• May 10 Rally To Focus on Extending Part D Deadline
• CMS Improves Medicare Drug Formulary Rule
• West Va. Teachers To Return to Defined-Benefit Pensions
• State Workers' Insurance Premiums Continue To Rise
• Western Michigan Grad Employees Vote AFT
• Labor Groups in National Protest of Wal-Mart Health Benefits
• AFT PLUS Helps You Save with Pet Insurance
• Quote of Note: Top-Selling Part D Plans
• Web site of the Week: http://www.americanrightsatwork.org

MAY 10 RALLY TO FOCUS ON EXTENDING
PART D DEADLINE
AFT retirees promise to turn out in force for a May 10 rally in Washington to extend the May 15 registration deadline for Medicare Part D and reform the controversial law. Sponsored by Americans United for Change, a coalition of labor and citizen groups backed by the AFT, the demonstration is expected to draw hundreds of seniors. To date, 48 senators from both parties have called on the White House and Senate majority leader Bill Frist (R-Tenn.) asking him to address bipartisan legislation that would extend the May 15 deadline for enrollment in the Medicare prescription drug benefit. The AFT has long supported such legislation. This version is a bi-partisan effort sponsored by Sen. Olympia Snowe (R-Maine) and Bill Nelson (D-Fla.). In March, the Senate voted 49-49 to reject an amendment that would have extended the deadline to Dec. 31. By late April, only 9 million of the 16 million Medicare eligibles had voluntarily signed up for Part D. Although the administration is trumpeting a figure of more than 30 million with coverage, this number includes those covered under Medicaid, employer plans, the military and those in Medicare Advantage and state drug plans. Beneficiaries without creditable coverage who sign up after May 15 will face an increase in monthly premiums of 1 percent for every month past the deadline. Because they cannot enroll until November, they will also be subject to a 7 percent minimum penalty for the rest of their lives. A recent survey by the Kaiser Family Foundation found that 38 percent of seniors do not know the correct deadline for signing up. Another 6 percent mistakenly believe there is no deadline. Forty-seven percent of seniors do not know there is a penalty for late enrollment. The AFT urges you to contact your senators and representatives on the union’s toll-free hotline to urge them to support S. 2168 extending the deadline. You can also reach the president at the White House. The president can extend the deadline by administrative fiat. Call 202/456-1111 or e-mail at comments@whitehouse.gov.

A note of caution for those who have employer-provided retiree healthcare. Some employer plans will eliminate all other retiree health coverage if a beneficiary joins Medicare D plans. Most employer-provided plans with drug coverage are superior to Part D. Therefore, retirees in these plans should do nothing. Check with your plan before signing up for Medicare D.

CMS IMPROVES MEDICARE DRUG FORMULARY RULE
The Bush administration issued a new policy on April 26 that protects Medicare beneficiaries against the sudden loss of coverage for drugs under Part D. Under the new policy, insurers can continue to change the list of drugs they decide to cover (formularies). When they make those changes, however, they must continue to cover beneficiaries who have already been taking the drugs they are dropping for the remainder of the calendar year. The change attempts to tackle a major criticism of the Medicare drug benefit: that it favors drug companies over retirees. Senior advocates had said it was unfair that insurers could change their formularies as often as they liked, while the insured would be stuck with the new formulary for a whole year. The change was announced just before Sen. Max Baucus (D-Mont.) and other Democrats were completing the wording on a bill increasing protections for Medicare beneficiaries. Richard Stefanacci, executive director of the Health Policy Institute at the University of the Sciences in Philadelphia, said, "This [policy change] is probably more of a political move, because CMS is gearing up for the final push before the deadline. It's more to say, 'Look what we are doing to safeguard beneficiaries.'" In a related matter, researchers for the Kaiser Family Foundation estimate that some 6.9 million Medicare beneficiaries will experience a gap in Part D coverage in 2006. Analysts say most beneficiaries expected to be affected by the coverage gap likely will not reach it until fall.

WEST VA. TEACHERS TO RETURN TO DEFINED-BENEFIT PENSIONS
Teachers in West Virginia have voted to merge the state's two retirement programs, effectively shutting down the teachers' defined-contribution plan and putting all the state's teachers in the Teachers Retirement System (TRS), a traditional defined-benefit plan. State officials announced earlier this month that a little over 61 percent of participants in the defined-contribution plan voted to leave it and join the older TRS. The defined-contribution plan was created in 1991 to address a multibillion-dollar shortfall in funding for TRS. Retirement benefits under the defined-contribution plan were based on investments managed by enrollees with the help of a state-hired consultant. The West Virginia Legislature closed the plan to new enrollees last year after teachers complained about their investment returns. While AFT-West Virginia remained neutral on the pension issue, it undertook an intensive member education drive in the months leading up to the vote with assistance from national AFT staff. The AFT state affiliate's political organizer, Joshua Sword, traveled to some 30 West Virginia counties where he met with more than 2,000 teachers and service personnel to provide unbiased information. "We felt it imperative that teachers and service personnel be able to make an informed and educated decision," explains Sword.

STATE WORKERS' INSURANCE PREMIUMS CONTINUE TO RISE
Health insurance premium costs for state employees continue to rise, according to the 2006 State Employee Benefits Survey, released April 14 by Workplace Economics Inc., a Washington, D.C., consulting firm. The average total premium paid by employees reached $445 per month for single coverage and $1,017 per month for family coverage. Last year's report found the monthly costs for single and family healthcare coverage to be $417 and $937, respectively. According to the report, 45 states now offer pretax flexible spending accounts to assist employees with medical, dental, vision, life insurance, and other expenses not covered by health plans.

WESTERN MICHIGAN GRAD EMPLOYEES VOTE AFT
When your organizing committee needs just four weeks to sign up 400 people who will vote for the union, you know success is just around the corner. That's what happened at Western Michigan University, where graduate employees turned out April 19 to vote 290 to 14 in favor of Teaching Assistants' Union/AFT. The main issues driving the vote were job security, salary and health benefits. Amanda Bellino, a member of the organizing committee, decided she would work to unionize when her international graduate employee colleagues in the Spanish Department almost went home due to lack of funds. Organizer Eric Gato cites the recognition a union brings as the most compelling reason to organize. With this election, all of the large public universities are unionized.

LABOR GROUPS IN NATIONAL PROTEST OF WAL-MART HEALTH BENEFITS
Protesters in 35 cities nationwide demonstrated against Wal-Mart Stores on April 26 for employee health insurance. The protests were organized by the seven-union Change to Win labor federation, which includes the United Food and Commercial Workers, which has been attempting to organize Wal-Mart stores for more than a decade. Miles Anderson, Houston coordinator of WakeUpWalMart.com, said that only 43 percent of the 1.4 million Wal-Mart employees have chosen to participate in the company’s health insurance. At a typical company with 200 or more employees, 68 percent of workers would have health insurance. Chris Kofinis, communications director for WakeUpWalMart.com, said that while Wal-Mart does allow its employees to buy insurance after one year working there, a recent change from the company’s two-year waiting period, it is still too expensive for employees who earn
$7 an hour.

AFT PLUS HELPS YOU SAVE WITH PET INSURANCE
AFT PLUS pet insurance and Pet Assure veterinary care can help you save a bundle. Pet insurance includes policies for older pets, accident-only coverage and more. For details, visit http://www.unionpluspets.com/ or call 866/473-7387. Pet Assure Veterinary Care Savings allows you to save 25 percent on your bill at participating veterinarians. AFT members receive a 40 percent discount on the monthly fee. The plan covers all pets, including exotics and horses. Coverage includes preventive care, shots, surgery, X-rays, lab work, medications and more. Your savings come directly off your veterinary bill. For more information or to enroll, call 888/789-7387 or visit http://www.unionpluspets.com/.

QUOTE OF NOTE: Top-Selling Part D Plans
"UnitedHealth, through its alliance with AARP and WellPoint, is winning [Part D subscribers] on brand recognition. Humana and another company, MemberHealth, are winning on price. The AARP brand is a license to print money. When seniors are confused and scared about making the wrong choice, brand recognition and trust go a long, long way."

John K. Gorman
Former Medicare official

Many regard AARP’s support as critical to passage of the 2003 Medicare law.

WEB SITE OF THE WEEK: www.americanrightsatwork.org
Find out the latest on union organizing efforts and those who oppose them on this Web site chock full of information and some lighter touches, too.