription drugs have been stopped by U.S. Customs and Border Protection since November 2005, according to figures released recently by U.S. Sen. Bill Nelson (D-Fla.). The U.S. Customs Office said it could not confirm Sen. Nelson's numbers but did say the seizures would continue, provoking an uproar among U.S. consumers and lawmakers who complain that the campaign is depriving people of necessary medications. According to the Los Angeles Times, the crackdown began on Nov. 17, two days after the launch of the Part D enrollment period. The Customs Office denies any connection between the seizures and the Medicare drug benefit. Department of Health and Human Services spokeswoman Christina Pearson confirmed that the Food and Drug Administration had been advised of the crackdown, but she could not say whether the agency had any say in the decision. While ordering drugs from abroad is technically illegal, U.S. Customs and FDA officials have generally not enforced the ban. Last year, about 2 million U.S. residents purchased medicines from Canadian pharmacies. Last month, Reps. Gil Gutknecht (R-Minn.) and Rahm Emanuel (D-Ill.) sent a letter to FDA and customs officials requesting an explanation for the increased seizures.

KENNEDY, STABENOW PROPOSE BILL TO OVERHAUL MEDICARE Rx BENEFIT
Sens. Edward Kennedy (D-Mass.) and Debbie Stabenow (D-Mich.) introduced a bill on Feb. 28 that would allow Medicare beneficiaries to obtain drug coverage directly from Medicare itself. According to the Kaiser Foundation's Health Policy Report, the legislation also would eliminate the so-called "donut hole" coverage gap -- or the gap in coverage under which Medicare beneficiaries are responsible for annual drug costs between $2,250 and $5,100 -- and allow the U.S. Department of Health and Humans Services to negotiate drug prices with drug companies. The Veterans Administration, which does negotiate directly with drug makers, saves participants about 40 percent on drugs. Kennedy said the 2003 Medicare law "was a nightmare of complexity and confusion." He cited the denial of drugs to low-income people with Medicare during the launch of the drug benefit forcing seniors across the country to pay exorbitant fees to fill their prescriptions and states to rush to fill the gap. Under the new bill, co-sponsored by Sens. Hillary Rodham Clinton (D-N.Y.) and Frank Lautenberg (D-N.J.), Medicare beneficiaries would no longer have to rely on a bewildering array of private plans to meet their need for prescription drugs, Kennedy said.

TAUZIN DENIES ALLEGATIONS ABOUT PhRMA JOB
In a March 6 letter sent to all member of Congress, former Rep. Billy Tauzin (R-La.), president of the Pharmaceutical Research and Manufacturers of America, denied allegations that he began negotiations for the top PhRMA job at the same time he, as chair of the House Energy and Commerce Committee, helped pass the 2003 Medicare law. President Bush signed the Medicare law on Dec. 8, 2003. Tauzin said that his first contact with PhRMA occurred after Jan. 15, 2004. House Democrats have cited the Republican's rapid rise from legislating to lobbying as an example of backroom deals that undermine public confidence.

AARP DRUG PLAN TOPS PART D ENROLLMENT
The AARP-sponsored prescription drug plan offered by UnitedHealth has at least 1.8 million members, making it the most popular option among seniors choosing Part D. With that many enrollees, the drug plan has the potential to generate tens of millions of dollars in royalty revenues to AARP, blurring the lines between the organization's advocacy and profit-making goals. Based on preliminary figures, UnitedHealth has a total enrollment of 3.2 million in all of its plans, including some 1.8 million in the AARP plan. Humana ranks second in overall enrollment with 1.7 million members. In 2003 when the Medicare Modernization Act was heatedly debated in Congress, AARP's endorsement won key votes necessary for passage, leaving many to question the organization's priorities. "Usually, interest groups are lobbying for legislation that will financially assist their members," Larry Noble, executive director of the Center for Responsive Politics,  said. "Here, you have a situation where a group is lobbying for legislation that they argue benefits their members, and as it turns out, it's also going to benefit them." AARP, which also offers other types of insurance, typically charges insurers annual fees of about 4 percent of premiums collected.

NY Rx DRUG PRICE WEB SITE SAVES $17
PER PRESCRIPTION
A New York state Web site that allows residents to compare the prices of prescription drugs at pharmacies statewide saves patients an average of $17 per prescription, according to an analysis by the office of state Attorney General Eliot Spitzer. The Web site, nyagrx.org, lists prices of the 150 most commonly prescribed medications at about 600 pharmacies statewide. According to the analysis, patients who use the Web site obtain an average discount of 24 percent on prescription drug prices. The Web site, launched in August 2004, to date has received about 3.5 million hits. Several other states are considering setting up similar Web sites.

FEELING THE HEAT, WAL-MART OFFERS MORE HEALTH COVERAGE
Attempting to head off bills in at least 20 states that would require the company and some other large employers to provide more health coverage for employees, Wal-Mart CEO H. Lee Scott told the National Governors Conference Feb. 26 that his company would now allow children of part-time workers to enroll in Wal-Mart's health plan, reduce the two-year waiting period for part-time workers to qualify for benefits and open 50 additional in-store health clinics. Earlier studies have found that a large portion of Wal-Mart employees and nearly half their dependent children relied on Medicaid and the state and federally funded Children's Health Insurance Program for coverage, shifting much of the cost of coverage to taxpayers. Maryland recently passed a law requiring large companies like Wal-Mart to devote at least 5 percent of their earnings to employee health coverage.

KEY REPUBLICAN BREAKS WITH BUSH ON HEALTH SAVINGS ACCOUNTS
Senate Finance committee chair Charles Grassley (R-Iowa) said on March 8 that he will not support a proposal by President Bush to expand tax-free health savings accounts this year. Grassley said that Republicans and Democrats have cited problems in the healthcare system and said that the answer is not more tax subsidies. He noted that healthcare tax incentives cost the federal government $177.6 billion last year, adding that such incentives will cost $2 trillion over 10 years. Critics say that HSAs, which in addition to tax subsidies, require large amounts of out-of-pocket spending and primarily benefit the healthy and wealthy. The AFT and other unions also oppose HSAs because they undermine employer-provided coverage, shifting responsibility for health insurance to the individual and creating incentives for employers to reduce or abandon health coverage and employees to skimp on care.

AFT, NEA AFFILIATES TACKLE '65 PERCENT' MANDATE
Leaders and staff of AFT and NEA affiliates in five states gathered in Chicago last month to develop joint strategies for defeating so-called "65 percent solution" proposals. These plans would require school districts to direct 65 cents of every dollar to "classroom instruction" -- an idea that sounds appealing but in reality could cripple vital support services such as school nurses, libraries, meals, building maintenance and transportation. Promoted by prominent anti-public education advocates, various incarnations of the 65 percent mandate are appearing in an increasing number of states, including the five states represented at the meeting: Florida, Indiana, Missouri, Oregon and Washington. Proposals already have been adopted in Kansas, Louisiana, Texas and Georgia. AFT and NEA staff facilitated the Feb. 13-14 meeting, describing the 65 percent mandate and the people behind it, its impact on school support services, and ways to generate allies and messages. AFT and NEA representatives from each state then broke into groups to develop action plans, which they are implementing with the support of the national AFT and NEA. The meeting was part of the NEAFT Partnership, a project advancing the common goals of AFT and NEA members.

SAVE NOW ON THEME PARK TICKETS
AFT PLUS has added another benefit for AFT members just in time for spring! You can now purchase discounted theme park admission tickets online for Anheuser-Busch Adventure Parks. Visit http://www.aft.org/aftplus/index.htm and click on the link for theme parks. Tickets for Busch Gardens, SeaWorld, Sesame Place and other Anheuser-Busch Adventure Parks are just a few mouse clicks away. You can print your tickets right at home. Take the grandkids and explore nearly 355 African acres of animals and coasters at Busch Gardens Tampa Bay. Or travel through the countries of Busch Gardens Williamsburg on a European excursion. Go below the surface, above the waves and beyond the everyday at one of the three SeaWorld parks. Or splash and slide with your favorite Sesame Street characters at Sesame Place.

QUOTE OF NOTE
"By the time you're 80 years old you've learned everything. You only have to remember it."

George Burns

WEB SITE OF THE WEEK: http://www.irs.gov/pub/irs-pdf/p554.pdf
This special IRS tax guide features tax tips on deductions and programs just for older Americans. Check it out before you file this year's federal income taxes.