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Friday Alert 11/4/05
Alliance for Retired Americans
888 16th Street, N.W. - Washington DC, 20006 - (202)
974-8222 - www.retiredamericans.org
Medicare Drug Benefit Enrollment Begins
November 15
Beginning November 15, Medicare beneficiaries can start to enroll in drug plans
offered by private insurers, officially known as Medicare Part D. Seniors should
understand that drug coverage is not automatic and enrollment is voluntary.
Although those with poor drug coverage or none at all may benefit from Part D,
the sheer complexity of the drug benefit could stump even the savviest
consumer.
Experts suggest that seniors and their families carefully consider their options
before signing up with a plan. Also, they may want to wait until Medicare has
worked out the bugs in two web tools provided on the official Medicare site (www.medicare.gov).
The Wall Street Journal reports that the "Prescription Drug Plan Finder" still
does not include important plan information on which drugs are covered and what
the costs are. Additionally, some experts find the "Prescription Drug Plan Cost
Estimator" may not accurately estimate plan costs. The Centers for Medicare and
Medicaid Services says private insurers are still providing information to the
federal agency to feed into the web tools and hopes to have complete information
by November 15.
Retirees with existing drug coverage through a former employer or union should
receive by November 15 a letter from their health plan explaining that their
drug coverage is "creditable," meaning it is the same as or better than Medicare
Part D. Keep this letter! If your current coverage changes or ends, you will
need this letter to avoid paying any late enrollment fees.
If you are unsure about anything, talk to a trustworthy, independent counselor.
One-on-one counseling is available through your State Health Insurance
Counseling Program (SHIPs). Your local SHIP can be found at
www.shiptalk.org.
The initial enrollment period runs from November 15 to May 15, 2006. Part D
begins on January 1, 2006 for those who enroll beforehand.
White House Threatens to Veto Cuts to
Medicare Insurance Subsidy
As a wide-reaching package of budget cuts moves through
Congress, the Bush administration threatened to veto the bill if it included a
Senate measure to eliminate a $10 billion fund in Medicare for private health
plans, The New York Times reported. The so-called stabilization fund, a
provision of the 2003 Medicare law, was intended to entice insurers into
offering coverage in less populated rural areas. The Senate Finance Committee
proposed to withdraw the fund because hundreds of health plans are already
participating in Medicare. The independent Medicare Payment Advisory Commission
has also recommended that Congress do away with the fund.
The Senate proposal would use part of the savings to increase doctor payments,
which would otherwise be cut by 4.3%. The net savings of the measure would
amount to $5.4 billion over 5 years. The House measure leaves Medicare alone and
instead chooses to cut from Medicaid, the federal health program for the poor.
Despite the White House veto threat, some House members have suggested the
Senate's Medicare cuts may be on the table when it comes to reconciling the two
versions. Republicans tout the budget as a deficit-reduction bill, but Democrats
point out those savings are misleading since the GOP plan to cut taxes by $70
billion in coming weeks.
Eligible Medicaid Recipients Randomly Enrolled Into
Medicare Drug Plans
Nearly 5.5 million individuals who are eligible for both Medicaid and Medicare,
so-called "dual eligibles," have been randomly assigned a Medicare drug plan
with no premium, no deductible, and low co-payments, reports the San Francisco
Chronicle. Because dual eligibles tend to be the poorest and sickest
beneficiaries, the federal government is automatically enrolling them into
pre-approved drug plans run by private insurers. However, advocates are
concerned that automatic enrollment might assign patients to plans that do not
cover the drugs they need or the pharmacies they use. Dual eligibles can choose
to switch plans every month, unlike Medicare beneficiaries who are not on
Medicaid. Advocates advise Medicare recipients, particularly those on Medicaid,
to ask their doctors for a longer supply of necessary medications in case
problems arise with the new drug plan.
Drug Prices Soar Past Inflation Again
Prices for brand name drugs outpaced inflation while
generic drugs remained steady, according to a report released by the AARP. The
study found that from December 2004 to June 2005, 142 of the 193 top selling
brand name drugs studied had price increases averaging 6.1%. The rate of
inflation was 3%. In contrast, of the 75 generic drugs studied, only three
increased prices.
Alliance Says No to Tax Cuts for Millionaires!
Alliance Executive Board Member Judy Cato of Maryland spoke about Medicare and
federal budget priorities at a press conference in the U.S. Capitol Building on
November 2. Joining Senate Democratic Whip Richard Durbin (D-IL), Sen. Max
Baucus (D-MT) and other advocates, Cato urged Congress not to increase Medicare
Part B premiums in order to pay for additional tax cuts for millionaires.
Monday, November 7, and every day next week are national call-in days for all
Alliance members to reiterate that message to Congress. Dial 1-800-426-8073 to
be connected toll-free to the Capitol Switchboard. After you are connected to
your Representative's office, say, "My name is ____ and I live in (your
town/city). I would like Representative [name] to vote NO on the reconciliation
bill to cut $50 billion in vital services to seniors, including Medicare,
Medicaid, and Food Stamps. These cuts are the wrong priorities. Vote against
cuts that hurt the poor and sick and vote against more unfair, unwise, and
unaffordable tax breaks for the wealthiest Americans."
Call three times and ask for your House member and two Senators! Many thanks to
American Friends Service Committee for donating the toll-free number.
December 10: Mobilizing for Workers' Rights
When workers are denied the right to bargain with their employers about the
conditions of their employment, our society becomes less just, less equal and
less democratic. During the week ending December 10, International Human Rights
Day, the Alliance for Retired Americans together with hundreds of allied
organizations will join the AFL-CIO in mobilizing Americans all across the
country to demand protection of and respect for the freedom of America's workers
to form unions and bargain collectively. At town hall meetings, marches,
rallies and candle light vigils in towns and cities throughout the nation we
will listen to and raise the voices of workers and demand their right to have a
voice at work. Learn more about December 10 and what you can do at the AFL-CIO
website at
http://www.aflcio.org/joinaunion/voiceatwork/d10.cfm.
Become part of a progressive grassroots movement! Join the Alliance:
www.retiredamericans.org/join |
