How the Medicare Drug Bill
Will Help Beneficiaries
We Must Start Somewhere!
Chairman’s Message
A Personal Commentary by Ron Olbrysh
- Nov. 29, 2003
As we have all heard, Congress has finally passed a long overdue
drug benefit to Medicare. The legislation falls short of overall
modernization of the program, but it will clearly provide an initial
much-needed relief to millions of people, especially those most in
need of assistance. It also contains some important reforms that
will set consumer-friendly initiatives in
motion.
If the bill is not signed into law,
where would we be? A health policy think-tank in Washington, D.C
believes we would probably be worse off. Next time, Congress would
probably include fewer reforms and more political give-aways. The
initiatives that provide a foundation for market transformation
would likely vanish.
If future disasters with the Medicare
program are to be averted, the process of change must begin. Major
changes to our health care system will never happen overnight. We
will evolve toward change through small steps. The bill that
Congress just passed opens the door to those first steps that can
lead to greater, more positive changes in the future.
Establishing a Foundation. Congress
has established a Medicare drug benefit and allocated about $400
billion over ten years to help pay for the coverage. The benefit
leaves substantial gaps in coverage for many people, but is an
important foundation upon which further improvements can be made.
Modest Help
With Drug Costs. Beginning in 2006, Medicare will pay for
75% of prescription drug costs, for most people, who choose to
enroll, after a $275 deductible, up to $2,200.
Voluntary.
This new Medicare benefit is voluntary. No one will be forced to
enroll.
Solid Low –
Income Assistance. People with low incomes get
comprehensive drug coverage:
For
beneficiaries up to 100% of poverty: No premiums,
deductibles or gaps in coverage, and copays of $1 for generics and
$3 for brand name prescription drugs.
For
beneficiaries between 100% and 135% of poverty: No
premiums, deductibles or gaps in coverage, and copays of $2 for
generics and $5 for brand name drugs.
For
beneficiaries between 135% and 150% of poverty: No
premiums or gaps in coverage, a $50 deductible and a 15% copay for
each prescription.
Protection for
People with the Highest Drug Costs:
Once a beneficiary spends $3,600 of their own
money on drugs ($5,044 in total Rx spending) Medicare will pay 95% of the
rest of their drug costs.
Generous Employer
Subsidies to Maintain Current Coverage: The legislation provides
$88 billion in subsidies for employers (both public and private) to retain
existing retiree drug coverage.
All beneficiaries
Have Access to Drug Coverage: The legislation ensures that
Medicare beneficiaries in all areas of the country can get drug coverage.
Discount Card:
Beginning next Spring, Medicare beneficiaries can get a discount card that
offers some help with soaring drug prices and includes a $600 subsidy for
those with low-incomes.
However, the
negatives are serious: Putting Medicare on track toward healthy
competition will be limited to demonstration projects starting in 2010. The
bill creates a massive new entitlement and will shove trillions of dollars
in unfunded liabilities onto future generations.
Keeping private health plans in the program
is key if there is to be a base to create the Federal Employees Health
Benefits Plan model program (Congress’s own plan!) that we hope will someday
be in our future. In other words, why reinvent the
"health care wheel" when there is already a viable national health plan in
place for federal employees.
It is the administration’s belief that the
new incentives in this recently passed bill will encourage many more private
health plans to enter and re-enter the Medicare market.
And in 2006, when the drug benefit kicks in,
there will be a solid base of millions of seniors who will be able to choose
from among competing private health plans offering an integrated drug
benefit. As others have said, wasn’t this the goal all along?
And finally, as the previously mentioned
"think tank," the Galen Institute, has stated:
"It’s also important to remember that the
Bush administration, not the Clintons, will be in charge of writing the
implementing regulations. Instead of designed-to-fail MSA’s and Medicare+Choice rules, these new experiments are less likely to start out
strangled in red tape. That can make a huge difference, especially after
seeing the Bush administration’s heroic work on
implementing the Trade Adjustment Act health care tax credits last year.
"Big changes evolve over time.
Incentives matter. You must start somewhere."
Any thoughts, suggestions or
comments on the Medicare Drug Bill can be emailed to:
ron1061@comcast.net
In
Memorium - George Calvin Potts - 83
Retired Public
Relations Executive at
Sears
ARIZONA DAILY STAR
November 29, 2003
George Calvin Potts,
83, died at his home November 26, 2003 after a long illness. A resident of
Tucson since 1976, he was a former public relations executive at Sears
Roebuck in Chicago.
He was born in Evanston, IL and after serving in the
U.S. Army Signal Corps in World War II, married and raised a family in
Glen Ellyn, IL, a western suburb of Chicago where his wife, Edith, grew
up.
He is survived by his wife of 61 years, Edith (Hookham)
and his children, Ginny Thiersch, of Alexandria, VA; Betsy (Cary) Ajeman,
of Willcox, AZ; Barbara (Donald) Baker of Lombard, IL; Richard (Lynn)
Potts of Phoenix; Martha (Richard) Bell of Mt. Pleasant, IA; Nancy, of
Phoenix and his sister, Marian Persson of St. Petersburg, FL. He will be
greatly missed by his 14 grandchildren and great-grandson. He was preceded
in death by his son, James. He was an avid reader.
In lieu of flowers, donations to your local library in
his name would be appreciated. Arrangements by HUDGEL'S SWAN FUNERAL HOME.
-0-0-0-
Following private interment, a Memorial Service will be
held at the First United Methodist Church at 424 Forest Avenue in Glen
Ellyn, IL at 11 A.M. on Saturday December 13.
Following the service the family will host a reception
at the old Main Street School (where my mother and I and my sister and
brother went to grade school!) at Main St and
Hill Avenue in Glen Ellyn.
Ginny (Potts) Thiersch
George's oldest daughter
MAKE OR BREAK TIME FOR
DRUG PLAN!
Sept. 24, 2003
As recently reported in The Wall
Street Journal, after the House and Senate passed sharply differing
bills three months ago, to add a prescription-drug benefit to
Medicare, their “negotiators have made little progress in
resolving such fundamental disputes as private companies’ role in
the federal health-insurance program.”
Some are saying that the House-Senate
conference committee is headed for collapse.
“The most vexing
problem for congressional negotiators is how to fashion legislation
that reshapes Medicare sufficiently to satisfy House Republicans
without alienating so many Democrats that a bill can’t get through
the closely divided Senate.” (The Wall Street Journal, 9/24/03,
page A4.)
Now is the time to contact your
Congressional repre-sentatives. Let them know how you feel about
adding a prescription drug benefit to Medicare.
Below, is a proposed letter that you
may send to your senators and representatives. We suggest you do
this immediately! If your letter is e-mailed, please place NARSE on
copy by sending it to Ron Olbrysh, Chairman, www.ron1061@comcast.net.
If your correspondence is mailed, send to: Ron Olbrysh, 624 E.
Central Ave., Lombard, IL 60148-4032. We would also appreciate
receiving copies of any correspondence from your elected officials.
Time is of the essence. Contact your
elected officials now!
Proposed Letter
for You to Send to Your Representative
or Senator
“Dear (Name of your Representative or
Senator):
NARSE (National Association of
Retired Sears Employees) needs your support.
The time is now to add a prescription
drug benefit to Medicare.
“The House and the Senate have passed
Bills. Now it is time to make the final
Bill better, and pass it. Million of Americans are counting on you,
your colleagues and your support to
finally make much-needed prescription drug coverage a reality
in their lives.
A true prescription drug benefit
won’t penalize those who want to stay in Medicare.
It will give employers good reason to continue established
retiree benefit plans, and will cover
everyone in Medicare.
Please send me a letter indicating
your support of the above objectives, so that
it may be shared with the tens of thousands of our fellow
Sears retirees nationwide.
Thank you, and best wishes.”
PRESCRIPTION DRUG COVERAGE
Contact Congress Now!
September
17,2003
Congress
is still considering adding drug coverage to Medicare. However, for
many, this may not be the perfect solution. The proposals in both
the House and Senate include an extremely complicated array of
premiums, deductibles, co-payments and gaps in coverage.
This Congressional debate and final
compromise could turn into a “no-win” situation. Failure to reach a
satisfactory agreement this year could cause a backlash among
seniors. On the other hand, passage of a drug benefit could backfire
if it’s viewed as too complex or too stingy.
Changing the nation’s health care
system will not be easy! But that does not mean our elected
officials should compromise and select something less than perfect
for the millions of seniors on Medicare.
Below, is a proposed letter that
you may send to your senators and representatives. We suggest
you do this immediately! If your letter is e-mailed, please place
NARSE on copy by sending it to: Ron Olbrysh, Chairman,
ron1061@comcast.net.
If your correspondence is mailed, send to: Ron Olbrysh, 624 E.
Central Ave., Lombard, IL 60148-4032. We would also appreciate
copies of any correspondence from your elected officials.
Time is of the essence. Contact your
elected officials now!
EEOC
Proposal
Your
Health Benefits are in Jeopardy !!!!
ACT NOW!!!!
A Message
from Ronald Olbrysh,
NARSE Chairman
September 7, 2003
The Equal Employment Opportunity Commission (EEOC), the
federal agency charged with protecting the rights of older workers, has
recently made a proposal that will significantly impact workers/retirees
age 65 and older. Unfortunately the deadline for
public comments is this Friday, Sept. 12, 2003.
Under current law, employers must continue to provide
benefits to Medicare eligible retirees (those 65 and older), but can save
money by including Medicare and providing a "wrap-around" benefit. Most
employers who provide retiree health plans today, such as Sears, already
do this.
The EEOC's proposed rule would make it legal for an
employer to reduce or deny retiree health benefits if a retiree is
eligible for Medicare (age 65 and older), even
if the employer's retiree health benefit is substantially better!
If the EEOC's rule becomes law, employers will be able
to simply drop the age 65+ retirees from their retiree health plans
altogether, leaving them with substantially less
benefits than they are currently entitled to
receive.
NARSE urges you to contact the EEOC
in Washington, D.C. to withdraw a proposed rule that would allow employers
with retiree health plans to reduce or eliminate benefits for anyone 65 or
over.
Comments can be sent to either AARP or the EEOC
directly. In either case, please place NARSE on copy. E-mailed comments
can be sent to my attention at: ron1061@comcast.net.
Or mailed to:
Ronald Olbrysh,
NARSE Chairman
624 E. Central Ave., Lombard, IL 60148-4032.
You can send your comments to EEOC by going to:
www.aarp.org/legislative
and clicking on "Protect your Health Benefits."
Or, you can send written comments directly to EEOC to
the attention of:
Frances M. Hart, EEOC
1801 L St. N.W., Washington, D.C. 20507
Or you can fax them to Ms. Hart (no more than
6 pages) to:
202-663-4114.
Even if you are not 65 yet, this proposed rule, if it
becomes law, will certainly impact you when you are eligible for Medicare.
Medicare
Legislation in 2003
(July 13,
2003)
NARSE recently
published the results of its Second Retiree Survey in the June issue
of Straight Talk. Among other topics, health care
availability and affordability are vital issues for retirees. AARP
recently published a full page statement in the Chicago Tribune and
other newspapers in major cities across the country about what
effective Medicare legislation should include.
NARSE supports this AARP
statement and recommends you contact your Congressional
representatives and senators and let them know how you feel.
To have truly effective Medicare
legislation, AARP said:
"Please take time to call Congress
and let them know that you are not going to be satisfied with the
current Medicare proposal until they:
Please call 1-800-795-5336 and
let Congress know how you feel."
Away Go Employee and
Retiree Benefits
. . . Down the Drain!
From the Office of Senator
Cantwell
February 5, 2003
Mr. Gordon Muschett
12610 Southeast 49th Street
Bellevue, Washington 98006
Dear Mr. Muschett:
Thank you for contacting me about the taxation of Social
Security benefits. I appreciate hearing from you on this issue.
Until 1984, Social Security was exempt from the federal
income tax. To help restore the program's solvency, in 1983 Congress made
up to 50 percent of benefits taxable for taxpayers whose income plus 50
percent of their benefit exceeds $25,000 for individuals or $32,000 for
couples. The proceeds are credited to the Social Security trust funds.
In 1993, Congress considered a proposal that up to 85
percent of Social Security benefits be taxable (the proportion said to be
the least anyone would pay under the rules applying to other pensions).
The 1993 omnibus budget reconciliation bill (P.L.103-66) limited the
measure to recipients whose threshold incomes exceed $34,000 (single) or
$44,000 (couple), with proceeds from this measure going to Medicare.
As you mentioned, Congressman Sam Johnson (R-TX)
introduced the Social Security Benefits Tax Relief Act, H.R. 122. This
legislation seeks to amend the Internal Revenue Code of 1986 to repeal the
1993 income tax increase on Social Security benefits. This bill has been
referred to the House Committee on Ways and Means where it is awaits
review. It may interest you to know that Senator Tim Hutchinson (R-AR)
introduced a similar version of the Social Security Benefits Tax Relief
Act in the form of S. 237. This legislation has been referred to the
Senate Committee on Finance where it awaits further review. Please be
assured that should I have the opportunity to vote on this or similar
legislation on the floor of the U.S. Senate, I will do so with your views
in mind.
During my campaign, I signed a pledge to defend and
strengthen Social Security and Medicare for the 21st Century. On March 13,
2001, I voted to impose procedural obstacles to legislation designated to
spend social Security and Medicare surpluses for purposes other than those
programs. Unfortunately this amendment, which needed a 60 vote majority in
order to be accepted, was defeated 53 to 47. You can be sure that I will
continue to fight to preserve both Social Security and Medicare.
Again, thank you for contacting me regarding taxes on
Social Security benefits. Please don't hesitate to contact me if I may be
of any assistance in the future.
Sincerely,
Maria Cantwell
United States Senator
In
Memorium - I. Paul
Brna, 77
Former Sears
Director of Community
Affairs
By Brad Webber
- Tribune staff reporter
February 4, 2003
For many years, I. Paul Brna was the face
of Sears, Roebuck and Co. to many Chicago organizations.
As the retailing giant's director of
community affairs and as secretary of its contributions committee, Mr.
Brna spearheaded the company's outreach effort to benefit groups serving
schools and minorities, former colleagues said.
Mr. Brna, 77, of Northbrook and formerly of
Park Ridge, died Saturday, Feb. 1, in Glenbrook Hospital in Glenview.
"He was multitalented," said Robert Buecker,
a retired Sears executive.
He was a deacon of Chicago United, a
business group formed in response to racial riots of the late 1960's
to forge bonds between local corporations and African-Americans.
"He had a great interest in people, in
trying to identify their common interests and trying to do the best he
could to help them in social and economic projects," Buecker said.
"He was very important in maintaining good
relations with residents of the West Side," he said, particularly those
living near the old corporate headquarters at 925 S. Homan Ave.
"Where he interfaced with various parts of
the public affairs process, he was always respected," said Charlie Ruder,
a retired Sears vice president of corporate public affairs.
Mr. Brna was born in Chicago and graduated
from Austin High School before he enlisted in the Army Air Forces in 1943.
He was stationed in Michigan, Texas and Florida and received pilot
training, said his wife, Blanch. He was discharged in 1946.
He then attended Wright Junior College in
Chicago, where he received a certificate degree with magna cum laude
honors in 1948. In 1950 he obtained a bachelor's degree in education from
Northwestern University, from which he also received a master's degree in
business in 1958.
From 1951 to 1953, Mr. Brna worked as an
English and history teacher at a high school in Paxton, Ill.
Mr. Brna in late 1953 took a job in Chicago
at Sears, where he spent nearly 36 years, his wife said.
"He loved teaching high school," she said.
"The salary when he started was $2,500 for a year. He didn't see any way
to support his family and get ahead that way.
"He remained devoted to educational causes,
she said, particularly in his role as Sears' liaison to the Chicago Public
High Schools Academic Olympics. After one such event in 1988, Brna told
the Tribune that the company wanted to recognize classroom achievement.
"They are becoming the heroes in school along with the athletes," Brna
said of the participants.
An avid singer, Mr. Brna also took lead
roles in "Guys and Dolls," "The Pajama Game" and "Oklahoma!" with the
Divine Infant Variety Club parish troupe in Westchester.
Mr. Brna is also survived by a son, Dr.
John; a brother, Miro; and two grandchildren.
Visitation will be held 3 to 9 p.m. Tuesday
in Zidek & Son Forest Glen Chapels, 5265 N. Elston Ave., Chicago.
Visitation also will be held 9 to 10 a.m. Wednesday in Trinity Lutheran
Church, 5106 N. La Crosse Ave., Chicago. A service will begin there at 10
a.m. Wednesday.
Copyright © 2003, Chicago Tribune
