Alliance for Retired Americans Friday Alert 8-15-14

Headlines:
Alliance Members Honor 79th Birthday of Social Security
Reports Detail Critical Importance of Social Security
Great Recession May Have Forced Americans into Retirement
Medicare Advantage Insurers Systematically Overbilling Government
States Refusing Medicaid Expansion Losing Billions in Funding
President Obama Signs VA Reform Bill into Law

Alliance Members Honor 79th Birthday of Social Security
Our nation’s Social Security system celebrated its 79th anniversary on Thursday, and Alliance members commemorated the important event by throwing more than 30 birthday parties across the country with cake and balloons. Celebrations focused on the long term success of the Social Security system and the need to expand the program in order to meet the needs of current and future retirees. The landmark program was signed into law by Franklin D. Roosevelt on August 14th, 1935. “Social Security is one of the most successful programs in America’s history,” said Richard Fiesta, Executive Director of the Alliance. “With pensions disappearing, it’s harder than ever for workers to save for retirement. We need to strengthen and expand Social Security, not cut it.”

Several celebrations featured members of Congress with track records of working to protect and defend Social Security, including Reps. Raúl Grijalva (AZ), Patrick Murphy (FL), Cheri Bustos (IL), Marc Veasey (TX), Nick Rahall (WV), and Sen. Jeanne Shaheen (NH). Mr. Fiesta spoke at the Shaheen event in Manchester, New Hampshire. Both he and Alliance President Barbara J. Easterling spoke at the Rahall event in Beckley, WV. To view a sampling of pictures from the birthday events, go to http://tinyurl.com/pb6n36w. To mark Social Security’s birthday and pledge to redouble efforts to strengthen and expand the program, sign a birthday card to Social Security at http://bit.ly/1lYsDq6.

Reports Detail Critical Importance of Social Security
In honor of Social Security’s anniversary, the Alliance released a series of reports assembled by coalition partner Social Security Works that examine the critical role Social Security plays in states across the country. The reports, available at http://bit.ly/1t3TDJR, provide background information on the Social Security System as well as details about the vital role Social Security serves in the lives of individuals and families in each state. The reports also highlight the economic impact of Social Security benefits, with data carefully broken down by demographic category.

“Our Social Security system is the foundation of retirement security in this country and keeps nearly 22 million Americans out of poverty,” said Ms. Easterling. “Almost 65% of elderly couples and unmarried beneficiaries relied on Social Security for half or more of their income in 2012.”

Great Recession May Have Forced Americans into Retirement
New data from the Federal Reserve suggests that since 2008, a significant number of Americans have been retiring earlier than they expected. This trend comes despite polling suggesting that an increasing number of workers approaching retirement age intend to delay retirement and stay on the job longer in order to make ends meet. The conflicting data suggests that thousands of older workers who lost jobs in the Great Recession may have simply retired instead of continuing to look for work or settle for low paying jobs. Coupled with recent polling in which nearly 1 in 5 workers between the ages of 55 and 64 said they had nothing saved for retirement, the new Fed data points to an increasingly difficult environment for American retirees. Read more on the Great Recession’s impact on retirement at http://ti.me/1sYuYpc.

Medicare Advantage Insurers Systematically Overbilling Government
According to a study from the Department of Health and Human Services (HHS), Medicare Advantage health plans have been overbilling the government by exaggerating how sick patients are and how much these patients cost to treat. Under the program, Medicare pays private insurance (Advantage) plans higher rates for covering sicker patients, with rates tied to “risk scores” based on patient medical histories. According to HHS officials, insurers have been exaggerating the rates of certain medical conditions in order to artificially raise these scores and inflate Medicare payments. The Medicare Advantage program currently insures around 16 million older and disabled Americans.

The HHS study follows a previous report in June that revealed $70 billion in “improper” payments made to Medicare Advantage plans between 2008 and 2013 – primarily a result of overbillings. For more information, read the article from the Center for Public Integrity at http://bit.ly/1paYCI6.

States Refusing Medicaid Expansion Losing Billions in Funding
According to a new report, the 24 states that have refused to expand the Medicaid program under the terms of the Affordable Care Act may be missing out on a staggering amount of federal dollars. A recent report from the Robert Wood Johnson Foundation and the Urban Institute suggests that over the next 10 years, these states will lose a total of $423.6 billion in potential federal funding, along with $167.8 billion in increased hospital reimbursement payments. The Medicaid expansion is fully funded by the federal government for the first three years of the program, with states picking up 10% of the tab after that.

Some politicians opposed to the expansion have argued that taking on the task would be a drain on state finances. The study suggests that while it would cost non-expansion states around $31 billion to participate, associated cost savings and enhanced tax revenues resulting from federal financed hospital spending will actually lead to improved finances for state budgets. “Millions of American workers and their families are being denied health coverage under the false claim that these states can’t afford to expand Medicaid. By refusing to expand the program, all these politicians are doing is hurting their constituents and their state economies,” said Ruben Burks, Secretary Treasurer for the Alliance. Read more on the Medicaid studies at http://slate.me/1pur9Zq.

President Obama Signs VA Reform Bill into Law
Late last week, President Obama signed into law a $16.3 billion overhaul of our nation’s Veterans Affairs (VA) health system. Thousands of veterans who have faced extended waits for medical care at VA facilities are now almost immediately eligible to seek government funded treatment from private physicians. Implementing other changes, including the expansion of VA staff through the hiring of thousands of health care providers, and the opening of 27 new VA clinics across the country, is expected to take at least 2 years. The new law also includes new rules making it easier to fire senior VA officials for poor performance. The reforms come in response to revelations of long wait times at VA facilities and attempts by administrators to cover up the problems. To read more on the law from the The Washington Post, go to http://wapo.st/1nTFLg2.

For a printable version of this document, go to http://bit.ly/1uBIBi1.

For the Alliance's Spanish language page, which includes last week's Friday Alert in Spanish, go to www.alianzadejubilados.org

Alliance for Retired Americans Friday Alert, 1-24-14

Headlines:
Supreme Court Hears Landmark Union Case Involving Home Health Care Workers
Last Chance to RSVP for Conference Call with Sen. Bernie Sanders Monday Night
Insurance Industry Ads Seek to Preempt Medicare Advantage Cuts
Scam Using Medical Alert Devices was Aimed at Seniors
Hawaii Alliance for Retired Americans Holds its Convention, Elects Officers
Obituary: Kenny Stevens, Member of Alliance Executive and Regional Boards
Obituary for former Vermont Alliance President Chet Briggs

Supreme Court Hears Landmark Union Case Involving Home Health Care Workers
This week, U.S. Supreme Court heard Harris vs. Quinn, a case concerning in-home care providers who work with Medicaid patients, and their right to unionize. In response to high turnover rates and low wages amongst home care providers, 20,000 individuals in Illinois voted to join the Service Employees International Union (SEIU), securing higher union wages in negotiations with the state. In response, the anti-union group the National Right to Work Foundation brought suit against SEIU and Governor Pat Quinn (D). At issue are two questions: whether states may recognize a union to represent health care workers who care for disabled adults in their homes instead of in state institutions; and whether non-union members must pay for negotiating a contract they benefit from.

“We hope that the Court will see through this attempt by anti-labor groups to strip power from unions and from the millions of employees they represent,” said Barbara J. Easterling, President of the Alliance. More at http://tinyurl.com/pc4zo9g.

Last Chance to RSVP for Conference Call with Sen. Bernie Sanders Monday Night
On Monday night, January 27th, at 8 PM EST, U.S. Senator Bernie Sanders (I-VT) will host a tele-conference call with activists from across the nation. Alliance members and coalition partners will come together for a discussion about how we can protect Social Security, Medicare and Medicaid and create an agenda that works for all Americans, not just powerful special interests. To take part, go to http://tinyurl.com/orcrzkc. Today (Friday) is the deadline to RSVP, so don’t miss your chance!

Insurance Industry Ads Seek to Preempt Medicare Advantage Cuts
America’s Health Insurance Plans (AHIP), a trade association representing health care insurers, launched a seven figure advertising blitz this week. The campaign comes in advance of an annual notice that sets the plans’ payment rates for the upcoming year and focuses on that issue.

According to Politico (http://tinyurl.com/q25lxou), the ads follow the “Seniors are Watching” theme of a prior campaign. Medicare Advantage (MA), unlike “Original Medicare,” is offered by a private insurance company which in turn contracts with Medicare.  Historically, Medicare trust fund reimbursements for MA have been higher than regular Medicare for similar services, and certain Affordable Care Act provisions set out to bring the costs more in line. While AHIP and allies refer to the incoming changes as catastrophic for seniors, others disagree. “This is just setting the stage so that when the 2015 announcement comes out, AHIP will try to argue that these are new cuts... but there are no new cuts,” said Edwin Park of the Center on Budget and Policy Priorities.

“The cuts that the ads aim to stop are actually a bonanza for private insurance companies,” added Richard Fiesta, Executive Director of the Alliance. “That money is better spent on providing health care to those who cannot afford it.”

Scam Using Medical Alert Devices was Aimed at Seniors
According to MSN Money (a service of MSN, originally The Microsoft Network), federal and state regulators have shut down a multimillion-dollar scam that they said duped seniors into turning over their credit card information in exchange for supposedly free medical-alert devices. The business blasted seniors across the U.S. and Canada with robocalls and said that they were eligible for “a free alert system purchased by a friend or relative.” Once the person agreed to receive the device, “they were transferred to an operator who took their billing information and immediately began charging them for the service.” Government officials said last week that they received more than 66,000 complaints about the scam, which deliberately targeted the elderly. Medical alert systems are designed to help seniors get quick help in the event of an emergency. The devices most often consist of a necklace or wristband with an emergency button that contacts a company dispatcher. The scam was not connected with any real manufacturers of medical alert devices. The makers of Life Alert had sued the business for using its “Help, I've fallen and I can't get up,” phrase on the robocalls. Prosecutors said the business appeared organized in a way that would evade law enforcement.

“Many Americans have been talking recently about having their information stolen at the checkout lines of retail stores,” said Ruben Burks, Secretary-Treasurer of the Alliance. “But we should all remember that giving out too much information to people who call you can be equally dangerous.”

Hawaii Alliance for Retired Americans Holds its Convention, Elects Officers
Mr. Fiesta traveled to Hawaii for the Hawaii Alliance's convention in Honolulu on January 11. Eighty-six voting delegates attended, representing all eight statewide affiliates.  Speakers included Honolulu Mayor Kirk Caldwell; International Longshore and Warehouse Union (ILWU) Local 142 Secretary-Treasurer Guy Fujimura; Mr. Fiesta; and Alliance Western Regional Board Member Luis Duran. One highlight was the educational session on Long Term Care Costs and Services Relating to Alzheimer's Disease, presented by Wes Lum, Director of the Executive Office on Aging (EOA); Jody Mishan, State Coordinator of Alzheimer's Disease; and financial adviser Michael Yee. Congratulations to all of the newly elected officers: Justin Wong, President; Elmer Yuen, Vice President; Carol Noland, Secretary; and Phyllis Hiramatsu, Treasurer.

Obituary: Kenny Stevens, Member of Alliance Executive and Regional Boards
Kenneth (“Kenny”) Stevens, who was on the Alliance Executive and Regional Boards and a member of the Steelworkers Organization of Active Retirees (SOAR), passed away on January 17th at the age of 78. “Kenny was so crucial to the formation of the Virginia Alliance,” said Ms. Easterling. “I know we will all miss him greatly. Our condolences go out to his family and all of those close to him. He had many friends at the Alliance.” Interment will take place in Danville (Virginia) Memorial Gardens with military honors by American Legion Post #1097 and the U.S. Army. For a more detailed obituary, go to http://tinyurl.com/ojk6jpr.

Obituary for former Vermont Alliance President Chet Briggs
Chester (“Chet”) Arthur Briggs, who was formerly President of the Vermont Alliance, has died at the age of 73. “From leading a movement in 1960 to integrate lunch counters and movie theaters in Austin, Texas, to serving as state President for the Vermont Alliance, Chet led a life dedicated to making the world a better place,” said Mr. Fiesta. “I offer our deepest condolences to his family. He touched a lot of people.” To read a full obituary, go to http://tinyurl.com/qhsy8sw.

For a printable version of this document, go to http://tinyurl.com/k99c9b6.