This NARFE Legislative Hotline, number 693, was released Thursday, November 19^th.  This edition cover the latest release of consumer prices, then devotes major attention to Senate floor consideration of health care legislation.  Chapter and federation leadership is needed on the Medicare Premium Fairness Act.  The next scheduled Hotline is set for Friday, December 4^th, an earlier edition is quite possible.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.1 percent in October 2009 according to the Bureau of Labor and Statistics (www.bls.gov/cpi or 202/691-6994).  Released on November 18^th, the CPI-W for October is 211.549.  For purposes of calculating the next COLA (cost-of-living adjustment) the index is currently 1.9 percent below the 2008 third quarter average (due to price deflation, in the past measurement year, the 2008 third quarter average is still the point of comparison) base index of 215.5.  November consumer prices indices will be released on Wednesday, December 16, 2009.

Benefits awarded under the Federal Employees Compensation Act (FECA) to individuals who left the workforce due to work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W and payable in the following year’s month of April. October’s index is 3.3 percent higher than the December 2008 base of 204.813.

On Wednesday, November 18, the Senate Leadership released its comprehensive health care reform bill which they plan to bring to the Senate for a procedural vote to start debate, most likely on November 21.  Senate rules are likely to result in a lengthy debate that could take weeks.  Like the House-passed bill (H.R. 3962), the Senate’s legislation would allow federal employees – with the exception Members of Congress and their staff -- to keep the insurance in the system they have now.  In addition, nothing in the bill specifically impacts Federal Employees Health Benefits Program (FEHBP).  However, any comprehensive plan that changes insurance law, provider financing, taxation policy and health infrastructure, will have some ramifications on how FEHBP operates in the larger health system.  More analysis of the Senate bill will be provided to NARFE members.

An amendment offered by Senator Charles Grassley, R-IA, during the Senate Finance Committee mark up of the legislation in September to mandate that members of Congress and their staff enroll in the Exchanges was included in the Senate leadership’s legislation.  NARFE is concerned that the original version of this proposal, which would have effectively ended the FEHBP by requiring all federal workers to enroll in the Exchanges, could be offered by any Senator as an amendment during the Senate’s consideration of the leadership’s bill.  What’s more, Senator Ron Wyden, D-OR, may offer his amendment to open the FEHBP to certain non-federal civilians without separate risk pools.  For that reason, we ask all NARFE members to use either the Legislative Action Center or NARFE’s toll free access to the Capitol switchboard (1-866-220-0044) to tell your own Representative and both your Senators to “allow federal workers and retirees, like other Americans, to keep the health plan they have now.”  Use the Legislative Action Center to send an e-mail to your own congressional delegation, one Representative and two Senators: http://capwiz.com/narfe/issues/alert/?alertid=14174906) 

Despite overwhelming passage in the House, nearly two months ago, and strong White House support, the Medicare Premium Fairness Act (H.R. 3631) needed to protect all Medicare Part B beneficiaries from a premium increase in 2010, has not been considered in the Senate.  Enactment is crucial because current law fails to protect four enrollee groups in Medicare, including federal retirees who are not eligible to receive Social Security benefits.

5133 NARFE members, about a tenth of GEMS listed members, have already used the Legislative Action Center to urge Senate passage of this legislation.  Now, NARFE President Margaret L. Baptiste asks NARFE chapter and federation leaders to urge their NARFE members to press their Senators to quickly pass the Medicare Premium Fairness Act (H.R. 3631).  The NARFE Legislative Action Center features an Action Alert which allows you to send NARFE’s message to both your Senators. (The direct path to this Urgent Action Alert is http://capwiz.com/narfe/issues/alert/?alertid=14260196)

Thank you for using the Hotline.  This weekly legislative message is available to telephone callers (703/838-7780 and toll free at 1-877-217-8234), posted on NARFE's Internet site, www.narfe.org, made available to NARFE-Net Coordinators; and sent to over 50,000 GEMS e-mail addresses.  Each delivery channel is a service of NARFE, the National Active and Retired Federal Employees Association.