Friday Alert   June 29, 2007
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Road to Privatizing Medicare Hits a Pothole
On Wednesday, the Alliance came out in support of H.R. 2945, the "Medicare Advantage Truth in Advertising Act," which was introduced by Rep. Pete Stark (D-CA), Chairman of the House Committee on Ways and Means Subcommittee on Health.  In a letter to Rep. Stark, the Alliance thanked him for launching legislation that would provide seniors with up front information on the true costs of Medicare Advantage private insurance plans.  "Medicare Advantage means confusion over what drugs are covered, and it means higher out-of-pocket costs for seniors," said Edward F. Coyle, Executive Director of the Alliance.  "Rep. Stark's legislation ensures fairness for Medicare beneficiaries and taxpayers and decreases costs for many low-income seniors.  It also helps stop the privatization of Medicare through tricks like subsidies for Medicare Advantage plans."  In July, Congress will consider cutting overpayments to Medicare Advantage plans, in order to make improvements to the Part D drug plan and expand children's health coverage.

U.S. Senate Votes on EFCA
On Tuesday, Senate Republicans blocked a vote on the Employee Free Choice Act (EFCA), a bill that would have made it easier for unions to organize workers.  Supporters of the bill failed to get the 60 votes needed to cut off debate and allow a vote on the bill, as 51 Senators voted in favor of cloture and 48 voted against it.  The bill would have given workers the right to insist on a procedure known as majority sign-up, in which employees could form a union as soon as a majority signed cards saying they wanted one.  Under current law, many employers facing a unionization drive intimidate workers and even fire supporters prior to a secret-ballot election.  Sen. Tim Johnson (D-SD) was unable to vote as he recovers from an illness.  All other Democratic senators, plus Independents Joe Lieberman (CT) and Bernie Sanders (VT) and Republican Sen. Arlen Specter (PA), voted in favor of cutting off debate.  No other Republicans voted in favor of cloture.  "We got a majority, but it wasn't enough," said George J. Kourpias, President of the Alliance.  "We must elect a bigger majority in the Senate to stand with working families and retirees, as well as a President who will champion our interests, in 2008."

Alliance Takes Part in Prescription Drug Battle Victory
Prescription Access Litigation (PAL), a national coalition of over 130 groups, including the Alliance, fighting for affordable prescription drugs, had a major victory last week when the U.S. District Court for Massachusetts found that several large drug manufacturers violated the state's consumer protection act.  A judge ruled that Astra Zeneca, Bristol-Myers Squibb, and Warrick - a subsidiary of Schering-Plough - acted "unfairly and deceptively" by falsely reporting the Average Wholesale Price (AWP) for numerous prescription drugs, including doctor-administered cancer treatments.  AWP is a dollar amount provided by manufacturers and used by private and government health plans to determine how much doctors and pharmacies are reimbursed after a medicine is prescribed for a patient.  The court found that some companies artificially inflated their AWPs, allowing physicians to profit from the large difference between the amount they are reimbursed and the amount they actually pay to purchase the drugs.  This victory is part of a larger, national case where dozens of defendants are accused of actually marketing this practice to doctors as an incentive to purchase that company's drug over a competitor's.  "This court's decision is another step toward our goal of bringing prescription drug prices back into reach for retirees," said Ruben Burks, Secretary-Treasurer of the Alliance.

Employees Cope with Caring for Parents, Other Family Members
With changing demographics and increased longevity, a "sandwich generation" has emerged, as employees often find themselves caring for both parents and children at the same time.  In USA Today's weeklong series examining elder care in America, it is estimated that 34 million adult children, mostly women, spend an average 21 hours a week as caregivers for other adults.  Forty-one percent of baby boomers with a living parent say they provide financial or personal assistance to their moms and dads, while another 37% expect to do so at some point.  Between lost wages, pensions, and Social Security benefits, such help comes at an average cost of $659,000 per person. But the cost is also physical and emotional, as caregivers often suffer from elevated rates of chronic conditions like high blood pressure, and old familial tensions can be brought to the surface.  These tolls are exacerbated by an ongoing shift away from nursing home care.  Grown children are turning to less-restrictive options like assisted living and adult day care out of concern for both finances and maintaining their parents' independence.  However, such alternatives require families to take on additional responsibilities and involvement in care; 8% of baby boomers say parents now live with them.  Even when a nursing home is chosen, families visit frequently and must be in constant communication with medical and non-medical staff.  With a growing number of workers facing these situations, some employers have created programs that include financial and mental support, such as "backup emergency adult care," where costs are subsidized for a trained professional to visit a home and provide help.  Many workers can take unpaid time off for parental care under the federal Family and Medical Leave Act.

Arizona Retiree Brings Senior Issues to the Presidential Campaign
On June 21, the Alliance voice was heard on the 2008 presidential campaign trail in Phoenix, Arizona.  Bill Engler, Vice President of the Arizona Alliance, spoke up at an AFL-CIO town hall forum featuring New Mexico Governor and Democratic candidate for U.S. President Bill Richardson.  Mr. Engler raised the issue of the solvency of Social Security and Medicare, sparking a discussion of the issue.  Also during the forum, Gov. Richardson talked about favoring the concept of the federal government negotiating drug prices with pharmaceutical companies.  Neither the Alliance nor the AFL-CIO has endorsed any candidate for president in 2008.

Did You Know ...
Almost half of all Americans saving for retirement have put away less than $25,000 (Wall Street Journal).

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Alliance for Retired Americans 815 16th St, NW Washington, DC 20006 www.retiredamericans.org