Alliance for Retired Americans Friday Alert 3-28-14

Headlines:
Doc Fix Prevents Cuts to Medicare Providers for a Year
Kellogg’s: Frosted Flakes®, Froot Loops®, and a Worker Lockout
See Hidden Camera Footage of American Legislative Exchange Council in Action
NAFTA at 20: AFL-CIO Reports on Legacy of the Trade Deal
Fiesta Speaks at NEA Conference
Alliance’s National Convention is April 28 – May 1, 2014 at Bally's Hotel Las Vegas

Doc Fix Prevents Cuts to Medicare Providers for a Year
On Thursday, the House approved a so-called “doc fix” bill that serves as a temporary solution to an ongoing structural problem in the formula used to determine Medicare funding levels. After hours of uncertainty over whether the bill would have sufficient support to pass, House Republican leaders moved quickly to approve the measure by voice vote. The legislation, which is also expected to be taken up and passed by the Senate on Monday, prevents a 24 percent cut in reimbursements to physicians under Medicare. The Washington Post reported that many House Democrats criticized the bill -- insisting that Congress should have voted on a permanent fix to the Sustainable Growth Rate, as the doc fix is known.

“This is a band-aid,” declared House Minority Leader Nancy Pelosi (D-Calif.). “There are so many things that are wrong with this bill, but the simple fact is that the clock is ticking and on March 31, it's bad news for our seniors and the doctors that treat them.” She voted in favor of the year-long fix despite its shortcomings, after considering the consequences of not doing so.

This “doc fix” is the latest incarnation of a bill passed frequently by the House -- sometimes multiple times per year -- that avoids a sharp drop-off in Medicare payments. In 1997, Congress created the Sustainable Growth Rate, a system that pegged the amount of money budgeted for Medicare payments to projected growth of the economy. However, within a few years, health care costs far outpaced economic growth -- creating a multibillion dollar shortfall in funding.

“While we really need a permanent fix, we can at least breathe a sigh of relief that seniors will not have trouble getting doctors to accept patients on Medicare next week,” said Barbara J. Easterling, President of the Alliance.

Kellogg’s: Frosted Flakes®, Froot Loops®, and a Worker Lockout
Kellogg Company, the $14 billion global snack food giant, has embarked on a perilous path that threatens the very principles and values that its founder W.K. Kellogg envisioned a century ago. Under the guise of another restructuring program and led by its CEO, John Bryant, Kellogg is closing factories, cutting production lines, locking out workers, taking uncompromising and unreasonable stands at collective bargaining tables throughout the world and is even turning its back on its hometown of Battle Creek, Michigan.

More than 220 workers have been locked out of their jobs at Kellogg's Memphis, Tenn. cereal plant since October 22, 2013. The workers, members of Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Local 252G, who make Frosted Flakes®, Froot Loops® and other breakfast favorites, were locked out as part of the drive by the company to replace steady, middle-class, full-time jobs with casual part-time employees who would make significantly lower wages and substandard benefits.

“We need to stand with these Kellogg’s workers in order to help save the middle class,” said Rich Fiesta, Executive Director of the Alliance. To tell Kellogg to stop the global destruction of middle class jobs, go to http://www.kellogggreed.com.

See Hidden Camera Footage of American Legislative Exchange Council in Action
Check out the Alliance’s new web page http://tinyurl.com/nqr4g2q, which features a story about a hidden camera in an American Legislative Exchange Council (ALEC) meeting in Arizona with state legislators and corporate lobbyists. The page also has action links (updated for all browsers!) and resources.

NAFTA at 20: AFL-CIO Reports on Legacy of the Trade Deal
The AFL-CIO’s new report “NAFTA at 20” outlines what workers have learned from 20 years of NAFTA. The report, available at www.aflcio.org/NAFTAat20, argues that NAFTA-style agreements prove to be a vehicle to increase corporate profits at the expense of workers, consumers, farmers, communities, the environment and even democracy itself.

“The report is particularly relevant in the context of Trans-Pacific Partnership (TPP) negotiations, wealth inequality, and the jobs deficit,” said Ruben Burks, Secretary-Treasurer of the Alliance.

Insurers Benefit More from Additional Medicare Reimbursements than Seniors do
The National Bureau of Economic Research (NBER) has released a paper looking at the Medicare Advantage (MA) program, through which the federal government contracts with private insurers to coordinate and finance health care for more than 15 million Medicare recipients. NBER found that additional reimbursements to Medicare providers lead more private firms to enter the market and to an increase in the share of Medicare recipients enrolled in MA plans. The findings revealed that only about one-fifth of the additional reimbursement is passed through to consumers in the form of better coverage. A somewhat larger share accrues to private insurers in the form of higher profits. There was also evidence suggesting a large impact on advertising expenditures. The results have implications for a key feature of the Affordable Care Act that will reduce reimbursement to MA plans by $156 billion from 2013 to 2022. The paper is available at http://tinyurl.com/qy6yanp.

Fiesta Speaks at NEA Conference
Mr. Fiesta traveled to Houston for the NEA Retired Organizing Conference on Wednesday. The conference was devoted to training retired members of the National Education Association to organize their communities to advance the cause of public education.

Alliance’s National Convention is April 28 – May 1, 2014 at Bally's Hotel Las Vegas
It is not too late to register for the Alliance for Retired Americans 2014 National Membership Convention in Las Vegas, Nevada, April 28 through May 1. More info is at http://bit.ly/1hYpj0g. Retirees will take home all the information they need to fight for retirement security and help fellow Americans retire with dignity. Convention attendees will have time to network with activists from across the country, share experiences, and gain helpful tips. Delegates registered to attend may offer or second a resolution for consideration. It must pertain to a statement of the Alliance’s position or policy on a specific matter and be sent to Resolutions2014@retiredamericans.org. Resolutions and seconds must be received by the Alliance by April 8, 2014.

For a printable version of this document, go to http://bit.ly/1mbcWwV.

Alliance for Retired Americans Friday Alert 3-14-14

Headlines:
Stand up to the American Legislative Exchange Council and Protect Pensions
Alliance Letter: House “Doc Fix” is the Wrong Solution
USA Today Piece Describes Retirees’ Biggest Financial Regrets
Spanish Friday Alert now Available
Oregon Alliance Holds State Convention, Hosts Former Governor Roberts
Alliance’s National Convention is April 28 – May 1, 2014 at Bally's Hotel Las Vegas

Stand up to the American Legislative Exchange Council and Protect Pensions
The American Legislative Exchange Council (ALEC) is a corporate-funded, “pay-to-play” lobbying group that brings corporations and state legislators together to craft “model” legislation. The “model bills” they craft, regrettably, put corporate profits before the public interest. Stand up to ALEC – the coalition group that includes the Alliance for Retired Americans, the AFL-CIO, and other unions and allies, will focus on pensions during the week of March 17. ALEC’s goal is to wipe out public pension systems in favor of private 401(k) type plans. In a Wall Street-managed, individual 401(k) world, workers would lose their ability to save, invest and take action collectively. For a fact sheet on ALEC and retirement security, go to http://tinyurl.com/l6ruewq.

“ALEC and its sister organization, the State Policy Network, are planning campaigns, lobbying activities, and lawsuits to challenge and degrade state and local public pension systems in numerous states,” said Barbara J. Easterling, President of the Alliance. “Arizona, Colorado, Illinois, Missouri, Minnesota, and Pennsylvania are targets at the least, and we cannot afford to stay out of this battle. We will reach out to expose these anti-democratic efforts step-by-step.”

Alliance Letter: House “Doc Fix” is the Wrong Solution
The Alliance sent a letter to all members of the U.S. House of Representatives yesterday regarding the “doc fix,” or “Sustainable Growth Rate” (SGR). The SGR is supposed to chop provider reimbursement if spending rises too fast, but such steep cuts in practice would harm patient care, and more doctors would refuse to treat seniors.  The letter from Alliance Executive Director Richard Fiesta opposed the passage of H.R. 4015, the SGR Repeal and Medicare Provider Payment Modernization Act, as the solution. The letter suggested other ways to solve the problem, including the Medicare Drug Discount Act (http://tinyurl.com/p5px7p5). However, the bill passed on Friday, 238-181. For a tally of the vote, go to http://tinyurl.com/mgnvxze.

“While the February 2014 agreement reached by the House and Senate to fix the sustainable growth rate formula in Medicare’s physician reimbursement was bicameral and bipartisan, this legislation is not,” Mr. Fiesta wrote. “Under this egregious proposal, doctors would be paid on the backs of uninsured Americans. This is simply unacceptable….(i)t is disturbing to us that the authors of this proposal found money to provide an update for physicians, who on average make upwards of $200,000 per year, but not for low-income Medicare beneficiaries.” To read the full letter, go to http://tinyurl.com/qj7zve9.

USA Today Piece Describes Retirees’ Biggest Financial Regrets
Financial advisers, asked about their retired clients’ biggest money regrets, offered several recommendations in USA Today this week. Among the regrets listed: retiring too early, not planning for worst-case scenarios, and underestimating future medical costs. Some also regret withdrawing early from an IRA or 401(k) and not moving to a new city or state to reduce taxes.

“I’m sure many people would love to have saved more for their retirement, but the money was just never there,” said Ruben Burks, Secretary-Treasurer of the Alliance.

Tash Elwyn, president of the Raymond James & Associates firm, says a key mistake people make is that they fail to make provisions for catastrophic events. “Whether it's a major medical issue or a debilitating illness, those that find they are not only financing their own retirement, but an adult child who has returned after a job loss aren't accounting for real life. Planning can't just be for best-case scenarios, and far too often it is.” More at http://tinyurl.com/q44lwqb.

Spanish Friday Alert now Available
The Friday Alert will now be available each week in Spanish! To see last week’s Alerta Semanal, go to http://tinyurl.com/mq7gpry. For the Alliance’s Spanish language page, which includes fact sheets and other translated documents from the main site, go to http://tinyurl.com/nllcz6n. More outreach from the Alliance to the Hispanic elder community will be coming in the next few months.

Oregon Alliance Holds State Convention, Hosts Former Governor Roberts
On March 8, the Oregon Alliance for Retired Americans held its annual convention, and it included the most attendees in years. Featured speaker Barbara Roberts, Oregon's first woman governor, shared her life story. In observance of International Women's Day, she encouraged women to record their successes. Progressive talk show host Carl Wolfson spoke about fighting income inequality. Resolutions were passed opposing ALEC legislative activities and supporting Postal Service banking. Board member Jim Davis reported success at the just-ended Oregon legislative session in securing funding for the placement of senior and disability mental health and addiction specialists in all 36 county mental health programs. Ron Rogers and Jane Netboy were elected as trustees.

Alliance’s National Convention is April 28 – May 1, 2014 at Bally's Hotel Las Vegas
Join us in Las Vegas as we sharpen our organizing and communications skills for the 2014 elections and beyond! Confirmed speakers now include: Lee Saunders, President of AFSCME; Danny Thompson, Nevada AFL-CIO Executive Secretary-Treasurer and Nevada Alliance Vice President; Carolyn W. Colvin, Acting Commissioner of Social Security; Liz Shuler, Alliance Executive Vice President and Secretary-Treasurer of the AFL-CIO; Linda Chavez-Thompson, former Executive Vice-President of the AFL-CIO; J. David Cox, President of the American Federation of Government Employees; and several others.

Alliance members will elect a president and secretary-treasurer, and community members will elect six community-based board members and the executive vice-president for community affairs. Hotel reservations must be made by March 21, 2014. Click on http://tinyurl.com/luw8vke to visit the Alliance’s convention web page. Go to http://tinyurl.com/prl8box to register on-line. Questions? Contact Joni Jones at jjones@retiredamericans.org or 202-637-5377.

Any delegate registered to attend the National Membership Convention may offer or second a resolution for consideration. The resolution must pertain to a statement of the Alliance’s position or policy on a specific matter. Resolutions, and seconds, must be received by the Alliance no later than April 8, 2014. The Resolutions Committee, designated by the Alliance President, will review proposed resolutions. Send resolutions to Resolutions2014@retiredamericans.org.

For a printable version of this document, go to http://tinyurl.com/k9vlzqv.

Alliance for Retired Americans Friday Alert 2-21-14

Headlines:
President Obama Takes the Chained CPI out of his Fiscal 2015 Budget
Volkswagen Workers in Tennessee Narrowly Vote not to Unionize
“Doc Fix” is in the Works, but it may not be a Reason to Celebrate
Listen to the Alliance Point of View on Labor Radio
Come to the Alliance’s Convention, April 28 – May 1, 2014, at Bally's Hotel Las Vegas

President Obama Takes the Chained CPI out of his Fiscal 2015 Budget
In a great victory for the Alliance, White House staff has announced that President Obama’s Fiscal 2015 budget will not include a switch to the chained CPI formula that would limit cost-of-living increases in Social Security and other programs. Alliance members who had worked diligently for months in the hope that the change would not be implemented - and that earned benefits would not be cut – celebrated the news jubilantly. Especially relieved and excited were the thousands of Alliance members who had joined hands at dozens of “Human Chain” events held nationally last July (http://tinyurl.com/kocng72).

“We are thrilled with reports that President Obama heard Alliance members from across the country and removed the chained CPI cut to Social Security and other programs from his 2015 budget,” said Richard Fiesta, Executive Director of the Alliance.

Mr. Fiesta continued, “Now that the pesky chained CPI is out of the way, we can focus on the real task at hand, articulated well by members of Congress like Senators Tom Harkin (D-IA), Bernie Sanders (I-VT) and Elizabeth Warren (D-MA), as well as Rep. Linda Sanchez (D-CA), which is to expand Social Security so that it fits the retirement security needs of today.”

Mr. Fiesta added, “The Alliance for Retired Americans made eliminating the chained CPI our top priority of the past year. We held dozens of ‘Human Chain’ events with thousands of Alliance members all across the country, and are elated that they paid off.” To see the complete Alliance press release, go to http://tinyurl.com/kzpcclw. 

Deficit hawks said Obama's move to shelve chained CPI likely kills any chance of a grand bargain for the rest of his term. In an effort to save $230 billion over 10 years, the President had proposed adopting a new way of calculating benefit increases that assumes consumers don’t always pay higher prices for products but rather substitute with cheaper alternatives. The net result is a lower inflation rate than measured by the conventional consumer price index. For additional coverage, including a Miami Herald article mentioning the Alliance, go to http://tinyurl.com/m2medu5.

Just prior to the President’s announcement, 117 Members of the U.S. House, led by Rep. Allyson Schwartz (D-PA), had signed a letter (http://tinyurl.com/mmhbowc) urging him not to include the chained CPI in his 2015 budget, and 16 Senators had signed a letter, spearheaded by Sen. Sanders, urging him not to cut Social Security, Medicare, or Medicaid (http://tinyurl.com/l4xjdlu).

Volkswagen Workers in Tennessee Narrowly Vote not to Unionize
Workers at the Volkswagen plant in Chattanooga, Tennessee narrowly rejected joining the UAW last week by a 712-626 vote. The efforts to organize were met with strong anti-labor threats from Republicans like State Senator Bo Watson, who said that if workers opt for UAW representation, Volkswagen would have a “very tough time” securing future tax incentives from the state.  Outside organizations like the Grover Norquist-led Americans for Tax Reform also swarmed on Chattanooga to influence the vote.

The defeat came as a major disappointment to labor, as there had initially appeared to be an outpouring of enthusiasm, and Volkswagen had officially stayed neutral on the vote. Despite the loss this week, workers may again vote to unionize in a year’s time. 

“The loss in Chattanooga will not halt the efforts of unions and those who support the rights of workers,” said Barbara J. Easterling, President of the Alliance. “The UAW will continue to explore opportunities in the South.” More at http://tinyurl.com/mknpes8.

“Doc Fix” is in the Works, but it may not be a Reason to Celebrate
The nation’s most powerful lobbies for physicians are heaping praise on legislation heading to the floors of the U.S. Senate and House of Representatives, perhaps within the next month, to address an upcoming cut in Medicare payments to doctors.  The deal, which both the American Medical Association and the American Academy of Family Physicians have called a “bicameral, bipartisan” agreement to repeal the Sustainable Growth Rate (SGR), would bring an end to stopgap corrections to dramatic cuts in doctor payments from Medicare in what has been labeled the “doc fix.”

“If this legislation passes, it will make it easier for Medicare beneficiaries to see a doctor,” said Ruben Burks, Secretary-Treasurer of the Alliance. “However, we can’t celebrate without knowing if it will shift more costs onto seniors.”

Listen to the Alliance Point of View on Labor Radio
You can hear Mr. Fiesta discuss current events every Friday at 2:00 PM Eastern Time on The Union Edge radio show (www.TheUnionEdge.com). Charles Showalter hosts. Download a free app for your smart phone or dial 712-432-5866 from any phone, anywhere in the world at any time to listen to the most recent program. You can also hear Mr. Fiesta the second Wednesday of every month on America’s Work Force radio at http://awfradio.com, with host Ed “Flash” Ferenc.

Come to the Alliance’s Convention, April 28 – May 1, 2014, at Bally's Hotel Las Vegas
Join us in Las Vegas as we sharpen our organizing and communications skills for the 2014 elections and beyond! Confirmed speakers now include: Carolyn W. Colvin, Acting Commissioner of Social Security; Liz Shuler, Alliance Executive Vice President and Secretary-Treasurer of the AFL-CIO; Linda Chavez-Thompson, former Executive Vice-President of the AFL-CIO; J. David Cox, President of the American Federation of Government Employees; and Jimmy Gilbert, Director of the AFL-CIO’s Union Veterans Council.

Alliance members will elect a president and secretary-treasurer, and community members will elect six community-based board members and the executive vice-president for community affairs. Alliance members whose dues are paid and are in good standing as of February 27, 2014 are eligible to be a voting delegate. Hotel reservations must be made by March 21, 2014. Questions? Contact Joni Jones at jjones@retiredamericans.org or 202-637-5377. Ready to register? Download a registration form at http://tinyurl.com/nqnz97a or register on-line at http://tinyurl.com/prl8box.

For a printable version of this document, go to http://bit.ly/1h6h53o.