stimuluspackage

Economic Stimulus Package Passed

money

Feb. 15, 2008 Update
Dear Friends,
I hope you all had a sweet Valentines Day.
Now that we have a victory under our belt with the economic stimulus package passed, now we have to watch out for the tax scammers who have begun to target seniors. Please warn people that the IRS and the Social Security Administration do not make unsolicited phone calls. No one should give out personal information over the phone to anyone who calls them.
Next up : The budget battle.
(Excerpts from The Washington Post Wed. Feb 13, 2008)
"For the past two years, President Bush, in a play to fiscal conservatives, draws up a budget request that sends a long list of domestic programs to be slashed. Food for infants, toddlers and breast-feeding mothers - gone. Early childhood education, job training - poof." Social Security privatization is planned to begin and Medicare & Medicaid moneys will continue to disappear.
After the budget presentation, the Congress weighs in, the shouting dies down and Congress keeps most of the programs alive. Both sides claim victory and they walk away from the budget for another year.
For fiscal year 20008, which began last October, President Bush cut or eliminating 141 programs in the current budget. Sixteen were eliminated and thirteen were trimmed according to the White House Budget office.
For fiscal 2009, Bush wants to cut even more, and as always, he says he means it, which means we have work to do to keep the public aware and the Congress on our side to truly strengthen and protect Social Security and Medicare.

1. Stimulus package passes.
2. Rebate questions and answers.
3. You must file for the rebate.
4. The National Committee Press Release on the Stimulus Passage
5. Medicare D and those who love it - but not McCain.
6. President Bush and the Medicare "Trigger."
7. A Doctor's Medicare perspective...right on!
8. Testimony by the National Committee to the Senate Committee on Finance
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http://www.medicalnewstoday.com/articles/97253.php

National Seniors Group Celebrates A Victory As President Signs Economic Stimulus Bill - Social Security Beneficiaries Included For First Time

14 Feb 2008

"Our members and advocates spoke, Congress listened and we now have a stimulus plan which provides short-term spending power to millions of Americans, young and old alike. Seniors living on fixed incomes are ready to put this rebate check to work, providing the timely, targeted, and temporary economic boost our country needs. The challenge now will be providing efficient delivery of these stimulus checks to seniors who don't usually file tax returns." Barbara B. Kennelly, President/CEO

The Internal Revenue Service will deliver rebate checks to those who qualify, starting in May. For the vast majority of Americans, all they need to do is file their usual 2007 tax return. But it could be a little trickier for Social Security recipients who wouldn't normally file a tax return. They must file a tax return this year, even if they don't owe any tax, in order to be included in this stimulus effort.

The stimulus legislation provides $31 million in addition funding to the Social Security Administration to provide staff and training to help seniors navigate this rebate process. The National Committee will work with its members and supporters to educate them about the stimulus process and what they need to do to qualify for the rebate.

The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.

The National Committee

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Article URL: http://www.medicalnewstoday.com/articles/97253.php

Main News Category: Public Health

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ASSOCIATED PRESS
http://ap.google.com/article/ALeqM5j_-lP-JCrtIgCde_0ZV_TgaXMEMQD8UMD6A00
Rebate Questions and Answers
By JULIE HIRSCHFELD DAVIS – 2 days ago

Beginning this spring, more than 130 million people will get rebate checks from the government in amounts from $300 to $1,200. Most households will get another $300 for each child under the economy relief bill passed by Congress. All must file an income tax return for 2007 to qualify.

Here are some questions and answers about who will get checks and for how much:

Q: Who gets a rebate?

A: Anyone who pays taxes or earns at least $3,000, including through Social Security or veterans' disability benefits. Singles with income of more than $75,000 and couples with more than $150,000 get only partial rebates.

Q: Who does not get a rebate?

A: People who earn less than $3,000, illegal immigrants, anyone who does not file a tax return, singles with incomes exceeding $87,000 and couples with incomes exceeding $174,000. The caps rise by $6,000 per child.

Q: What do you have to do to get the rebate?

A: Eligible people must file a 2007 tax return with a Social Security number for each person listed.

Q: How much is the rebate?

A: Single taxpayers get a rebate of at least $300, with couples receiving at least $600. The rebate will be equal to the taxes they paid, up to $600 for singles and $1,200 for couples, plus an additional $300 per child. That amount will be reduced by $50 for every $1,000 above the income limits of $75,000 for singles and $150,000 for couples.

People who earn too little to pay taxes but at least $3,000, including elderly people whose only income is from Social Security and veterans who live on disability payments, will get $300 if single or $600 if a couple.

Q: How are the rebates calculated?

A: Rebates are calculated on the basis of taxpayers' 2007 adjusted gross income, which includes salaries and wages, interest, dividends, capital gains, taxable pensions, royalties and farm or rental income. It does not count contributions to individual retirement accounts, 401(k) retirement plans, tax-free health savings accounts or student loan interest payments.

Rebates for low-income people who don't pay taxes, including the elderly and disabled veterans, will be a flat $300 if single and $600 for couples.

Q: When will the rebates arrive?

A: The Treasury Department says the IRS will begin sending out rebates in May.

Q: Will the rebates be deducted from taxpayers' regular tax refunds?

A: No, the rebates are on top of any tax refund.

Q: Where does the money come from?

A: The government will borrow the money to pay for the rebate, which is projected to cost about $117 billion over the next two years, adding to the federal deficit.

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ST. PETERSBURG TIMES

http://www.sptimes.com/2008/02/14/Business/Want_300_tax_rebate_B.shtml

Want $300 tax rebate? Be sure to file

By HELEN HUNTLEY, Personal Finance Editor

Published February 14, 2008

They don't owe any taxes, but about 20-million people just got a great incentive to file a tax return: It's the only way to get a share of the billions of dollars the government is passing out to stimulate the economy.

"We have no way of knowing that they're eligible" unless they file, acting IRS Commissioner Linda Stiff said Wednesday after President Bush signed the legislation.

Retirees living on Social Security will be eligible for the minimum rebate of $300 for singles and $600 for married couples filing jointly. The only income needed to qualify is at least $3,000 from any combination of these sources: earned income from work, Social Security benefits, Veterans Affairs disability benefits and Railroad Retirement benefits. Other requirements include having a Social Security number and not being claimed as a dependent on someone else's tax return.

People who pay taxes can qualify for rebates of up to $600 single or $1,200 (married). In addition, there is a $300 benefit for each qualifying child younger than 17.

Retirees will be the most affected by the filing requirement since a couple, both older than 65, normally wouldn't need to file a tax return unless their income was at least $19,600, not including Social Security benefits.

What kind of return do I need to file?

Retirees should file Form 1040 or 1040A. Social Security, VA or Railroad Retirement benefits all should be reported on line 20a of Form 1040 or line 14a of Form 1040A in the spot that says "Social Security benefits." If you did not get a 1099 form, multiply your monthly gross benefit by 12 and report that amount. Low-income workers can use Form 1040EZ to report their wages.

When will I get my rebate?

The IRS will start sending out checks in early May, but the order has not been determined. Filing your return after April 15 is likely to delay your rebate.

Can I get my rebate by direct deposit?

Yes, if you fill in the bank routing and account numbers when you file your return. Otherwise, it will come by check.

What if I already filed a tax return that had less than $3,000 in income and did not include my Social Security benefits?

File an amended return (Form 1040X).

Can I add my IRA withdrawals or CD interest to my Social Security benefits to get up to the $3,000 requirement?

No.

Is the rebate taxable?

No.

Do I have to pay someone to file a return for me?

No. IRS volunteers offer free help to elderly and low-income taxpayers. Call the IRS toll-free line at 1-800-829-1040 for information on a site near you. In addition, you can file online for free through the IRS Web site (www.irs.gov) if your income is less than $54,000.

Will the IRS contact me about my rebate?

The IRS will be sending two notices by mail. One will contain general information and the other specific information about your rebate. Do not give personal information to anyone who calls or e-mails you claiming to be from the IRS.

Helen Huntley can be reached at huntley@sptimes.com.

490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111

Contact the Times | Privacy Policy | Standard of Accuracy | Terms, Conditions & Copyright

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4.
THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE

~ Celebrating 25 Years of Advocacy for Older Americans ~

February 13, 2008

NEWS RELEASE

National Seniors Group Celebrates a Victory as President Signs

Economic Stimulus Bill

Social Security Beneficiaries Included for First Time

“Our members and advocates spoke, Congress listened and we now have a stimulus plan which provides short-term spending power to millions of Americans, young and old alike. Seniors living on fixed incomes are ready to put this rebate check to work, providing the timely, targeted, and temporary economic boost our country needs. The challenge now will be providing efficient delivery of these stimulus checks to seniors who don’t usually file tax returns.” Barbara B. Kennelly, President/CEO

The Internal Revenue Service will deliver rebate checks to those who qualify, starting in May. For the vast majority of Americans, all they need to do is file their usual 2007 tax return. But it could be a little trickier for Social Security recipients who wouldn’t normally file a tax return. They must file a tax return this year, even if they don’t owe any tax, in order to be included in this stimulus effort.

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CNS NEWS

DeLay Rips McCain for Opposing Medicare Drug Plan

Fred Lucas (excerpt)

While in Congress, DeLay had helped quashed a rebellion by House conservatives, who tried to defeat the prescription plan then being promoted by President Bush.

"I'm very proud of the Medicare bill," DeLay told Cybercast News Service. "_ We took a welfare state program and applied conservative principles to it." Listen to Audio

Asked if McCain's vote against the Medicare expansion bill was un-conservative, DeLay responded, "Yes, it was, as a matter of fact. It was taking the easy way out."

DeLay is among many Republicans uncomfortable with having the moderate McCain as the party's probable nominee for 2008. However, McCain was joined by some of the most conservative members of Congress in his opposition to the Medicare prescription drug plan.

In the Senate, McCain was one of just eight Republicans to vote against the Medicare bill. He was joined by Sens. Wayne Allard of Colorado, Trent Lott of Mississippi, John Sununu and Judd Gregg of New Hampshire, John Ensign of Nevada, Lindsey Graham of South Carolina and John Cornyn of Texas.

In the House, only 25 Republicans voted against the measure, most of them conservative stalwarts. Rep. Ron Paul of Texas, also a GOP presidential candidate, opposed the Medicare bill. Others opposed included Reps. John Shadegg and Jeff Flake of Arizona, Mike Pence and Dan Burton of Indiana, and then-Rep. Jim DeMint of South Carolina.

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Kaiser Daily Health Policy Report

Thursday, February 14, 2008

Administration News

Bush Administration To Propose Legislation That Would Overhaul U.S. Health Care System in Response to Medicare 'Trigger'

The Bush administration is planning to propose legislation that would address excess spending in Medicare and go beyond the "trigger" provision in the 2003 Medicare law to health care in general, HHS Secretary Mike Leavitt said at a House Ways and Means Committee hearing on Wednesday, CQ HealthBeat reports (Reichard, CQ HealthBeat, 2/13). President Bush for the first time is required by law to send a Medicare savings plan to Congress after he releases his fiscal year 2009 budget proposal because Medicare trustees last year triggered a "Medicare funding warning." The warning is issued when trustees for two consecutive years predict that federal general fund revenue must be used to pay for 45% or more of total Medicare costs within seven years (Kaiser Daily Health Policy Report, 1/22).

Leavitt suggested that the proposal would be in line with the administration's beliefs that health care should be a "private market where consumers choose, where insurance plans compete and where innovation drives the quality of health care up and may drive the cost down." He added that the competing vision of health care is a "Washington-run, government-owned plan, where government makes the choices, sets the prices and [then] taxes people to pay the bill." Leavitt said Bush likely would have the proposal to Congress before Feb. 21.

According to CQ HealthBeat, "Democrats at the hearing angrily rejected [Leavitt's] vision and accused the administration of trying to kill off the Medicare program." Ways and Means Health Subcommittee Chair Pete Stark (D-Calif.) at the hearing said, "You suggest we rely on the private sector but conveniently fail to point out that system costs taxpayers far more than traditional Medicare" (CQ HealthBeat, 2/13).

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ATLANTIC CITY PRESS

http://www.pressofatlanticcity.com/opinion/syndicated/story/3812515p-13381394c.html

LAURA S. BOYLAN: Bush's privatization agenda for Medicare

Published: Wednesday, February 13, 2008

The Bush administration is eating away at the heart of Medicare.

The first assault was the Medicare Modernization Act of 2003. And the second assault is the budget that President Bush just submitted to Congress.

Before looking at these two, we should recognize that Medicare is one of our nation's most efficient, successful and popular public programs. Under this single-payer program for the elderly, people report less hassle, easier access, lower out-of-pocket expenses and more satisfaction than those with private insurance.

Let's face it: Medicare is a public oasis in the private desert that is the health care marketplace in America. We spend more than twice as much on health care, on average, as other developed nations, all of which provide universal coverage through predominantly public financing. What's more, their health outcomes are usually superior to ours.

Market-based health care is a minefield of "perverse incentives": Procedures are rewarded over prevention and administrative costs are enormous. It is estimated that one-third to one-fifth of U.S. medical expense outlays don't improve health.

As a doctor, I know that my time with patients is at the core of a humanistic practice of medicine. And it's also the most cost-effective way to deliver primary care. It is, however, the least reimbursable of all medical events. Physicians are more likely to order questionable tests and specialty referrals when in a rush. It provides a sense of thoroughness, a hedge of bets and, frankly, a patient-pleasing way to close the visit when the lines are getting too long. But it adds immensely to the costs of health care.

The waste and inefficiency are, well, un-American.

In a triumph of ideology over fiscal sobriety, of special interests over public health, the Bush administration is trying to privatize Medicare rather than expand it.

The Medicare Modernization Act of 2003 offered prescription drug coverage, but exclusively through private companies. Bizarrely, it prohibited the government from negotiating price discounts from the drug companies. As a result, Medicare Part D drug prices are more than 80 percent higher than the prices negotiated by Medicaid and Veterans Affairs.

One important but obscure component of the Medicare Modernization Act will soon come to haunt us. And that is the creation of an arbitrary 45 percent general revenue cap, which, when reached, will trigger program cutbacks, higher premiums or further privatization. Medicare financing comes from various sources including general revenue, payroll taxes, trust fund interest, and beneficiary premiums. The cap has yet to kick in, but the drug company giveaway was funded mostly through general revenue, so it will come soon.

Then there's the current Bush budget. It proposes reducing payments to doctors and hospitals while preserving subsidies to inefficient and sometimes corrupt private insurance middlemen, who offer plans through the Medicare Advantage program. These middlemen cost up to 19 percent more per beneficiary than traditional Medicare despite selective enrollment of the healthy.

Fiscal sobriety and public health demand that Medicare be kept affordable by getting rid of inefficient subsidies and giveaways to industry, which add cost but not value to health care.

Don't let the Bush Administration fool you: We can afford Medicare. The $6 billion it would cut next year from public Medicare is less than the cost of two weeks of the war in Iraq.

Medicare is the proud kernel of a single-payer America, where health care is a right and not a commodity, and everyone has the same health care coverage as their president.

We can't let the Bush administration continue to gouge it.

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Testimony for the Record

Barbara B. Kennelly, President and CEO

National Committee to Preserve Social Security and Medicare

United States Senate

Committee on Finance

Hearing on “Selling to Seniors: The Need for Accountability
and Oversight of Marketing and Sales by Medicare Private Plans”

February 7, 2008

Mr. Chairman and Members of the Committee:

I am Barbara Kennelly, President and Chief Executive Officer of the National Committee to Preserve Social Security and Medicare, and I appreciate the opportunity to submit this statement for the record. With millions of members and supporters across America, the National Committee is a grassroots advocacy and education organization devoted to preserving and promoting the financial security and health of maturing Americans.

Mr. Chairman, earlier this week the President released his Fiscal Year 2009 Budget which proposes severe cuts to Medicare, totaling $178 billion over the next five years, $556 billion over the next 10 years, and more than $10 trillion over the next 75 years. These massive cuts are funded by increasing beneficiary cost-sharing and slashing reimbursement rates to providers who serve beneficiaries in traditional Medicare. We are concerned that cuts of this magnitude will undermine the strength of traditional Medicare and negatively impact the health outcomes of beneficiaries by limiting their access to care.

While the President’s budget places traditional Medicare on the chopping block, it continues to fund substantial subsidies to private Medicare Advantage plans. These private health plans were first allowed to participate in Medicare because policymakers believed they could provide better services at a lower cost than traditional Medicare. In fact, because it was anticipated private plans would be so efficient, the government initially paid them five percent less for each beneficiary they enrolled than it would have cost to cover that same beneficiary in traditional Medicare.

Medicare now pays private plans significantly more than it would cost to cover the same beneficiaries through traditional fee-for-service Medicare. Today the government pays an average of 13 percent more to cover a beneficiary enrolled in a private Medicare Advantage plan than it would cost to cover that same beneficiary under traditional Medicare. In simple dollar terms, Medicare pays about $1,000 more a year to cover a beneficiary in a private plan than it would cost to provide care to that same beneficiary under traditional Medicare.

All beneficiaries, whether they enroll in a private plan or not, subsidize payments to private companies by paying higher Part B premiums. Today, these premiums are almost $50 per year higher per couple than they would be absent the subsidies to private plans. This number will continue to grow exponentially in future years. These increases are in addition to the record-setting increases in Part B premiums beneficiaries have already experienced – and which are expected to continue – as a result of overall increases in the cost of health care.

In addition to adding costs for individual beneficiaries, subsidies to Medicare Advantage plans result in higher costs to the federal government. Medicare’s actuaries estimate that eliminating these subsidies would add two years of solvency to Medicare's hospital insurance trust fund. According to the Congressional Budget Office (CBO), paying private plans at the same rate as traditional Medicare would save $54 billion over the next five years and $149 billion over the next ten years.

For all of these reasons, I support the Medicare Payment Advisory Commission’s (MedPAC) recommendation that payment policy should be built on a foundation of financial neutrality between payments in the traditional fee-for-service program and payments to private plans. We should be using taxpayer dollars to promote quality in Medicare, instead of bestowing unwarranted subsidies on inefficient private plans that serve a fraction of Medicare beneficiaries.

Today’s hearing focuses on the marketing abuses that exist in the Medicare Advantage program. Medicare Advantage subsidies are driving unscrupulous agents and private plans to use aggressive sales tactics and misrepresentations to sell their products to beneficiaries. A recent survey of state insurance departments found that 39 of 43 states have received complaints about misrepresentations and inappropriate marketing practices of Medicare Advantage plans. In most cases, these practices led to Medicare beneficiaries enrolling in a private plan without adequate understanding of the plan or their ability to stay in traditional Medicare. The inflated payments to private plans allow them to offer exceedingly large commissions to agents who enroll beneficiaries into Medicare Advantage plans, regardless of whether the plan meets their needs. To receive their commissions, some insurance agents have engaged in fraudulent activities including: forging signatures on enrollment documents; mass enrollments and door-to-door sales at senior centers, nursing homes, or assisted living facilities; and enrolling beneficiaries with dementia into inappropriate plans.

Mr. Chairman, one of our National Committee members has witnessed countless examples of marketing abuse in the Medicare Advantage program. Marion Seymour is a senior citizen living in Syracuse, New York. Ms. Seymour is a licensed insurance agent who has sold life and health insurance policies for nearly fifty years. On a personal level, Ms. Seymour receives numerous telephone calls on a weekly basis from insurance agents selling Medicare Advantage plans. Oftentimes, the insurance agents will identify themselves as “working for Medicare” or “contracting with Medicare due to government backlogs”. According to Ms. Seymour, some of the agents are very reluctant to identify the name of the insurance company providing the policy. Many of the agents she spoke with could not answer basic questions about the benefit package of the Medicare Advantage plan. She has found some of these agents will promote coverage for prescription glasses or gym memberships, but cannot answer questions about coverage for chemotherapy. In addition to the telephone calls, Ms. Seymour also receives weekly direct mailings containing invitations to informational get-togethers. She attended a get-together at one of the area’s finest restaurants where the Medicare Advantage plan paid for dinner for every attendee.

Since Ms. Seymour is a licensed insurance agent, she continually gets offers from many different companies to sell Medicare Advantage plans. Ms. Seymour does not accept these offers because she believes the plans provide inferior benefits and she is opposed to the subsidized payments they receive. Based on her calculations, Ms. Seymour believes she could make at least three times her current commission selling Medicare Advantage products instead of the supplemental policies she sells to Medicare beneficiaries. She has been offered commissions ranging from $250 to $600 up front per sale of a Medicare Advantage plan.

As a supplemental insurance agent, Ms. Seymour encounters many seniors who enrolled in a Medicare Advantage plan under the belief that they were enrolling in a supplemental policy to traditional Medicare. In some instances, the beneficiaries called the insurance company to be placed in a supplemental policy only later to find out they were enrolled in a Medicare Advantage plan. In other instances, the agents misrepresented the Medicare Advantage plan as a supplement to traditional Medicare. Ms. Seymour is aware of adult children enrolling their parents in a Medicare Advantage plan because the agent misrepresented the plan as a supplement to traditional Medicare. Some of Ms. Seymour’s most heart-breaking examples of marketing abuse have occurred when Medicare Advantage agents went to senior housing facilities and adult day care facilities to enroll vulnerable beneficiaries who did not understand the ramifications of their actions.

Unfortunately, the kind of fraudulent marketing practices that Ms. Seymour is witnessing in New York are occurring throughout our country. I do not believe that Congress will be able to eliminate marketing abuse in the Medicare Advantage program until it removes the excessive subsidies these plans receive. As long as private plans are overpaid, they will be tempted to use that money to offer agents exceedingly large commissions and to engage in unethical and illegal sales tactics. However, until private plans operate on a level playing field with traditional Medicare, I encourage Congress to increase the oversight and regulation of these plans. I support Sen. Kohl’s legislation—the Accountability and Transparency in Medicare Marketing Act of 2007 (S. 1883)—which would request the National Association of Insurance Commissioners to develop standardized marketing requirements for Medicare Advantage organizations and prescription drug plans.

Mr. Chairman, thank you for holding this hearing today. As you know, the vast majority of Medicare beneficiaries remain in the traditional program. In a time of budgetary challenges, we cannot continue to reward private plans with taxpayer and beneficiary-funded subsidies. I look forward to working with you and other members of this committee to restrain unwarranted spending in the Medicare Advantage program and to ensure that traditional Medicare is preserved for generations to come.