January 14, 2004

Get active.

That's what New York State United Teachers Executive Vice President Alan Lubin is urging unionists upset over President Bush's December signing of a law that privatizes Medicare in exchange for a paltry prescription drug plan.

"The battle has just started," said Lubin. "This new law is a tough setback, but at least we've got until 2006 (when most provisions take effect) to undo the damage. We've got to focus on the upcoming federal elections and support efforts to rewrite the law to authorize the government to negotiate lower drug prices, stop privatization, and repeal the $12 billion slush fund for insurance companies."

The law, narrowly approved in a contentious overnight session only after President Bush made persuasive phone calls to congressional representatives, will send billions in subsidies to drug companies and Health Maintenance Organizations, and take the first step in allowing private plans to compete with Medicare. In return, the law will add a small prescription drug benefit to Medicare - and threaten retirement security for in-service NYSUT members.

Speakers bureau

Confusion abounds over how the law will affect current and future retirees. NYSUT is working with its national affiliate, the American Federation of Teachers, to review details and establish a statewide speakers bureau to educate NYSUT in-service members and retirees. Presentations are being prepared to explain to members how the law could affect health benefits and collective bargaining. Dates and locations will be announced soon (watch the NYSUT Web site for updates, www.nysut.org).

For New Yorkers, union analysts said the Medicare reform is bad news on many fronts:

• The new law threatens seniors' continued right to receive New York's discounted drug benefit called the Elderly Pharmaceutical Insurance Coverage, or EPIC, which is open to people with annual incomes of $35,000 or less and couples with incomes of $50,000 or less. EPIC is a program NYSUT has fought to expand for its retirees. With Gov. Pataki scrambling to close a huge deficit, many predict the state program will be streamlined to save money and reduce benefits.
• Under "means testing," middle-income people earning more than $80,000 a year will pay larger "Part B" outpatient premiums, co-pays and higher deductibles than other beneficiaries. This will hit many metro-area New York retirees.
• The new Medicare law cuts future payments to home health care agencies. This provision will hurt retirees seeking home care services, as well as the thousands of NYSUT visiting nurse members providing services through home health care agencies.
• Public employers are not included in an $18 billion tax credit to encourage them to maintain their contribution to retirees' prescription drug plans.
• The drug benefit will be minimal for many. Retirees will have to pay an estimated $750 a year to get a drug benefit to cover 75 percent of their drug costs. On top of the $750, enrolled seniors will have to pay $2,850 in out-of-pocket costs to qualify for catastrophic coverage.

"Now that the truth about the law is getting out, people are getting angry," Lubin said. "But we're telling members it's not too late. Democratic congressional leaders are already putting together proposals to rewrite the law. And we expect Medicare to be a hot-button campaign issue in 2004. We need to take back the White House and elect a Congress that will protect workers and retirees."

Members are urged to contact congressional reps to thank those who voted against the measure and ask the others to defend their vote. You can send an e-mail to your congressional reps via www.nysut.org on the Web.

Under pressure from the White House, all of New York's Republicans voted for the legislation, while all of the state's Democrats voted against it.

- Sylvia Saunders

NYSUT.org. Copyright New York State United Teachers. 800 Troy-Schenectady Road, Latham, New York, 12110-2455. 518.213.6000. http://www.nysut.org.