Friday Alert   July 13, 2007
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Medicare Advantage Takes Center Stage
Save the date!  Monday, July 23 will be a national call-in day to Capitol Hill, as Alliance members are urged to demand an end to federal subsidies for insurance companies offering “Medicare Advantage” plans.  The phone number will be available next week and will be published in the July 20 Friday Alert.  The subsidies, seen by many senior advocates as a back-door attempt to privatize Medicare, end up costing the government 12 to 19 percent more than traditional Medicare would cost.  However, the problems do not end there.  Nationally, complaints of aggressive marketing tactics from agents of Medicare Advantage plans have been reported by 39 of 41 state insurance commissioners responding to a recent survey.  Medicare beneficiaries reported significant interruptions in their health care after being switched to plans not accepted by their doctors, and substantial, unexpected medical bills when the new plans had higher cost-sharing.  In addition, the insured may not be able to get emergency care coverage when they need it.  If someone is traveling and needs emergency care outside a plan’s network, that person may be denied any claims for that care.  

Earlier this week, Alliance members in Washington State and Wisconsin drew public attention to the issue with press events touting studies that show just how much taxpayers are losing through Medicare Advantage.  An analysis by Washington’s Community Action Now (CAN) reveals that it costs $1,503 more per year for every Washingtonian enrolled in a Medicare Advantage plan than it would cost to provide care for that person in traditional Medicare.  “When President Bush tried to privatize Social Security in 2005, the American people overwhelmingly rejected a policy that would put the financial interest of Wall Street over the people’s interest on Main Street,” said Will Parry, President of the Puget Sound Alliance for Retired Americans, at an event on Tuesday in Seattle.  “Now Medicare is headed down a similar path, and Congress needs to again take a stand to ensure that our public health care dollars go toward people’s health care, not into health industry CEOs’ wallets.”  On Thursday, Wisconsin Alliance members joined US Action at events in Eau Claire and La Crosse.  A new US Action Education Fund study reveals that Medicare Advantage costs each Wisconsinite enrolled an extra $1,533 per year, 23.2% more than care costs in traditional Medicare.  Even those who choose traditional Medicare are forced to back the overpayments.  Participants pay an additional $24 in Part B premiums every year to finance the private plans.  “This report clearly shows the huge subsidies that the federal government is paying big insurance,” said Wisconsin Alliance Executive Vice President Leslie Davis.

Reactions to Sicko Highlight Problems with U.S. Health Care
Michael Moore’s new documentary on the American health care system, Sicko, has elicited a number of different reactions, many of which appeared in a recent San Francisco Chronicle article.  The film compares health coverage in the U.S. to that in countries such as France, Canada, Britain and Cuba, and reinforces that Americans often obtain drugs or treatments from foreign nations at more affordable rates.  But the documentary has also been accused of glorifying the positive aspects of health care in these nations while minimizing the negative elements.  Critics have noted that the only solution offered by the film is a nationalized health care system, and that there is no mention that private coverage often supplements these government-funded programs.  While reactions have varied, there has been much general agreement that there is a problem with America’s health care system that needs to be fixed.  Although the U.S. is renowned for cutting-edge medical technology, many are unable to receive such advanced specialized or even primary care, due to such problems as the prohibitive costs of many medications and procedures.  Yet, the U.S. spends $6,102 in private and public dollars per person for each year, compared to $3,159 per capita in France.  “For seniors not to be able to afford the health care they need is unacceptable,” said Ruben Burks, Secretary-Treasurer of the Alliance.

Ten Great Retirement Spot Bargains: Kennebunk, Maine, Anyone?
U.S. News & World Report has selected its annual list of best-valued retirement spots, locales offering exceptional amenities and surroundings as well as an affordable cost.  This year’s locations are: Boone, NC; Dahlonega, GA; Fredericksburg, TX; Kennebunk, ME; Melbourne Beach, FL; Natchitoches, LA; Salida, CO; Sandpoint, ID; Yucca Valley, CA; and Yuma, AZ. Since only 7 percent of Americans age 50 or over moved in 2004, and most of them did not cross state lines, the magazine also offers tips for retiring to a more local, lower-cost destination. Moving to a place with a reduced cost-of living and even a lower tax rate can mean buying a bigger house for less money, but other factors are also taken into consideration.  Many of the best locations are within a short distance of major metro areas, with easy access to museums, libraries, outdoor activities, Internet access, shopping, and a major airport.  Some retirees who choose to move away from big cities enjoy college towns for their unique educational and cultural prospects. University classes are often available for audit at a reduced rate or even free of charge.

Alliance Legislative Conference Reminder: Sign Up This Week to Save!
In less than two months - September 4-7, 2007 - the Alliance will be holding its National Legislative Meeting in Washington, D.C.  The theme this year is “Building for America’s Future.” Send your registration by July 20, 2007, to take advantage of the early bird rate.  The registration fee is $80; after July 20th the registration fee is $95.  To obtain copies of the official registration form, either call 1-888-373-6497, email Joni Jones at jjones@retiredamericans.org or visit our website at www.retiredamericans.org.  The conference will be held at the Hilton Washington and Towers.  Hotel reservations must be made by calling the Hilton and Towers directly at 1-888-324-4586.  Be sure to ask for the Alliance for Retired Americans National Legislative Meeting attendee rate.  The discounted room rates are $146 a night (plus tax) and are guaranteed until July 20, 2007.

Did You Know ...
According to Fidelity Investments’ Fidelity Research Institute, the typical American household is on track to retire with only 58% of its pre-retirement income (Wall Street Journal).


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