Some Experts Foresee Revolt by Elderly Over Drug Benefits

[aeon flux]

"Trading in a Cadillac for a Chevrolet."

I hope seniors organize a demand to repeal this lemon.

--------------------
New York Times

With good intentions and bright advisers, Congress overwhelming passed legislation in 1988 that would insure the elderly against catastrophic medical expenses, including crushing drug costs.

But affluent retirees quickly concluded that they were being asked to pay for something that their employers already gave. They rose in revolt. Congress repealed the legislation within months.

Some experts envision a similar fate for the Medicare drug benefit that the Senate sent to President Bush's desk yesterday. The legislation provides billions in tax incentives to discourage employers from dropping the drug benefits that they provide to about 11 million retirees. But if, as pessimists expect, many large employers calculate that the incentives are not enough, millions more retirees than Congress expects will watch as their relatively rich private drug benefits are replaced by the government's more meager package.

They will be forced to trade in a Cadillac for a Chevrolet, and that is a recipe for another revolt by the elderly, some experts say.

http://www.nytimes.com/2003/11/26/politics/26DRUG.html?hp

[tokenlib]

1. We can only hope...

They'd better wake up by next November.

If any of us were discussing our employer provided prescription plans over coffee or a beer--and described this plan for medicare. Everyone would probably agree it was a load of crap.

[nolabels]

5. A lot of them won't know unless it's by word of mouth

The headline top story in the Reich wing newspaper in my local said "Seniors gain drug benefit" (effing propaganda, at it's finest). The other thing is most of the things won't take effect till early 2005. They have this stuff all mapped out, fasten your seat belt.

[soothsayer]

2. Uh, here comes "Hell's Grannies"

I do hope they revolt...!

[aeon flux]

3. Hell hath no fury!

[54anickel]

4. Are they pessimists or just based in reality?

The legislation provides billions in tax incentives to discourage employers from dropping the drug benefits that they provide to about 11 million retirees. But if, as pessimists expect, many large employers calculate that the incentives are not enough, millions more retirees than Congress expects will watch as their relatively rich private drug benefits are replaced by the government's more meager package.

<cut>
Here we go again, putting Billions into the pockets of corporations and out of the gov't coffers as tax incentives.

Corporations will not honor their deal with retirees to provide health care while it hits their bottom line. They have set the precedence of backing out of their promises to retirees by robbing or eliminating pensions (thanks Raygun) and now it is the health benefits on the line.

This was one of the reasons for many of the strikes in recent years! Two-tiered wage systems, cutting benefits of retirees as well as current workers. Retirees made concessions during their working days to get coverage as part of their retirement.

[SteveG]

6. One group of large employers will be incentivized to drop

retirees, and that group will be State and local government. Since the incentives given to private employers are tax based, and State and Local Governments don't pay taxes, they don't get any incentive to keep their retirees on their plans. In fact they have good reason to dump them into the federal system, because the insured pool after moving the retirees, who are heavy users of prescription benefits, will be younger and therefor less likely to need expensive prescription drugs, therefor costing less in premiums paid by the State or local government.