MAINE SENIOR REPORT   

May 7, 2007

An Information Service of the

Maine Council of Senior Citizens –
Alliance for Retired Americans
 (see link at top of home page at……

www.maineaflcio.org
 

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 FROM THE DESK OF THE PRESIDENT
 

    Things are getting busy at the Maine Legislature. I have testified in behalf of the MCSC in support of LD 431, sponsored by Representative Jill Conover, an Act that would allow Dirigo Health to be self-administered instead of being a partner with Anthem BC/BS. I agree with Governor Baldacci when he said "it's time to take the training wheels of off Dirigo Health" The road to universaal health care is long and full of pit falls but in Maine we have our Governor and good legislators backing the efforts to better Dirigo Health.. 

     I also supported LD 838 which would restrict patient/doctor prescription data from being used by the pharmaceutical industry to force doctors to use certain prescription drugs. It was amazing to find out that data-gathering is a million dollar business showing which doctors are prescribing which drugs. Armed with such data, a drug sales representative can pressure a doctor to write for a name brand medicine or fewer orders for a competitors drug. Thanks to Representtive Sharon Treat for sponsoring this legislation.

     I'll be testifing on LD 1454 an Act to Care for Working Families looking to have paid time off from work to care for family needs when necessary.

Coming up isLD 1310 an Act to make Unemployment Compensation Law more fair to Seniors. Maine reduces older workers unemployment compensation benefits by 50 cents for each dollar of Social Security payment when these seniors are receiving Social Security retirement benefits, continue working and are layed off. We expect good support to change this law. Coming up in the near future is an Act to Establish a Health Care Consumer Bill of Rights and an Act to Protect Consumers from Rising Health Care Costs. THE MCSC-ARA will be involved. 

I recently noted a story (see below) from the Tom Paine web site co-authored by our own State Representative Sharon Treat that our US Trade Representative Wendy Cutler is demanding that South Korea change their practice of negotiating for lower prescription drug prices and use the prices that we pay in the USA. So far as of 4/2/07, South Korea has not agreed. The pharmaceutical industry has the help of our goverment at our expense.

John Carr

President

MCSC-ARA  

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TRADE AGREEMENT THREATENS SENIORS
By Sean Flynn and Sharon Treat

    Sean Flynn is Associate Director of the Program on Information Justice and Intellectual Property at American University Washington College of Law and Counsel to the Forum on Trade and Democracy. Sharon Treat is a Maine State Representative and a member of the Maine Citizen Trade Advisory Commission. She was also the recipient of the John Marvin Award by the MCSC/ARA in April.
 

    This week the United States and South Korea are finalizing a free trade agreement which, unbeknownst to Congress or the public, could jeopardize state programs that provide medicines for America’s poor and elderly.
 

    Since negotiations began in June 2006, the United States Trade Representative has been doggedly attacking South Korea’s public drug reimbursement formulary as a potential barrier to trade. In December, the Korean universal health insurance program began requiring drug companies to negotiate with the government to be placed on a “positive list” of preferred drugs for reimbursement. The list prefers generic and lower-priced medicines, raising the ire of the brand name pharmaceutical industry in the U.S.
 

    Wendy Cutler, the chief U.S. negotiator of U.S.-Korea trade talks said at the time:

    We don’t believe this proposed change in the Korean system toward a ‘positive list’ will achieve the objective that Korea has stated for itself. We believe the proposed system would end up discriminating against and limiting the access of Korean patients and doctors to the most innovative drugs in the world.

    In response, the USTR suspended negotiations with Korea and threatened to end talks unless Korea adopted substantive and procedural changes to its reimbursement program.

    This is not the first time that U.S. trade negotiators have sought concessions from Korea to raise their drug prices. In 1999, Korea was pressured into an agreement under which “new innovative drugs” were subject to “A-7 pricing,” i.e. the average price of the same drug in United States, United Kingdom, Germany, France, Italy, Switzerland and Japan.

For complete article>>>>
http://www.tompaine.com/articles/2007/03/30/a_drug_deal_gone_bad.php

WHAT IS DRIVING HEALTH CARE COSTS IN MAINE

By John Carr

    Health Care in Maine, as it is through out the United States is costing too much. In this report I am attempting to point out who, in my opinion is the major reason (s) in Maine for Health care costs.

     First the consumer is unaware of what health care costs are and for the most part haven’t demanded to know. However, the consumer is fast demanding changes in our system because most realize that health care costs are not affordable. The big question where does a consumer go to control health care costs. If one turns to the medical insurance industry you quickly find out that insurance companies for the most part make a lot of money avoiding paying for health care and they have failed their customers by not negotiating lower costs from health care providers. So what’s left is GOVERERMENT. Like it or not Government is the only logical answer to provide the citizens of Maine with answers as to who is the cause of high health care costs and what can be done about it.

     On Saturday, March 31, 2007 in a report written by Shir Haberman of the Portsmouth, NH Herald, interviewed Dr. Terry Bennett who has traveled the world practicing medicine and he claims that the health care crisis is caused by DEBT, the high cost of medical education, HOSPITALS, who control most of the practitioners in their area, how when, and where patients are seen and most important how much it costs. The final reason is a continued complaint about the PHARMACEUTICAL INDUSTRY and the high cost of prescription drugs. I agree with Dr. Bennett.

     Here in Maine there are 39 hospitals and according to 2004 data from the Maine Health Care Workforce Resource Center there are 3,309 physicians working in Maine. Information compiled by the Maine Health Data Organization will show that 1232 doctors (37+% of the total number) work for hospitals. This number does not include contracted doctors. 

    I looked at the web sites of four major hospitals in Maine and it looks to me that most, if not all, doctor’s work for these hospitals in their respective areas. One of the smaller hospitals, York Hospital, lists 171 doctors on their web site as “medical staff”.

     Eastern Maine Medical has 6 hospitals in their system and 2 major physician practices.

     Central Maine Medical, an affiliate of the national Voluntary Hospitals of America, has 4 hospitals in their system and operates the Central Maine Physician Practices through out Central Maine.

     Maine General has 3 hospitals in their system and 7 physician Family Practices.

 Maine Medical has 9 hospitals, a heart center, research center, and soon to come an Ambulatory Surgical Unit all that include an unknown number of physicians.

     I would advise the Governors office, the Board of Directors of Dirigo Health and the Legislature that in order to have Cost Control, the Government of Maine has to communicate with hospitals, physicians and consumers to establish a cost containment system. Allowing Dirigo Health to become self administered is step one, passing what is now listed as LR 368, An Act to Establish Fairness to Worker and Taxpayers is step two and passing LR 1867 An Act to Protect Consumers from Rising Health Care Costs is step three. .

     Whatever health care system we have, without a strong cost control system, nothing will slow down the continued increasing of health care costs.
 

Sponsored Links

DOCTOR: GREED SUBVERTS HEALTH CARE

By Shir Haberman

shaberman@seacoastonline.com  

    PORTSMOUTH -- Dr. Terry Bennett, the controversial and opinionated Rochester physician who has traveled the world practicing medicine -- including a stint as physician to the Saudi royal family -- does not have high hopes that a fix can be found for the country's broken health care system.

    The reason, he contends, is that the amount of money involved in the system brings out one of the more negative human attributes -- greed.

    "Unless and until these extraordinary costs unique to the United States are squashed into manageability, there is too much greed and too little control of greed being exercised," said Bennett, a Harvard Medical School graduate, who operates a practice that bases its fees on the ability of his patients to pay. "It does not matter what politician suggests what plan --- Republican or Democratic, that plan will fail."

    There are four primary reasons for Bennett's pessimism: the educational debt carried by new doctors; the practice of hospitals "owning" the physicians who are affiliated with them; extraordinarily high prescription drug costs; and the advent of health management organizations, which have assumed a middleman position between patients, health care providers, pharmaceutical companies and hospitals.

    Bennett asserts that the debt carried by young doctors makes it virtually impossible to take into consideration the amount a patient can afford to pay for his or her medical treatment.

For complete article>>>>

http://archive.seacoastonline.com/news/03312007/nhnews-ph-p-health.care3.31.html 

SINGLE PAYER HEALTH CARE LEGISLATION

State Representative Paulette Beaudoin from District 135 (Biddeford)

is sponsoring a bill to Establish a Single-Payer Health Care System, LD 1072. Representative Beaudoin is a Vice-President of the MCSC-ARA. LD 1072 is a comprehensive universal, single-payor health care system that will be heard in a public hearing by the Insurance and Financial Committee on May 25th at 10AM, Room 427 in the State Hoiuse. LD 1072 deserves our support.

GOP BLOCKS FAIR DEAL ON DRUG PRICES

    A pillar of the Democratic political program tumbled in April when Republicans in the Senate blocked a proposal to allow Medicare to negotiate lower drug prices for millions of older Americans, a practice now forbidden by law.

    Democrats could not muster the 60 votes needed to take up the legislation in the face of staunch opposition from Republicans, who said that private insurers and their agents, known as pharmacy benefit managers, were already negotiating large discounts for Medicare beneficiaries.

    Fifty-five senators, including 6 Republicans, supported a Democratic motion to limit debate and proceed to consideration of the bill, while 42 senators voted against it. Such motions require a three-fifths majority under Senate rules. Without a limit on debate, opponents can prevent legislation from ever coming to a vote.

     The Senate had only a brief debate on the merits of the legislation, which is a high priority for the new Democratic majority in Congress.

    Republicans framed the issue as a choice between government-run health care and a benefit managed by the private sector. The drug benefit is delivered and administered by private insurers, under contract to Medicare.

    Senator John Cornyn, Republican of Texas, denounced the bill as “a step down the road to a single-payer, government-run health care system.”

    Democrats said they were merely trying to untie the hands of the secretary of health and human services, so he could negotiate on behalf of 43 million Medicare beneficiaries.

    “The Department of Veterans Affairs is able to negotiate for lower-priced drugs,” said the Senate majority leader, Harry Reid, Democrat of Nevada. “H.M.O.’s can negotiate. Wal-Mart can negotiate. Why in the world shouldn’t Medicare be able to do that?”

    The 2003 Medicare law prohibits Medicare from negotiating drug prices, setting prices or establishing a uniform list of covered drugs, known as a formulary.

For complete article>>>>

http://freeinternetpress.com/story.php?sid=11393 

SENATOR SNOWE DISAPPOINTED BY GOP VOTE

    Maine Senator Olympia J. Snowe expressed deep frustration over the failure of the Senate to allow debate on legislation that would authorize the federal government to negotiate on lower drug prices in the Medicare prescription drug program. Supporters of the bill fell five votes short in getting the 60 votes needed for “cloture,” which Senator Snowe called “deeply regrettable.”

    “An overwhelming majority of the American people support our bill,” said Senator Snowe. “They agree with us that the federal government should be able to use its extraordinary leverage in negotiating with manufacturers to obtain the best price possible for prescription drugs, which is crucial for America’s seniors and taxpayers.”

    Under the current Medicare Part D program, the federal government is barred from any role in negotiating prices with drug makers. Senator Snowe has long advocated a role for the Secretary of Health and Human Services in assuring that effective negotiation is achieved in order to reduce costs for beneficiaries and taxpayers. Currently, 43 million elderly and disabled Americans are enrolled or eligible for Part D drug coverage.

    “The rapidly escalating price of prescription drugs threatens to undermine the very drug benefit Congress passed to deliver real savings to seniors,” said Snowe. “My approach manages costs in a commonsense way – harnessing the buying power of millions of seniors to give them a better value for their health care dollar. The fact is that negotiation will drive down costs, and today, the Senate once again missed the opportunity to require such savings.”

    In 2004, Senator Snowe first introduced the bipartisan Medicare Enhancement for Needed Drugs Act. (MEND) That legislation both rescinds the ban on the government’s involvement in drug price negotiations, as well as mandates that the HHS Secretary participate in negotiation in some particular circumstances, such as for sole source drugs without competition and for medications which were developed with substantial taxpayer funding.

ARA PRESIDENT SLAMS BIG DRUG COMPANIES

By George Kourpias

President ARA

    The big drug companies are at it again.

    They recently persuaded a sizable bloc of U.S. Senators to stop a common sense bill, S. 3, which would have repealed the sweetheart deal that these corporations have – one that prohibits Medicare from negotiating bulk discounts from drug manufacturers.  Every consumer understands that you pay less when you buy in bulk. 

    The special-interest provision, quietly slipped into the 2003 Medicare act, is part of why the New York Times recently wrote that the new law “is proving to be a financial windfall larger than even the most optimistic Wall Street analysts had predicted.”

    So where is all of this prescription drug money going? 

    According to data just released, a lot of it is going straight to the CEO’s wallet. 

    The head of Wyeth took home $32.8 million in 2006.  A few others: Abbot Laboratories, $26.9 million; Pfizer, $19.4 million; and Baxter, $13.5 million. 

    Is it any wonder why Americans pay the highest drug prices in the world?  These CEOs ought to be ashamed of themselves for profiting so handsomely off seniors who struggle to afford their prescription drugs.

    So now what do we do?

    We must redouble our efforts to educate retirees on these important issues.  Let them know where their elected officials stand – is it with seniors in their state or with the big drug companies?

    If you hear your friends and neighbors saying that politics just doesn’t matter, tell them about what took place in the Senate.  It is yet another reminder that what happens in Washington and in our state capitals affects our daily lives.

ISSUE REPORT TO SCARE SENIORS

    The trust funds for Social Security and Medicare will last a year longer than previously estimated, trustees said in late April.

    The trustees report that Social Security is solvent through the year 2041, and Medicare is solvent through 2019.  The report triggered a warning that will require President Bush to submit to Congress next year proposals for dealing with Medicare's problems.

   The Medicare funding warning is triggered any time two consecutive trustee reports conclude that the amount of general revenue needed to finance Medicare will top 45% of the program's outlays, and the trustees first made that determination last year.  While Congress must consider the proposals, it is not required to act on them.  Medicare advocates at the Center on Budget and Policy Priorities say that the 45% threshold is not a meaningful measure of the health of Medicare. 

For complete article>>>>

http://www.retiredamericans.org/ht/display/ArticleDetails/i/1973 

FOR YOUR INFORMATION

More than 25% of Medicare drug plans increased beneficiaries’ co-payments and prices for prescription drugs in 2006, often after beneficiaries were committed to plans for the year, according to a study released last week by Consumers Union and reported in USA Today.

ALL ABOUT SENIORS

MAY IS SENIOR CITIZENS MONTH

Population 65 and older nearing 40 million, more than 12% of Americans

May 1, 2007 - A meeting with the National Council of Senior Citizens resulted in President Kennedy designating May 1963 as “Senior Citizens Month,” asking the nation to pay tribute in some way to older people across the country. In 1980, President Carter’s proclamation changed the name to “Older Americans Month,” a time to celebrate those age 65 and older through ceremonies, events and fairs.

36.8 million
The number of people 65 and older in the United States on July 1, 2005. This age group accounted for 12 percent of the total population. Between 2004 and 2005, this age group increased by 457,000 people.
<http://www.census.gov/Press-Release/www/releases/archives/population/006808.html>

86.7 million
Projected population of people 65 and older in 2050. People in this age group would comprise 21 percent of the total population at that time.
<http://www.census.gov/Press-Release/www/releases/archives/population/001720.html>

147%
Projected percentage increase in the 65-and-older population between 2000 and 2050. By comparison, the population as a whole would have increased by only 49 percent over the same period. <http://www.census.gov/Press-Release/www/releases/archives/population/001720.html>

495 million
Current world population 65 and older. Projections indicate the number will increase to 997 million by 2030. <http://www.census.gov/ipc/www/idbagg.html>

Income and Wealth

$26,036
Median 2005 income of households with householders 65 and older, up 2.8 percent, in real terms, from the previous year.
<http://www.census.gov/Press-Release/www/releases/archives/income_wealth/007419.html>

10.1%
Poverty rate for people 65 and older in 2005, statistically unchanged from the previous year. There were 3.6 million seniors in poverty.
<http://www.census.gov/Press-Release/www/releases/archives/income_wealth/007419.html>

39%
Percentage of total annual personal income of people 65 and older in 2001 that came from Social Security payments.
<http://www.census.gov/Press-Release/www/releases/archives/aging_population/006544.html>

$190,100
Median net worth for families in 2004 whose head was between 65 and 74. For those whose head was 75 or older, the corresponding figure was $163,100. <http://www.census.gov/compendia/statab/> (2007 edition, Table No. 702)

Serving Our Nation

9 million
Estimated number of people 65 and older who are military veterans.
(Source: 2005 American Community Survey)

Jobs

5.3 million
Number of people 65 and older who were in the labor force in 2005. Projections indicate that by 2014, the number will reach 8.7 million. <http://www.census.gov/compendia/statab/>,
(2007 edition, Table No. 574)

Education

72%
Proportion of people 65 and older in 2005 with at least a high school diploma. (Source: 2005 American Community Survey)

18%
Percentage of the population 65 and older in 2005 who had earned a bachelor’s degree or higher. (Source: 2005 American Community Survey)

7.3 million
Number of people 66 and older taking adult education courses. About 8 percent of all lifelong learners are in this age group. <http://www.census.gov/compendia/statab/>
(2007 edition, Table No. 294)

69,000
Number of people 65 and older enrolled in regular school (specifically, high school or college) in October 2005.
<http://www.census.gov/Press-Release/www/releases/archives/education/007909.html>

Marital Status

54%
Percentage of people 65 and older who were married with spouse present in 2005.
(Source: 2005 American Community Survey)

30%
Percentage of widowed people 65 and older in 2005. (Source: 2005 American Community Survey)

Voting

79%
Percentage of citizens 65 and older registered to vote in the 2004 presidential election. Seventy-one percent of citizens in this age group reported actually casting a ballot.
<http://www.census.gov/Press-Release/www/releases/archives/voting/004986.html>

41%
Of all the votes in the 2040 presidential election, the projected percentage to be cast by people 65 and older. In the 2004 election, people in this age group cast 19 percent of the votes.
<http://www.census.gov/Press-Release/www/releases/archives/aging_population/006544.html> and <http://www.census.gov/Press-Release/www/releases/archives/voting/004986.html>

Homeownership

81%
Proportion of householders 65 and older in 2006 who owned their homes. This compares with 43 percent for householders at the other end of the age spectrum — younger than 35.
<http://www.census.gov/hhes/www/housing/hvs/hvs.html>

Businesses

11%
Percentage of the nation’s business owners who are 65 and older.
<http://www.census.gov/Press-Release/www/releases/archives/business_ownership/007537.html>

Population Distribution

Nation

72
The number of men 65 and older on July 1, 2005, for every 100 women in this age group. For those 85 and older, it drops to 46 men per 100 women. <http://www.census.gov/popest/national/asrh/NC-EST2005-sa.html>

5.1 million
The number of people 85 and older in the United States on July 1, 2005.
<http://www.census.gov/popest/national/asrh/NC-EST2005-sa.html>

79,682
Estimated number of centenarians in the United States on Nov. 1, 2006.
<http://www.census.gov/popest/national/asrh/2005_nat_res.html>

580,605
Projected number of centenarians in the United States in 2040. <http://www.census.gov/ipc/www/usinterimproj/>

States

3.9 million
Number of people 65 and older living in California on July 1, 2005, the highest total of any state. Florida, with 3 million, was the runner-up.
<http://www.census.gov/popest/states/asrh/SC-EST2005-01.html>

20%
Projection of the percentage of Florida’s population age 65 and older in 2015, which would lead all states. In that year, Florida would have nearly as many residents 65 and older as younger than 18. <http://www.census.gov/compendia/statab/>, (2007 edition, Table No. 22)

Cars
75%
Percentage of households with a householder 65 and older who owns a motor vehicle. About 3 percent of these households have three or more cars. <http://www.census.gov/compendia/statab/> (2007 edition, Table No. 965)

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Editor’s Note: We are working to expand our mailing list and encourage forwarding this news report to others. You can remove your name/address from our list by sending name and “newsletter delete” to the Maine Council of Senior Citizens –  send an e-mail to MCSC Director Neena Quirion at mcsc@mseaseiu.org

Ed Schlick

Editor