Friday Alert   January 11, 2008
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

Senators Hillary Clinton, John McCain Win New Hampshire Primaries
Sen. Hillary Clinton and Sen. John McCain won the Democratic and Republican New Hampshire presidential primaries on Tuesday night.  The top three finishers for each party were as follows: On the Democratic side, New York Sen. Hillary Clinton had 39%, Illinois Sen. Barack Obama had 36%, and former North Carolina Sen. John Edwards had 17%.  On the Republican side, Arizona Sen. John McCain had 37%, former Massachusetts Governor Mitt Romney had 31%, and former Arkansas Governor Mike Huckabee had 11%.  Older voters overwhelmingly outnumbered younger voters, a proportion that benefited Sen. Clinton.  Sixty-seven percent of Democratic primary voters were over the age of 40, and they broke heavily for Sen. Clinton.  In particular, women, 65 and older, gave Hillary Clinton a huge win, 57 to 27%.  Among independent men, Sen. Obama's support was nearly 3-to-1 over Clinton.  "I am pleased to see that seniors are voting in droves," said Alliance President George J. Kourpias.  "They are fired up."

Private Insurance Companies Drive National Health Spending to Record High
Monday, the Centers for Medicare and Medicaid Services reported a 6.7% increase in national health care spending in 2006, pushing the total past $2 trillion for the first time.  Total health care spending has almost doubled over the last decade, now averaging $7,000 per person.  A major contributor to the growth was the high payments to private insurance companies participating in Medicare Advantage and the Part D prescription plans.  The Medicare Part D drug benefit led the program's administrative costs to rise by 8.8% last year, and its total spending to increase at its most rapid pace since 1981.  Yet, Richard S. Foster, Medicare's chief actuary, admitted, "the overall cost of prescription drugs in the U.S. has changed very little as a result of Part D."  Additionally, out-of pocket consumer health spending went up 3.8% for the year. "The evidence continues to pile up, proving these programs offer a greater benefit to big insurance companies than America's seniors," said Ruben Burks, Secretary-Treasurer of the Alliance.

Social Security Debit Card to Benefit Recipients, Government
According to The Wall Street Journal, the Treasury Department plans to introduce a prepaid debit card for Social Security recipients in an effort to provide safer and cheaper benefits payments.  The Direct Express debit card, announced last Friday, will be introduced in a few states this spring and rolled out nationwide by the end of the summer.  The program is targeted at Social Security and Supplemental Security Income recipients who do not have a bank account.  The card could mean significant cost savings for benefits recipients as well as the federal government, Treasury officials and banking experts say.  People who sign up for the card will gain faster access to their money and avoid security problems such as stolen checks.  However, there are some cardholder fees associated with Direct Express, and a significant education effort may be required to get users to accept and understand the card.  In April, Treasury plans to begin mailings to encourage benefits recipients without bank accounts to sign up for the debit card, and those with bank accounts to sign up for direct deposit.

Big Drug Companies Say Fight Against Them Has "Died Down"
Big drug companies remain cheerful about their election-year fate.  Last week, Schering-Plough CEO Fred Hassan claimed that more than 50% of Americans have a favorable opinion of the pharmaceutical industry, and that efforts to let Medicare negotiate drug prices have "died down" because seniors are so satisfied with the Part D prescription drug benefit.  However, a Harris Interactive poll conducted in October found that oil and drug companies tied at 53% as the industries most needing additional regulation.  Only 11% of respondents believed the pharmaceutical industry to be "generally honest and trustworthy."  "These big companies think that they've got us beat and we're not fighting anymore, so let's make 2008 the year we prove them wrong," said Edward Coyle, Executive Director of the Alliance.  "Fred Hassan raked in more than $25 million in compensation in 2006.  He's not going to fight for negotiated drug prices."

Florida Alliance Helps Lead Fight Against Cuts to Local Services
The Florida Alliance, the AFL-CIO, the Service Employees International Union, and other community groups have come together to mobilize vigorously against Amendment 1, a Florida property-tax reduction initiative that would cut local services.  The coalition, called "Florida is Our Home," is delivering the message to voters that if the property-tax base is eroded in order to benefit wealthy people with second homes, then city and county governments across the state would have to cut back on such things as public safety and education.  Tony Fransetta, President of the Florida Alliance, appeared on Tampa's public access television as part of the fight against the amendment, which will appear on Florida's January 29 ballot.  Polling has shown voter support for the proposal just below the 60% required to approve a state constitutional amendment.

National Alliance's Regional Conferences Coming Up
In a little more than two months, the national Alliance will hold its first regional conference of 2008 in Las Vegas, NV.  The Western Regional Conference - March 24-26 - will offer members an opportunity to work with other activists in the region to set the course for the Alliance and a country that cares about workers, retirees and their families.  Attendees will learn how to get seniors and retirees registered and voting; increase grassroots advocacy; and educate federal, state and local legislators on issues like prescription drugs, Medicare, Social Security and retirement security. Details for the other regional conferences are as follows:  Northeastern Regional Conference, April 17-18, 2008 in Philadelphia, PA; Midwestern Regional Conference, April 28-29, 2008 in St. Louis, MO; and Southern Regional Conference, June 4-5, 2008 in Orlando, FL. For official registration forms for your regional conference, call 1-888-373-6497, email Joni Jones at jjones@retiredamericans.org, or visit our website at www.retiredamericans.org.

Did You Know...
A surprising 85% of those without health insurance are currently employed, and nearly all have worked in the past year (Wall Street Journal).

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