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Friday Alert February 29, 2008
Alliance for Retired Americans
888 16th Street, N.W. - Washington DC, 20006 - (202)
974-8222 - www.retiredamericans.or
Medicare Advantage Plans Costing Many Seniors
More
A report issued yesterday by the Government
Accountability Office, Congress’ investigative bureau, revealed that
out-of-pocket costs for Medicare Advantage beneficiaries are often much higher
than for recipients of traditional Medicare, particularly for spending on
nursing homes, home health care, and some hospital visits. In 2007, 19 percent
of seniors with Medicare Advantage plans were faced with higher overall costs
for home health services, and 16 percent were subject to greater expenses for
inpatient hospital care and overnight stays. While 48 percent of Medicare
Advantage beneficiaries participated in programs with annual limits on
out-of-pocket costs, one of the benefits touted by private insurance companies,
the report found a number of significant expenses that are not counted toward
these limits by many insurers. 21 percent of such plans excluded spending on
home health care, 23 percent did not include certain mental health services, and
29 percent would not count the cost of some cancer treatments. After seeking
care, many beneficiaries were surprised to learn they paid considerably more
than their plans’ out-of-pocket maximums indicated they would be charged.
According to Congressional Quarterly, Democrats in Congress may try to
amend the President’s Medicare “trigger” bill, which proposes means-testing for
Part D and was introduced in Congress on Monday (H.R. 5480 in the House and S.
2662 in the Senate), to target Medicare Advantage plans. “These Medicare
Advantage plans are ultimately costing seniors more and failing them in times of
need,” said George J. Kourpias, President of the Alliance.
“Private insurance companies are literally profiting at the expense of
retirees.”
Prescription Drug Group Spends $22 Million
Lobbying Washington in 2007
The pharmaceutical industry’s
main trade group spent over $22 million on Washington lobbyists in 2007, the
Associated Press reported. This is a 25 percent increase over 2006.
“Retirees need to know what we are up against in Washington. But I still
believe that a grassroots army of seniors can take on the giant lobbyists – and
win,” said Edward Coyle, Executive Director of the Alliance.
Also, The Wall Street Journal reported that prescription prices rose
eight percent in 2007, twice the rate of inflation. Some industry
analysts, the Journal noted, believe that the increases were aimed to drive drug
prices higher before any possible Medicare reforms could be enacted by Congress.
Coyle is scheduled to discuss the issue this afternoon on Fox Business News
Network.
Inflation Rising Faster for Retirees Than
Other Americans
Inflation figures for older Americans are
significantly higher than for the general population. The Wall Street
Journal
reported this week that while the average inflation rate, measured by the
Consumer Price Index, is increasing at 4.4 percent per year, most of the
products with prices rising most slowly or even falling are purchased by younger
consumers. The Bureau of Labor Statistics (BLS) showed that through January,
clothing prices fell an average of 0.2 percent, while costs for
information-technology merchandise fell about 6.2 percent. On the other hand,
costs for products bought by retirees are rising alarmingly; the BLS estimates
home energy expenses to be rising at 5.5 percent per year, the cost of groceries
increasing by 5.7 percent per year, and gasoline prices swelling 34 percent.
“These statistics prove that retirees have economic and political interests
beyond Social Security and Medicare,” said Ruben Burks,
Secretary-Treasurer of the Alliance. “We must vote for candidates in November
that are not only good for the health of seniors but for the health of our
economy.”
Voter Help Available for Ohio, Other March 4
Primary States
The non-partisan organization Election
Protection is operating a free telephone hotline, where trained legal volunteers
are answering questions and helping to fix problems around the March 4 primaries
in Ohio, Texas, Rhode Island and Vermont. Voters can call 1-866-OUR-VOTE
(1-866-687-8683) or visit the Election Protection website at
www.866OurVote.org for help before or after voting to ask questions about
rules or report problems experienced at the polls. Legal volunteers will
provide information about voting in your state, work with local election
officials to try to resolve issues and ultimately file emergency lawsuits if
necessary. While the voter protection hotline is available for every state
voting Tuesday, extra attention is being focused on Ohio in anticipation of
widespread troubles. According to a recent article in USA Today, almost
20 percent of Cuyahoga County election volunteers did not report in 2006, and
poll workers throughout the state that did show up were insufficiently trained.
A shortage of poll workers is also expected for Tuesday’s primaries.
Additionally, an economic downturn and declining home prices have resulted in
many voters being asked to fill out provisional ballots, as those who move close
to Election Day may have new polling stations or be unable to show proof of
residence. For more information on voting in Ohio, go to
http://www.retiredamericans.org/ht/a/GetDocumentAction/i/6113.
Less than One Month Until First Regional
Conference
In less than one month – March 24-26 – the
Alliance will hold its first regional conference of 2008 in Las Vegas, NV.
Featuring speakers such as U.S. Rep. Shelley Berkley
(NV-01), the Western Regional Conference will provide a forum for activists to
work together and prepare for November’s Presidential election. Attendees will
learn how to get seniors and other retirees registered and voting, increase
grassroots advocacy and educate federal, state and local legislators on issues
like Medicare, Social Security, prescription drugs, and retirement security.
Locations and dates for later conferences are: 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 copies of the official
registration form for any of the four regional conferences, call 1-888-373-6497,
email Joni Jones at
jjones@retiredamericans.org, or visit our website at
www.retiredamericans.org.
Did You Know...
The
average age of the estimated 2 million poll workers in the United States is 72 (USA
Today).
Become part of a progressive grassroots movement!
Join the Alliance
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Alliance for Retired Americans 815 16th
St, NW Washington, DC 20006 www.retiredamericans.org
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