"Hands Off My Social Security" Rallies on April 26
The Alliance for Retired Americans together with Americans United to Protect Social Security will participate in nationwide rallies on April 26 in a powerful show of unity to let lawmakers know that Americans of all ages are against any proposal to privatize the nation's retirement security program. The event in Washington, D.C. will be held at 1:00pm at Upper Senate Park near the U.S. Capitol. For more information, contact Joanne Solazzo at (202) 955-1002.

Soaring Rx Prices Outpace Inflation Rate ... Again
Prescription drug prices increased by 7.1% between 2003 and 2004, or 2.5 times the general inflation rate of 2.7%, according to a study by the AARP. The study analyzed wholesale prices for 195 brand-name and 75 generic prescription drugs commonly used by U.S. adults over 50 years old. The results of the study prove that drug costs continue to escalate at an alarming rate.

"America's seniors shoulder the ever-increasing burden of skyrocketing drug prices," said Ruben Burks, secretary-treasurer of the Alliance for Retired Americans. "The fixed incomes of older Americans cannot keep pace with the surging cost of health care in America."

Medicare's drug benefit, set to begin in January 2006, prohibits the government from negotiating lower drug prices. But drug companies are concerned that price controls may become a reality in the future.

The Pharmaceutical Research Manufacturers Association (PhRMA), the industry's trade group, criticized the report, claiming wholesale prices do not accurately reflect the prices consumers actually pay.

Medicare's Headache: Drug Benefit Applications Are Coming
On January 1, 2006, Medicare will begin covering outpatient prescription drugs. Starting at the end of May, the government will mail notices to 20 million beneficiaries informing them they may be eligible for low-income assistance. To qualify for the for the extra assistance, income must be below 150% of the federal poverty level ($14,355 for an individual in 2005) and must have no more than $10,000 in assets per individual.

The 2003 Medicare law includes billions in subsidies for health care providers and hundreds will be vying for Medicare's dollars. Within the complex drug plan, insurance companies will offer varying plans, covering different drugs, and charging their own premiums and co-payments.  It is very important for beneficiaries to go through all the options and determine the best value.

To prepare for the program, beneficiaries should know their income, assets, and have a list ready of the drugs they take, including the doses. The first enrollment period runs from Nov. 15 2005 to May 15, 2006; the government expects 29 million people to enroll. Those who delay enrollment will pay a higher premium each month.

"Medicare's 41 million recipients are about to find out how convoluted this drug plan is," said Edward F. Coyle, executive director of the Alliance for Retired Americans. "As designed, this law is simply a billion dollar giveaway to drug and insurance companies, not a prescription drug benefit that meets the needs of seniors."

Alliance's Educational Fund Releases Resources on Social Security
The Alliance for Retired Americans Educational Fund (ARAEF) has recently released resources on the nuts and bolts of Social Security and the consequences of privatization. Social Security Under Attack is a comprehensive look at the venerable retirement program and Social Security for All Ages is a brief, 8-page executive summary. Both reports are available on the Educational Fund website at http://www.retiredamericansfund.org/pubs.