Legislation and Current Issues
Retirees and Seniors Benefit from Healthcare Reform
There are many myths about the healthcare bill recently signed into law by President Obama. Many of the myths are aimed at retirees and seniors who depend on Medicare in an effort to convince them that Medicare recipients will be losers. Nothing could be further from the truth.
Retirees and seniors will benefit significantly from healthcare reform. For example:
- Immediately in 2010, Medicare beneficiaries who reach the Part D coverage gap will receive a $250 rebate for prescription drug coverage.
- Effective 90 days after passage, a temporary reinsurance program will subsidize up to 80% of employer or insurance company costs for claims made by retirees age 55 and older (but not eligible for Medicare).
- Effective January 1, 2011, eliminate co-pays and cost-sharing for preventive services like check-ups, mammograms, colonoscopies, and other screenings, for Medicare beneficiaries.
- Click here to read more about how retirees and seniors will benefit from the Patient Protection and Affordable Care Act.
For more information about the Patient Protection and Affordable Care Act:
- Click here for a summary of the entire bill.
- Click here for a time line that shows when various pieces of the legislation go into effect.
- Click here for to find out if you are eligible for subsidies to purchase private insurance.
For a comparison of the health care legislation as drafted by the House of Representatives, the US Senate, and President Obama's proposal, go to the bottom of this page.
Wisconsin Economic Outlook -- May 2010
The Wisconsin Department of Revenue released the May 2010 Wisconsin Economic Outlook report. It is not promising as the estimates for job creation,while positive, are minimal. The report states "This is not a "V-shaped" recovery, since credit conditions will stay tight and consumer spending sluggish."
Wisconsin personal income is expected to increase 3.0% in 2010. The Wisconsin job outlook is not expected to turn positive until 2011. Read the entire report for an expanded look at the estimated near term economic conditions.
Social Security Improvements
Senator Herb Kohl, as the Chairman of the Senate Special Committee on Aging, is committed to improving and protecting Social Security. He recently convened the Committee on Aging to hear testimony on "Social Security -- Keeping the Promise in the 21st Century." Wisconsin Alliance president, Leon Burzynski, was invited to testify and was the lead-off speaker. He cited three instances where Social Security benefits made a tremendous difference in the lives of real people. Burzynski's testimony is included at the Committee on Aging web site.
Why We Need the Employee Free Choice Act
The 2008 election was a great victory for union retirees around Wisconsin and the nation. However, it was the beginning of the fight, not the end.
President-elect Barack Obama will take the oath of office during the worst economic crisis since the Great Depression. We in the retirement sector have seen trillions of dollars in losses in our retirement savings. The Wall Street Casino, where millionaires win and taxpayers lose, has stolen most of the eggs from our nest egg basket.
Retirees with defined benefit pension plans know the value these plans bring to our quality of life. Sadly, many companies terminated their defined benefit pension plans or replaced them with 401(k) plans tied to the fortunes of Wall Street. We now have a clear picture of the wisdom of that move.
Without an economic recovery package that turns the economy around, our generation will be the last to enjoy the quality of life that we have. Our children and grandchildren, under the present system, will be forced to work until the day they die.
We owe them more!
The Employee Free Choice Act (EFCA) will level the playing field that today leaves all the power in the hands of corporations, not workers. The EFCA is the key to good wages, benefits, a voice in the workplace, and the amplification of the political voice that unions bring.
Why is the Employee Free Choice Act Needed?
Working families are struggling. For several decades, workers have not received their share of the value they created. They are finding it harder to stay in their homes, pay for health care, and save for retirement.
Unions make people's lives better. The freedom to form unions and bargain for a better life is a basic human right. Union workers earn 30 percent more than those who do not have unions. They are 59 percent more likely to have health benefits and four times more likely to have pensions.
The present system is broken. More than 60 million workers who do not have a union would join one if they could. In the present company-dominated system, workers can be intimidated, coerced, and even fired for trying to form a union. This is a decision that belongs in the hands of the workers, not corporate executives.
The Employee Free Choice Act means long-term shared prosperity. Union membership built middle class America. The EFCA is essential to rebuilding the middle class and ensuring the survival of the American Dream. The Obama administration can lay the groundwork for an economy that works for everybody if workers can freely exercise the right to form unions.
Questions Before Selecting
a Medicare Advantage Plan
With the passage of the Medicare legislation that created the Part D Drug plan, seniors were also given an option to opt out of the standard Medicare coverage and purchase what is known as a Medicare Advantage Plan. Some Advantage Plans also include prescription drug coverage (MA-PD).
The premise was that the Advantage Plans would allow individuals to select a plan that meets their individual needs. The reality, however, is the Advantage plans served more to boost the profits on insurance companies rather than meeting individual needs of beneficiaries.
Now that the Advantage Plans have been in existence for a few years, it is evident that they can create a real problem for those seniors considering coverage. As with any insurance policy, there are many questions that should be directed at the sales representative before signing on the bottom line. For a "starter list" of applicable questions, click here.
Senator's Kohl and Feingold
Save SeniorCare
According to the SeniorCare web site, the requirements for enrolling are as follows:
Eligibility Requirements Include:
- Must be a Wisconsin resident.
- Must be 65 years of age or older.
- Must pay a $30 annual enrollment fee per person.
- Only income is measured. Assets, such as bank accounts, insurance policies, home property, etc., are not counted.
You can get more information at the SeniorCare web site.
COMPARISON OF OBAMA HEALTH CARE PROPOSAL
WITH HOUSE AND SENATE PROPOSALS
March 2010
|
|
House
|
Senate
|
Obama
|
Public Option |
National public option with negotiated provider rates between Medicare and average private plan rates |
No public option |
Same as Senate |
| Benefits Tax
|
No tax on health benefits |
40% excise tax on health plan cost in excess of $8,500 (individual) or $23,000 (family) in 2013
|
40% excise tax on health plan cost in excess of $10,200 (individual) or $27,500 (family) in 2018
Adjustments for age and gender mix |
| Employer Responsibility
|
Require employers to pay 65% (family) to 72.5% (single) of premium OR a surcharge of 2-8% of payroll if payroll above $500,000
Exempt if payroll under $500,000 |
No requirement for employers to provide coverage
Employers that fail to provide adequate coverage pay penalty up to $750 per full-time employee if any full-time employee is subsidized Exempt if fewer than 50 full-time workers
In construction, exemption for firms with fewer than 5 workers and payroll under $250,000 |
No requirement that employers provide coverage
Employers that fail to provide adequate coverage pay penalty up to $2000 times the number of full-time employees above 30 if any full-time employee is subsidized Exempt if fewer than 50 full-time workers
|
| Tax on Wealthy
|
5.4% surtax on individuals earning more than $500,000 and families earning more than $1 million |
Increase Medicare payroll tax rate by 0.9% for individuals earning more than $200,000 and families earning more than $250,000 |
Increase in Medicare payroll tax same as Senate PLUS
2.9% assessment (total of Medicare payroll tax paid by employees and employers) on unearned income for individuals earning more than $200,000 and families earning more than $250,000 |
| National Exchange
|
National exchange overseen by federal government to negotiate and enforce agreements with insurers
|
State exchanges
Federal government sets up exchange if state fails to do so by 2013
|
Same as Senate |
| Part D Doughnut Hole
|
Fills doughnut hole |
Leaves doughnut hole intact with discounts |
Fills doughnut hole |
| Medicaid
|
Expand coverage up to 150% FPL
Federal support for Medicaid expansion 100% for 1st 2 years and 91% thereafter
No special deal for Nebraska |
Expand coverage up to 133% FPL
Federal support for Medicaid expansion 100% for 1st 2 years and 32.3% increase in state’s regular match thereafter
Special deal for Nebraska |
Expand coverage up to133% FPL
Federal support for Medicaid expansion 100% 2014-2017 95% 2018 & 2019 90% 2020 and later
No special deal for Nebraska |
| Affordability
|
Exchange subsidies limit premium contribution from 1.5% to 12% of income based on FPL percentage
Plan coverage of anticipated costs range from 97% for lowest income brackets to 70% for 350% FPL and above
Out-of-pocket limits in exchange from $500/$1,000 to $5,000/$10,000.
Employees offered coverage at work eligible for exchange if premium contribution exceeds 12% of income (subject to CBA rule) |
Exchange subsidies limit premium contribution from 2% to 9.8% of income based on FPL percentage
Plan coverage of anticipated costs range from 90% for lowest income brackets to 70% for 200% FPL and above
Out-of-pocket limits in exchange from $1,980/$3,960 to $3,960/$7,920.
Employees offered coverage at work eligible for exchange if premium contribution exceeds 9.8% of income |
Exchange subsidies limit premium contribution from 2% to 9.5% of income based on FPL percentage
Plan coverage of anticipated costs range from 94% for lowest income brackets to 70% for 250% FPL and above
Out-of-pocket limits same as Senate
Same as Senate |
| Rate Review
|
State-based review of insurance rates that requires insurers to document and justify reasons for rate increases |
Similar to House |
Similar to House and Senate, plus new Federal Insurance Rate Authority to oversee and assist states
Require insurance companies to lower premiums or pay rebates if rate increases unreasonable and unjustified |
| Medicare Advantage
|
Ends 14% overpayments to insurance companies |
Similar to House |
Similar to House and Senate |
| CLASS Act
|
Creates voluntary long term services and supports insurance program |
Similar to House with federal funds restrictions |
Similar to Senate |
