Friday Alert  3/17/06
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Part D: In the Midst of Conflicting Republican Messages...
President Bush spent two days this week visiting seniors and encouraging them to sign up for the Part D drug plan.  In Silver Spring, MD, Wednesday, when asked about an extension of the enrollment deadline, a visibly frustrated President Bush replied, "No.  And the reason why is there's got to be a fixed time for people to sign up.  We want people to realize now is the time."  While the president was ruling out pushing back the enrollment deadline, the Senate was busy voting to authorize, but not require, the Secretary of Health and Human Services (HHS) to extend the May 15 deadline.  The amendment was offered by Sen. Charles Grassley (R-IA), who claimed he thought enrollment was going well, but seniors may need more time to sort out the confusing options.  The Senate rejected by 49-49 an amendment offered by Sen. Bill Nelson (D-FL) that would mandate an extension and require that seniors be allowed to switch Medicare drug plans once a year.  Meanwhile, Rep. Tom Feeney (R-FL) said in The Washington Post Friday, "If the vote were held today on the Medicare prescription drug benefit, as many as 120 Republicans would vote against it.  It was probably our greatest failure in my adult lifetime."

...Senate Defiance of the Drug Companies
In a policy reversal for the Senate, a vote on Wednesday allowed the government to negotiate for discounts on prescription drugs.  The vote represented a rare defiance of the pharmaceutical industry, since negotiations for drug discounts were barred under the 2003 law that created the benefit.  An amendment regarding Medicare drug prices, offered by Senators Ron Wyden (D-OR) and Olympia Snowe (R-ME), was adopted by a 54-44 vote on the fiscal 2007 budget resolution.  The amendment clears the way for a simple majority vote - rather than a super majority requiring 60 votes for passage - on legislation granting negotiating authority to the HHS Secretary.  However, the Senate action does not carry the force of law.  Because the amendments were attached to the budget resolution, they provide only guidance for future legislation.  "It's a step in the right direction.  The Senate has now put the Bush Administration on notice that it cannot depend on routine approval to fulfill the pharmaceutical industry's every wish," said George J. Kourpias, President of the Alliance for Retired Americans.

Raise the Debt Ceiling, Then Lower Revenue - Was This Enron's Idea?
The Senate voted 52-48 on Thursday to raise the ceiling on the national debt to just under $9 trillion, preventing a first-ever default on U.S. Treasury notes.  Nevertheless, Senate Republicans continue to try to pass another round of tax cuts for the wealthiest Americans.  Under current law, they need 60 votes to do so, since the tax cuts would worsen the long-term deficit.  To get around this hurdle, the New York Times reports that Senators are considering ways to raise tens of billions of dollars to offset the cost.  One way to do this would be allowing wealthier Americans to convert their old I.R.A.'s to "Roth I.R.A.'s."  With a Roth I.R.A., no tax is due when money is withdrawn, because of a generous government subsidy.  Under this plan, taxes would be due up front on the money that is transferred, giving the government a quick but relatively small infusion of revenue.  However, the tactic would be a big revenue loser later, when wealthy Americans make tax-free withdrawals that used to be taxable.  "Anyone who ran a household budget like that would have creditors calling," said Edward Coyle, Executive Director of the Alliance.  "It's borrowing from Peter to pay Paul."

CHCWG - An Opportunity to Improve the Nation's Health Care System
The Citizens Health Care Working Group (CHCWG) is a federally appointed commission charged with collecting the input of ordinary Americans on ways to improve the American health care system.  CHCWG's 15 members include United Food and Commercial Workers President Joe Hansen as the labor representative.  The group has begun collecting that input through their website and through community meetings that kicked off in January.  "Given the timing of the meetings and the final recommendations for Congress and the President - due in August - we have an opportunity to tap into retirees' anxiety about health care to highlight Congressional inaction on this pressing issue as we enter the fall elections," said Ruben Burks, Secretary-Treasurer of the Alliance.  Retirees can participate in the community meetings, either by attending one that is already scheduled and hosted by the CHCWG, by hosting one in their own community, or by submitting their views through an online survey at www.citizenshealthcare.org.  The meetings are town-hall style events, with participants sitting at tables of ten, speaking from the tables, and registering their votes on issues raised with handheld tabulation devices.  In the coming weeks, the group will hold meetings in more than two dozen cities, including Detroit, Phoenix, New York, and San Antonio.  A list of upcoming town hall meetings is also available at the web site.

Drug Plan Threatens Small Pharmacies
Independent pharmacies are losing money under the new prescription drug plan, leaving many to wonder how long they can stay in business.  Pharmacists from Texas expressed their concerns in a meeting with presidential advisor Karl Rove, explaining how the payments from the private drug plans are slower and lower than what they used to receive from Medicaid.  "It was pharmacists who saved lives during the initial rollout of the drug plan when everything was a mess," said George J. Kourpias, President of the Alliance.  "You would think they would be promptly reimbursed by Medicare as a token of appreciation.  Instead, independent pharmacists are dipping into their personal savings and taking out loans just to keep their doors open."

Did You Know?
Americans United, an active group in last year's fight against the privatization of Social Security, has launched the "Campaign to Fix Bush?s Part D Disaster."  Working with the Alliance for Retired Americans and other groups, Americans United will hold events throughout the year and pressure lawmakers to make Part D a true benefit for seniors.