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AFSCME LEGISLATIVE REPORT

March 26, 2010

 

We Did It!

Comprehensive Health Care Reform is Enacted.

Congress – The Week of March 22, 2010

  • President Signs Health Reform Law; Senate and House Approve Final Corrections Package
  • Final Push Still Needed on State and Local Aid
  • Short-Term Extension of Unemployment Insurance and COBRA Subsidies Looms as Congress Prepares to Recess for Two Weeks
  • House Passes Jobs Bill with Financing Assistance for State and Local Governments
  • Senate Agriculture Committee Approves $4.5 Billion Child Nutrition Reauthorization
  • Major Changes to Student Loan Program Included in Health Reform BillThousands Rally in Support of Immigration Reform
  • The Washington Weekly Report will resume when Congress returns from its annual spring recess the week of April 12

 

President Signs Helath Reform Law; Senate and House Approve Final Corrections Package

After decades of struggle and a year of debate, comprehensive health care reform has been enacted as the law of the land.  And while it will take time to responsibly implement the law, the nation has finally put itself on a path to addressing skyrocketing costs and reining in insurance company abuses.  This historic achievement was made possible because of the tremendous energy and commitment of AFSCME members, activists and leaders all over the country.  These efforts brought home this victory and made AFSCME shine. 

 

On Tuesday, President Barack Obama signed the Patient Protection and Affordable Care Act (PPACA – H.R. 3590); health reform legislation that had been approved by the Senate in December and by the House on Sunday.  On Thursday, the Senate and the House approved a final version of a package of corrections to PPACA.  The corrections include a number of important improvements, including changes to the excise tax on high cost plans.  Below is a summary of what health care reform means to AFSCME members. 

(Barbara Coufal- bcoufal@afscme.org)

 

How Health Reform Benefits AFSCME Members

  • Sharply reduces the $1,100 "hidden tax" our members and other insured pay each year to treat the uninsured.

 

  • Lessens privatization threats by penalizing large employers that fail to offer health coverage that meets basic standards if any employee gets subsidized coverage through an exchange.

 

  • Closes the prescription drug "doughnut hole" for Medicare beneficiaries by 2020, starting with a $250 rebate to beneficiaries who hit the hole in 2010 and instituting a 50% discount on prescription drugs in the doughnut hole in 2011.

 

  • Significantly limits the impact of an excise tax on high cost plans, postponing its implementation until 2018 and affecting fewer working families.

 

  • Significantly reduces overpayments to private Medicare Advantage plans and bases more of their payment on quality and beneficiary satisfaction ratings.

 

  • Beginning in 2010, provides help for early retirees by creating a temporary re-insurance program to help offset the costs of expensive premiums for employers and retirees ages 55-64.

 

  • Institutes a host of important insurance market reforms, including:

 

    • Gives adults with pre-existing conditions immediate access to affordable insurance through a temporary high-risk pool this year, and in 2014 prohibits discrimination based on pre-existing conditions, health status or gender.
    • Immediately prohibits health plans from denying coverage to children with pre-existing conditions.
    • Extends dependent coverage to age 26.
    • Bans insurance companies from dropping people from coverage when they get sick.
    • Restricts lifetime and annual benefit limits.
    • Requires insurers in the large group market to spend 85% of premiums on medical services beginning in 2011, reducing cost sharing.

Final Push Still Needed on State and Local Aid

As Congress leaves for its two-week spring recess, among the items left unfinished is final action on the jobs bill which includes significant new aid to state and local governments, particularly the extension of federal Medicaid assistance known as FMAP. A six-month FMAP extension through June 30, 2011 has passed the House and Senate as part of two different bills. The House passed the Jobs for Main Street Act in December with extensions for FMAP, unemployment insurance (UI) and COBRA health insurance for the unemployed, additional education assistance, more funding for public safety employment and more. The Senate passed $26.7 billion in additional FMAP relief and the UI and COBRA extensions as part of a bill extending a number of tax provisions including the Research and Development Tax Credit. Action must still take place to approve a single version of a bill in the House and Senate. AFSCME is urging both houses of Congress to do this when Congress returns from its spring recess, and it is imperative that we keep the pressure on the Senate and House to finish the job and pass state and local assistance that is needed to cope with the ongoing fiscal crisis. 

(Ed Jayne- ejayne@afscme.org)

 

AFSCME Activists:

 

We need to keep the pressure on the House and Senate to help state and local governments with huge budget shortfalls.  Please pick up the phone and call your Senators and member of the House of Representatives.  Tell them to get the job done by approving increased funding for Medicaid and other vital public services.

 

Call 202-224-3121 right away!!

 

 

Short-Term Extension of Unemployment Insurance and COBRA Subsidies Looms as Congress Prepares to Recess for Two Weeks

Senate Republicans have blocked action on a bill the House approved last week continuing the federal unemployment insurance benefits and COBRA health subsidies programs through April.  The current programs were extended until April 5 about a month ago in the hope that the House and Senate would reach agreement on broader legislation continuing both programs through the end of the year before they were due to expire.

 

Democratic leaders plan to take the legislation up immediately when Congress reconvenes on April 12 with the intention of making the benefits retroactive.

(Nanine Meiklejohn- nmeiklejohn@afscme.org)

 

House Passes Jobs Bill with Financial Assistance for State and Local Governments

The House of Representatives voted 246-178 on party lines to approve the Small Business and Infrastructure Jobs Tax Act (H.R. 2849) which provides $7.5 billion in tax incentives to state and local governments to subsidize Build America Bonds for improving infrastructure.  This is the second "jobs bill" House Democratic leaders moved through the chamber in March.  Rep. Sander Levin (D-MI), Chair of the House Ways and Means Committee, said, "The cornerstone of this package is an extension of the Build America Bonds program, an effective tool in job creation and a vital resource for state and local governments looking to advance infrastructure programs."  Build America Bonds give financial assistance to state and local governments via federal tax exemptions for the interest on municipal bonds.

 

Unfortunately, a separate smaller provision could harm AFSCME members’ interests because it provides $354 million in subsidies for tax-exempt bonds issued to finance privately operated water or sewage facilities.  The bill also extends for one year the Recovery Act's Temporary Assistance for Needy Families (TANF) emergency contingency fund, and funds it at $2.5 billion.  The entire bill costs $17 billion, is fully offset by other revenues, and contains $3.6 billion in small business tax breaks.

(Marc Granowitter- mgranowitter@afscme.org)  

 

Senate Agriculture Committee Approves $4.5 Billion Child Nutrition Reauthorization

The Senate Agriculture Committee unanimously approved a leaner, $4.5 billion package of new funding and policies for Child Nutrition Reauthorization (CNR) than the $10 billion package proposed by President Obama. CNR sets policy and funding for school meals, the Child and Adult Care Food Program (CACFP), and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Highlights include providing a six cents per meal performance-based increase (tied to compliance with updated dietary guidelines), giving authority to the Secretary of Agriculture to establish nutritional standards for all school foods, providing $10 million for training food service personnel, implementing electronic benefit transfer (EBT) to modernize WIC, and reducing CACFP paperwork.

 

AFSCME is very concerned that none of the access provisions for CACFP – including rate increases, tiering adjustments, a third meal, and sponsor funds – were included.  We are working closely with Sens. Kirsten Gillibrand (D-NY) and Amy Klobuchar (D-MN) and others to address this omission.

(Becky Levin- blevin@afscme.org)  

 

Major Changes to Student Loan Program Included in Health Reform Bill

The final health care reform "reconciliation" bill makes sweeping changes to the student loan program. Overall, the legislation will eliminate bank subsidies under the current Federal Family Education Loan (FFEL) program and shift all loans to the Direct Loan program by June 2010. Senate debate this week recognized the important role of state guaranty agencies and specified that the Department of Education should contract with them to service direct loans. AFSCME will continue to work with Congress and Department of Education Secretary Arne Duncan to ensure that this occurs.

(Becky Levin- blevin@afscme.org)   

 

Thousands Rally in Support of Immigration Reform

Last Sunday, more than 200,000 advocates marched on the National Mall in support of comprehensive immigration reform. The March for America rally came on the heels of Sens. Charles Schumer (D-NY) and Lindsey Graham’s (R-SC) March 19 op-ed in The Washington Post that outlined a framework for their much anticipated bipartisan immigration bill. The AFL-CIO and Change to Win responded to the op-ed in a joint letter which praised the Senators for their leadership and stressed the need to establish "an independent research-based commission that can accurately assess the need for foreign workers on an ongoing basis as our economy fluctuates and develops, which will satisfy the legitimate needs of employers and at the same time protect the interests of American workers." President Obama also praised the framework and addressed the marchers, via video, to express his commitment to comprehensive immigration reform. The video is available on www.WhiteHouse.gov.

 

While the rally and op-ed moved comprehensive immigration reform forward, Sen. Graham, upset by the passage of health care reform, dealt it a devastating blow on Thursday and declared immigration reform "dead" in the Senate this year. AFSCME will continue to work in coordination with the AFL-CIO to advance comprehensive immigration reform in a manner that protects American workers.

(Andrea Zuniga DiBitetto- adibitetto@afscme.org)  

 

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Tucson Area Public Employees, Local 449

Pima Community College Employees Division

110 S. Church Avenue, Suite 4188

Tucson, AZ 85701

Phone: 520-571-8884

Fax: 520-571-8887