September 21, 2009

• Healthcare Reform Update
• Number of Uninsured Rose 600,000 in 2008
• Higher Health Costs for Employees Likely in 2010
• Majority of Doctors Support Public Option
• Alliance August Recess Events Top 200
• Pfizer in Record-Breaking Settlement
• Union Membership Pays Dividends for State Employees
• Follow the Money and Save with AFT+ Magazine Discounts
• Quote of Note
• Web site of the Week

HEALTHCARE REFORM UPDATE
Seniors and Reform: A new report, "America's Seniors and Health Insurance Reform: Protecting Coverage and Strengthening Medicare," was issued recently by the Department of Health and Human Services. It finds that if no action is taken, Medicare premiums and out-of-pocket costs will soon consume more than one-third of a retiree's Social Security benefits. A typical older couple would need to save $300,000 for medical bills not covered by Medicare. The report is available at http://healthreform.gov/reports/seniors/index.html.

Senate Finance Committee Bill Due Next Week: Finance committee chair Sen. Max Baucus (D-Mont.) announced that he is planning to begin mark-up of the long-awaited committee healthcare reform bill the week of Sept. 21. Speaking to reporters after a meeting with Finance Democrats, Baucus said that he anticipates the amendment process in mark-up to be significant. The plan is widely seen as making major concessions to industry. The bill released Sept. 15 contains no government option to compete with private carriers, and weaker requirements for employers to provide coverage than legislation approved by three House committees. In another significant break with the House bills, Baucus would not raise taxes on upper-income earners to pay for healthcare but would tax so-called "Cadillac plans." This will increase the cost of health insurance for many AFT members.

Obama Reiterates Support for Public Plan Option: In his Sept. 9 speech to Congress, President Obama repeated his support for a public plan option and set forth three principles for healthcare reform legislation: making the system more secure and stable for those with health insurance, providing coverage for the uninsured, and slowing healthcare cost growth. Obama acknowledged there is disagreement about how best to reform the healthcare system, but said lawmakers must act on the issue this year to lessen the nation’s future federal debt, to help Americans cope with financial distress brought about by lack of affordable healthcare, and to slow rising healthcare costs. The president said the legislation should reform the private health insurance market and include a public option giving Americans the right to choose the best healthcare plan for their needs, which is currently not the case. "Unfortunately, in 34 states, 75 percent of the insurance market is controlled by five or fewer companies," the president said. "Without competition, the price of insurance goes up and the quality goes down. And it makes it easier for insurance companies to treat their customers badly—by cherry-picking the healthiest individuals and trying to drop the sickest; by overcharging small businesses who have no leverage; and by jacking up rates."

Trumka Vows Big Push for Public Option: Rich Trumka, newly elected AFL-CIO president, hit the ground running in a September speech at the Center for American Progress, promising that lawmakers would pay a political price if they abandon a public option in any healthcare overhaul. Trumka's remarks are part of a larger effort by labor groups to campaign for healthcare reform. From healthcare-themed picnics to public rallies to door-to-door campaigning, labor unions are behind many of the activities aimed at drumming up grassroots support for an overhaul of the nation's healthcare system.

Number of Uninsured Rose 600,000 in 2008: The number of uninsured Americans rose to more than 46 million in 2008, the Census Bureau reported Sept. 10. The bureau's annual report on income, poverty and health insurance stated that the number of uninsured had risen from 45.7 million in 2007 to 46.3 million in 2008, an increase of 600,000. The annual report from 2007 showed a decrease in the number of total uninsured, which was attributed to a government-sponsored coverage. The number of people covered by private health insurance decreased from 202 million to 201 million, while the number of people covered by government health insurance rose from 83 million to 87.4 million. A September poll conducted for the AFL-CIO by Hart Research Associates found that 31 percent of workers under age 35 report being uninsured, up from 24 percent 10 years ago. Seventy-nine percent of these workers say that they don't have coverage because they can't afford it or their employer doesn't offer it.

HIGHER HEALTH COSTS FOR EMPLOYEES LIKELY IN 2010
Employers are expected to shift more health insurance costs onto their employees in 2010, as medical costs rise and employees increase their utilization out of fear they might lose coverage, according to preliminary survey results released on Sept. 10 by Mercer, an employee benefits firm. As a result, employer-sponsored health insurance costs are expected to increase by only 5.9 percent in 2010, but only because businesses plan to cut 3 percentage points from their annual renewal rates through "cost-saving actions," Mercer said. The largest of these cost-saving measures is shifting more of employer-sponsored health insurance cost onto the employees. Mercer said that the median family deductible for in-network services in a preferred provider organization, a type of plan offered by most employers, increased from $1,000 to $1,850 between 2004 and 2008. For 2010, Mercer expects 63 percent of employers will require employees to pay a larger amount of the monthly premium and/or pay higher deductibles, co-payments, co-insurance, or out-of-pocket maximums.

MAJORITY OF DOCTORS SUPPORT PUBLIC OPTION
A new nationwide poll released Sept. 15 finds that nearly three out of every four doctors support a public option as part of healthcare reform. According to the poll, 63 percent of doctors say they favor giving patients a choice that would include both public and private insurance. Another 10 percent of doctors say they favor a public option only; they'd like to see a single-payer healthcare system. The researchers found strong support among all types of doctors: primary care providers, specialists, both urban and rural doctors and among members of the American Medical Association, which has opposed the public option. The survey was published by the New England Journal of Medicine. Dr. Salomeh Keyhani, one of the researchers, says doctors already have experience with government-run healthcare, with Medicare. "And,” she says, “the survey shows that, overall, they like it." Keyhani adds that "physicians have sort of signaled that a public option that's similar in design to Medicare would be a good way of ensuring patients get the care that they need." A majority of the general public also supports a public option, with support ranging from 50 percent to 70 percent, depending on the poll.

UNION MEMBERSHIP PAYS DIVIDENDS FOR STATE EMPLOYEES
The latest AFT Public Employees Compensation Survey reaffirms the value of collective bargaining for workers, especially during a recession. Overall, the 2009 report shows that the average salary for the 45 job titles it includes was $47,077, an increase of 2.6 percent from the 2008 report. Jobs with collective bargaining posted a 3.1 percent increase (to $52,265), whereas jobs without collective bargaining actually saw a salary drop of -0.1 percent (to $38,562). The overall salary gap between unionized and nonunionized jobs remains large in the current report, with union members earning, on average, 35 percent more than nonunion employees in the same titles.

ALLIANCE AUGUST RECESS EVENTS TOP 200
The Alliance for Retired Americans has surpassed 200 events in support of health insurance reform during the second half of the summer. Another dozen events are already planned for later this month. AFT activists have participated in a number of these events, sponsored by the AFL-CIO's organization for labor and community retirees. The Alliance has also mailed information to more than 189,000 members in key states. More than 152,000 phone calls are being made to follow up on the mailings. A CNN/Opinion Research Corporation snap poll of people interviewed before and after the speech showed two-thirds supporting the president’s healthcare proposals, compared with 53 percent before.

PFIZER IN RECORD-BREAKING SETTLEMENT
Pharmaceutical giant Pfizer recently agreed to pay $2.3 billion to settle civil and criminal allegations that it had illegally marketed its painkiller Bextra. According to the New York Times, Bextra was approved in 2001 by the Food and Drug Administration to treat arthritis and menstrual cramps. The drug was not approved for the treatment of acute pain, nor was it shown to be any more powerful than ibuprofen. However, Pfizer instructed its sales representatives to tell doctors that the drug could be used to treat acute and surgical pain at doses well above those approved, even though the drug's dangers—which included kidney, skin and heart risks—increased with the dose, the government charged. The drug was withdrawn in 2005 because of its risks to the heart and skin. Prosecutors accused Pfizer of aggressive marketing tactics, such as offering doctors "consultant meetings" in resort locations. The attendees' expenses were paid, and they received a fee just for attending. It was Pfizer's fourth settlement over illegal marketing activities since 2002. The government charged that executives and sales representatives throughout Pfizer's ranks planned and executed schemes to illegally market three other drugs as well, leading to the largest healthcare fraud settlement and the largest criminal fine of any kind ever.

FIND YOUR FLU SHOT ON CLINIC LOCATOR SITE
Flu season is already upon us! Finding a clinic is easy with the American Lung Association's Flu Clinic Locator. Just enter your ZIP code to get started. For the complete CDC guidelines on when and who should get a flu shot, click here. Please note: This site offers information about seasonal flu only. For information about H1N1, click here. To find a flu clinic in your area, enter your ZIP code into the Flu Clinic Locator to the right. You will get the date, times, address, and phone number of the clinics offering flu shots near you, as well as a map showing where the clinic is located. The American Lung Association updates the Locator daily, so you will always get the most up-to-date flu clinic information. Once you have found a clinic, sign up to get influenza updates from the American Lung Association. You can even schedule a flu clinic reminder for your flu shot.

FOLLOW THE MONEY AND SAVE WITH AFT+ MAGAZINE DISCOUNTS
Follow the ups and downs of the economy and save up to 50 percent on your favorite magazines and on gift subscriptions. Call 800/729-6247 to order, check a rate or obtain a current list. Or, you can visit www.buymags.com/aft. Choose from more than 1,000 titles, including: Business Week, Discover, Good Housekeeping, Money, New Yorker, Newsweek, Prevention, Smart Money, Smithsonian, Sports Illustrated, U.S. News and World Report and many more.

QUOTE OF NOTE

"The only thing this [healthcare reform] plan would eliminate is the hundreds of billions of dollars in waste and fraud, as well as unwarranted subsidies in Medicare that go to insurance companies—subsidies that do everything to pad their profits and nothing to improve your care."

President Barack Obama
Address to Joint Session of House and Senate
Sept. 9, 2009

WEB SITE OF THE WEEK: www.aft.org/fight4america
Part of the AFT's effort to get out accurate information about healthcare reform, this Web site provides an opportunity to get involved in the historic effort to enact lasting healthcare reform.