Friday Alert   September 1, 2006
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Trial Lawyers Get the Word Out on High Prescription Drug Costs...
The Association of Trial Lawyers of America (ATLA) on Tuesday launched a $500,000 television and radio ad campaign in five congressional districts blaming GOP lawmakers for not seeking lower prices for Medicare's prescription drug program.  The ads accuse the lawmakers of blocking provisions that would have required Medicare to negotiate with drug companies for the best prescription cost.  Members of Congress singled out by the ads are Reps. Heather Wilson of New Mexico, Deborah Pryce of Ohio, Chris Chocola of Indiana, Charles Taylor of North Carolina and Don Sherwood of Pennsylvania.  "An ATLA spokeswoman has accused these lawmakers of 'voting repeatedly to restrict access to justice,' and she is absolutely correct," said George J. Kourpias, President of the Alliance.  The trial lawyers' ads will run through Sept. 7, and air as the latest Associated Press-Ipsos poll shows 49 percent of seniors favoring the Democrat in their congressional district, with 41 percent favoring the Republican.

...while Drug Industry Quietly Pays for Ads Thanking Congressional Benefactors
The U.S. Chamber of Commerce has taken credit for a recent multimillion-dollar ad campaign praising lawmakers who support the new Part D program, but according to the Associated Press, the Pharmaceutical Research and Manufacturers of America (PhRMA) paid for the ads.  It is unknown whether PhRMA footed the entire bill, or just a portion, as the U.S. Chamber of Commerce has not explained PhRMA's role in the ads.  Other recent advertising efforts by the Chamber have been plagued with errors.  An ad in Ohio praising one lawmaker had to be taken off the air after officials realized he had actually voted against Part D.  Three additional commercials had to be pulled after it was pointed out those being praised for supporting the changes were not actually in Congress in 2003 when the legislation was passed. 

Two New Issue Briefs Available
The Alliance for Retired Americans Educational Fund has prepared two new issue briefs regarding Medicare.  "How Medicare Part D Fares and What Lies Ahead" examines the issues seniors faced in enrolling in a drug plan, and the economic and health care ramifications of this new law.  The initial reports show that insurance companies and pharmaceutical giants have fared far better than seniors.  The second issue brief, "Understanding Medicare's Preventive Services," highlights the preventive care services and demonstration projects provided by the Centers for Medicare & Medicaid Services (CMS).  Both issue briefs, along with past ones, can be found on the Alliance for Retired Americans Educational Fund website. 

Schering-Plough Admits Wrongdoing, Shells out $435 Million to Settle Charges
Schering-Plough Corp. on Tuesday agreed to pay $435 million and plead guilty to conspiracy to settle a federal investigation into marketing of its drugs for unapproved uses and overcharging Medicaid for some drugs.  According to the Associated Press, Kenilworth, N.J.-based Schering-Plough will pay $255 million to resolve civil aspects of the investigation.  A subsidiary, Schering Sales Corp., will pay a criminal fine of $180 million and plead guilty to one count of conspiracy to make false statements to the government.  Drug manufacturers are required to report their best price on drugs provided to commercial customers, including HMOs, to the Health Care Financing Administration (HCFA, now CMS) and to pay rebates to the Medicaid program to make sure Medicaid obtains the benefit of that low price.  Prosecutors said that from April 1998 through 1999, Schering Sales reported a false best price to HCFA to avoid paying millions of dollars in additional rebates to Medicaid.  The company is best known for drugs including Nasonex nasal spray, Remicade for rheumatoid arthritis, and over-the-counter Coppertone sun care products.

Who's Watching the Children?
According to the Wall Street Journal, financial swindles are one of the fastest-growing forms of elder abuse, with as many as five million senior citizens being victimized each year.  Children, siblings, grandchildren, nieces and nephews, and even spouses are the people most likely to rob the elderly, according to elder-law advocates and attorneys.  Some of the offenses are simple, such as a grandson swiping checks and making them out to "cash."  Other crimes depend on manipulating an elderly person's emotions.  For example, a niece hired to help an elderly uncle persuades him to redirect certain assets to her in a will.  Signs of abuse include parents suddenly being cut off from the rest of the family, no longer pursuing outside activities, or getting calls screened by another family member who always has an excuse for why they aren't available.  "Retirees should structure power-of-attorney documents to limit what an agent controls and which accounts are accessible, and stipulate that a third party, such as a lawyer or a different family member, receive account updates," said Ruben Burks, Secretary-Treasurer of the Alliance.

Rep. Dingell Added to Convention Line-up
Join your fellow activists at the Alliance's 2006 National Convention, September 5-8 in Washington, D.C.  A massive Lobby Day and Social Security rally will highlight this mid-term Election year meeting, which has a theme of "Fighting for Retirement Security."  House Minority Leader Nancy Pelosi (D-CA), Senate Minority Leader Harry Reid (D-NV), and Rep. John Dingell (D-MI) as well as political commentators Paul Begala and Mark Shields are confirmed speakers, and many other key Congressional leaders and political thinkers will share their insight.  Members will elect a president and secretary-treasurer, and at-large members will also elect six community-based board members.  Register for the convention by calling 1-888-373-6497 or visit www.retiredamericans.org.  Walk-ins will also be welcome.  Attendees must register separately with the Washington Hilton and Towers (1-888-324-4586) to reserve an on-site hotel room.  Due to the convention, the next Friday Alert will be published on September 11, 2006.

Did You Know?
A record high 46.6 million Americans, nearly 1 in 6, had no health insurance in 2005, according to Census Bureau data.

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