Friday Alert   October 5, 2007
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

President Bush Vetoes Health Insurance for Children
On Wednesday morning, President Bush vetoed a bill to expand the State Children’s Health Insurance Program (SCHIP), H.R. 976, which would have added $35 billion to the program over five years and covered an additional four million children.  The move sent Congressional Democrats searching for the 15 to 20 additional votes they will need to achieve a two-thirds majority in the House of Representatives and override the president’s veto.  Because the legislation originated in the House, the lower chamber will be first to attempt the override, with the vote currently scheduled for Thursday, October 18.  There is already enough of a majority in the Senate, which passed the bill with 67 votes, to override a presidential veto.  The Congressional Budget Office estimates that at current funding levels, there is not enough money to maintain coverage for all of the children already in the program, leaving millions of kids at risk of losing their health insurance.  “Over the next two weeks, the Alliance will be disseminating suggested letters for contacting members of Congress directly, as well as sample letters to the editor,” said Ruben Burks, Secretary-Treasurer of the Alliance.  “Alliance members will have the opportunity to tell their elected officials, through e-mails and a toll-free number, to renew and expand SCHIP and to protect the healthcare of future generations.”

New Report Explores Extent, Effect of Drug Company Price Gouging
A new report by Dianna Porter, Director for Policy with the Alliance’s Department of Government and Political Affairs, details the shocking extent of price gouging by pharmaceutical companies.  Paid for by the Alliance for Retired Americans Educational Fund (ARAEF), the report concludes that for millions of Americans, high drug prices are a major barrier to maintaining an acceptable quality of life.  Outrageous Fortune: How the Drug Industry Profits from Pills shows that retirees are struggling more that ever to afford the medications they need to live comfortably and even survive.  The report demonstrates how the drug industry continues to profit at the expense of seniors, as higher and higher prescription prices and more stringent restrictions on generics force retirees into the Medicare Part D “doughnut hole.”  Copies of the report can be found on the ARAEF website, at www.retiredamericansfund.org.

As Medicare Part D Premiums Rise, Multiple Consequences Ensue
Increases in monthly premiums by Medicare's top prescription-drug plans next year will force as many as 1.6 million low-income beneficiaries to switch plans, according to an analysis of government data.  The Wall Street Journal, citing a report made available last Friday by the Washington consulting firm Avalere Health LLC, said that most popular Part D plans will raise their premiums in 2008.  Under the law, plans that cost more than the government-set benchmark cannot automatically offer coverage to low-income beneficiaries.  Increases for plans run by Humana Inc. and UnitedHealth Group Inc., the two top players by enrollment - with more than 40% of the market - will therefore have an enormous impact beyond higher prices.  UnitedHealth alone insures 650,000 beneficiaries who will have to switch plans, since its offerings next year priced it out of 18 regions.  Low-income beneficiaries will not be the only losers, however.  Health insurers have taken note that seniors do not like to change plans if they do not have to, even if it costs a little more, and are hoping older Americans who are not low-income will pay their higher premiums.  “Humana lured seniors with low, $9.51 average premiums during the first year it offered these plans,” said Edward Coyle, Executive Director of the Alliance.  “Now Humana is raising that amount to $25.56 in 2008, and is deviously hoping vulnerable seniors will not want to go through the hassle of switching.”  In addition, a recent government audit raises concerns that Humana has not done enough to eliminate misleading sales practices to the elderly and disabled.  The six-week enrollment season for 2008 starts Nov. 15.  Due to the changes, Medicare advocates expect hassles beginning in January, when many enrollees will find themselves dealing with new preferred lists of medicines, or formularies. 

Are You Registered to Vote?
With the first primaries and caucuses for the 2008 primaries just three months away, fair elections are again a major issue.  Check out the National Campaign for Fair Elections’ web site, www.nationalcampaignforfairelections.org, which features a U.S. map with information for each individual state, including guidelines for registering to vote.

Colorado Alliance Re-Elects Officers
Edward Coyle flew to Denver last week to address the Colorado Alliance’s state convention.  In his remarks, Mr. Coyle focused on the senior vote in 2008 and on encouraging candidates to talk about retiree issues.  Re-elected to their positions with the Colorado Alliance were: Frank Lay, President; Fern Osborne, Vice President; Bob Knapp, Secretary; and Bob Young, Treasurer.

Alliance Mourns Claude “Blackie” Evans
It is with deep regret that we report the death of longtime activist Claude “Blackie” Evans, who played a critical role in bringing seniors together and creating the Nevada Alliance for Retired Americans.  Mr. Evans passed away September 28.  He was a former member of the General Executive Board of the National AFL-CIO and Labor Commissioner of the Nevada Industrial Commission, and he held prominent positions with many other labor, safety and consumer organizations.  “Blackie Evans was a passionate advocate for seniors and a leader in the labor community,” said Alliance President George J. Kourpias. “We will greatly miss his advice and his friendship.”  His life and works will be honored at the Nevada Alliance for Retired Americans convention later this month.

Did You Know ...
About 7.4% of Americans aged 75 and older lived in nursing homes in 2006, compared with 8.1% in 2000 and 10.2% in 1990, according to U.S. Census figures released last week.  The downturn reflects the improved health of seniors and more choices of care for the elderly.


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