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Friday Alert
Friday, April 3, 2009(Alliance for Retired Americans)
Senate Votes Against Entitlement
Task Force
On Wednesday, the U.S.
Senate voted against an amendment to the fiscal
2010 budget resolution which would have created
an Entitlements Task Force to address the
long-term funding shortfalls faced by Medicare,
Medicaid and Social Security, and requiring
Congress to vote on its recommendations.
Proposed by Sen. Judd Gregg
(R-NH), amendment No. 835 failed by a vote of
55-44. The vote fell generally along
party lines, with Senators Bernie
Sanders (I-VT) and Olympia
Snowe (R-ME) joining Democrats in
voting against it, and Senators Ben
Nelson (D-NE) and Joe
Lieberman (I-CT) joining Republicans
who voted for it. The vote was a victory
for Alliance members. "No commission will
solve this problem until we are ready to
address the rapidly rising cost of health care
and create a health care system that is
affordable for all Americans," said
Ruben Burks,
Secretary-Treasurer of the Alliance. The
House and Senate have now passed their versions
of the budget, which next goes to a conference
committee.
Medicare Part D Means Testing Vote
Fails in the Senate
In other good
news for Alliance members, on Thursday the
Senate voted 58-39 against another amendment to
the fiscal 2010 budget resolution. This
amendment, proposed by Sen. John
Ensign (R- NV) would have added means
testing to Medicare Part D. Had it
passed, prescription costs would have increased
by $11.31, up to $64 per month, for enrollees
with an income of more than $85,000 or for
couples with incomes over $170,000. For
the complete results of the vote, go to http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00128.
Beware of "Sky is Falling" Attempts
to Cut Social Security
Benefits
This week there were
reports in the news that the recession would
affect Social Security's current ability to pay
benefits. "Current and future retirees
should be suspicious of those who react to
today's news with 'sky is falling' predictions
of doom. These warnings mask an ongoing
ideological agenda to cut Social Security
benefits and increase the retirement age," said
Edward Coyle, Executive
Director of the Alliance, on Tuesday.
"According to noted economist Henry J.
Aaron of the Brookings Institution,
the recent decrease in Trust Fund revenue will
account for less than a few one-hundredths of
one percent decrease in the 75 year projection
for the Social Security Trust Fund," he
added. Many analysts have reiterated that
sentiment, since cyclic economic impacts are
considered when future estimates are
made.
Medicare Advantage and Prescription
Drug Plans Face Increased
Oversight
The Centers for Medicare
and Medicaid Services (CMS) announced on Monday
that it will be taking new steps to increase
oversight of Medicare health and drug plans to
make sure beneficiaries understand the
differences between Medicare Advantage (MA)
plans in 2010. Such measures will include
reviewing MA plan benefits to ensure sicker
beneficiaries are not paying discriminatory
out-of-pocket charges for services like Part B
drugs, home health, and skilled nursing
services, as well as making sure different MA
plans offered by the same insurance company
vary enough that beneficiaries have the tools
they need to choose between them.
Additionally, companies offering Part B
prescription drug plans will have to both
explain on their own web sites how their
coverage lowers costs and provide information
about "doughnut hole" coverage on the CMS
Medicare Prescription Drug Plan Finder web site
at http://www.medicare.gov/.
"Making this information more transparent will
help seniors make smarter, more confident
decisions about their health care," said
Barbara Easterling, President
of the Alliance.
Bush Administration 401(k) Rules
Placed on Hold
According to an
AFL-CIO blog item at http://blog.aflcio.org/2009/03/31/last-ditch-bush-rule-would-threaten-retirement-security,
on the day of Barack Obama's inauguration, the
Bush administration proposed a new regulation
that could reduce Americans' retirement
security. The previous administration's
"last-gasp effort to reward its corporate
friends" would allow firms to give financial
advice to workers who participate in their
401(k) plans on products where they have a
financial interest. Current laws prohibit
such conflicts of interest and the Obama
administration has put the regulation on
hold. The House Committee on Education
and Labor's Subcommittee on Health, Employment,
Labor and Pensions held a hearing on the matter
last week. "The U.S. Labor Department
should permit the education of retirees
generally about investments, but should stop
short of allowing specific recommendations when
there could be a conflict of interest," said
Easterling.
Alliance Activities Around the
Country: Indiana, DC, and South
Carolina
In twelve separate events
around the state of Indiana this week, members
of the Indiana Home Care Task Force revealed
new data regarding the statewide impact of
welfare privatization and
"modernization." The Indiana Alliance is
a key member of the group, which consists of a
coalition of organizations and individuals
representing seniors, persons with
disabilities, and families in need. By
the first half of 2008, Indiana had rolled out
its privatization changes to 59 of the state's
92 counties. In an economy with rapidly
growing unemployment, the utilization of food
stamps, TANF (Temporary Assistance for Needy
Families) and Medicaid services should be
rapidly growing. However, in the
"modernized" counties, the numbers are
decreasing.
Edward Coyle and Alliance Executive Vice President Judy Cato visited the Pilgrim Baptist Church in Washington, DC last Wednesday as part of the Alliance's effort to further its outreach into community-based groups, particularly faith groups. The Church's pastor is Rev. Louis B. Jones II, a Community Advocacy Network member of the Alliance's Executive Board. Last Friday, South Carolina Retirees gathered at the Somerby of Mt. Pleasant Retirement Community for a useful discussion of different types of long term care, information on the state and federal regulations that long term care facilities must follow, and how to choose a quality plan.
THE NEXT FRIDAY ALERT WILL BE PUBLISHED ON THURSDAY, APRIL 9.
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