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Friday Alert 8/19/05
Alliance for Retired Americans
888 16th Street, N.W. - Washington DC, 20006 - (202)
974-8222 - www.retiredamericans.org
Despite Polls GOP
Optimistic about Autumn Push for Private Accounts
The Republican-controlled Congress
rushed through a flurry of legislation before leaving for its August recess. Now
they claim that momentum will ride them through the fall in time to take up an
overhaul of Social Security. But read the polls and it’s clear that public
opposition to private accounts has grown and hardened. A recent CNN/Gallup/USA
Today poll found a measly 29% approved of President Bush’s handling of Social
Security with 69% disapproving. Polls also find the president’s overall job
performance ratings are the worst of his presidency.
“The Alliance’s fight against privatizing Social Security has resonated
throughout the country and made an important contribution to the public debate
about the dangers of privatization,” said George J. Kourpias, president of the
Alliance for Retired Americans. “But we can’t rest on our laurels yet. All of us
who want our children and grandchildren to benefit from the guarantees of Social
Security must work until we defeat all privatization proposals.”
Ardent supporters of privatization are determined to forge ahead with a plan to
privatize Social Security. Just what form that plan will take is still unknown.
The president has proposed private accounts diverted from payroll taxes, which
worsens Social Security’s finances and requires massive debt, while cutting
guaranteed benefits. Congressional Republicans have introduced legislation that
would use Social Security’s surplus to fund private accounts, a plan that does
nothing to restore solvency and would add to the nation’s deficits. The House
will likely be the first to move on any Social Security legislation. Ways and
Means Chair Bill Thomas (R-CA) is working on a broad retirement bill that may
include the surplus proposal.
Drug Costs for Elderly Rise at Twice Rate of Inflation
As health care costs continue to
soar, wholesale prices for the brand-name prescription drugs most commonly used
by older Americans rose at more than twice the rate of inflation, according to a
report released by the University of Minnesota and AARP. In the year that ended
March 31, manufacturers increased drug prices by 6.6% for a sample of 195
drugs. The general inflation rate rose 3 percent, as measured by the Consumer
Price Index. Generic drug prices rose at a much lower rate, with a 0.7%
increase calculated from a sample of 75 generic prescription drugs. The results
are especially disturbing given the fact that seniors consume more prescription
drugs when compared to the overall population, and many live on fixed incomes
that rise at or below inflation.
The drug price increases translate to an extra $144.15 per year in drug costs
for the typical senior taking three prescription drugs daily, assuming they use
brand name products. If the full price increase is passed along to the consumer,
these critical drugs will become unaffordable to seniors already struggling with
record high prescription drug costs. Although Medicare will begin providing drug
coverage in January 2006, the health program is prohibited from using its
purchasing power to negotiate lower prices.
Racial Health Disparities Persist in Medicare
From
1992 to 2001, African-American seniors received significantly fewer surgeries
that help older patients live better and longer lives when compared with white
seniors, according to a major study published in the New England Journal of
Medicine. Despite years of trying to erase racial health disparities, this
research proves it remains pervasive and persistent. The study was one of three
conducted and is the first to examine major surgeries, ranging from total hip
replacement to heart bypass, performed on black and white Medicare beneficiaries
(reliable data on other minorities was not available). White patients had much
higher rates for each of the surgical procedures. While researchers had expected
to see a reduction of disparities over time, they found just the opposite. In
2001, the gap had increased sharply among five of the nine surgeries studied.
Researchers did find, however, that gaps improved as a result of government
pressure to ensure that health plans and doctors were meeting minimum
requirements. “Health care is a fundamental right that should be assured to all
Americans regardless of race or class,” said Ruben Burks, secretary-treasurer of
the Alliance. “This study proves that America still has a long way to go in
ensuring that for all her citizens.”
Private Companies Spend Millions Marketing Medicare
As Medicare
prepares for its biggest expansion—a prescription drug benefit administered by
private health insurers—it’s not just the government but private companies that
are doing the “educating.” Health insurers, drug companies and drugstore chains
are spending millions to build name recognition and gain a foothold into the
lucrative Medicare market by providing general information on the upcoming drug
benefit. Thanks to the 2003 Medicare law, corporate interests stand to gain huge
subsidies and potential profits from the Medicare drug benefit.
In the next several months,
seniors can expect a barrage of promotional materials designed to enroll them in
their choice of hundreds of drug plans. Companies may promote their specific
drug plans on October 1, enrollment begins November 15 and the drug benefit
begins January 1, 2006. But advocates warn seniors and their families not to
mistake marketing material for objective research. Premiums and drugs covered
will vary depending on the health plan and most beneficiaries, with the
exception of eligible low-income recipients, may find Medicare is not
necessarily the best drug plan. For more information on Medicare and
prescription drugs visit the Alliance website at
www.retiredamericans.org
and click on “Rx Drugs and Medicare.”
Americans Bear Larger Burdens with Medical Debt
Lack of adequate health insurance
coverage and high health care costs are becoming even more burdensome for
Americans of all ages. Analysis of the latest Commonwealth Fund Biennial Health
Insurance Survey found that nearly 2 of 5 adults (37%) have medical bill
problems or medical debt. The survey also showed that those with health
insurance coverage are not immune to medical money woes. Three of five (62%)
adults were insured at the time their medical bill or debt problem occurred.
Sixty-six of those with bill problems or debt pay 10% or more of their income to
annual health insurance premiums.“These disturbingly high numbers
should send a wake up call to legislators that action needs to be taken toward
lowering health care costs,” said Edward F. Coyle, executive director of the
Alliance. The growing numbers of uninsured Americans have been in the
limelight, but this survey highlights that the insured are also struggling.
Sixty-three percent of those who reported medical bill problems or debt went
without needed care because of the high cost.
Respect and Protect Retirement Security! Come to Washington, DC
September 7-9 and Lobby Congress at the Alliance for Retired Americans
Legislative Conference - Register at
www.retiredamericans.org/legconf or call Joni Jones at
1-888-373-6497
Become part of a progressive grassroots movement!.
Join the Alliance
Alliance for Retired Americans 888 16th St, NW Washington, DC 20008
Click here to sign up for Alliance for Retired Americans.
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