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Wednesday, November 26, 2003

AARP Faces Kickback For Backing Medicare Bill
Many Seniors Unhappy With Reform Bill Passed By Congress
POSTED: 6:46 p.m. EST November 26, 2003

BOSTON -- Senior citizens angry over the AARP's endorsement of the Medicare bill are ripping up or burning their AARP membership cards and flooding the lobbying group with complaints in what could be the biggest revolt in its ranks since the 1980s. Many fear the Republican-backed bill approved by Congress on Tuesday will harm senior citizens and say the AARP, the nation's most influential retiree lobby, with 35 million members, sold them out.

If signed by President George W. Bush as expected, the new law would set up a limited program of competition between traditional Medicare and private plans, beginning in 2010. Activists are worried that could lead to the privatization of Medicare, placing the elderly in the hands of insurance companies more concerned about profits than quality medical care.

AARP policy director John Rother said the new plan is not perfect, and the organization will continue to try to improve it. The group's chief executive said between 10,000 and 15,000 members have quit because of the bill.

GOP Defends Bill
The bill adds a prescription-drug entitlement that would be available to 40 million older and disabled Americans. The Medicare bill has been heavily pushed by the White House and narrowly survived a weekend vote in the House. In the Senate, the package cleared several procedural votes Monday.

Senate Majority Leader Bill Frist said the bill will allow seniors more access to preventive care for heart disease, diabetes, Alzheimer's disease and a host of other ailments. Bush hails the Senate's passage. Speaking at a Las Vegas hospital Tuesday, he said the 38-year-old Medicare program will now be able to catch up with the changes taking place in medicine.

He said under the system that existed until now, the government would pay for ulcer surgery costing $28,000 but wouldn't pay for $500 worth of medicine that could have prevented the surgery to begin with. Bush said the changes that he'll sign into law will strengthen and modernize the Medicare system and give "high quality care" to the nation's seniors.

Under the legislation, the prescription drug benefit doesn't begin until 2006. At that time, all Medicare beneficiaries will have access to the prescription drug benefit -- and some will save significantly.

In the meantime, seniors will be eligible to purchase a Medicare-backed discount drug card that will offer an estimated 15 to 25 percent savings. Low-income seniors would get an additional $600 credit on this card. Democratic Sen. Dianne Feinstein said she supported the bill even though it sometimes wasn't easy to do. She said the bill contains items that seniors in her home state of California have asked for -- especially the drug benefit. She said the benefit is needed because some low-income seniors have to choose between buying food or buying prescription drugs.

Opponents said final passage was a formality, since they lacked the votes to stop the measure. They have denounced the $400 billion measure as a windfall for drug companies and private insurers. Democrats worked hard to block it, but they failed by two votes Monday to block a final vote on the measure. But even now, Democratic opponents of the Medicare bill are vowing to keep fighting it.

Senate Minority Leader Tom Daschle said he didn't see many senior citizens in the Senate gallery during Tuesday's vote. Instead, he said he saw lobbyists for the drug and insurance industries, which he said are favored by the bill. Daschle suggested that some seniors fear they may be forced into a private health plan under the measure. And he said seniors in his home state of South Dakota don't think the drug benefit is adequate. Daschle had called the bill a "bailout for the HMOs and insurance companies."

Democratic Sen. Ted Kennedy said the measure threatens the traditional Medicare system. He's vowing that he and other opponents will continue to battle provisions of the bill in future elections and future sessions of Congress.

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