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After spending months haggling over its provisions, Republicans announced November 15 a compromise between House of Representatives and Senate negotiators that rewards the wing of the party that advocates privatizing Medicare, and in the process threatens the foundation of reliable health care for Americas seniors.

"If this is the best this lot of lawmakers can do, frankly I dont have much of hope for future legislation on any issue in this Congress," said IBEW President Edwin D. Hill. "While packed with giveaways to drug companies, it might actually hurt more of the middle-income seniors who need help the most. This bill is an abomination and should be relegated to the dustbin of history, not made the centerpiece of a Bush reelection campaign."

Seniors seem to agree. In a national poll conducted after details of the deal were released, voters aged 55 years and older expressed serious concerns about the legislation and say lawmakers should go back to work to produce a better deal. The poll commissioned by the AFL-CIO found only 19 percent of older voters say Congress should pass the bill while 64 percent say Congress should go back to work..

Under the deal, millions of retirees who have prescription drug coverage from former employers could lose that coverage. The plan envisions spending $70 billion in the form of subsidies to private health plans. No help will be available to public sector employers, putting thousands of retirees at risk.

The plan pits Medicare against paid private plans for beneficiaries, turning Medicare into a voucher program that would provide a defined contribution rather than a defined benefit. Seniors who choose to stay in traditional Medicare will see their premiums fluctuate widely and rise significantlysome by as much as 88 percent.

"The risk of benefit cuts is far too high a price to pay for the inadequate, unreliable prescription drug benefit contained in the legislation," said AFL-CIO President John Sweeney. "In addition, millions of retirees who have prescription drug coverage from their former employers would lose those benefits, even under the new plan, according to the non-partisan Congressional Budget Office, because retirees with employer-sponsored prescription drug coverage are essentially penalized for having the coverage they worked a lifetime to earn."

In an effort to contain costs, the bill also deals a death blow to the programs guarantee of affordable comprehensive coverage by placing a cap on funding the program. By introducing trick accounting methods to contrive a funding crisis for Medicare, it would force Congress to consider cutting benefits, raising beneficiary costs and reducing provider payments to deal with the "crisis."

The bill must now go to the House and the Senate for yes or no vote, which is expected within the week.

Tell your senators and representatives to vote against this irresponsible bill. Click here for a link to the IBEW Congressional Action Center.

Medicare Alert Revised... July 1, 2003

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