NARFE Withholds Support From Bill to Overhaul Medicare

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> NARFE Withholds Support From Bill to Overhaul Medicare

>

> By Stephen Barr

> Thursday, November 20, 2003; Page B02

>

> The National Association of Retired Federal Employees, a 400,000-member

> group, cannot endorse legislation to revamp Medicare because some

> provisions could undermine the health care program, the association's

> president said yesterday.

>

> NARFE did not come out in direct opposition to the $400 billion Medicare

> bill, but the group appears to be taking a more cautious approach than

> AARP, a 35 million-member organization representing older Americans. AARP

> has launched a $7 million television advertising campaign in support of

the

> bill.

>

> Yesterday, NARFE reiterated concerns that the proposed Medicare overhaul

> could lead to a reduction or elimination of drug coverage provided by

> employer-sponsored plans, including the coverage provided government

> retirees through the Federal Employees Health Benefits Program.

>

> In a statement, Charles L. Fallis, NARFE's president, gave a mixed

> assessment of an agreement backed by Republican leaders in the House and

> Senate:

>

> " While we support adding drug coverage to Medicare, NARFE believes that

the

> conference agreement could undermine traditional Medicare. In addition,

our

> members oppose the introduction of 'means tested' premiums and the

> expansion of costly medical savings accounts.

>

> " However, we are pleased the conferees clarified that the federal

> government -- like other employers -- will be eligible to receive

subsidies

> for retaining drug coverage, and we commend them for dropping language to

> end enforcement of age discrimination law in employer-sponsored health

> insurance. "

>

> Although few federal retirees would have to pay higher Medicare Part B

> premiums under a provision that would link premiums to a person's income,

> NARFE said that the provision was " bad precedent " and that lawmakers could

> lower income thresholds later, affecting more beneficiaries.

>

> NARFE also said it was troubled by a provision that would create " health

> savings accounts, " which allow enrollees to roll over unspent insurance

> dollars from year to year. The accounts probably would attract healthier

> enrollees and force traditional plans to raise premiums because they would

> be left with a higher share of the ailing.

>

> NARFE's statement came shortly after Rep. Thomas M. Davis III (R-Va.),

> chairman of the House Government Reform Committee, said he has not

> succeeded in getting the Medicare negotiators to include a provision that

> would prevent FEHBP from reducing or eliminating retirees' drug coverage

> once a drug benefit is available through Medicare.

>

> Davis, however, said he was not giving up on his effort to protect the

drug

> coverage of federal retirees. In July, the House approved a stand-alone

> Davis bill that would protect the drug benefit provided retirees in FEHBP.

> Sen. Daniel K. Akaka (D-Hawaii) introduced similar legislation in the

> Senate. Davis said he is looking to Sens. Susan Collins (R-Maine),

chairman

> of the Senate Governmental Affairs Committee, and Akaka to win approval of

> the Senate bill.

>

> House Democrats contend that the Davis effort to protect federal retirees

> shows that the proposed Medicare drug benefit was not as generous as it

> should be. And Akaka and Collins could face rough sailing in the Senate.

> Kay Coles James, director of the Office of Personnel Management, has

> opposed Akaka's bill, in part because OPM thinks it would create a mandate

> hampering contract negotiations between FEHBP and health insurance

companies.

>

> Budgets and Programs

>

> David M. Walker, the head of the General Accounting Office, and Rudolph G.

> Penner, former director of the Congressional Budget Office, will be

keynote

> speakers at a symposium tomorrow sponsored by the American Association for

> Budget and Program Analysis. For details, go to

> <http://www.aabpa.org>www.aabpa.org or call 703-941-4300.

>

> Retirements

>

> Michael N. Allard, senior analyst with the Internal Revenue Service's

> office of research, retired Oct. 31 after 30 years with the agency.

>

> Beverley Powell Blondell, chief of the editorial policy, publications and

> printing branch of the Education Department's office of public affairs,

> will retire Dec. 1 after more than 38 years of federal service.

>

> E-mail: <barrsbarrs.

> http://www.washingtonpost.com/wp-dyn/articles/A63823-2003Nov19.html

>