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Switch to Medicare-like System could be Remedy for Health Care

Letter to Editor - Omaha World-Herald Public Pulse regarding Healthcare

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01-04-07

 

Omaha World-Herald Public Pulse

 

Dear Public Pulse:

 

         The article by Paul Krugman of the New York Times (Switch to Medicare-like System could be Remedy for Health Care) in the January 3rd edition of the Op-Ed page was very informative and timely. In addition to all the issues he brings up in regards to the health care crisis in America, the shifting of health care costs to employees and retirees of American corporations should be added. This is a problem that is not always mentioned when health care in America is discussed. Many, many corporations, instead of working with Labor, government and many other groups who wish to improve our fractured health care system, simply shift the cost of the health care to employees and especially to retirees, often doing so even when the corporation can still afford to pay those costs. For example, in the eastern Nebraska-western Iowa area there are over 1800 retirees of Lucent Technologies (now Alcatel/Lucent), who have just been hit with a 150% increase in their health care premiums, even though Lucent does not now nor have they ever used any operating expenses to fund retiree health care. The cost has been and is borne by a surplus in the pension fund. Though this is being opposed by the unions  (CWA and IBEW), the outcome is uncertain. Like many other corporations, Lucent was given a subsidy by the U.S. government (in Lucent’s case-$26,000,000 in 2006) to encourage them to not drop their prescription drug program, which is superior to Medicare Part D. Congressman Lee Terry, who helped pass the legislation giving this subsidy, stated in a meeting with local Lucent retirees and union leaders that those subsidies should be applied to retiree health care costs and he intends to work toward amending that law to require that.

One solution to the health care problem would be to support S 2229 and HR 4683, the Medicare for All legislation introduced in the Senate and House. This plan would cost corporations and individuals alike much less than it is costing for health care now, along with keeping Doctors and hospitals independent. I urge all to write their government representatives in support of this legislation.

 

Al Mumm

President

CWA Local 7290