• Medicare Price Negotiation Passes in House by
  Wide Margin
• Families USA Report Finds Drugs Cost More Under Medicare Part D
  Than in Veterans Affairs Plan
• Bush Administration Lowers Estimated Cost for Medicare Prescription
  Drug Benefit by 10 Percent for 2007-2016
• Bipartisan Drug Re-Importation Bills Introduced
• AFT Regional Director and Former VP George Springer Dies
• AFL-CIO Scholarship Deadline Is Jan. 31
• Ways to Reduce Stress
• Quote of Note
• Web Site of the Week: www.longtermcare.gov 

MEDICARE PRICE NEGOTIATION PASSES IN HOUSE BY WIDE MARGIN
The House of Representatives voted 255-170 on Jan. 12 to pass H.R. 4, a bill that requires Medicare to use its bulk purchasing power to negotiate lower drug prices. The House passed this important first step in bringing down the cost of prescription drugs for seniors. Twenty-four Republicans joined 231 Democrats in voting for the bill. The next steps are for the Senate to follow suit, and for Congress to address other shortcomings in the 2003 Part D law, such as the doughnut-hole gap in coverage. Passage of a similar bill in the Senate is far from certain; last week before the vote, Senate Finance Committee ranking member Charles Grassley (R-Iowa) said he would help lead a filibuster. President Bush is threatening to veto the legislation. The AFT and the Alliance for Retired Americans worked hard for passage. In a letter to House members before the vote, Tor Cowan, director of the AFT legislation department, cited the success of the Veterans Affairs Department in negotiating lower drug prices and called the bill “a valuable first step in correcting the deficiencies in the Medicare prescription drug law.” To find our how your representative voted, go to http://clerk.house.gov/evs/2007/roll023.xml.

FAMILIES USA REPORT FINDS DRUGS COST MORE UNDER MEDICARE PART D THAN IN VETERANS AFFAIRS PLAN
Drug prices in Medicare Part D prescription drug plans average 58 percent more for the most commonly prescribed drugs than prices paid by the U.S. Department of Veterans Affairs (VA), according to a study released Jan. 9 by Families USA, a health advocacy group. Researchers analyzed drug prices that the five largest Part D plans charge for the 20 drugs most frequently prescribed to seniors. They found that, for every drug, the lowest price charged by any of the top Part D insurers is higher than the lowest price secured by the VA. Each of the seven largest U.S. publicly traded pharmaceutical companies spent substantially more on marketing, advertising and administration than it spent on research and development. The differences in price ranged from 34 percent higher for the blood thinner Plavix to as much as 10 times higher for the statin Zocor. The report also challenged assertions that pharmaceutical companies need Medicare's revenue to fund research and development, suggesting that drug companies could shift money from marketing, advertising and administration—which consume 32 percent of the top seven companies' budgets—to research and development, which take up 13.9 percent of revenue, according to 2005 filings with the Securities and Exchange Commission. The study is available online  http://www.familiesusa.org/.

BUSH ADMINISTRATION LOWERS ESTIMATED COST FOR MEDICARE PRESCRIPTION DRUG BENEFIT BY 10 PERCENT FOR 2007-2016
The Bush administration on Jan. 6 said the projected federal cost of the Medicare prescription drug benefit from 2007 through 2016 is now $964 billion, a 10 percent decrease from a July 2006 estimate of $1.077 trillion. Secretary of Health and Human Services (HHS) Mike Leavitt said the lower estimate demonstrates that it is not necessary for Congress to pass legislation that would require the agency to negotiate with pharmaceutical companies under the drug benefit to lower prices. Acting Administrator for the Centers for Medicare & Medicaid Services (CMS) Leslie Norwalk said drug costs have been increasing more slowly than expected, while enrollment in the drug benefit has been lower than expected because some beneficiaries have equivalent prescription drug coverage from other sources.

BIPARTISAN DRUG REIMPORTATION BILLS INTRODUCED
A bipartisan group of lawmakers introduced a prescription drug reimportation bill that has a high chance of passing under the new congressional leadership. Sens. Byron Dorgan (D-N.D.) and Olympia Snowe (R-Maine), and Reps. Rahm Emanuel (D-Ill.) and Jo Ann Emerson (R-Mo.), sponsored the legislation, which would establish a regulatory framework for pharmacies and wholesalers to reimport Food and Drug Administration (FDA)-approved prescription drugs from FDA-approved manufacturing facilities in certain industrialized nations including Canada. The identical House and Senate proposals, S. 242 in the Senate and H.R. 380 in the House, would also require the FDA to regulate shipments of prescription drugs reimported into the United States for commercial or personal use. Although neither chamber's draft bill would allow imports from nations other than Canada, a provision would authorize the Health and Human Services secretary to create such a rule. The legislation gives new life to an idea that died in the 109th Congress. With a change in Senate and House leadership, bill sponsors expect wide support in both chambers. The biggest question is whether President Bush will veto the measure and, if so, whether the Congress can override it.

AFT REGIONAL DIRECTOR AND FORMER VP
GEORGE SPRINGER DIES
George Springer, the AFT's northeast regional director since 2001, and former Connecticut state affiliate president and AFT vice president, died Dec. 19 at the Hospital of Central Connecticut in New Britain after a long battle with cancer. He was 74. "George was always even-keeled, a voice of reason, and a problem solver with a steady hand," says AFT president Edward J. McElroy. "He could be tough, but you'd never know it by his understated demeanor. He was an invaluable asset at the local, state and national levels for the teachers, healthcare workers and public employees for whom he set a wonderful example. He was engaging and a wonderful friend, and I'll miss him terribly." Springer had served as the Connecticut-based AFT northeast regional director since July 2001. He took a two-year leave from that position in January 2003, when he was appointed by the AFT executive council to be the administrator of the Washington (D.C.) Teachers Union, which the AFT temporarily took over. Prior to running the AFT's northeast regional office, Springer was the president of the 20,000-member AFT Connecticut state affiliate for 22 years. He was a vice president of the national AFT from 1988-2001, and for four years served as the chair of the executive council's human rights and community relations committee.

AFL-CIO SCHOLARSHIP DEADLINE IS JAN. 31
The Union Plus Scholarship Program is open to students attending or planning to attend a four-year college or university, a community college, or a technical college or trade school. Dependent children of retired members are eligible as long as they receive more than 50 percent support from the retired member. Since 1992, the Union Plus Scholarship Program has awarded more than $1.8 million to students from working families who want to begin or continue their undergraduate education. Members are not required to purchase any Union Plus products or participate in any Union Plus program to apply. Winners are chosen based on academic achievement and potential, character, leadership, social awareness, career goals and financial need. Applications are judged by a committee of impartial post-secondary educators. For more information, visit the AFT Web site, www.aft.org.

WAYS TO REDUCE STRESS
Maybe it’s money trouble or the burden of caring for a sick relative. Maybe it’s the traffic. Whatever the cause, everyone seems stressed out these days. Today we know that stress can cause both short- and long-term changes to your body and mind. When we sense danger, our bodies quickly release hormones like adrenaline into our bloodstream that increase our heart rate, focus our attention and cause other changes to prepare us quickly for coming danger. It’s long been known that blood pressure and cholesterol levels go up in people who are stressed. Research has shown that wounds in people under chronic stress heal more slowly. It’s not easy to change things like self-esteem and your sense of control, but there are things you can do to help you cope with the stresses of modern life: Get enough sleep; exercise and eat a healthy diet; build a support network of people you can count on; create peaceful times in your day (try relaxation methods until you find one that works for you); don’t smoke; and don’t drink too much or abuse any other substances. If you still find yourself too stressed out, talk to your healthcare professional.

QUOTE OF NOTE
"These high [Medicare drug] prices devastate seniors who need to take multiple medicines, especially when they reach the coverage gap known as the 'doughnut hole.' They are also a rip-off of American taxpayers, who pay for three-quarters of the costs of Medicare Part D."

Ron Pollack
Executive Director, Families USA

WEB SITE OF THE WEEK: www.longtermcare.gov
Today, the average monthly cost in a nursing home is nearly $5,000 per month, and stays can exceed several years. The U.S. Department of Health and Human Services has developed a new consumer Web site to help you prepare for a future that allows you to remain in control of your life as you grow older, whether your preference is a senior center, assisted living, home care or a nursing home.