GMRC Kickoff Breakfast

San Marino Club, Troy Michigan

10:00 a.m. – 12:30 p.m. September 18, 2014

Introductions

Why Support the NRLN – Jay Kuhnie, Chrysler Retirees

Bob Tompkins, Detroit Edison Retirees

GMRC/NRLN Support GM Retirees – NRLN President Bill Kadereit

Care Giving and Long-Term Care - Melissa Spickler

Medicare and the 2014 Enrollment - George Wojdacki

Discussion1

WHO WE ARE-THE NRLN MISSION and FOCUS

THE NRLN IS THE ONLY U.S. ORGANIZATION

DEDICATED EXCLUSIVELY TO RESTORE AND

ADVANCE BOTH INCOME AND HEALTH CARE

BENEFITS FOR CURRENT & PROSPECTIVE

RETIREES THROUGH LEGISLATIVE ACTION.

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NRLN RESOURCESNRLN RETIREE SUPPORT and ADVOCACY

• 30 Formally Organized Retirees Associations and Chapters.

• 400,000 Members in our Core Retiree Associations and Chapters.

• 200 U. S. Companies Retirees Have Contributed to the NRLN.

• 2,200,000 Retirees Who Retired From These 200 Companies.

• We Have a Professional Lobby and Strategic Presence on Capitol Hill.

• 48,000 Action Network Members Lobby Congress – 2,300 Daily Website Hits.

• Grassroots Members Live In all 50 states & All Congressional Districts and we Have District Leaders in over 75% of the 435 Congressional Districts.

• Member Survey Responses are the Basis for A Well Developed Legislative Agenda and Supporting Whitepapers.

• Legislative, Pension and Regulatory Affairs Committees Maintain a Constant Vigil over Congress and Government Agencies.

NRLN’s STRENGTH COMES FROM MEMBER ACTION – No campaign donations, free lunches, dinners, booze or trips.

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CURRENT CONGRESSIONAL SITUATION / CLIMATE

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• Political Power Struggles Are Exposing Ignorance

• No Real Problem Solvers – Every Year Is Election Year

• Super PACS & Unprecedented Media Attacks Hurt

• The Cost of Staying in Office Has Compromised Most

• Campaign Contributions Create Bad Decisions

• Companies Treat Retirees like Yesterday’s Garbage

However, we are gaining ground….

2013 Federal Reserve Board Study - Released 8/7/14

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Saving for Retirement :

Most Common Savings Vehicles – 401k & IRA, 44%

Employer Pension, 18%

Resource Most Planned on for Retirement – Social Security, 45%

Those with Retirement Savings or Pension – Overall, 31%

Those 55-64, 19%!!!

Never Thought About Retirement Savings – Age 18-29, 41%

Age >60, 20%!!!

Those Planning to Keep Working – Overall, 33%

Those 45 or older, 41%!!!

Plans to Retire or Work – Retire and Not Work, 18%

Work Part Time, 18%

Work until they are Unable to, 25%!!!

2013 Federal Reserve Board Study - Released 8/7/14

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Overall Financial Status – OK, 60%; Just getting by, 25%; Struggling, 13%

Financial Status Since Recession – Worse 34%; Same, 34%; Better, 30%

Ability to Pay Medical Cost to (over a 12 month period) -

Could you cover a hypothetical emergency costing $400 without selling

something or borrowing ? Yes, 48%

Could You Pay Out-of-Pocket Major Medical Expense? – Yes, 43%

Somewhat likely 34%

Did You Pay Out of Pocket for Unexpected Care? – Yes 24% paid for

Did You Avoid Getting Needed Health Care Due to Inability to Pay?– Yes, 34%

Opinion: The recession created short term income & savings issues.

Shifting health care, life insurance & retirement income risks, a shift

to lower paying jobs and potential Medicare privatization and Social

Security risks threaten to create a chronic long-term risk for retirees.

Prescription Drug Importation Pricing Examples – Jan 2014Advair Disku Nexium Plavix Prevacid Lipitor Gleevec

AsthmaHeartburn / Acid Reflux

Blood Clotting

Heartburn / Acid Reflux

During Pregnancy Cholesterol Leukemia

2012 U.S. Retail Unit Sales (000)* 23,044 26,546 N.A. N.A. N.A. N.A.

U.S. Brand Unit Price ** $24.71 $7.17 $27.03 $7.47 $6.93 $250.00

Canadian Brand Unit Price *** $2.65 $2.54 $13.23 $3.20 $2.53 $103.33

Canadian Generic Unit Price *** $1.75 $0.70 $0.78 $1.10 $1.13 $17.83

Canadian Brand Savings ($000) $508,351 $122,908 N.A. N.A. N.A. N.A.

Canadian Brand % Savings 89.3% 64.6% 51.1% 57.2% 63.5% 58.7%

Canadian Generic Savings ($000) $529,090 $171,753 N.A. N.A. N.A. N.A.

Canadian Generic % Savings 92.9% 90.2% 97.1% 85.3% 83.7% 92.9%

* Source: www.Drugs.com

** U.S Unit prices based on St George Utah area prices at www.new.lowestnet.com

*** Canadian Unit prices based on St George Utah area prices at www.canadapharmacy.com

WHERE ARE WE TODAY ?

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Prescription Drugs

Senate S.27 : Preserve Access to Affordable Generics Act – Was Passed in 2011.

House, H.R. 3715, “The Personal Drug Importation Fairness Act of 2013”, would

give Americans access to imported, safe, lower priced prescription drugs.

Senate, S.117, and in the House, H.R.1102, - both entitled “The Medicare

Prescription Drug Price Negotiation Act” - would direct the Secretary of Health and

Human Services (HHS) to negotiate prices with pharmaceutical manufacturers.

Senate, S.214, “The Preserve Access to Affordable Generics Act”, would help put

an end to the practice of brand-name drug manufacturers using pay-for-delay.

WHERE ARE WE TODAY ?

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Protecting Medicare

S. 2087, the “Medicare Protection Act”, would amend the Congressional Budget

Act (Ryan Act) and would express the sense of the Senate that, (1) the Medicare

eligibility age should not be increased and (2) the Medicare program should not

be privatized and insurers should not be subsidized with “premium support”

(vouchers) pass-through payments.

Medicare’s 3-Day Inpatient Rule

H.R. 3531, “The Creating Access to Rehabilitation for Every Senior (CARES)

Act”. This bipartisan bill would eliminate the 3-day "inpatient" hospital stay

requirement for Medicare beneficiaries who are in need of SNF services.

H.R. 1179 and S. 569 - both entitled “The Improving Access to Medicare

Coverage Act” - would count being in a hospital for "observation" toward satisfying

the "inpatient" requirement for Medicare to cover SNF services.

WHERE ARE WE TODAY ?

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Affordable Care Act (ACA) Impact on Retirees

The Affordable Care Act (ACA) prevents insurers from denying coverage to

Americans under age 65 due to a pre-existing medical condition but not those

over 65. The NRLN is advocating the same protection for those over age 65.

The ACA requires out-of-pocket protection for retirees under 65 but not those

over 65, The NRLN is advocates out-of-pocket limits for those on Medicare.

Insurers must spend 85% of Medicare Advantage (MA) premiums on the cost of

health care. Medigap plans must spend only 65-70%. MA plans set lower

“community-rated” premiums but most Medigap plans are “age-rated” (rate

change due to age and cost change). The NRLN is advocating that Medigap

plans pay-out 85% and insurers set “community-rated” Medigap premiums.

WHERE ARE WE TODAY ?

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Retirement Income Security

Congress needs to address the Social Security funding gap through modest

increases in the payroll tax and temporarily suspending the ceiling on

earnings that can be taxed. Trust funds should be held in a “lock box” and the tax

rate and earnings ceiling lowered once the trust is actuarially funded. Install “lock

box” rules that preclude Congress from using funds – owe trust $1.8 Trillion.

A thorough analysis to determine the best CPI for COLA must be completed.

Bankruptcy Reform

S. 2418, “The Bankruptcy Fairness and Employee Benefits Protection Act”,

includes provisions in the NRLN’s white paper on Bankruptcy Reform. NRLN

members sent 17,500 Action Alerts to members of Congress supporting the

extension of HCTC to retirees ages 55 to 64. (pre-Medicare eligibility) Delphi

retirees benefited. Without full judiciary committee support on both sides of the

aisle, this bill may not stand much of a chance for passage by Congress.

NRLN NEEDS GM RETIREE’S & GMRC LEADERSHIP HELP

Auto Synergy with NCRO, Ford, DELPHI in MI and OH

6,000 Members in all 50 states – 75% Access Email

2,800 Members Live In Michigan – In 289 MI Cities

9 of 13 MI CD Leaders are GM Retirees (6 more in OH)

70 GM Retirees Sent > 30 Messages (high of 113)

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GM Retirees Have a Voice in Washington D.C.Those Under < 65 Need Lower Cost HC Plan Choices

Those Over > 65 Need Lower Cost Supplemental Plan Choices

Medicare Privatization Risk Is Growing – Must Stop Vouchers

Medicare Benefits are Being Reduced Through Regulatory Action

Social Security Fund Is a Congressional Kitty – Raided $1.8 Trillion

Congress and White House Don’t Get It – It’s the Cost Stupid!

There is More at Risk than Meets the GM Retiree’s Eye

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GMRC Retiree Leadership Is Very Important

In 2010 There were > 325 GM Clubs – Today 83 (25 in MI)

In 2010 There were 4,500 GMRA Members in all Most States… but

Today there are 6,000 Members in all 50 states –75% with Email

2,800 Members Live In Michigan – In 289 MI Cities

9 of 13 MI CD Leaders are GM Retirees (6 more in OH)

Supporting Retirees Does Not Mean Tearing Down GM!

New GMRC Leadership Will Grow Grassroots Support

and Will be the Link Between You and Washington D.C.

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NRLN Support for GMRC Leaders and Members

NRLN Retirees from 200 Companies Nationwide

NRLN Staff & National Team in Washington D.C.

U.S. Grassroots Support in 50 States & 75% of CD’s

GMRC Member Services Provided by NRLN:GMRC’s Own Webpage – www.nrln.orgEmail and Mailing ServicesUse of Phone Teleconferencing Bridge ServiceGMRC 2-Page Insert in Focus Newsletter - 3/YearCommunications & Accounting and Tax Services

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Help GMRC Leadership Help You

• Support GMRC President Larry Hice and his Team

• Join the NRLN, recommend it to your retiree friends and

ask them to pass the word to sign up at www.nrln.org

• Communicate that the NRLN agenda is not about

attacking GM, but is designed to protect earned Social

Security and Medicare benefits, access to affordable health

care and the preservation of retiree buying power and dignity

• Help to get GM Club leaders and members support to help

protect GM retiree’s Income, Health Care & DIGNITY

• Sign up to get messages at www.nrln.org. Forward

messages to Congress. Send NRLN an Annual Contribution 17