NYT,pg1,lead story: Medicare Law Seen Leading to Retiree Drug Benefit Cuts

[DeepModem Mom]

Medicare Law Is Seen Leading to Cuts in Drug Benefits for Retirees
By ROBERT PEAR

Published: July 14, 2004


WASHINGTON, July 13 - New government estimates suggest that employers will reduce or eliminate prescription drug benefits for 3.8 million retirees when Medicare offers such coverage in 2006.

That represents one-third of all the retirees with employer-sponsored drug coverage, according to documents from the Department of Health and Human Services.

No aspect of the new Medicare law causes more concern among retirees than the possibility that they might lose benefits they already have.

Democrats are likely to cite the new estimates as evidence to support their contention that the new law will prompt some employers to curtail drug coverage for retirees, forcing them, in some cases, to rely on Medicare's leaner benefits. Republicans do not want to see the government supplant employers in providing drug benefits to retirees.

Senior officials at the department have been saying for weeks that they believe federal subsidies will induce more employers to continue providing drug benefits to retirees. Under the new Medicare law, the government expects to spend $71 billion on subsidies to employers from 2006 to 2013. To qualify for assistance, an employer must certify that its retiree drug benefits are worth at least as much as the standard Medicare drug benefit.

Federal officials have substantial discretion in deciding how to measure the value of drug benefits. They said they would use that discretion to encourage employers to continue providing drug coverage - a goal ardently favored by retirees, labor unions and members of Congress from both parties....


http://www.nytimes.com/2004/07/14/politics/14medicare.html

[roguevalley]

1. This is going to be such a train wreck, I am hiding under my bed now.

[dusty64]

2. Wow this is a huge

surprise. :kick:

[Bozita]

3. This story will definitely change votes in November ...

... if it gets the play that it deserves.

Another 3.8 million Americans relegated to the scrap pile.

I'm wondering how the AARP deals with this.

[InkAddict]

4. Ashes, ashes, we all fall down.....

Grandpa's (a WWII vet)meds cost an average of $800 per month (ESRD). TG, he doesn't need the erythropoiten anymore, 'cause that's $800 a shot. Without the supplemental insurance, he'd be at the gap point in the "fabulous" script bill in less than 3 months. His only son, an IT pro and Vet, has been out-of-work in his field for 2+ years; however, household income from spouse's work plus Gramps SS and pension make the household ineligle for other types of assistance (utilities, food stamps, legal assistance, Vet benes, etc...If this is not fixed, be ready to see those carts coming down the street to pick up the dead - the oldtimers and those whose spirits have been crushed by the economy.

[DeepModem Mom]

5. Thanks for your real-life story...

showing the real-life effect of Bush's policies.

[SoCalDem]

6. That was the real intent.. to let "big bidness" off the hook

for the "damnend retirees" who are living waaaaay longer than their former employrs had hoped..


They got their way with the 401-k vs defined benefit pension rules...

This is Part II .. Now they can "safely" yank the health benefits that their former employees EARNED all those years ago,.They apparently did not know that the boss had his fingers crossed behind his back when they signed on... OR that they were supposed to collect for a "few years", and then just DIE ALREADY..

The bosses have "invested" all that "extra money" for all these years, but unfortunately, the investments are in HIS name, and he really kind of likes it that way...so the retirees, just have to "get over it"..."Move on"...

[Hotler]

7. Why do they hate the working class so much???

The greed within the insurance and drug companies alone is staggering.
There is a group of rich in this country that hate anybody that's not cut from their cloth.

[hatrack]

8. Kicking this for the lunch crowd

Without question the biggest story of the day.

[Justitia]

9. Well, we all saw this coming

It was so apparent from the beginning.

This is why I canceled AARP - all the retirees in my family will be totally screwed by this.

I sure hope this doesn't get buried.

Anyhoo - back to vitally important gay bashing, my esteemed Senators!

[DeepModem Mom]

10. kicking -- this affects a lot of DUers, or their parents -- nt

[Cocoa]

11. and it only cost $550 billion