AFSCME LEGISLATIVE REPORT September 14, 2007

[Omaha Steve]

Below are the top stories of the week from Capitol Hill.

AFSCME LEGISLATIVE REPORT
September 14, 2007

In this issue:

* Senate Approves Transportation-HUD Spending Bill Above President's Request
* Bush Makes Another Plea for Support of His Iraq War Policy
* Senate Passes Veterans Funding Bill
* GAO Study Finds Administration Let Private Medicine Plans Keep Millions in Overpayments that Should Have Gone to Seniors and People with Disabilities
* States Urge Administration to Rescind New Restrictions on Children's Health Program

Senate Approves Transportation-HUD Spending Bill Above President's Request
The Senate voted 88-7 to approve $104.6 billion for the FY 2008 Transportation-Housing and Urban Development (HUD) Appropriations bill (H.R. 3074), which is $4 billion more than President Bush's request. The Senate's veto-proof support for these extra funds indicates that Senate Republicans may be more willing to buck presidential vetoes than House Republicans.

The Senate bill provides $3.77 billion for the Community Development Block Grant formula allocation, which is nearly $1 billion more than President Bush's request, but is not an increase over the current year's spending. The Senate also funded public housing programs above the President's request. The Senate bill contains a provision to preserve Public Housing Authorities' (PHAs) flexible use of Public Housing Capital Funds and another provision to exempt PHAs with fewer than 501 units from HUD's asset management requirements.

In response to this summer's Minnesota bridge disaster, the Senate successfully amended the bill to obligate an extra $1 billion from the Highway Trust Fund to improve and repair bridges. The bill funds highway infrastructure and Federal Transportation Administration programs above the President's request.
Congressional leaders have not decided if they will convene a House-Senate conference to negotiate a final bill or combine it with other appropriations bills in broader legislation.
(Marc Granowitter- [e-mail])

Bush Makes Another Plea for Support of His Iraq War Policy
In a televised address to the nation, President Bush made a new plea for congressional support of his Iraq war policy. Senate Democratic leaders were harshly critical of Bush's remarks, and a number of Republican moderates also called for greater cuts in the number of American troops in Iraq.
(Charles M. Loveless- [e-mail])

Senate Passes Veterans Funding Bill
Last Thursday, by a vote of 92-1, the Senate passed the Military Construction-Veterans Affairs (VA) Appropriations bill for FY 2008. The bill provides substantial increases for the Veterans Administration, which would get $43 billion, or $3.6 billion more than the President's request. The bill also includes $929.8 million, which is $237 million above the President's request, for military construction projects to ensure that the National Guard and Reserve have adequate training and maintenance facilities. The bill also provides $250 million towards the federal share of a grant program for repairing and constructing state veterans homes. The House passed its version of the funding bill on June 15. As the House and Senate move forward to negotiate a final bill, AFSCME will continue to press for adequate funding for resources for our National Guard and Reserve and veterans' health care.
(Linda Bennett- [e-mail])

GAO Study Finds Administration Let Private Medicare Plans Keep Millions in Overpayments that Should Have Gone to Seniors and People with Disabilities
Under current law, insurance companies are paid significant subsidies to offer Medicare beneficiaries Medicare Advantage plans, which are not supplemental plans but a private alternative to traditional Medicare. The Administration has aggressively encouraged insurance companies to enroll beneficiaries in these plans even though the overpayments to insurance companies speed up the depletion of the Medicare Hospital Trust Fund, increase Medicare premiums for all beneficiaries and cost more money to provide beneficiaries with coverage than traditional Medicare. Now it seems even when the Medicare program erroneously pays these insurance companies more money than legally allowed, the Administration will let the insurers keep the money.

A report by the Government Accounting Office (GAO) found that the Bush Administration has allowed these private insurance companies to keep tens of millions of dollars that should have gone to seniors and people with disabilities. In 2003, the Administration found that 41 of the 49 insurance companies audited did not correctly calculate their costs and premiums and did not deliver the services promised to Medicare beneficiaries. Insurers kept $59 million that beneficiaries should have received in additional benefits, lower co-payments or lower premiums. The Administration took no action to recover the money paid by Medicare to the insurance companies in error.

The House has passed legislation, the Children's Health and Medicare Protection Act of 2007 (CHAMP Act), which would eliminate the runaway subsidies to these private Medicare plans and establish consumer protections for the beneficiaries in these plans. The CHAMP Act uses some of the savings to improve Medicare benefits, provide help to lower income beneficiaries, and strengthen the financial stability of the Medicare program. AFSCME is lobbying for the Senate to adopt the improvements to Medicare.
(Linda Bennett- [e-mail])

States Urge Administration to Rescind New Restrictions on Children's Health Program
Against the backdrop of House and Senate negotiations over a final bill to renew the State Children's Health Insurance Program (SCHIP), the Administration recently issued new rules that would preempt the effort in Congress to cover more low-income children. The National Association of State Medicaid Directors and the American Public Human Services Association sent a letter to Health and Human Services Secretary Michael O. Leavitt urging the Administration to rescind the new "inexplicable and deeply troubling" policy. Among the new restrictions imposed by the Administration is a requirement for a one-year minimum period between the time a child is dropped from private coverage and enrolled in SCHIP. The new rules also require states to enroll 95 percent of children in families at or below 200 percent of poverty before enrolling children in families with incomes at or above 250 percent of income. Because the 95 percent threshold is an impossible goal, the Administration would effectively prohibit enrollment of kids in families at or above 250 percent of poverty. Sens. Edward M. Kennedy (D-MA), Olympia Snowe (R-ME) and Gordon Smith (R-OR) have introduced legislation (S. 2049) to block the Administration's new rules.
(Barbara Coufal- [e-mail])

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