National Retirees Legislative Network NRLN Villages Chapter Meeting - February 23, 2017 Welcome Chapter Members – Debbie Austin Opening Comments – Bill Kadereit NRLN Website and Communications Tools – Ed Beltram Prescription Drugs Price Gouging – Ed Beltram Pensions, Social Security, Medicare & Other Issues – Bill Kadereit Discussion – Growing the Chapter – Debbie Austin
What is the National Retiree Legislative Network (NRLN)? Non-Partisan Retiree Advocacy and Lobby Network Headquarters in Washington D.C. Contributions are not tax-deductible . Members ired from over 200 U.S. Companies , reside in all 50 states CD leader teams in 75% of the 435 CD ’s. Executive Director and strategic advisor work on the Hill in Washington D.C . and h formed alliances with other advocacy organization's there. ave The NRLN’s mission and focus is to serve retirees only and only on matters of income and healthcare security through use of objective whitepapers . The NRLN has linked grassroots advocacy and lobby effort for over 15 years . Over 70% of NRLN revenue comes from individual contributors . NRLN helped form the American Retiree Education Foundation (AREF) in 2015. The AREF conducts research and does advocacy work for retirees, and sponsors conferences and joint research. Donations are tax-deductible .
2017 - What to Expect – A new President and His Congress The 1 st 100 days – Executive Branch Regulatory Changes and Federal Agency Staffing - Execute as Promised. Then Conflict and Confusion as Legislative Branch sets the pace – The ACA Challenge -Tax Reform – Will Middle income lose (RE tax deduction bracket losses), Medicare dilemma). Then Budget Surprises and Conflict – House Legislative Push Medicare Preservation Tested by Privatization Zeal Massive Federal Subsidies Needed to Keep Insurers in. Maybe Social Security Saber Rattling
Prescription Drugs Price Gouging A Few Facts • Total prescription drugs spending in U.S. reached $424.8 billion in 2015 (2016 number not yet available), an increase of 12.2 percent from 2014. • Medicare Part D spent $137.4 billion on prescription drugs in 2015, up from $121.5 billion in 2014. • Medicare Part B spent $24.6 billion on prescription drugs in 2015, up from $21.5 billion in 2014. • Average annual growth rate in total Medicare spending on prescription drugs was 4.4% between 2010 and 2015. • Unless Medicare is allowed to do competitive bidding on drug prices, it is projected the annual growth rate in spending will be 7.1% between 2015 and 2025.
Prescription Drugs Price Gouging What the NRLN is Advocating • Congress remove prohibition on Medicare competitive bidding. Replace it with a competitive bidding mandate applied wherever two or more FDA approved generic drugs, or two or more brand drugs, or a generic and brand drugs (upon patent expiration) treat the same medical condition. • Import safe, lower priced prescription drugs from Canada and other countries that meet the FDA’s quality standards. • Why shouldn’t Americans have the benefit of lower price imported prescription drugs when over 90% of the active ingredients used in antibiotics, diabetes, and other prescription brand and generic drugs sold in USA are manufactured in China and India.
Prescription Drugs Price Gouging What the NRLN is Advocating • Petition signed by 5,824 NRLN Members sent to President Donald Trump requesting he add two campaign promises to First 100-Days Action Plan: • Allow Medicare to negotiate prices with drug companies, and • Allow safe, cheaper pharmaceutical drugs manufactured abroad to be sold in the U.S. • Pointed out that Congress passed the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and it became Public Law 108-173 in December 2003. • Under TITLE XI - Subtitle C - Importation of Prescription Drugs, Sec. 1121 gave authority to the Secretary of Health and Human Services to import prescription drugs from Canada into the United States. But, no HHS Secretary so far and exercised that authority. • Having HHS Secretary Tom Price exercise this authority, would be a good start for the importation of prescription drugs manufactured abroad. • NRLN letter sent to HHS Secretary Tom Price urging him to use authority he has to create regulations to import Rx from Canada for personal use.
Prescription Drugs Price Gouging What the NRLN is Advocating • Socialized medicine countries exact low prices demanding below market pricing from USA pharmaceutical manufacturers. • There are two counter measures to USA manufactures being forced to take losses: A. Pharma companies should exit these markets, thus protecting Americans and our economy from subsidizing socialized medicine . B. To the extent pharma and Congress don’t eliminate this unethical practice of absorption and passing of losses on to Americans and the U.S. economy, Congress must pass laws allowing importation of safe, and lower priced prescription drugs from Canada and elsewhere so that Americans and our economy benefit. Start with Canada NOW.
Prescription Drugs Price Gouging Examples of Lower Drug Costs from Canada Drug Use USA Canada Less Lower Jevtana Prostate Cancer $8,659 $4,618 $4,041 47% TysAbri Multiple Sclerosis $4,842 $2,573 $2,269 47% Rituxan/Mab Thera Rheumatoid Arthritis $3,678 $1,820 $1,858 51% Cimzia Crohn ’ s Disease $2,357 $1,058 $1,299 55% Eylea Macular Degeneration $1,930 $1,129 $ 801 42% Lucentis Macular Degeneration $1,936 $1,254 $ 682 35% Halaven Breast Cancer $1,003 $ 389 $ 614 61% Abraxane Cancer $ 968 $ 426 $ 542 56% Orencia Rheumatoid Arthritis $ 881 $ 390 $ 491 56% Herceptin Breast Cancer $ 858 $ 493 $ 365 43% Xolair Asthma $ 852 $ 487 $ 365 43% Erbitux Colorectal Cancer $ 527 $ 278 $ 249 47%
Prescription Drugs Price Gouging Rx Bills NRLN is Advocating S. 92, Safe and Affordable Drugs from Canada Act of 2017, introduced by Senator John McCain (AZ) would require the FDA to establish a personal importation program to allow individuals to import a 90-day supply of prescription drugs from an approved Canadian pharmacy. S. 41 and H.R. 242, Medicare Prescription Drug Price Negotiation Act of 2017 , introduced by Senator Amy Klobuchar (MN) and Rep. Peter Welch (VT) to allow Medicare to negotiate the best possible price of prescription drugs. S. 124, Preserve Access to Affordable Generics Act of 2017, introduced by Senator Amy Klobuchar (MN) with Senator Chuck Grassley (IA) to expand consumers’ access to the cost -saving generic drugs and increase competition between drug manufacturers to end “pay for delay” deals — the practice of brand-name drug manufacturers using anti-competitive pay-off agreements to keep more affordable generic equivalents off the market. NRLN is working to gain companion bills in House to S. 92 and S. 124 .
NRLN Legislative Agenda – 2017 Funding of Defined Pension Plans - Company, State plans Plan Derisking and Voluntary Terminations Bankruptcy Protection - Underfunded Terminated Plans Social Security Next Generation Savings and Income Security Risk Prescription Drug Importation and Competitive Bidding Medicare ACA Repeal and Replacement Risks
SEVEN(7) CHANGES TO SOCIAL SECURITY IN 2017 1 - COLA (SSA’s press release) to be .3% or ~ $4.05 / Month 2 - Taxable Earnings increase from $118,000 to $127,000 3 - Max monthly benefit up $48 / month but some will be taxed 4 - Earnings needed to earn 1 Soc. Sec. work credit increases by $40 (to $1,300). Can earn 4/yr. max, need 40 credits to qualify. 5 - Applicants born after 1955 must be 66 and 2 months to be eligible for full benefit. Add 2 mo./yr. if born after 1960 – age 67 6 - Early filers who reach Full Retirement Age (FRA) in 2017 can earn $44,880 (+$3,000 ) before facing the withholding threshold. 7 - Minimum earnings needed to qualify for SS disability benefits increases by $40 & $130/mo. for non-blind & blind applicants.
University of Maryland Social Security Survey, Motley Fool Study and NRLN Member Survey VS NRLN 2016 Proposals. University of Maryland Program Major Social Security Solution Motley Fool for Public NRLN Oct. 2016, Reform Proposals Research Statistics Consultation - 8,697 700+ Responses to Under Consideration. Published Jan 1, Ten-State Simulation University of NRLN Current (2016) 2016 Study and Survey. Maryland Study Whitepaper Proposal Raising the cap on 2016 - increase cap to 80% Support income subject to ~ 40 % support, $250,000. 2017 – eliminate cap over 88% support (84% of the payroll from the many wanted increase cap to 1 10 yrs. Reduces Rep.- 92 % of Dems.). current $118,000 to higher cap. $250,000 & Increase shortfall 71%. $215,000 . Payroll tax by 1.5%. 2016 - increase cap to OR i ncrease cap to Eliminate the cap on 20-25% support, $250,000. 2017 – 90% of earnings 59% support (Party taxable earnings many want a increase cap to 1a over 5 yrs. Reduces split not available). entirely $250,000 cap. $250,000 & Increase shortfall 30%. Payroll tax by 1.5%. 2016 – increase payroll Over 66% support 83% support 7.2% tax .5-1.5% with a Raising the payroll this but many in 2022 & 8.2% in 66% support (72% of sunset provision. 2017 2 tax from 6.2% to didn't understand 2052. Reduces Rep. - 80% of Dems). - increase Payroll tax to 6.6%. the impact of a 1% shortfall by 77%. 1.5% with a sunset tax change. provision.
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