DEMOCRATIC BUDGET HAWKS, CONSERVATIVE REPUBLICANS PUSH ENTITLEMENT COMMISSION
A group of fiscal conservatives, including Senate Budget Committee chair Kent Conrad (D-N.D.) and Sen. Joseph Lieberman (I-Conn.), are backing a commission to help bend the curve of Health Care costs. The drive to fast track the commission's work would require a super-majority of Congress and forestall debate, a move strongly opposed by senior and Labor Groups, including the American Federation of Teachers, since it would almost certainly cut both Medicare and Social Security and capitalize on current economic fears. The chief authors of the measure, Conrad and Sen. Judd Gregg (R-N.H.), say they will attempt to attach their plan to must-pass legislation raising the government's debt ceiling in the coming weeks, which has also drawn support from the Republican leadership and much of the party's caucus. Democratic Senate leaders and the White House have shown interest in the commission approach but remain noncommittal. House speaker Nancy Pelosi (D-Calif.) opposes the approach, but House majority leader Steny Hoyer (D-Md.) supports the concept.
MEDICARE PART D PLANS TO RISE 11 PERCENT IN 2010
Premiums for Medicare Part D plans will rise an average of 11% next year - better than three times the expected overall inflation rate - the Milwaukee Journal Sentinel reports. The cost for all Medicare prescription plans has increased 50% Nationally since 2006. Premiums are just one piece of the total cost. More important is the cost of specific drugs that people take. That can vary from plan to plan and change from one year to the next. So, too, do people's medications. Sifting through all the variables is nearly impossible without a computer. A relatively small percentage of people have switched plans, according to a study published last summer in the New England Journal of Medicine. That could indicate that people are happy with their plans. But it also could indicate that shopping for the best plan is just too much trouble. Those in Part D plans who would like to make a change in 2010 can do so until December 31st.
HEALTHCARE REFORM UPDATE
Those Medicare "Cuts": In
spite of partisan claims to the contrary, neither the Senate nor House bill
uses any funds from the Medicare Trust Fund to pay for reform. Neither bill
cuts guaranteed Medicare benefits. Medicare's
new-found protectors in the Republican caucus come from a party that fought the
creation of Medicare and has a long history of opposing it. Just seven months ago, in an effort to end
traditional Medicare, four-fifths of Republican House members voted to turn it
into a voucher program. During the
Clinton Administration, Congressional Republican leaders called for draconian
cuts in Medicare. Former House speaker
Newt Gingrich said he wanted to see Medicare "wither on the vine." Current Health Insurance Reform Proposals will
benefit older Americans, giving them a 50% discount on drug prices in the
Medicare doughnut hole, providing free preventive care and offering new Health
Insurance Protections for early retirees. The House bill would require the HHS secretary
to negotiate drug prices and phase out the doughnut hole by 2019. Health reform bills will keep Medicare finances
in the black for five more years. The Congressional
Republicans' position amounts to a defense of the status quo that sends
hundreds of billions in overpayments to private insurance companies, benefiting
a fraction of Medicare recipients at the expense of all recipients. Partisan critics of the president's proposal
to eliminate insurance company overpayments in Medicare Advantage plans ignore
the fact that a group of Republican senators introduced a similar proposal this
past May.
CBO: Most Wouldn't See a Post-Reform Premium Cost Increase:
A new report from the Congressional Budget Office (CBO) suggests that insurance
premiums for most Americans would not rise after a healthcare overhaul. The CBO analysis, released November 30th, says
that Health Insurance Rates would generally hold steady or decline for the 160
million Americans covered by large employers, if the Senate health overhaul
bill becomes law. Some of those who buy
individual policies would face moderate increases, about $300 a year on average
for individual coverage, while others would pay much less than they do now. People who qualify for subsidies would see
their premiums drop.
Economists Call for Health Reform: In a letter to President Obama and members of Congress, on November 24th a group of 26 economists called for the enactment of Health Care Reform, saying it would promote economic growth and prevent unsustainable increases in the federal budget deficit. The economists said reform also would yield benefits in the form of improved health, reduced mortality, a more productive workforce and higher standard of living. "The ethical case for reforming our Health Care System is compelling. So is the economic case," they wrote. The group said the current system is riddled with inefficiencies. They said limiting inefficiencies could reduce healthcare spending by as much as 5% of the Gross Domestic Product without compromising care outcomes and choice.
Congress Targets Senior Abuse: As part of Health Care Overhaul Legislation, lawmakers are taking steps that would for the first time establish a federal beachhead in fighting elder abuse. The House Health Care Bill would launch a Nationwide program of background checks for people who care for the elderly, overhauling a patchwork of state laws that critics say has allowed known offenders to repeatedly end up in positions of trust. The Senate bill would boost federal aid for identifying and investigating elder abuse at the state and local levels, require long-term care providers to report possible crimes to federal authorities and create new oversight within the Department of Health and Human Services for coordinating state and federal anti-abuse efforts. About 11% of people aged 60 and older suffer from some kind of abuse every year, according to a March study for the National Institute of Justice, an arm of the Justice Department. Financial exploitation of the elderly costs as much as $2.6 billion a year. Elder Justice Legislation, first introduced in 2002, was opposed by the Bush Administration, which felt it would create a new and unnecessary federal bureaucracy. Supporters say elder abuse should be addressed in Health Care Overhaul Legislation because it pushes up Health Care costs and because financial exploitation of the elderly leaves many destitute and reliant on public assistance. More than a dozen states, including California and Florida, currently do not regulate home-based care workers. Most states only check the backgrounds of medical workers, such as nurse aides, and only for crimes they committed in their own states.
WEINGARTEN TO JOIN WHITE
HOUSE JOBS SUMMIT
AFT President Randi Weingarten was among the participants
when President Obama convened a recent forum on job creation at the White
House. In addition to Weingarten,
National AFL-CIO President Richard Trumka and other Labor Leaders, the event brought
together economists, financial experts, CEOs, small-business leaders,
representatives from non-profit groups and others to discuss new strategies for
job creation. While the American
Recovery and Reinvestment Act, which was passed in February, has been vital in
saving thousands of jobs - 325,000 in public education, according to estimates
- unemployment in both the public and private sectors remains stubbornly high. One looming concern is the continuing fiscal
crisis in the states, which shows little sign of abating. At the local level, unemployment and rising
poverty, particularly among families and children, mean that schools and other
public agencies are being asked to provide more services with fewer resources. Weingarten was among those arguing for
continued federal aid to states and school districts beyond what the Recovery
Act calls for. Related initiatives
should target job training programs in community colleges as well as the
expansion of community schools, which can help meet the broader needs of
children and families.
U.S. HEALTHCARE SYSTEM WASTES $700 BILLION A YEAR
The U.S. Healthcare System wastes some $700 billion a year -
one-third of all spending - on inefficient practices and outright fraud,
according to a white paper from Thomson Reuters, a financial research firm. By reining in wasteful spending, the report
said, the potential exists to trim Health Care costs, which continue to take up
increasing percentages of the gross domestic product. The study, entitled Where Can $700 Billion in Waste Be Cut Annually from the U.S.
Healthcare System?, identified six categories of waste, with unwarranted
use taking top billing. Defined as "direct patient care that has little to no
value," unwarranted use accounted for 40% of all waste. Unwarranted use can take many forms, from a
doctor prescribing costlier brand-name drugs over cheaper generics, to doctors
ordering high-priced diagnostic tests in situations where a patient's condition
does not warrant it. Fraud and abuse
made up the next-largest category of waste, accounting for 19% of all
healthcare waste. Examples of dangerous
fraudulent behavior are the misbranding of prescription drugs by pharmaceutical
companies and the intentional provision of unnecessary, and in some cases
inappropriate, diagnostic services. Other
sources of healthcare waste included administrative inefficiency (17%), provider
inefficiency (12%), lack of care coordination (6%), and the continued growth of
preventable conditions (6%) such as obesity and smoking-related illnesses.
AFT RETIREES JOIN FIRST
LADY FOR HEALTH CARE DISCUSSION
First Lady Michelle Obama recently hosted a White House
event that highlighted the importance of Health Care reform for older women. AFT retirees from the Washington Teachers'
Union and the Baltimore Teachers Union attended the event, along with Health Care
advocates from the Alliance
for Retired Americans, AARP and the Older Women's League. "The way things are, women are among
those struggling most under the status quo, and women are among those who will
benefit most from Health Insurance Reform," Mrs. Obama said. During the event, three women shared stories
of their own Health Care problems and described how their coverage failed them
when they needed it most. "These
stories touch our hearts," Mrs. Obama said. "They spark in us just a
fundamental sense of unfairness. But the
sad truth is none of these stories are unique. These kinds of stories are being told in city
after city, town after town, all across America." The first lady noted the president's commitment
to strengthening Medicare - a key component of the AFT retirees' support for
Health Care Reform. AFT retirees were
excited to take the first lady's message back to their members. "This just reinforces the importance of
members supporting the president in his effort to reform Health Care,"
said Carolyn Caulk-Smith, a retired para-professional who is currently chapter
president of the BTU retirees' local. "We're definitely going to get out
and strongly support this effort as a unit."
AFTER HEALTH CARE, JOBS ARE LABOR'S JOB ONE
With more than 26 million Americans unemployed or underemployed, and more than six workers for every one job, the National AFL-CIO has turned its attention to a political push for a massive national jobs program. Spurred on by soaring unemployment and blighted futures, the federation began by documenting the size of the problem. In a recent survey of young people, Young Workers: A Lost Decade, the AFL-CIO found: More than one in three young workers says they are currently living at home with their parents; 31% of young workers report being uninsured, up from 24% without health insurance coverage 10 years ago; and One-third of young workers cannot pay their bills, and seven in 10 do not have enough saved to cover two months of living expenses. Economic Policy Institute economist John Irons cites a study in which some 35% of jobless workers still lacked employment two years later and 13% had only part-time jobs. Meanwhile, 13% of those who did find full-time work were paid less than at the job they lost. National AFL-CIO leaders plan to press the White House and Congress to act on the following recommendations immediately, which starting at President Obama's recent Jobs Summit: Extend unemployment insurance, food assistance and participation in COBRA benefits; Invest in infrastructure; Increase aid to state and local governments; Fund jobs in communities, including early childhood education, tutoring and maintenance; and Use leftover TARP funds to allow community banks to lend to small businesses.
