A Message from the President

Let's Find Solutions at Home

NEA-Retired member Shirley Lindquist, who you'll meet in this month's cover story, crosses the border into Canada to save money on the drugs necessary to keep her healthy. Sad to say, her story is not uncommon. Many retirees now venture to Canada and Mexico to purchase drugs that, though identical in chemistry, are substantially cheaper in those countries than in pharmacies across the United States.

As this issue of This Active Life makes clear, our nation faces a crisis in the skyrocketing cost of prescription drugs. A recent report by the Alliance for Retired Americans, "The Profit in Pills," documents how pharmaceutical companies have padded their coffers while many seniors struggle to make ends meet. Prescription drugs are enhancing the longevity and quality of life of countless seniors, but too many of us skip necessary medications, ration our doses, or risk falling behind on our other expenses.

For a nation that prides itself as a world leader in health care and medical wizardry, this is a shameful situation. Something is very wrong when drug companies spend millions lavishing perks on doctors or adding more high-priced lobbyists while seniors agonize over how they'll pay for their medications.

If you haven't done so, please become more informed about this critical issue. A list of resources is available on page 9. Talk to other seniors, and to those still working, and urge them to turn up the heat on our elected officials to do something to stem the prescription drug crisis. The health and wealth of many seniors rests on how we address this critical issue.

Note: I want to give a special thank you this month to all our members who worked to elect pro-public education candidates last fall. Also, best wishes and farewell to NEA-Retired staffer Pennie Mattingly, who has provided so much support to our program. She retires this month.

--NEA-Retired President Jim Sproul

People

Giving His Name Back

Former NEA President Braulio Alonso has received many honors and awards throughout his career as an educator, but his latest honor troubles him.

The city of Tampa Bay, Florida, named one of their new high schools after Alonso, who retired in 1983. Even with all of his accomplishments, Alonso feels the acclaim has come too soon. "I'm certainly grateful for the honor," Alonso says. "But I've always thought honors like those should be given to people after they have passed away." To Alonso, accolades should never be the reason a person is trying to make a difference. "We have a responsibility to help out others--that's why I still stay involved."

A staunch advocate for integration in schools and more opportunities for minority students, Alonso had his battles through the years with local school officials. But he has been able to see the fruits of his labor emerge at Alonso High.

"The school is very well integrated," he says. "And what's really good is that more and more minority students are getting involved and receiving recognition for their achievements than before."

Still, Alonso shies away from the limelight. "The principal (Sandy Bunkin) always invites me to the school, but I don't want to interfere," says Alonso, who recently tossed the coin at the school's first football game. "I'm very happy with what I see going on there. They're doing a great job."

--Jozen Cummings

Finding Inspiration in New Places

Michigan member Cleorah Scruggs often looks for inspiration in the small things in life, a habit gained from 30 years of teaching elementary school.

This morning, her inspiration comes from a picture in her home. It shows three African girls with books stacked on their heads, in their hands and under their arms.

The picture reminds her of a trip she took to Nigeria where she learned how a culture so very different from the United States values the same things: education and salvation. Three years later, she's still writing letters and e-mailing notes to her pen pals, several teachers she hooked up with while visiting a Nigeria orphanage.

Inspired by her experience, Scruggs created the Hookup Connection, a club that allows students to pen pal with someone who is different from them for one year. The pen pal could have a different religious, economic, or cultural background or could be someone with a physical disability. Fifth graders Brianna Newman (left) and Chelsea Miller (right) signed up for the club at the 10th annual National Multicultural Diversity Day, a celebration Scruggs created in 1993. Her diversity work has drawn nationwide recognition (including This Active Life's May 2001 cover).

"I believe one person can make a difference," Scruggs said. "These pen pals will relate to each other and see the advantages of positive communication."

--Mary Kershaw

An Appetite for Teaching

The approach Sue Greenberg and Gwen Stanich took to starting their catering business, Second Helpings Inc., makes it look as though the two never left the classroom.

After retiring from teaching in 1998, the two Rochester, Minnesota, members enrolled in community education classes in business. After learning how to start a business, they were able to get incorporated and launched ad campaigns for their catering enterprise.

The company's unique twist is that Greenberg (left) and Stanich (right) actually prepare the meals in their clients' homes. The two entrepreneurs handle most of the work themselves, supported by a network of people who help with bigger functions.

In addition to catering, Greenberg and Stanich are teaching cooking courses through community education. "Originally we wanted to open up a cooking school," says Greenberg, who--like Stanich--always received rave reviews about her cooking at teacher meetings. "But we realized the idea wasn't feasible, so we did catering. Eventually the customers would ask us to teach them how to cook some of the things we made."

To Greenberg, the irony of teaching all over again doesn't strike her as odd, and though there are similarities, she says, the business has never gotten so big that they don't feel like they've retired. "We can make our own schedule, so there's time for things we want to do, like playing bridge at the community center."

--J. C.

News Briefs

Spring Into NEA's Read Across America Campaign

How are retired educators encouraging children to read?

Kansas member Fran Raines has spent hours orchestrating plans to celebrate NEA's Read Across America campaign--and then flipped pancakes to serve hungry readers at an NEA-sponsored event.

Fran makes a heavy commitment to Read Across America each year--one of many NEA-Retired members who do so.

"NEA-Retired has been extremely supportive of Read Across America since the program's inception in 1998," says Rick Geier, who manages the Read Across program. "In some states, NEA-Retired members are coordinating activities in the entire state." Others come to NEA headquarters in Washington, D.C., to staff phone banks.

Read Across America celebrates the joys of reading with hundreds of events each March, coinciding with the birthday of Dr. Seuss. Because Dr. Seuss's birthday this year falls on a Sunday, the official celebration will be March 3. But many events will also occur in the days directly before and after the official celebration. An estimated 40 million readers of all ages participate in Read Across happenings each spring.

Raines has been a Read Across stalwart since the program's inception and serves on the national advisory committee. "As a former librarian, I really wanted to continue working with children and to encourage reading," she says.

One of Raines' favorite Read Across memories was serving pancakes to Topeka, Kansas, second graders as part of an event at the Kansas NEA office. KNEA Student members read Judi Barrett's Cloudy with a Chance of Meatballs. Everyone, Raines included, wore silly umbrella hats, and students feasted on pancakes (meatballs being a little messier and perhaps not as popular as pancakes).

"The pancakes went over great," Raines says. "We had one little fellow who ate nine!" Every student went home with a copy of the book, as well as a full tummy.

If you're interested in participating in Read Across America activities, contact your local affiliate in the city or town where you live, Geier advises. You can also get in touch with the NEA-Retired affiliated state organization and work with them to get involved.

To learn more about NEA's Read Across America, go to www.nea.org/readacross or call NEA headquarters at 202/822-7387.

In New Jersey
Kudos to New Jersey Retired members, who are helping provide needed support to members of the New Jersey Education Association and their families. Last fall, NJEA launched a crisis helpline to assist members and their families, modeled after a successful program for police officers. The new service provides confidential peer support and counseling for such issues as family- or job-related problems, substance use, or financial pressures. Specially trained Retired and Active members answer the calls, NJEA says.

In Rhode Island
NEA-Rhode Island recently began offering Retired members a new dental plan that has been very popular, says business manager Wally Young. Individual coverage in the plan is $31 a month and covers, among other services, two teeth cleanings and an x-ray every year at no cost. Other services, such as fillings, extractions, or root canals, are partially covered. "We are picking up members every quarter as word of the program gets out," says Young, who is promoting the service as a benefit of membership.

Member Profiles

Pre-Retired
Ruth Greiner

Background
I teach third grade in Coos Bay School District #9 in Coos Bay, Oregon. This is my 29th year teaching. I first joined the Association as a Student member at Eastern Oregon College, and I've been active ever since. Among the positions I've held are local president (five times) and member of the Coos Bay bargaining team. I'm currently a member of the NEA Board of Directors.

My Advice on Retirement for Active Members
Begin planning early, and don't retire until you're ready and can afford to retire! Very early in your career, I'd advise putting a little extra money away each month for retirement. Personally, I know I'll want to have at least as much if not more money available to me when I retire as I do while I'm still in the classroom. Your Association can help you plan. For example, Our UniServ offers financial training geared toward our younger members. Members say the training helps them understand the importance of putting money away now and planning to supplement their retirement.

Recently Retired
Al Falcone

Background
I taught political science for 33 years at Woodrow Wilson High School in Camden, New Jersey. During my time as a member, I've been a building rep, local and county Association leader, and member of the New Jersey Education Association Executive Committee.

Why I Chose to Become Active in NEA
In Camden City, we had a very nasty job action in 1978; 17 of our teachers and ESP were jailed during the walkout. I was a building rep at that time. The anger I felt over the inequities really served to increase my involvement in leadership. The workshops and other opportunities offered by the Association was a big support. My professional life has been totally linked with the Association!

Active Retired
Helen Hampton

Background
I taught social studies in Richmond County, Georgia, for 37 years. As a member of NEA and the Georgia Association of Educators-Retired, I've helped people make the transition into retirement by organizing the first computer-literacy workshop for local retirees. I'm serving on the Richmond County Association of Educators' executive board as its retired liaison. I also belong to the National Association of University Women.

How I've Chased Away the Retirement Blues
Retirement can be hard for people who are used to being in the classroom five mornings each week. I had seen teachers struggle with their approaching retirement, and I didn't want to go through the sadness that comes with taking that first step out of the classroom and into retirement. So, I decided to stay active. Two years before I retired, I started to prepare myself by getting involved in community, school, and Association activities. When I finally retired, I could do these activities full time. Retirement, after all, is meant to be a happy, relaxing time to do things that interest you.

Letters

Thanks For Taking A Stand
I was thrilled to see that NEA has a real interest in the difficulties that the Government Pension Offset has caused teachers ("The Money Crunch," September). I'd sure like to know how this unfair law came into existence. The long-term impact is big problems for many teachers who are now retiring. As the person quoted in the article said, "When you're on a fixed income, you can take money out of savings, but you can't put it back."

Mary Douglas
Brentwood, California

Repeal Pension Offsets
As a spouse of a railroad pensioner, I can relate to the struggle of those fighting for the repeal of the Government Pension Offset and Windfall Elimination Provision ("The Money Crunch," September). We, too, must depend upon Congress to provide equitable pensions. We may be few, but what Congress does really affects what we receive. This issue of This Active Life was especially important to me.

Dolores Backhaus Carr
Wellington, Kansas

Better to Plan Ahead
Everything you said in "The Money Crunch" (September) may be true but, for better or worse, retired teachers must live with the decisions they make during their peak financial years. The article should appear in a magazine for active teachers. It might awaken them to the necessity of fully utilizing 403(b) plan provisions and IRAs.

M. Scott Downing
Springfield, Virginia

Editor--Thank you for the suggestion, Mr. Downey. A modified version of the piece will appear in the February 2003 NEA Today.

Correction -- Grace Ing's background was printed incorrectly in the November issue of This Active Life. Ing served as an elementary teacher in Hawaii, teaching remedial reading/language arts and gifted students in grades 3-6. She also was active in her local and state Associations for 25 years. She has served as a local president and state director and also on numerous state committees.

Contributions

This Active Life welcomes your letters and e-mails on any topic raised in the magazine. We'd especially appreciate hearing from you if you'd like to contribute to one of the following stories. We're looking for members whose stories powerfully illustrate such topics as:

Getting Your Finances in Order. What tips can you offer on getting your financial life in order? What ways have you found to cut expenses and stick to your budget?

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 caretaking.

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 the interesting and hard-working 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. You can also phone 202/822-7223, fax 202/822-7206, or e-mail joneil@nea.org.

NewsFlashes

Medicare Update

• Increases in some Medicare fees go into effect this month. The new monthly premium for Medicare Part B is $58.70, and the hospital deductible for Medicare Part A also was raised.
• The Center for Studying Health Systems says that one in nine Medicare beneficiaries reported delaying care last year due to trouble finding a health care provider who would accept Medicare. Physicians' fees were cut last year and may be again in 2003, the Center says.
• The Medicare Rights Center has launched a free, consumer-oriented electronic newsletter to keep you up to date on Medicare happenings. For a sample of Dear Marci, e-mail slin@medicarerights. org or call 212/204-6233.

Retirement Savings Guide

A new guide promises financial planning help for women. Getting Savvy About Retirement Security: A Resource Guide for Women provides resources for helping you navigate decisions about retirement finances, with an emphasis on financial strategies and long-term care. The free booklet is available from MetLife Mature Market Institute, 57 Greens Farms Rd., Westport, CT 06880; call 203/221-6580; or e-mail maturemarketinstitute@metlife.com.

Universal Health Coverage

The National Academy of Sciences recently added its imprimatur to the notion of universal health insurance coverage. An NAS panel noted that 41 million Americans now lack insurance. According to the New York Times, the panel called for demonstration projects in three to five states to test universal coverage through tax credits for the uninsured (to cover premiums) or expanding Medicaid or the Children's Health Insurance Program.

Health

Diabetes Spurs Healthier Lifestyle for Colorado Member

Flushed face, dizziness, sluggishness, a more frequent need to urinate.

Steve Herrera experienced these symptoms 13 years ago but he didn't think they were warning signs of something serious. A yearly blood test, however, revealed Herrera had type 2 diabetes, a common form of diabetes usually diagnosed in adulthood that accounts for approximately 90 percent of all diabetes cases.

At the time, Herrera was teaching elementary school in Northglenn, Colorado. His hours were long, his days stressful. Herrera barely had enough time to sit down and eat a decent meal, much less walk a few miles, and he quickly gained 15 to 20 pounds.

"I had been putting on weight because I didn't get enough exercise," he says. "I was busy running around, eating a lot of fast food."

With a long family history of diabetes, Herrera knew he needed to change his lifestyle. He educated himself about the disease by poring over dozens of books that all gave the same advice for controlling it: regular exercise and a balanced diet.

Herrera started by changing his routine. He arrived at work two hours before classes started and planned his day. Often, he walked around the school building three or four times in the mornings. In the evenings, he walked briskly for at least 30 minutes, some-times trying a light jog. Walk-and-run. Walk-and-run. That was Herrera's motto.

"Walking is the best exercise you can do," he says. "You can listen to music or take a friend and talk. Just let your body work for you and tell you when to stop and when to keep going."

One of the hardest changes was switching to a healthy diet. Herrera banned the beer from his refrigerator. Then, he used common sense and ate smaller meals throughout the day that included more fresh fruits and vegetables.

After retiring two years ago, Herrera found controlling his diabetes was easier. He could walk longer, eat better, and monitor his blood sugar level more often during the day.

At 55, Herrera is 5 feet 5 inches and weighs 145 pounds. He spends his weekdays baby-sitting his 18-month-old granddaughter and working in the yard. He is also active with the American Diabetes Association, visiting Washington, D.C., recently to lobby Congress to increase diabetes research funds. Unlike his father, who died at 52 from complications of his diabetes, Herrera plans to see his grandkids graduate from college.

"I can run a mile right now, and most people can't imagine there is anything wrong with me," he says. "I look young and trim, but the diabetes is still there."

--Mary Kershaw

Dissecting the Diabetes Risk for Retirees

Fact: More than 20 percent of Americans over the age of 65 have diabetes.

Indeed, diabetes is on the rise in the United States, and the number of seniors with the disease is expected to skyrocket in the next three decades, according to studies by the Centers for Disease Control and Prevention.

Approximately 17 million Americans have diabetes. Of those, more than seven million are seniors. The CDC reported that the number of adult diabetes cases increased 49 percent in the past decade and continues to rise each year.

But, there is hope.

Simple lifestyle changes in retirement can prevent or delay the onset of type 2 diabetes, according to studies by the National Institutes of Health. Eating healthy, walking regularly, and avoiding stress lowers the risk of developing the disease in adulthood.

Diabetes prevention is simply a matter of small changes but living with diabetes can be difficult for seniors. Diabetes increases the risk for strokes, blindness, nerve damage, kidney failure, amputations, and other severe health problems.

For More

Learn more about the warning signs for diabetes, and watch for those signs in yourself and your loved ones. These organizations offer information and support:

• The American Diabetes Association has the latest news about diabetes research and awareness: 1701 N. Beauregard St., Alexandria, VA 22311 or go to www.diabetes.org.
• The Centers for Disease Control and Prevention offer general information and the latest statistics on diabetes: Public Inquiries and Publications, P.O. Box 8728, Silver Spring, MD 20910 or www.cdc.gov/diabetes.
• The National Diabetes Education Program offers tips on preventing diabetes and information about how you can get involved with the diabetes-awareness campaign: call 800/438-5383 or go to www.ndep.nih.gov.

Quick Tips

Reduce Stress
Steve Herrera found he enjoyed life more and felt better when he was relaxed. Simply organizing and planning better significantly lowered his daily stress.

Eat Balanced Meals
Those gooey cupcakes and homemade treats may sound yummy now, but opting for an apple or a few carrot sticks will keep your blood sugar level low and your weight manageable.

Walk, Walk, Walk
Just 30 minutes a day, and you're on the road to a healthier body and a lower risk for diabetes. Herrera found that sticking to a regular walking routine helped him stay on track.

Visit Your Doctor Regularly
It saved Herrera's life! That one yearly blood test may prevent a lifetime of health problems.

Educate Yourself
Herrera not only read every book on diabetes that he could find, he also became active in the fight for diabetes awareness and research in the United States.

Cover Story

Fighting for Fair Drug Prices

By John O'Neil

Aciphix ($110/month) and Asacol ($151.65/month) for digestive and colon problems...$153.63 for 10 Imetrex tablets to treat my migraines...Zocor ($70.33, 80 mg cut into fourths) for cholesterol...Evista ($59) to lubricate the cartilage and joints...I was taking Fosamax ($58.96/month) for osteoporosis and hope to be able to add it to my medications again soon...

It's quickly apparent that Florida member Joan King has a very personal stake in the war against out-of-control drug costs. Like many other NEA-Retired members, King is finding that the drugs she needs to keep her healthy are taking an unhealthy bite out of her pocketbook. On her modest teachers' pension, King pays nearly $3,000 a year for prescription drugs in deductibles and other out-of-pocket costs. (Her husband, Al, incurs another $3,000.)

"In Florida, many Retired members are facing escalating out-of-pocket drug costs," says King, an activist and past president of FEA-Retired. "It greatly concerns me that Al or me, or both of us, could experience more serious problems and need even more costly prescriptions."

Across the country in Montana, where teacher salaries are among the lowest in the nation, drug costs and insurance premiums are cutting deeply into retirees' pension benefits. Upon retirement, employees under age 65 can pay the cost to continue coverage in their local district's health plan (some districts provide a partial subsidy), but the statewide average cost of $440 per month for two persons is going up 25 percent each year, says Tom Bilodeau, research director for the MEA-MFT. For a retiree with a pension of about $20,000, "you figure that they have five or six thousand dollars going out to pay premiums, so they're down to $15,000. If that's your only income, you're immediately eligible for food stamps. That's a terrible way to treat people who have spent their career in education."

In state after state, NEA-Retired members are being socked with higher co-pays and deductibles in return for less comprehensive health insurance coverage. "Retirees are hard hit in two ways," says Lynn Ohman, NEA director of Collective Bargaining and Member Advocacy. "They are less likely than active members to have coverage for prescription drugs. But they also have a higher level of need for them. That's what makes the drug issue so important to them."

Some seniors have resorted to leaving the country altogether, crossing the border into Canada and Mexico to buy brand-name drugs for a fraction of the cost. North Dakota member Shirley Lindquist, who lives about 35 miles from the Canadian border, takes Napralon for her fibromyalgia. She can get the drug in Canada for $40 for a three-month supply; the same drug costs $80 a month at her local pharmacies. The reason? With its national health care system, Canada can demand lower prices for its huge insured pool (see chart, page 8). In the United States, most who buy prescription drugs are in much smaller purchasing groups, and a third of all seniors--11 million in all--have no drug coverage.

Prescription drugs are a huge factor in the 20 percent increases in health insurance premiums--costs that are increasingly being passed on to Active and Retired members alike. What's behind the spending?

One factor is demographics. As the baby boomers age, they're using more prescription drugs to stay healthy. Seniors already account for 42 cents of every dollar spent on prescription drugs, and the number of Americans 65 years and older is swelling.

Moreover, outpatient prescription drugs now play a much more prominent role in patient care than they did two or three decades ago. In many cases, drugs have cut down the number of days patients need to stay in the hospital, for example, and rendered some surgeries unnecessary. When Congress passed Medicare in 1965 (without any coverage for outpatient prescription drugs), the drug bill for the average senior was under $65 annually. In 2002, it was $1,051.

As the health care system has become increasingly reliant on prescription drugs, pharmaceutical companies have grown more aggressive in promoting their use. It goes far beyond the free samples provided to your physician. Marketing and advertising--the tactics used to sell Americans everything from razor blades to rotisserie cookers--is now heavily directed at prospective patients. In 2000, drug firms spent $2.5 billion on print and TV ads to convince you to "ask your doctor about" the latest brand-name drug.

Does it work? In 2000, the 50 most advertised drugs accounted for an astounding 31 percent of all expenses for prescription drugs, although they comprise less than one-tenth of one percent of the drugs on the market, according to one estimate.

"Doctors tell me that they've got people coming in with ads in hand practically demanding to have a particular drug," says Al Jacobs, executive director of the WEA Trust, which was created by the Wisconsin Education Association Council to provide insurance and retirement services. When doctors comply, "it gets patients on their way, but it drives up health care costs in the end."

Groups representing seniors charge that pharmaceutical companies, bent on preserving some of the biggest profits in American industry, are simply unwilling to give consumers a break on price.

The Alliance for Retired Americans, a coalition of more than 2.5 million union retirees, reports that the after-tax median profits of pharmaceutical companies in 2000 were 18.6 percent of revenues. The after-tax profits of Fortune 500 companies as a whole were only 4.9 percent.

Pharmaceutical companies make the case that their drug pricing helps them recoup heavy investments in research and development for the latest breakthrough drugs. That argument falls short, however. For one thing, the federal government pays a large share of the cost for basic science drug research, primarily through its funding of the National Institutes of Health. Further, advocacy groups note that many new drugs on the market are variations of existing drugs designed--skeptics say--largely to gain a new patent as an older drug loses its patent protection. When a patent expires, drug makers may develop generic versions that, though chemically identical, are far cheaper.

The drug lobby is one of the most powerful influences on Capitol Hill, extraordinarily effective at deflecting attempts to regulate drug prices. The watchdog group Public Citizen reports that drug companies had more than 623 federal lobbyists on their payrolls last year--nearly one for every member of Congress. According to the National Journal, the drug industry spent nearly $80 million lobbying in 2001.

Last fall, Congress failed once again to make good on its promise to create a prescription drug benefit tied to Medicare. This year, the pharmaceutical lobby aims to play an even bigger role in shaping any legislation on prescription drugs. The New York Times reported that, "having spent more than $30 million to help elect their allies to Congress, the major drug companies are devising ways to capitalize on their electoral success by securing favorable new legislation and countering the pressure that lawmakers in both parties feel to lower the cost of prescription drugs."

How are NEA members coping with the budget-busting increases in prescription drug costs?

Some are simply delaying retirement. "When I talk to people who are approaching retirement age, many say they're putting it off because they can't afford the insurance," says Lindquist. "Retired teachers in North Dakota are paying $615 a month [for health insurance]. For some people, that would be half their pension."

Others, like Rhode Island member Joyce Fletcher, have "unretired" and taken jobs to defray health care costs. Fletcher, who has out-of-pocket costs for drugs totaling nearly $400 each month, is back to work bagging groceries at a local market to make ends meet.

Experts say it is possible to chip away at your drug expenditures by working more closely with your doctors.

"Discuss with your doctors the need for drugs and any alternatives," advises Jacobs. Ask about whether a generic drug can be prescribed rather than a more costly brand-name drug. "If you don't do the research, you're going to have more costs coming out of your pocket," says Jacobs. "You need to become proactive, because it will save you money and will also help keep costs down for the plan."

Comparing costs from different suppliers is essential. Joan King and her husband created a spreadsheet to track the cost at various pharmacies of the medications they use. The spreadsheet has to be regularly updated as prices change. Still, they're able to trim expenses by buying their drugs from the cheapest supplier. (For more cost-savings suggestions, see "Rx for Savings")

NEA is training affiliate and local leaders to help them deal with the impact of rising health care costs. At the NEA Retirement and Benefits conference in November, for example, participants learned about a new prescription drug model that would bring together the purchasing power of NEA and AFT members.

A result of the NEAFT Partnership, the new blueprint sketches out how state and regional groups of NEA and AFT members could form pools for the purpose of purchasing or administering prescription drug benefits. Local and state leaders are now studying the proposal, Ohman says. NEA also will play an active role lobbying on any Congressional proposals to add a prescription drug benefit to Medicare.

In the long run, political activism--involving Active and Retired NEA members alike--is perhaps the only thing that will leverage changes in drug care coverage and cost containment. You can make your voice heard by pushing your elected representatives to support sound answers to the prescription drug cost crisis.. Adding a prescription drug benefit to Medicare may well be on Congress' agenda this year, so King urges members to participate in their retired organizations to influence the debate.

"Share materials at your meetings regarding any pending legislation. You might even organize a letter-writing party as part of the meeting. And don't be afraid to use your knowledge with your friends and neighbors," says King. "By helping to convince others to push for a sound prescription drug benefit added to Medicare, you'll increase the odds that we can get much-needed relief for seniors."

Prescription drug costs are going through the roof, but you can help rein in costs.

Everyone owes it to everyone else to become an educated consumer about the role of prescription drugs in their health care, says Al Jacobs, executive director of the WEA Trust. Work together with your physician to map out a treatment plan that works for you but doesn't unnecessarily drive up costs.

For example, using generic rather than brand-name drugs, when appropriate for your condition, can yield big savings. So can using an older drug that has been proven just as effective as newer brand-name drugs for which generics are not yet available. You may even be able to use an over-the-counter medication. For people with certain kinds of arthritis, for example, "Tylenol is still the first line of defense," says Jacobs--not the heavily promoted, but costlier, Vioxx or Celebrex.

Other suggestions for saving money on prescriptions:

• Comparison shop. Make a list of the medications you need and call several pharmacies to ask about their prices. Often, the prices will vary--sometimes enough to make a special trip worthwhile. Also, a number of Internet sites offer pricing information and links to mail-order prescription services.
• When appropriate, request a 90-day supply of a drug you need. Larger orders typically are discounted.
• Don't be shy about asking your doctor for samples. If you and your doctor have determined that a specific brand-name drug is right for you, your physician may be able to provide free samples of the medication. Samples are also an excellent way to determine if the drug is effective for you, before you incur the cost of a 30- or 90-day supply. Joan King also asks doctors for samples of drugs she takes when she is nearing her covered drug costs limit at the end of the year.
• If your doctor okays it, consider splitting pills. For certain drugs, prescriptions for different dosages cost the same amount. Your doctor may be willing to prescribe you a higher dose; you can then ask your pharmacist to split the pills or buy a simple tool to do it yourself.
• See if you qualify for any special programs that may subsidize some of your costs. For example, veterans are eligible for special rates. Also, some drug companies offer lower-priced prescriptions to people who meet income requirements.
• Check into prescription drug discount cards, available from many groups, including drug manufacturers.

Ask the Expert

New Factors for Retirement Plan Withdrawals

Q: What is a required minimum distribution?
If you have a tax-advantaged retirement plan, the IRS requires that you withdraw part of it each year starting in the calendar year following the year in which you reach age 70. The money you are required to take out is called the required minimum distribution (RMD). Failure to withdraw the RMD results in a 50 percent excise tax on the amounts not distributed. (Note: The RMD rule does not apply to those holding Roth IRAs, but it does apply to tax-advantaged plans such as traditional IRAs, 401(k), 403(b), or 457 plans.)

Q: What has changed regarding the RMD?
Effective January 1, 2003, the calculation factor changed, and the result is that retirees are required to withdraw less from their retirement accounts each year. This is important because, during the last decade, a significant number of retirees outlived their savings.

Q: Can I calculate my own RMD?
To calculate your RMD, take the prior year ending balance of your tax-advantaged retirement plan and divide it by the life expectancy factor in the table below based on your current age. For example: a 71-year-old with a $100,000 retirement account would divide 100,000 by the factor of 26.5 and have an annual RMD of $3,773.59.

Q: What should I do now?
In most cases, you can trust the minimum distribution calculated by your retirement provider. Calculating your own RMD can give you confirmation: Be sure to ask questions if your figure differs from the one calculated by your retirement or tax professional. Many providers guarantee their calculations, and if you make the withdrawal requests based solely on your own calculation, you risk losing any guarantee your provider may offer.

--Doug Terwilliger
NEA Member Benefits

Quick Tips

Educate Yourself
Learn about the specific rules for required minimum distribution (RMD) guiding your tax-advantaged retirement plan. You may wish to calculate your RMD as a check against information given by the retirement provider.

Consult a Pro
You should consult with your retirement or tax professional to determine your best course of action regarding the RMD. Prepare a list of questions you want answered. If you've done your own calculations of your RMD, you can share those with the expert.

10-Minute Activist

New Congress, Familiar Challenges

The approach the 108th Congress will take on retirees' key issues is anything but certain. One sure bet, though: new initiatives will be operating under much tighter budget constraints than a year or two ago.

In two years, the nation has gone from a sizable budget surplus to a deficit, and that simple fact will have a huge impact on any approach Congress may take on legislation addressing Social Security, prescription drug reforms, or other proposals that would entail big spending bills.

Republicans' takeover of the Senate--albeit with a narrow margin--puts a new face on the prospects of new legislation concerning these and other issues. Republicans will chair key committees and will be better able to shape new legislation through the budget resolution process, says NEA lobbyist Joel Packer. Budget resolutions set the framework for legislation by specifying the limits to the price tag attached to a new bill, and budget resolutions require only 51 votes (rather than 60) to pass.

Among the issues to watch in the new Congress:

Health Care. The 107th Congress failed to deliver on its promise for prescription drug reform. Prime sticking points were how comprehensive the benefit would be and the role that private insurers would play. (The Republican-backed House plan last year relied on insurance companies to design and offer the drug coverage; NEA-backed legislation in the Senate offered a universal, voluntary benefit available to all Medicare beneficiaries.)

If the 108th Congress takes up prescription drug reform, you can expect the same issues to crop up again. If Republicans push through a budget resolution that establishes the parameters of any prescription drug benefit, that will surely shape the scope of the legislation, Packer points out.

Social Security. Although the Administration lobbied loudly for privatizing Social Security two years ago, the stock market collapse has scuttled such talk for the past year. With a majority in both Houses of Congress, the Administration may feel the time is ripe to push again for private accounts. But it's just as likely that the 108th Congress will not take up Social Security reforms. The transition to a Social Security program featuring private accounts would require a cushion estimated at more than $2 trillion over the next 75 years, Packer points out, which makes such action considerably less likely.

NEA will again be pushing for the repeal of the Government Pension Offset and Windfall Elimination Provision, which unfairly cut benefits to retirees in certain states. (For more, see the September This Active Life). NEA had lined up numerous cosponsors to bills to repeal GPO/WEP in both the House and Senate; that process now begins anew. To lend support, NEA will train a cadre of members to generate grassroots activities in the states.

You have a chance to help influence lawmakers early in the 108th Congress. Continue to convey the need for sensible approaches to health care, Social Security, and other issues important to seniors. With many new members of Congress coming to Washington for the first time, you have an opportunity to shape their thinking--and their policies--from the get-go. For more, see "What You Can Do."

--John O'Neil

What You Can Do

Educate Your Representatives
There are new faces coming to Congress this month, and they need to hear from you about the issues critical to seniors. Be sure to tell them of the importance of repealing the Pension Offsets and considering only sound approaches to prescription drug or pension reforms. Highlight your personal experience with the issues and sketch out the key reasons for acting sensibly on them.

Visit the LAC
NEA's Web-based Legislative Action Center (www.nea.org/lac) provides a wealth of information to keep you informed of developments in Congress or to help you send a message to your representatives. Check the site regularly to learn about NEA-supported legislation.

Become a Cyber-lobbyist
You can receive weekly e-mail updates on important issues in Congress by signing up as an NEA cyber-lobbyist. To sign up, go to www.nea.org/lac and click on "Join our e-mail list." You will receive short updates once a week plus occasional action alerts.