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AFT Retirees Electronic Newsletter
February 28, 2007

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  • House Vote Scheduled for March 1 on Employee Free Choice Act
  • CBO Report Says Medicare Could Save $64.8 Billion by Equalizing Payments to Managed Care Plans, Fee-for-Service Providers
  • Campaign To Counter Drug Company Sales Reps May Expand
  • Bush Plan To Cut SCHIP Draws Bipartisan Fire
  • Most Do Not Trust President Bush To Improve Healthcare System
  • Government Programs Covering More Healthcare Costs
  • West Virginia Activists Fight for their Retirement Security
  • AFT + ‘Go Ahead’ Tours for Adults of All Ages
  • QUOTE OF NOTE: Employee Free Choice Act
  • Web Site of the Week: www.caregiver.org

HOUSE VOTE SCHEDULED FOR MARCH 1 ON EMPLOYEE FREE CHOICE ACT
This is the last push before the U.S. House of Representatives votes Thursday on the Employee Free Choice Act—the most important legislation in 70 years to ensure private sector workers the freedom to bargain for better wages, benefits and working conditions. The Employee Free Choice Act would restore our freedom to make our own choice about whether to have a union so we can bargain for a better life—without interference from management. In theory, we’ve had that right for decades. But, in fact, the system for forming unions and bargaining is broken. Employers routinely coerce, intimidate, harass, threaten and even fire workers who dare to try. Send a fax NOW urging your representative to vote for the Employee Free Choice Act—with no limiting amendments. Tell him or her that this legislation is top priority for America’s working families because it’s our best chance to get ahead economically. Click here to contact your representative.

CBO REPORT SAYS MEDICARE COULD SAVE $64.8 BILLION BY EQUALIZING PAYMENTS TO MANAGED CARE PLANS, FEE-FOR-SERVICE PROVIDERS
The Congressional Budget Office has released its biennial report on policy options that contains more than 250 proposals on federal spending and revenue, including several for Medicare. According to the CBO, $64.8 billion could be saved between 2008 and 2012 by equalizing payments to Medicare Advantage plans and fee-for-service providers. Last year MA plans enjoyed a substantial subsidy over traditional Medicare providers. The CBO report notes that this proposal “could lead many plans to limit the benefits they offer, raise their premiums or withdraw from the program.” This is the precise scenario followed by Medicare HMOs during the 1990s.

CAMPAIGN TO COUNTER DRUG COMPANY SALES REPS MAY EXPAND
The Independent Drug Service project is a $1 million campaign in Pennsylvania that sends consultants to inform doctors about the effectiveness of different medications based on scientific evidence. It is designed to combat the sales pitches of pharmaceutical company sales representatives, who visit doctors to increase the number of prescriptions doctors write for the medications their companies sell, and often hype expensive new drugs when older, cheaper treatments work just as well. Sponsored by the Pennsylvania Department of Aging and administered by Brigham and Women's Hospital in Boston, the campaign includes a team of 10 consultants who have made about 1,200 visits to about 500 doctors in the state. In addition, the campaign includes about six internists and Harvard Medical School instructors who provide talking points that doctors can use to discuss medications with patients. Jerome Avorn, a Harvard Medical School professor and a leader of the campaign, said that the effort could expand to other states later this year.

BUSH PLAN TO CUT SCHIP DRAWS BIPARTISAN FIRE
A bipartisan group of governors at the National Governors Association winter meeting Feb. 25 asked Congress to provide $765 million in supplemental funds for the State Children’s Health Insurance Plan (SCHIP). This year, states face a combined $700 million deficit in federal funds for SCHIP, according to a Congressional Budget Office estimate. New Jersey Gov. Jon Corzine (D), Georgia Gov. Sonny Perdue (R) and four other governors on Sunday held a news conference to request the supplemental funds. In addition, six Democratic governors and seven Republican governors on Saturday sent a letter to congressional leaders to request the supplemental funds. According to the letter, "Without quick congressional action, our states, all facing federal shortfalls, will be forced to make harsh decisions affecting the lives of thousands of families." States with deficits in federal funds for SCHIP might have to freeze enrollment, restrict eligibility, increase premiums or reduce benefits in their programs. The governors also asked Congress to revise SCHIP provisions in the fiscal year 2008 budget proposed by President Bush. According to analysts, the proposal would create a combined $10 billion to $15 billion deficit in federal funds for SCHIP over five years. Earlier, a bipartisan group of lawmakers led by U.S. Reps. Rahm Emanuel (D-Ill.) and Ray LaHood (R-Ill.) announced a proposal that would extend health insurance to an additional nine million U.S. children. The Healthy Kids Act of 2007 would authorize $50 billion over five years to expand SCHIP and Medicaid. According to Rep. Emanuel, Congress could offset the cost of the proposal through legislation that would improve collection of capital gains taxes.

MOST DO NOT TRUST PRESIDENT BUSH TO IMPROVE HEALTHCARE SYSTEM
Almost half of U.S. adults do not trust President Bush to improve the healthcare system, according to a recent Wall Street Journal Online/Harris Interactive poll conducted between Feb. 7 and Feb. 9. Asked about the degree to which they trust Bush to develop policies to improve the healthcare system, 49 percent of the 2,482 respondents said "not at all," and 16 percent said "not much." Only about 18 percent of respondents said they trust Bush "to some extent" to develop policies to improve the healthcare system, and 9 percent said they trust him "a great deal," according to the poll.

GOVERNMENT PROGRAMS COVERING MORE HEALTHCARE COSTS
New data show the government’s contribution to healthcare costs is currently at 45 percent, and within 10 years it is expected to be 48.7 percent, up from 38 percent in 1970 and 40 percent in 1990. Economists, in a report published in the journal Health Affairs, also predict that government programs will gradually replace employers when it comes to providing health insurance for millions of Americans. Healthcare is expected to account for $1 of every $5 spent in the United States in another decade, according to the Centers for Medicare and Medicaid Services (CMS). Today, the number is closer to $1 out of every $6. Among possible reform options to help control costs are a single-payer, government-run system; an expansion of Medicare to cover younger people, starting with 55- to 64-year-olds; and new limits on the use of high-tech medical equipment.

WEST VIRGINIA ACTIVISTS FIGHT FOR THEIR RETIREMENT SECURITY
In February, members of the Coalition of Retired Public Employees, a group which includes retirees from AFT-West Virginia, rallied in Charleston to protect their health coverage and retirement security. Wearing matching T-shirts, the activists urged legislators to support bills increasing their pensions and helping with their health insurance premiums. One change that they support would make the first $20,000 of a retiree's pension nontaxable. Another bill would ensure that the Public Employees Insurance Agency maintains medical and prescription drug coverage for Medicare-eligible retired employees. "Currently, a retired employee on Medicare doesn't have to take anything out of his pocket for medical expenses," Ernest (“Spud”) Terry, president of the West Virginia Alliance, told the Charleston Daily Mail. "If the new plan goes into effect, the Medicare-eligible retiree will have to pay the first $500 up front.” Activists rallied at the state Capitol with signs urging lawmakers to consider a cost-of-living raise for retired state workers. Banners read, "A COLA would be refreshing," and, "Things go better with COLA."

AFT + ‘GO AHEAD’ TOURS FOR ADULTS OF ALL AGES
With the calendar turning to March, spring isn’t far away. Celebrate by taking advantage of special discounts just for AFT members from Go Ahead Tours, including a $100 discount on any escorted tour. Once you’ve traveled on your first tour, you will continue to earn even greater discounts. Call 800/590-1104 or visit http://www.goaheadtours.com/aft.

QUOTE OF NOTE: Employee Free Choice Act
“Research shows that in 92 percent of the cases when workers try to form a union in the private sector, they are subjected to anti-union harassment by their employers. In addition, 25 percent of these workers are illegally fired.”
                                                          AFT Letter to Congress

WEB SITE OF THE WEEK: www.caregiver.org
Looking for answers about community services, caregiver programs in your state or other caregiver issues? The Family Caregiver Alliance may be able to help.


Contributors and sources: Bill Cunningham, Lauren Luchi, New York Times, Washington Post, Wall Street Journal, Associated Press, Boston Globe, Detroit Free Press, Chicago Tribune, Newark Star-Ledger, Bergen Record, Congress Daily, CQ Today, Alliance for Retired Americans Friday Alert, Kaiser Health Policy Report. Frank Stella, editor; Jane Feller, copy editor; Meggan Wagner, design

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