The federal government's threat to privatize Social Security — which NYSUT retirees worked so hard to prevent— has come and gone. Now, retirees are gearing up for a similar threat against Medicare, and they are ready to do what it takes to protect this critical safety net.

At issue are subsidies the federal government has been paying private health organizations as an incentive for their participation in Medicare Part B — a plan known as Medicare Advantage.

In most cases, subsidies have been as much as 20 percent of the actual cost of the care. In some counties, however, subsidies have reached twice that amount.

NYSUT is not pressing for an end to Medicare Advantage. Instead, the statewide union advocates a phasing-out of the subsidies to have a balanced playing field for all of its members participating in Medicare — those who are getting their care through private insurers and those receiving traditional Medicare for outpatient health care.

"Our concern is that overpayments to private plans increase the costs of the entire Medicare program and undermine the traditional Medicare system," said NYSUT Vice President Kathleen Donahue. "This affects both Medicare beneficiaries and taxpayers who provide the revenue to support our largest national health insurance program."

Donahue's office oversees retiree and health care issues for the statewide union.

Not only have the subsidies driven up costs of the entire Medicare system, they have failed to lower the cost of care in the regions where they are provided.

NYSUT retirees have already demonstrated their ability to rally when a critical earned benefit faces a threat. Last September, NYSUT retiree activists joined more than 600 members of the Alliance for Retired Americans, part of the AFL-CIO, to lobby Congress on maintaining and protecting Medicare and Social Security as part of the 2007 ARA Legislative Conference.

Now NYSUT is urging retirees to contact congressional representatives to advocate making Medicare fair for all participants by phasing out the overpayments to private health plans.

"The phase-out of these overpayments will place the private health plans on a level playing field with the traditional Medicare system in the delivery of medical care in a more cost-effective manner," Donahue said.

— Darryl McGrath