With 1.2 million members, TREA Senior Citizens League (TSCL) is one of the nation's largest nonpartisan seniors groups. Its’ mission is to promote and assist TSCL members and supporters, to educate and alert senior citizens about their rights and freedoms as U.S. Citizens, and to protect and defend the benefits  earned and paid for by senior citizens.

At TREA Senior Citizens League we really want to defend those issues that are most important to our members and supporters.  That’s why, each year, we survey our members and ask them, “What’s important to you?”  We take those answers and base
our legislative agenda around them. 

There was much buzz in the 109th Congress that there would be concentrated efforts to reform Social Security.  It didn’t happen.  The 110th Congress is destined to put forth a concentrated effort to reform America’s social insurance programs to ensure they are available for generations to come.

Social Security Issues:
 COLA Fairness – TSCL strongly believes that the Social Security cost-of-living adjustment (COLA) that seniors are currently receiving does not accurately reflect how they must spend their money.  The COLA, upon which Social Security benefits for seniors are based, is a consumer price index (CPI) that reflects how young urban workers tend to spend their money and substitute products when prices fluctuate.  Older Americans spend a disproportionate share of their household budget on health care.  Since health care costs are rising so fast – and since most health care spending cannot be substituted out for something cheaper – TSCL believes that seniors would be better served if their COLA was based upon a different consumer price index, one that already in fact exists.

The Bureau of Labor Statistics has been keeping track of a consumer price index for the elderly for over 20 years.  This calculation regularly puts the spending inflation for seniors at three-tenths a point higher than the rate at which the consumer price index for young urban workers – the CPI-W – increases.  TSCL members and supporters believe that this consumer price index for the elderly – CPI-E – should be fully implemented and utilized for determining seniors’ Social Security cost-of-living adjustments each year.

A bill that would call for such implementation, H.R. 3601 in the 109th Congress, garnered 108 co-sponsors in the U.S. House of Representatives at the end of the session. 

The TSCL legislative team will continue its efforts to gain support for a similar measure in the 110th Congress, both in the House and Senate.  It will be necessary for TSCL to work with Members of Congress to find a leader to reintroduce the COLA CPI-E bill since its primary sponsor (Rep. Bernie Sanders) will no longer be in the House of Representatives.
 Comprehensive Social Security Reform -- Long-term solvency of the Social Security program is essential.  During the 109th Congress at the initiative of the President efforts were advanced to reform Social Security including partial privatization.  Because of public opposition, including that of TSCL, efforts to reform Social Security via privatization were quietly dropped.

TSCL feared among other things that a new notch would be created in a transition to a private accounts-based Social Security.  Also TSCL members generally considered that such privatization approaches would further drain the trust fund account.  Finally it was thought that the private accounts venture would be at least partially financed by cutting the benefits of current or soon-to-be retirees.  Because TSCL believes that Social Security was developed and implemented to be a safety net, insurance and pension system, it strongly opposed such proposed changes to the current system.

With the onset of the 110th Congress, there is discussion about strengthening the Social Security system and its solvency but not through the use of private accounts.  If such a comprehensive Social Security reform ever takes place in the Congress, it is the hope of TSCL that the notch baby glitch can be fairly rectified as part of a general solution.
 Notch Reform – The Senior Citizens League members and supporters tend to be older, less affluent seniors.  They are also, to a large extent, Notch babies – those individuals who receive lower Social Security benefits because they were born in the years 1917 and immediately thereafter.  TSCL feels that this is an inequity that was brought about because of the Social Security Act Amendments enacted and signed into law in 1977.  Just years before they were set to retire, these individuals discovered they would have significantly lower benefits than originally anticipated.  And the problem only grew and compounded with the inflation that occurred in the early 1980s.  Thus, in order to make the Social Security program more equitable in general, and to correct a wrong done to Notch babies, we believe that some recompense for that injustice should be provided.

TSCL strongly supported legislation introduced in the 109th Congress that would have provided either a lump-sum payment or an increased monthly benefit calculation to Notch babies.  We were pleased to see that Congressman Ralph Hall’s legislation, H.R. 615, got 118 co-sponsors in the last session – more than in any other session of Congress since the lump-sum proposal has been before Congress.  We will continue to educate new Members of the House and Senate about the Notch and to work with past supporters of the Notch.  With an increasing number of Notch co-sponsors during each of the last three sessions of Congress, we are hopeful that some type of Notch reform will take place in the 110th Congress.
 Totalization Agreement – continues to pose a threat to Social Security beneficiaries.  If the President signs the final Executive Totalization Social Security Agreement with Mexico it could lead to Social Security benefits going to individuals who worked in the U.S. while illegal.  Despite the efforts of TSCL and others, knowledge of the Totalization Agreement remains limited on Capitol Hill and the issue flies under radar for the most part.  TSCL has expressed its support for two House resolutions opposed to the Totalization Agreement, those of Congressmen J.D. Hayworth (H.Res.20) and Virgil Goode (H.Con.Res.50).  TSCL has placed ads in The Washington Times in opposition to the proposed agreement and will continue to closely monitor the Totalization matter during the upcoming session of Congress. 
 Protection of the Social Security Trust Fund – The executive and legislative branches of government have, in many instances, used the so-called “excess funds” – monies not needed immediately to pay out for benefits – in the Social security trust fund for other purposes, such as for “pork” projects in their home districts.  TSCL members and supporters fervently seek protection of the Social Security trust funds – the funds provided for by the payroll taxes imposed for just that reason – and an ending of the practice by which politicians use that money for other purposes and replace the funds with a mere IOU.

Several Members of Congress have sought to protect the monies in the Social Security trust fund by locking them off budget.  Representative Gene Taylor had a bill in the 108th Congress proposing a constitutional amendment resolution to protect the funds.  TSCL has spoken with Congressman Taylor who indicated he might be interested in introducing such a bill again if he can gain some initial support.  TSCL has offered to support Taylor’s efforts.  A slightly different approach to protect assets has been taken in the past by Congressmen Ron Paul and Ralph Hall.  TSCL strongly supports the protection of the Social Security trust fund.  We are concerned that a bill signed into law may be circumvented as in the past.  However, we also understand the difficulty and length of time required in the ratification of a constitutional amendment.

Medicare: 
 Prescription Drug Reimportation – TSCL supported bills in the House (H.R. 328) and Senate (S.334 and S.109) that would in our view make safe and secure prescription drug reimportation a reality.  The implementation of the Medicare Part D prescription drug benefit led some in Congress to believe that the prescription drug situation was solved for most seniors.  It therefore became more difficult to garner support in Congress for reimportation bills at the end of the 109th session.  But the overall results of the Medicare Part D drug benefit have not yet been fully determined.

The disparity of drug costs in the United States, Canada and Europe remains striking.  In Canada, one can purchase Zocor for $45.49, but in the U.S. the same prescription is $123.43. Pravachol purchased in Canada costs $40.00, but in the United States, costs $85.60.

Simply put, pharmaceutical companies have been over-charging the American consumer for prescription drugs compared with costs for the same drugs in Canada and Europe.  Pharmaceutical companies have made bulk deals with governments (such as Canada) where they still make substantial profits while charging much less for the prescriptions.

TSCL believes that it is not a safety issue as much as it is an issue of pharmaceutical companies charging excessive prices in part due to their extraordinary clout and influence in the political process.

Many pharmaceutical companies were observed increasing their prices, just when the prescription drug card provided by the Medicare Modernization Act, took effect.  TSCL has also seen and heard of corporations that have threatened to cut off supply of medicines to companies exporting medicines to the United States.  There have been cries from the pharmaceutical industry saying the high profit margin is needed to help pay for research and development.  At the same time huge amounts of funds have been spent by the industry to hire lobbyists and to advertise nationwide.  TSCL believes the health of our seniors should come first and not be subject to marketing and advertising manipulations and deceptions.

TSCL understands that the Health and Human Services Task Force generally opposes drug reimportation.  However a close look at the Task force membership shows many government officials serving under an administration that opposes reimportation.  This should call into question the objectivity of the officials.

We support bills that impose penalties against individuals or companies that try to thwart importation, and we hope that any new legislation includes such provisions.  We would also like to see a bill that provides for less expensive drugs sooner rather than later.

TSCL will be working to ensure that bills are reintroduced in both houses in the 110th Congress that allow reimportation of prescription drugs.  The goal remains to seek safe, less expensive medicines for all Americans.
 Medicare Part D and Medicare Part B Premium  - -  TSCL believes that the Medicare prescription drug benefit law is flawed, and will be carefully monitoring the effects of both the short-term Medicare drug cards, and the Medicare Drug Benefit plan in Medicare Part D as it traverses through the donut hole for many seniors.  TSCL considers it necessary to compile feedback on the measure of success or failure of the program and its donut hole phase.

One TSCL concern remains regarding the possibility of some seniors losing their prescription drug coverage from their former employers.  Therefore, we supported incentives to help businesses continue to cover their former employees.  We will continue to monitor this development to help ensure that retirees are given the option to maintain coverage that they are used to and prefer.

The price of many prescription drugs dramatically increased after the benefit was implemented.  TSCL believes it was disingenuous for pharmaceutical companies to increase the price so as to effectively cancel out the new benefit.  In addition to prescription drug reimportation, TSCL will seek other potential solutions for lowering the price of drugs for America’s seniors.

The increase in the Medicare Part B premium, as well as the rise in the Medicare deductible, are two additional issues of grave concern to our members and supporters.  In some cases, the increase in these two items comes close to offsetting the Social security COLA that a senior has received.  Thus, many low income seniors, strapped and close to poverty as it is, are being kicked in the knee again – promised assistance for his or her high costs of drugs by way of passage of a prescription drug bill, only to find that he or she is getting very little help at all – and is paying a higher price in premiums and deductibles to boot.  We will continue to listen to our members and supporters as to how these increased costs are affecting their standard of living.
 Prescription Drug Reimportation – TSCL supported bills in the House (H.R. 328) and Senate (S.334 and S.109) that would in our view make safe and secure prescription drug reimportation a reality.  The implementation of the Medicare Part D prescription drug benefit led some in Congress to believe that the prescription drug situation was solved for most seniors.  It therefore became more difficult to garner support in Congress for reimportation bills at the end of the 109th session.  But the overall results of the Medicare Part D drug benefit have not yet been fully determined.

The disparity of drug costs in the United States, Canada and Europe remains striking.  In Canada, one can purchase Zocor for $45.49, but in the U.S. the same prescription is $123.43. Pravachol purchased in Canada costs $40.00, but in the United States, costs $85.60.

Simply put, pharmaceutical companies have been over-charging the American consumer for prescription drugs compared with costs for the same drugs in Canada and Europe.  Pharmaceutical companies have made bulk deals with governments (such as Canada) where they still make substantial profits while charging much less for the prescriptions.

TSCL believes that it is not a safety issue as much as it is an issue of pharmaceutical companies charging excessive prices in part due to their extraordinary clout and influence in the political process.

Many pharmaceutical companies were observed increasing their prices, just when the prescription drug card provided by the Medicare Modernization Act, took effect.  TSCL has also seen and heard of corporations that have threatened to cut off supply of medicines to companies exporting medicines to the United States.  There have been cries from the pharmaceutical industry saying the high profit margin is needed to help pay for research and development.  At the same time huge amounts of funds have been spent by the industry to hire lobbyists and to advertise nationwide.  TSCL believes the health of our seniors should come first and not be subject to marketing and advertising manipulations and deceptions.

TSCL understands that the Health and Human Services Task Force generally opposes drug reimportation.  However a close look at the Task force membership shows many government officials serving under an administration that opposes reimportation.  This should call into question the objectivity of the officials.

We support bills that impose penalties against individuals or companies that try to thwart importation, and we hope that any new legislation includes such provisions.  We would also like to see a bill that provides for less expensive drugs sooner rather than later.

TSCL will be working to ensure that bills are reintroduced in both houses in the 110th Congress that allow reimportation of prescription drugs.  The goal remains to seek safe, less expensive medicines for all Americans.
 Medicare Part D and Medicare Part B Premium  - -  TSCL believes that the Medicare prescription drug benefit law is flawed, and will be carefully monitoring the effects of both the short-term Medicare drug cards, and the Medicare Drug Benefit plan in Medicare Part D as it traverses through the donut hole for many seniors.  TSCL considers it necessary to compile feedback on the measure of success or failure of the program and its donut hole phase.

One TSCL concern remains regarding the possibility of some seniors losing their prescription drug coverage from their former employers.  Therefore, we supported incentives to help businesses continue to cover their former employees.  We will continue to monitor this development to help ensure that retirees are given the option to maintain coverage that they are used to and prefer.

The price of many prescription drugs dramatically increased after the benefit was implemented.  TSCL believes it was disingenuous for pharmaceutical companies to increase the price so as to effectively cancel out the new benefit.  In addition to prescription drug reimportation, TSCL will seek other potential solutions for lowering the price of drugs for America’s seniors.

The increase in the Medicare Part B premium, as well as the rise in the Medicare deductible, are two additional issues of grave concern to our members and supporters.  In some cases, the increase in these two items comes close to offsetting the Social security COLA that a senior has received.  Thus, many low income seniors, strapped and close to poverty as it is, are being kicked in the knee again – promised assistance for his or her high costs of drugs by way of passage of a prescription drug bill, only to find that he or she is getting very little help at all – and is paying a higher price in premiums and deductibles to boot.  We will continue to listen to our members and supporters as to how these increased costs are affecting their standard of living.

The TSCL legislative team, its all-volunteer Board of Trustees, and the TSCL administrative staff, will continue working on behalf of seniors, offering not only lobbying efforts, but also information via our website and newsletter, member benefits and responding to each and every phone call and letter.

January 2007