This Active Life -- November 2002

Letters

Squeezed By Drug Costs
Your September cover story, "The Money Crunch," sure rang a bell in this household. Everyone, from cable TV providers to utilities, increases their monthly rates at least 8 percent each year. Plus, prescription drug costs really take a bite out of our discretionary income. If we bought our prescription drugs from the local Kmart, they would cost $690 every three months. We now use a firm in Canada to get our drugs via mail order, and the cost for a three-month supply of the same drugs is $343, plus shipping. Pharmaceutical companies raise their prices by a whopping 17 percent each year. Contrary to their PR, they spend about 3 percent less on R&D compared to other countries. Plus, they build on the research funded by the National Institutes of Health, which is funded by our tax dollars.

Shirley Rosenberg
Willingboro, New Jersey

The Wrong Audience
Though well-intentioned, your article on "The Money Crunch," is addressed to the wrong audience. It is active members who should be working to avoid being put in the situation expressed in the article.

During my last eight years of teaching, I became a de facto retirement guru for our district. The reason people teach for three decades and then find themselves donning the blue vest at Wal-Mart to make ends meet is that they often have no clue how their retirement system works. Retirement is highly complex and varies based on individual circumstances. Experienced teachers need to find out where they stand before they put in their retirement papers.

John Avelis Jr.
White Heath, Illinois

Thank You
I want to thank all of you who wrote and called to express support during the time that my husband, Jack, was ill and after he passed away. We have received more than 500 cards as well as fruit baskets, flowers, and more from so many people. We shall never forget your kindness, support, and love. THANK YOU!

Ann Marie Kinnaman
Newark, Delaware

Editor--Readers may make donations to support young prospective teachers by contacting: John F. Kinnaman Memorial Scholarship Fund, c/o NEA-Retired, 1201 16th St., N.W., Room 410, Washington, DC 20036.

Contributions

This Active Life welcomes your comments on any topic raised in the magazine. We'd especially like to hear from you if you'd like to contribute to one of the following stories. We're looking for members to speak on such topics as:

Caring for a Loved One. With the aging of the baby boomers, many more seniors are providing care for either a spouse or a parent. Tell us what experiences you're having, how you're coping with the challenge, and what advice you can offer those new to caregiving.

Avoiding Fraud and Cons. Senior citizens are common targets of mail and telemarketing fraud as well as old-fashioned con artists. We're looking for the stories of members who have been victimized, so that we can help others avoid becoming victims. Your name will be withheld at your request.

Also, we're always interested in hearing from you about NEA-Retired members we can profile in the "People" column and other features. Contact John O'Neil, Editor, This Active Life, NEA Communications, 1201 16th St., N.W., Washington, DC 20036; e-mail joneil@nea.org.

News Flashes

The Health Care Drain
Active and retired employees are being forced to pick up an increasing share of health care costs, even as the benefits are eroding. That's the gist of the latest survey of employers by the respected Kaiser Family Foundation. Among the findings from the 2002 Employer Health Benefits Survey:

• Premiums increased nearly 13 percent, the largest increase in a decade.
• In the past year, the amount employees pay for single coverage rose 27 percent to $454; the cost for family coverage rose 16 percent to $2,084.
• Nine percent of large firms eliminated retiree benefits for new or existing employees in the past two years.

For the complete report, go to www.kff.org/content/2002/20020905a.

Another study just out, by Watson Wyatt Worldwide, predicts that by 2031 only 10 percent of retirees' health costs will be covered under their employers' plans. More and more firms are cutting or eliminating retiree medical plans, and the study predicts future workers will have to delay retirement as a result.

Low COLA Foreseen
Social Security cost-of-living adjustments next January are likely to be the lowest on record--1.3 percent or lower--according to the TREA Senior Citizens League. One reason? COLAs are based on the consumer spending habits of younger wage earners, whose expenses are markedly different than retirees'.

Going, Going, Gone?
Support for the Administration's call to privatize Social Security is falling as fast as the stock market. Fifty-two percent of those surveyed in September by USA Today/CNN favored putting Social Security payroll taxes into personal retirement accounts, down from 65 percent who supported the idea when polled in June 2000.