AFSCME Federal Legislative Report February 1, 2008

[Omaha Steve]

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

AFSCME LEGISLATIVE REPORT
February 1, 2008

In this issue:

* Congress Works to Advance Economic Stimulus Plan
* AFSCME Urges Senate to Reign in Privatization of Medicare

Congress Works to Advance Economic Stimulus Plan
Less than a week after crafting a bipartisan compromise, the House by a vote of 385-35, overwhelmingly passed a $150-billion economic stimulus package to send tax rebates to millions of low- and middle-income Americans and cut certain corporate taxes. After House passage, Senate leaders, who were not part of the negotiations between Speaker Nancy Pelosi (D-CA), Minority Leader John Boehner (R-OH) and Bush Administration officials, went to work crafting their own package.

On January 30, the Senate Finance Committee approved a modified version of the House-passed stimulus plan. The Senate bill expands the number of people covered by the tax rebate, including seniors and disabled veterans, and adds extended unemployment insurance benefits. The Finance Committee plan http://finance.senate.gov/press/Bpress/2008press/prb013008c.pdf, crafted by Max Baucus (D-MT) and supported by Ranking Republican Charles Grassley (IA), grants $500 rebates for every American reporting at least $3,000 in wages, Social Security income, or net self-employment income on a 2007 tax return. The rebate would double for married taxpayers filing jointly, and families will receive an additional $300 for every qualifying child under age 17. The Senate bill would also allow higher wage earners to get the tax rebates. The benefit would begin to phase out for individuals with adjusted gross income above $150,000 and married couples with incomes above $300,000. Federal unemployment insurance benefits would be extended for 13 weeks in all states through December 2008, and extended for an additional 13 weeks of benefits in states meeting certain criteria for high unemployment. Additional business tax relief was also added to the Senate bill, bringing its cost to $158 billion. Left out was aid to the states, additional Food Stamp benefits, low-income energy cost assistance, funds for already-approved infrastructure projects and other proposed stimulus measures.

At AFSCME's urging, Sen. Jay Rockefeller (D-WV) had planned on offering a $15 billion state aid amendment during the Senate Finance Committee's consideration of the package, but he was forced to withdraw it for technical reasons. Rockefeller is exploring whether or not to offer his amendment when the bill is considered on the floor next week. In less than 48 hours, AFSCME organized a broad based nonpartisan coalition in support of state aid; a copy of the coalition letter is attached.

The Senate plan is expected to be considered by the Senate early next week. However, it remains unclear whether Baucus has the votes to get his plan through the Senate since some Republican senators have made it clear they prefer the House-passed, White House supported bill.
(Ed Jayne- [e-mail])

AFSCME Urges Senate to Reign in Privatization of Medicare
David R. Fillman, AFSCME International Vice-President and Executive Director of Council 13, testified at a Senate Finance Committee oversight hearing on Medicare Advantage private fee-for-service plans. Fillman told the Committee how insurance companies are targeting public retiree health care as a way to boost profits at retirees' expense. In 2003, the Republican-controlled Congress gave insurance companies significant profit incentives to develop and market Medicare Advantage plans to replace, not supplement, Medicare. The private plans cost taxpayers and the Medicare program more ? for every dollar spent for traditional Medicare benefits, it costs $1.13 for Medicare Advantage plans to provide those same benefits. The $54 billion in subsidies to these plans over the next five years advance Medicare's insolvency and will ultimately force benefit cuts and/or increases in costs for taxpayers and beneficiaries. Even with subsidies, the private plans limit access to care and choice, cost more for sicker beneficiaries, have an additional layer in the claims appeal process, lack quality and accountability, and are allowed to change benefits and beneficiary out-of-pocket costs every year. AFSCME urged the Senate to pass legislation to stop corporate greed from ruining Medicare and our retirees' health.

To learn more about how these private plans undermine Medicare, and to read David R. Fillman's full testimony, please visit the Legislation page on our website: www.afscme.org.
(Linda Bennett- [e-mail])

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AFSCME Department of Legislation
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