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Retirees Electronic Newsletter - November 19, 2008

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 Medicare Part D Rx Drug Open Enrollment Nov.15-Dec. 31
Older Americans may change their Medicare Part D insurance plans beginning Nov. 15, during the six-week enrollment period that ends Dec. 31. This is welcome news for many Medicare recipients, who can make changes at a time when experts predict an increase in premiums, rising deductibles, higher co-payments, and a larger share of plans discontinuing coverage of the gap known as the doughnut hole. According to an analysis of Medicare data by Avalere Health, the largest drug plans will raise their premiums by an average of 31 percent in 2009, and some by more than 60 percent. According to the Wall Street Journal, the price increases are the highest since the plan was launched in 2006. Medicare officials and healthcare analysts suggest that beneficiaries use Medicare's Plan Finder, the most comprehensive tool for choosing a plan, by logging on to www.medicare.gov. Simply enter the medicines you take and pharmacies you use, and this plan finder tool will estimate your monthly out-of-pocket costs in different plans. You can also call 800-MEDICARE to get information about the plans that are offered in your area. If you decide to make a change, be sure to call the plan to verify information before you enroll. The plan finder and 800-MEDICARE can only give you an estimate. Be sure to verify coverage, costs and restrictions. Medicare recipients can also receive free one-on-one counseling at their state's Health Insurance Assistance Program. Medicare analysts recommend seniors gather a list of their prescriptions, as well as the dosages, and use Plan Finder to compare plans based on out-of-pocket costs, the drugs they cover, and the pharmacies with which they contract. You can also find out more by visiting the Medicare Rights Center special Web site sponsored by AFT and NYSUT: www.medicareinteractive.org/teachers. Those with employer or state coverage should be certain to check whether they can return to their original plan if they switch to another plan. If you are satisfied with your current drug coverage, however, you do not have to make any change.

 Poll Shows Key Role of Union Vote in Election
Union voters played an important role in President-elect Barack Obama's historic victory, delivering a critical bloc of support in swing states that helped propel Obama and other worker-friendly candidates to big wins on Nov. 4, according to polling data from the AFL-CIO. AFL-CIO union members across battleground states supported Obama by a 68 percent to 30 percent margin, according to an election-night survey conducted for the AFL-CIO by Peter D. Hart Research Associates.

Among the other findings from the survey:

  • Obama won among white men who are union members by 18 points, while losing that group by 16 points in the general public.
  • Obama won union retirees by a 46-point margin, while losing voters over 65 in the general public by 8 points.
  • Union veterans voted for Obama by a 25-point margin. He lost among that group in the general public by nine points.

Sixty percent of union members identified the economy and jobs as their top issue, with 84 percent saying strengthening the economy was the most important factor in their vote. Union members identified protecting pensions and Social Security, and reducing healthcare costs, as the top priorities for the new administration. Eighty-one percent of union members support passing the Employee Free Choice Act.

This year's campaign was the largest, broadest and most targeted effort in AFL-CIO history. The program reached union members, members of union households, retirees, and members of Working America, the AFL-CIO's community affiliate for workers who don't have a union on the job. In all, the AFL-CIO's program reached out to more than 13 million union voters in 24 battleground states. Over the course of the campaign, volunteers made 76 million phone calls, knocked on 14 million doors and delivered 29 million fliers at work sites. The AFL-CIO and its affiliate unions sent 57 million pieces of mail to union households this year. As a result of this effort, 84 percent of union members in battleground states said they heard from their union this election cycle. The AFT deployed nearly 600 full-time campaign coordinators and 5,000 volunteers to assist affiliates and the AFL-CIO in member-education and get-out-the-vote efforts. After endorsing Obama in July, the AFT made more than 4 million contacts with its membership, including phone calls, mail, leaflets and direct member-to-member contact at home and at the workplace.

 Weingarten to Congress, Media: ‘Reinvest, Don't Disinvest'
AFT president Randi Weingarten outlined both provocative and proven approaches to revive America's sagging economy and improve public education in testimony before Congress and an appearance at the National Press Club. Speaking at the Press Club on Nov. 19 she expressed her desire to seek common ground on various contentious issues often thought to be off-limits for teachers unions.

"With the exception of vouchers, which siphon scarce resources from public education, no issues should be off the table," Weingarten said, "provided it is good for children and fair to teachers." She called for targeted investments and policies that challenge schools, provide them the tools they need and demand they do the very best for all children. She said that neither America's economy nor its public education system can be strong when the other is weak. Weingarten decried the widespread scapegoating of teachers and teachers unions for public education's shortcomings, saying blaming "won't improve one more school, educate one more child, or recruit and retain one more outstanding teacher." She concluded by expressing America's teachers' willingness to "build a better future for our young people," and their hope that others will join them in this important shared responsibility.

On Oct. 29, Weingarten urged Congress to invest in jobs, education and healthcare as part of the federal response to current economic difficulties. Testifying on Capitol Hill at an Oct. 29 House Ways and Means Committee hearing, Weingarten called for additional investment in the foundations of our country's strength-jobs, education and healthcare. She said that AFT members' most immediate priorities were for a federal economic recovery plan that will stop the irreparable damage to our nation's citizens, including our children: to get people back to work, to provide fiscal relief to the states and localities, and to invest in infrastructure, including school construction.

 Sen. Baucus Unveils Plan To Overhaul U.S. Healthcare System
Senate Finance Committee chair Max Baucus (D-Mont.) on Nov. 12 released a proposal that would expand health insurance to all U.S. residents, saying that "now is the time" for Congress to address healthcare reform. Under the plan, employers of a certain size would have to provide coverage for workers or pay into a federal insurance fund. Individuals purchasing insurance on the private market would be given tax credits. A national health insurance exchange, similar to one proposed by President-elect Barack Obama, would be created to allow small businesses and people without insurance to choose among a menu of federally approved private plans and a new "Medicare-style" federal program. Insurers would not be allowed to deny or charge different premiums to applicants with preexisting health conditions. The plan would expand Medicare to cover people ages 55 to 64 and let everyone with incomes below the federal poverty line enroll in Medicaid. The State Children's Health Insurance Program would be expanded to include all children in families with incomes less than 250 percent of the federal poverty level. The plan would eventually require that all U.S. residents be insured and provide subsidies for those who qualify for assistance. Baucus also suggested workers may be required to pay a tax on part of the value of health benefits they get from employers. The plan does not include a cost estimate.

 Medicare Part D Spending Down $6 Billion as Generic Drug Use Grows, Enrollment Levels Fall Short
Medicare prescription drug benefit spending in fiscal year 2008 totaled $44 billion—$6 billion lower than estimated—as the program experienced lower-than-expected enrollment, more use of low-cost generic drugs and beneficiaries reducing drug spending to avoid the program's "doughnut hole," USA Today reports. The drug benefit program in the last fiscal year had 2 million fewer participants than originally predicted because fewer low-income people enrolled than expected and some Medicare beneficiaries have elected to keep their existing drug coverage. About 32 million beneficiaries have enrolled in the drug benefit. Meanwhile, generic prescription drugs accounted for 64 percent of all Medicare prescriptions in FY 2008, compared with 61 percent in the private sector. Medicare drug costs are expected to rise by 2011 as early savings fade and the first of 79 million baby boomers start the program.

 AARP Suspends Marketing, Sales of Benefit Plans
AARP on Nov. 7 said it would suspend marketing and sales of health insurance plans after Sen. Chuck Grassley (R-Iowa) recently said that the plans are misleading and do not work in typical situations. The plans, offered by UnitedHealth Group through AARP and aimed at people ages 50 to 64, have about 1 million members. The plans cap the amount that UnitedHealth pays for medical services and do not provide catastrophic coverage for members. Grassley, in a letter, wrote, "Insurance is supposed to limit your exposure to the potentially high cost of a serious illness, and these plans do the opposite," adding, "It's especially alarming when the marketer is a big-time advocate for health security and the target market is under- and uninsured Americans." AARP CEO Bill Novelli said that AARP has launched a comprehensive review that includes hiring an independent expert to investigate marketing and sales of plans. The group said suspension of sales will occur "as soon as possible" and will last until the review is completed.

 Save on Books with AFT+ Member Benefits
Shop for holiday gifts right from your computer. Browse an extensive selection of new and used books at Powell's—the highly acclaimed online bookstore (and the largest unionized bookstore in the country). Choose from an outstanding selection of new and used bestsellers, textbooks, kids' books, technical books, e-books, even rare and collectibles. A portion of every sale made through the AFT + link goes to the AFT Disaster Relief Fund. You can also receive e-mail newsletters featuring book reviews, recent arrivals, specials and discounts. Orders totaling $50 or more receive free economy shipping.

 Quote of Note: The Obama Presidency
"Barack Obama will be a president for all Americans. For Americans from every state in the union, for those who enjoy great wealth as well as those who suffer terrible want, for Americans of every color, creed and walk of life. This is the time for our country to come together in common purpose to create a better life for all Americans."
Randi Weingarten, AFT President, Nov. 4, 2008

 Web Site of the Week: http://www.freechoiceact.org/page/s/aflcio?source=aflcioweb
The AFL-CIO has made the Employee Free Choice Act one of its highest priorities in the new Congress. You can help reclaim the "American Dream" by restoring workers' freedom to form unions and bargain for a better life free of employer intimidation. Learn more about this critical legislation and sign an online petition.


Contributors and sources: New York Times, Wall Street Journal, USA Today, Boston Globe, Chicago Tribune, Education Week, Associated Press, Bloomberg News, CQ Today, CQ HealthBeat, AFL-CIO Now, Inside AFT, Alliance for Retired Americans Friday Ah Policy Report. Frank Stella, editor; Mary Boyd, copy editor; Francene Foote, design.

 

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