Medicare at the crossroads

Oct 8, 2004 10:57 AM

The following resolution was approved and amended at the RTC Membership meeting on October 7, 2003.

WHEREAS, the House and Senate are now meeting in conference to decide the fate of legislation dealing with Medicare and a drug benefit for seniors. Since both houses have passed bills that differ in substance, a conference committee has been established to try to resolve differences.

WHEREAS, in the Medicare bills proposed by the House and Senate the drug benefit would be provided by private drug companies and would prohibit Medicare from engaging in any cost control of the purchase of prescription drugs and thus reduce the price significantly.

By 2010 if private health insurance companies provide insurance at a lower cost to seniors than Medicare, Medicare would be forced to cut back benefits or raise its premiums. This would be unfair since private insurers unlike Medicare can cherry pick its patients and thus keep costs down.

Those who receive a drug benefit as a result of collective bargaining would be penalized in receiving a drug benefit under both bills. Employers may be motivated to try to take away the drug benefit many seniors now receive!

A so called “donut” or “gap” is created in the House and Senate bills that would eliminate any benefit at all between certain drug expenditures by seniors, while premiums would still be paid.

WHEREAS, the House and Senate bills promote privatization of Medicare and furthermore seriously jeopardize the prescription drug benefit UFT seniors presently receive under our contract, therefore be it

WHEREAS, the House and Senate are considering a means test for Medicare that will penalize middle income Americans by imposing higher premiums on so-called affluent seniors, therefore be it

RESOLVED, that we oppose both bills presently in Conference and any bill agreed to by the Conference that would privatize Medicare as we know it and jeopardize in any way the prescription drug benefit UFT retirees presently receive, and be it

FURTHER RESOLVED, that UFT engage its members in a campaign to immediately lobby members of congress and to inform our members of the great dangers of the House and Senate bills and urge the defeat of any bill emerging from a conference that would privatize Medicare and jeopardize current prescription drug benefits.