Moderator: Welcome to Viewpoint with our guest, Ed Kaleta. Ed, thank you for joining us. What are your reasons for supporting passage of the Medicare reform and drug benefit legislation currently being debated in the Congress?
Ed Kaleta: The Employers' Coalition on Medicare is fully supportive of passing Medicare prescription drug legislation this Congress. Both bills are consistent with the principles outlined by the Coalition, which include:
1) Universal benefit, all Medicare beneficiaries are eligible
2) Reform is included in both bills
3) Flexible, each bill contains optional ways for employers to coodinate retiree prescription drug coverage with Medicare
We are confident the final conference agreement will contain the fundamentals needed for Medicare.
_______________________
Albuquerque, N.M.: How can employers be prevented from discontinuing retiree drug coverage? What I have heard about the present proposals does not address this potential problem, which could be devastating to many of us. The proposed plan is full of holes and uncertainties and should not be passed. How about considering that availability of drugs can prevent illnesses from becoming more severe and may prevent hospitalizations which are drastically more expensive than medications?
Ed Kaleta: The single most important thing that Congress can do to encourage employers to retain and supplement coverage is provide flexible options for them to participate. Both bills have such options and the final agreement will contain these plus reform to the system, which is so important to employers, employees and retirees as taxpayers who support the overall system.
The reforms do address illness, for example, by adding initiatives, such as disease management, to Medicare. The private sector has utilized this and other approaches and found them to be extremely important to our plans.
_______________________
Washington, D.C.: Are you encouraged by the news coming out of the Medicare conference over the last week or so?
Ed Kaleta: We are encouraged that significant progress is being made by the conference. The devil is in the details, but so far the news is good.
_______________________
Peoria, Ill.: I am very concerned about section 631 of the Senate version of the Medicare prescription drug bill. I have done some research, and there seems to be quite a bit of conflicting information. What does Section 631 really involve, and how will it impact the average Medicare recipient's benefits?
Ed Kaleta: While the Coalition has not taken a position on Section 631, otherwise known as the "ERIE provision," most employers agree that the Section 631 fix in the Senate bill is essential to allowing employers flexibility of benefits with their retirees.
_______________________
Atlanta, Ga.: Is your group largely in support of the president's plan or more in opposition?
Ed Kaleta: The Coalition is very supportive of what the President outlined as his priorities for reforming Medicare and adding prescription drugs to the program. The Medicare program has not been drastically altered since its creation in 1965. With drugs now being the largest expenditure in the health care sector, it is imperative they become part of the Medicare program, which is the country's largest health care plan.
_______________________
Lawrence, Kan.: Can you explain why the congressional leadership led the American people to expect a rather generous boost to Medicare when they have essentially weakened the whole system?
Ed Kaleta: The President and Congress have agreed to dedicate $400 billion to Medicare reform and prescription drugs over the next 10 years. Within those parameters, both bills go a long way toward helping seniors receive prescription drugs regardless of whether they want to stay in the current Medicare program or opt for a newly-created private plan option.
_______________________
Naperville, Ill.: Some have indicated that the benefits offered by both the Senate and House proposals are inadequate. Why support this bill when I have a better program through my employer?
Ed Kaleta: The Coalition's goal in this legislative process is to provide employers with the options, flexibility, and incentives necessary to "stay in the game." In other words, we believe both bills will allow employers to supplement the govenment-provided coverage, thereby preserving the current coverage we provide. Employers want to supplement the Medicare drug benefit just like we do today with Medicare Part A and Part B.
On the other hand, if Congress does not enact this legislation, employers will MORE inclined to continue to decrease retiree health coverage.
_______________________
Kansas City, Mo.: Can you provide some bulleted points on the positions your coalition has taken? This seems like an unusual coalition of groups to be working together on this very polarizing issue.
Ed Kaleta: For additional information about the Employers' Coalition on Medicare, including press releases, letters to Congress, and other background materials, please visit:
www.employersandmedicare.org.
In addition, please go to the ECOM link to send your member of Congress an e-mail in support of Medicare prescription drug legislation.
_______________________
New York, N.Y: Ed: The Medicare legislation presents employers with potential opportunities to aid them in offering post-65 drug coverage to retirees. However, will the emerging conference agreement include risks to these employers that require action now?
Ed Kaleta: We would encourage employees and retirees to call, write, e-mail, or fax their member of Congress and urge them to pass Medicare drug legislation NOW!
Because of potential election politics next year, it is critically important for the Congress to finish work on the conference and pass a final bill this year!
_______________________
Washington, D.C.: What do you predict will happen to retiree health coverage if the Congress fails to act on Medicare reform?
Ed Kaleta: The trend over the last decade is that employers have been decreasing their retiree health care contributions. In addition, the entire health care industry is facing double digit increases in premiums for next year.
Passing Medicare prescription drug legislation this year will help employers "stay in the game."
If Congress does not act this year, the current trends will likely continue.
_______________________
Moderator: Which members of Congress do those concerned about this issue need to contact to encourage them to pass this law? And how do they do it?
Ed Kaleta: All members of Congress need to hear from their constituents regarding the importance of passing Medicare drug legislation. The Employers' Coalition on Medicare Web site (www.employersandmedicare.org) can help individuals contact their federal elected officials.
_______________________
New York, N.Y. Ed: I am told that "MSP" language that was in H.R. 1 should not be in the conference agreement. What is that provision and why is it important for employers that it be dropped from the final bill?
Ed Kaleta: What a great question!
The MSP provision that was in H.R. 1 would have prevented employers from wrapping around or supplementing the government benefit. It would have encouraged employers to drop their coverage. We understand the conferees understand the importance of fixing this provision.
_______________________
Tucson, Ariz.: The Federal Employee Health Benefit Plan is excellent for Congress, the White House and nine million Federal Employees isn't discussed. Why not? Retiree Drug through insurers: Added premium-$0. Deductible $0. Mailed: 90 day generic $10 90 brand name $35
No "gap' or hole. Compare to various percentages in both House & Senate Bills to joint Committee! Silence? Arrogance? Both sides of aisle can afford but not for their constituents!
Ed Kaleta: One of the reasons the Federal Employee Health Benefit Plan is so strong is because it gives employees of the federal government options. Options to enroll in various private plans that include as much or as little health care as they can afford. These include but are not limited to: access to doctors and hospitals, varying co-pays and deductibles, and disease management and preventive care.
The pending legislation will go a long way toward offering Medicare beneficiaries these same types of options.
However, it is important to note that existing Medicare beneficiaries can maintain their current traditional benefits OR choose among new and updated options.
Good question.
_______________________
Vienna, Va.: I know that high prescription drug costs are a big driver in increased healthcare expenses. Does Medicare address this?
Ed Kaleta: Under the proposed legislation, there are provisions that deal with allowing better access to generic drugs. While the Coalition has not taken a position on these provisions, it appears language on "generic drug access" will be in a final bill.
_______________________
Springfield, Ill.: The big issues that Medicare needs to address are prescription drugs, long-term care and covering more comprehensive dental and vision benefits. Each of these issues has enormous committed constituencies of supporters/providers that can/will be at risk in a variety of ways, financial and otherwise, if major changes are made. What makes your organization stand out as one that can cut through the clutter and debate and actually make something happen?
Ed Kaleta: The Employers' Coalition on Medicare represents a broad array of employers covering millions of employees and retirees. We believe that employers, because we offer retiree health benefits, offer a unique and experienced perspective on how to ensure coordination between the Medicare program and those offering benefits.
_______________________
Moderator: When will the Medicare reform law start to impact a beneficiary's life after it is passed? And what happens in the meantime?
Ed Kaleta: Under the proposed legislation, Medicare beneficiaries will be offered a drug discount card beginning next year, 2004. The comprehensive drug benefits will begin in 2006.
_______________________
Moderator: For those who have planned their retiremenents based on the current Medicare program now everything seems like it's changing. How can they be sure that their employers aren't going to reverse everything and leave them and their families out in the cold?
Ed Kaleta: Many will agree that the double digit increases in health care spending (including permiums, drugs, etc.) for the last past several years were unforeseen. As a result, insurance companies, employers, the federal government, and others providing health care benefits are trying to cope with these increases.
We believe one of the most important steps to be taken on behalf of employers is for the Congress to pass a Medicare prescription drug bill.
_______________________
Moderator: Who should get the credit for getting this bill passed into law? Republicans or Democrats?
Ed Kaleta: Medicare prescription drug legislation is not about Democrats or Republicans, it's about providing seniors access to affordable prescriptions as well as reforming the Medicare program. The President and Congress have an historic opportunity to update a program that is badly in need of reform. Reform of the Medicare program will put it back on strong financial footing for generations to come.
Thus far, the President and Congress (both Republicans and Democrats) have contributed to moving this legislation forward. They must now finish the job!
Thanks to everyone for their questions. For further information, please visit the Employers' Coalition on Medicare Web site at www.employersandmedicare.org.
_______________________
Moderator: Our thanks to Ed Kaleta, the Employers' Coalition on Medicare and all who participated.
_______________________
The U.S. Congress is on the verge of passing historic Medicare reform and a Medicare drug benefit. The Employers' Coalition on Medicare is pushing members of Congress and President George Bush to enact Medicare reform that empowers employers to continue to provide benefits to their employees and retirees. Ed Kaleta, the chair of ECOM, was online to discuss the future of Medicare and the role of employers in providing benefits. 
