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| APRIL 2006 |
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| Senate Committee Passes Small Business Health Plans Bill |
Legislation to create more affordable health insurance options for small business was approved by the Senate Health, Education, Labor and Pensions (HELP) Committee on March 15. This is the first time the Senate has pushed such legislation forward, breaking a long time deadlock of 15 years. While similar legislation has passed the House eight times the Senate has never been in motion. The bipartisan bill, “The Health Insurance Marketplace Modernization and Affordability Act,” S.1955, will allow business and trade associations to band their members together and offer group health coverage on a national or regional basis in direct response to runaway costs that are driving far too many employers and families from comprehensive health insurance.
The National Grange supports this legislation expecting it will allow organizations like the Grange to offer standardized health insurance programs to their members across the nation the same way that large corporations and labor unions can already today. Grange members participated in writing their Senators to support the legislation right before the committee’s voting and the actions were rewarded.
A growing number of Americans do not have insurance coverage for prescription drugs and other health care services with 45 million Americans uninsured in 2003. Many of the newly uninsured are small business employees whose employers cannot afford to offer health plans to their workers. A study prepared by the Milwaukee firm of Mercer Oliver Wyman, Inc. for the National Small Business Association found that S. 1955 would reduce health insurance costs for small business by 12 percent. In today’s dollars, that would be about $1,000 per employee. It would also reduce the number of uninsured in working families by 8 percent – or approximately 1 million people.
The National Grange policy says: “The National Grange supports legislation that would allow professional associations to offer members group health insurance on a national basis thus making it more affordable.” The Grange will continue to monitor and advocate the legislation until its final congressional passage this year.
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| Costs Savings from Medicare Part D Examined |
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Bush discussing Medicare Part D in a town hall meeting in Silver Pring, MD on March 15
(White House Photo) |
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The Medicare Prescription Drug Plans (Part D) that took effect on Jan. 1 were designed to offer dependable prescription drug insurance coverage with fewer costs to everyone with Medicare. Ten weeks since the beginning of the program, over 26 million people with Medicare now have prescription drug coverage, and hundreds of thousands more are enrolling each week. The average premiums seniors pay for their prescription drug benefits are a third less than expected - just $25 per month instead of the earlier estimate of $37 per month. However, costs may vary depending on the drug plans they choose and the question of how much discounts the drug benefit program is actually offering for medication is now being examined, while at the same time discussing all procedural challenges along its early stage of implementation.
Studies released by Centers for Medicare & Medicaid Services (CMS) and Consumers Union said Medicare Part D enrollees can significantly reduce their prescription drug costs by switching from brand name treatments to generic drugs or lower-cost therapeutic equivalents. The Consumers Union study finds that beneficiaries taking five drugs who switched from brand name drugs to lower-cost alternatives could save between $2,300 and $5,000 annually and that beneficiaries who switched just one brand name medication to a lower-cost treatment could save from $350 to $800 annually. The CMS study says competition among the drug plans made deeper discounts on medications possible and much of those savings are the result of the negotiated discounts that the Medicare drug plans are able to obtain directly from pharmaceutical manufacturers. The study finds that Part D enrollees in mid-priced drug plans could reduce their drug costs by as much as 59% by switching from brand name drugs to generics, while those in the lowest-priced drug plans could reduce the costs by as much as 83% by switching from brand-names to generics and brand name therapeutic equivalents.
The Senate also voted 76-22 to approve an amendment that would authorize HHS Secretary Mike Leavitt to extend the May 15 deadline for enrolling in Part D, but would not require him to do so. The National Grange supports an extension of the Medicare Part D sign up date. Research conducted by the National Grange, using state by state sign up data released by CMS, indicates that the percentage of eligible beneficiaries living in states with the larger percentages of rural populations are significantly behind states with a greater percentage of their population living in urban areas in signing up for Medicare Part D benefits. However, President Bush has opposed the idea of a Medicare Part D sign up extension and in a recent town hall meeting in Silver Spring, Maryland, he said there should be a fixed time for people to sign up saying, “now is the time.” The Senate amendment would also allow beneficiaries to switch their plans once during 2006 without penalty.
To address the lack of sign up in rural states, the National Grange continues to conduct various Part D awareness programs. The National Grange is working in cooperation with CMS to conduct additional volunteer training programs in targeted states, in order to educate local Grange volunteers to enable them to help seniors in their local communities choose a right plan in the Medicare Part D. For more information about the Grange Part D programs call DoriAnn Gedris at1-888-447-2643 (x107) or at dgedris@nationalgrange.org
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Grange Takes Up Immigration Issues |
As immigration issues take center stage in Congress, the National Grange sent a clear message to all members of the U.S. Senate that Congress should strengthen efforts to stem the tide of illegal immigration while at the same time supporting extension and reform of legal programs for temporary guest workers to work in the agriculture sector. In a letter to Senate Majority Leader Bill Frist on March 27 that was copied to all 100 U.S. Senators, the Grange articulated its views that increased efforts are needed by the U.S. government to patrol our boarders to prevent the further illegal entry of aliens into our nation, including the assignment of military forces to assist civilian agencies in enforcing our boarder policies. The Grange letter expressed strong opposition to any general amnesty program i.e. automatic or unconditional legal residency and working status for any individuals or their dependants who have entered or remained in the United States illegally under our current law, regardless of the nationality of those illegal aliens. Furthermore, the Grange called for granting federal authorities additional authority to detain suspected illegal immigrants and/or foreign individuals with expired visas for the duration of any investigation and processing of their claims as well as during any deportation proceedings, if the immigration status of an individual is determined to be illegal.
The Grange letter also called for continuation of specific legal programs to bring temporary guest workers into the United States to meet the legitimate labor needs of the agricultural sector as well as reforms of the current temporary foreign guest worker programs to allow for expedited processing of temporary foreign guest workers to be employed in the agricultural sector. The Grange also urged the Senators to support reforming regulations governing the wages that farmers pay temporary foreign guest workers employed in agriculture to more closely reflect the actual prevailing local wage rates for agriculture work to reduce farmers financial burden.
The issue of agricultural employers’ responsibilities for unknowingly hiring undocumented workers was also addressed. The letter said: “The National Grange opposes any regulation or legislation that would hold agricultural employers responsible for checking the authenticity of documentation provided by migrant and seasonal workers at the time of their employment. Further, we oppose any tax or fine on employers that unknowingly hire illegal foreign workers. Requiring private employers to be responsible for enforcement of federal immigration law is vigilantism and places at risk the civil rights of both foreign guest workers and U.S. citizens.”
Instead of shifting the burden of immigration law enforcement to the private sector, the National Grange argued that the function of verification of the legal status of individuals is inherently a responsibility of government. The Grange urged the Senate to require the presentation of documentation of proof of citizenship and/or legal registered immigration status at any time a foreign worker, or their dependants, apply to receive government benefits or services whether at the federal, state or local level. Mandatory and appropriate notification and coordination with law enforcement and immigration officials should also be required by any government employee when there are any questions related to the authenticity of legal residency documentation presented to receive government benefits.
The Senate Judiciary Committee passed a comprehensive immigration reform bill on March 27 that includes a guest worker program for foreign workers that provides an opportunity for earned legalization. It currently awaits the full Senate’s decision which might overturn that provision because it strongly resembles amnesty.

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| National Grange Joins "Ceasefire on Health Care" |
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Chil-Sook Hwang, National Grange Leg. Research Analyst, with former Sen. John Breaux at a "Ceasefire on Health Care" forum on March 2. |
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On March 2, the National Grange participated in a national bipartisan campaign, “Ceasefire on Health Care,” which has a series of public forums to discuss how to reform the nation’s health care system. The National Grange’s position paper that calls for full implementation of Medicare Part D, more medical savings for seniors and uninsured and support for rural health care providers was made available to the event’s attendees. F ormer Senator John Breaux moderated a discussion to find bipartisan solutions to the uninsured Americans and rising health care costs with Senator Gordon Smith (R-OR) and Senator Blanche Lincoln (D-AR), both key members of the Senate Finance and Special Aging Committees.
Sen. Smith and Lincoln agreed upon the need of effective partnership between the government and private sector in health care reform. They said government’s resources and private industry’s efficiencies should be mixed up together for the best health care system they can offer. The two Senators also emphasized that as Americans live longer Washington must provide better long-term care programs. Sen. Smith called for Long-Term Care Trust Account and Sen. Lincoln supported a tax deduction for long-term care insurance premiums. Sen. Lincoln pointed out the lack of education on the importance of planning for long-term care to seniors and said, “Many seniors even don’t know that Medicare doesn’t cover long-term care.” She also favored a plan similar to the insurance program for federal employees , which has provided extensive benefit choices at affordable prices, to help low-income uninsured. The two Senators predicted, however, there would be no Congressional actions on new programs or additional spending for health care reform in this election year. 
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| Grange Media Campaign to Fight Cable Monopolies |
The National Grange is working with State Granges in California, New Jersey, Virginia and Indiana to promote open competition among video and TV providers without favoritism to cable companies. A Grange editorial asking for passage of the Video Choice Act that those four state legislatures currently consider is being sent to major newspapers in the states with State Grange Presidents signatures. The legislation will force cable TV monopolies to compete just like in every other industry. Most rural Americans get their news and entertainment from television. They need to have a fair and free choice when deciding a service provider. One of the biggest barriers to more choice is the existing local franchising process. Where franchises exist today, new entrants to the market must negotiate a separate franchise with each municipality. With more than 33,000 towns and cities across the nation, this is almost an unsolvable obstacle. The editorial said: “The lack of competition means rural services will continue to lag behind those in cities, and everyone will miss out on the benefits of competition: greater choice, improved service, and lower prices.” It also criticized that cable providers, who originally were created to provide a broadcast signal for rural families living too far from a city to receive TV, turned their interest to cities over rural areas, and lost focus on value and service. In addition, high-speed access to the Internet is vital in keeping rural Americans connected with the world. Nothing will speed the deployment of high-speed Internet networks more than offering new applications such as video services called Internet Protocol Television, or IPTV, over those networks. The same high-speed connections that can deliver thousands of on-demand movies could also deliver a wealth of broadband services that could lift the quality of life in rural communities. “Rural Americans need a choice as well as a chance to take advantage of all of the benefits of the information based economy of the 21 st Century,” the editorial concluded. 
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| Interior Secretary Gale Norton Resigns |
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Gale Norton |
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Secretary of the Interior Department Gale Norton announced on March 10 that she was leaving her position at the end of March after five-year service. Gale Norton, who was sworn in on Jan. 31, 2001, is the first woman to serve as the Secretary of the Interior. In her resignation letter to President Bush, she said: "With your support and leadership, your team at Interior has accomplished great work in the face of hurricanes, record-setting wildfires and droughts, acrimonious litigation, and expanded post 9-11 security responsibilities. The Interior Department has conserved millions of acres of public and private lands and steered the nation toward cooperative conservation by working with landowners and local groups.”
House Resources Committee Chairman Richard Pombo (R-CA) praised her in his response to her resignation that she recognized that facilitating development of federal lands was not in contradiction to the agency’s role, “stewarding our nation’s resources for future generations to enjoy.”
Secretary Norton has long been a sponsor for Arctic National Wildlife Refuge (ANWR) oil drilling that the Grange policy strongly supports. The Senate recently passed a budget resolution that would open the ANWR to oil drilling kicking off a new round of battle on the issue in Congress this year.
Press Release of the Interior Department on Norton’s Departure 
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| Grange Promotes Renewable Energy for Farmers |
The National Grange has long championed more development of renewable energy derived from America’s family farms such as biodiesel, ethanol, biomass and wind energies. The Grange recently urged the House Appropriations Subcommittee on Agriculture to restore full funding to Section 9006, the Renewable Energy System and Energy Efficiency Improvements program in the 2002 Farm Bill for fiscal year 2007 in a coalition letter. This program currently funds grants and loan guarantees to agricultural producers and rural small business for assistance with purchasing renewable energy systems and making energy efficiency improvements. The program was allocated $23 million per year in mandatory funding for fiscal years 2003-2007 but President Bush’s recent proposed budget put only $10.2 million on the program in flexible funding. This cut would be harmful to farmers, ranchers, and small rural businesses because Section 9006 program has successfully helped them reduce energy costs and make new sources of income by creating new jobs and new uses for agricultural products.
“Section 9006 is the first agricultural program to significantly increase investments in renewable energy and energy efficiency for the farm and rural business sectors, and it is already a success,” the letter said. “During its first three years, Section 9006 invested $61.8 million in 270 renewable energy projects, leveraging more than $833.7 million, according to USDA.”
The Grange also provided its members with information that the USDA’s Office of Rural Business-Cooperative Service recently opened the Section 9006 grants opportunities for fiscal year 2006. This year’s solicitation makes $11.385 million available in competitive grant funds and approximately $176.5 millionavailable in guaranteed loan authority. More details about the program can be found in a recent Grange action alert.
In addition, the Grange applauds the Senate’s introduction of a biodiesel tax incentive extension bill. On March 15, Senate Finance Committee Chairman Chuck Grassley (R-IA) and Ranking Member Max Baucus (D-MT) introduced legislation to extend the biodiesel tax incentive. The Grassley-Baucus bill, S. 2401, extends popular alternative energy tax incentives, such as the biodiesel excise and income tax incentive for biodiesel and biodiesel blends. It also gives a one-year extension until 2010 to a tax credit for the cost of installing pumps that offer a 20 percent blend of biodiesel (B20).  |
| Bush Administration Responds to the Grange's Blueprint for Rural America |
| Assistant Secretary for Economic Policy in the Treasury Department Mark J. Warshawsky sent a letter to National Grange President Bill Steel on behalf of Treasury Secretary John Snow and President Bush to respond to the Grange’s five-point priority issue plan, Blueprint for Rural America 2006.
The letter focused on how the Administration is working on health care. The letter says: “(The President’s 2007 budget) proposals include full income and payroll tax deductibility for Health Savings Accounts (HSAs) and HSA-qualified health plans regardless of whether the employer or individual finances them; a tax credit to help low-income individuals purchase health insurance in the nongroup market; and expansions of Association Health Plans.” Warshawsky also said he believes that the President’s goal of providing every American an electronic health record (EHR) in 10 years will particularly benefit rural Americans, because EHRs will greatly improve communication capabilities between geographically disparate health care providers. 
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| A Huge Success of the State Grange Legislative Days |
March was full of extremely successful State Grange Legislative Days. Ohio, Colorado, and Vermont State Grange held their annual legislative gatherings and each event offered a variety of lawmaking experiences.
On March 11, the Ohio State Grange held its 48 th annual Legislative Day in Zanesville. The theme for the Legislative Day was “Grassroots Legislation: How To and Its Effects.” Sixty participants started out the day’s agenda with a quick course in the National Grange Grassroots Training Manual and participated with questions and comments. All attendees were supplied with a hard copy of the Manual to follow along with the power-point presentation and to use in their home Granges. Key note speakers included the Legislative Liaison with the Agriculture Department Cory Noonan and Agriculture Committee Chairman Rep. James Aslanides. The day finished up with an overview of Legislative Activities of the Ohio State Grange and a report on the Ohio resolutions that went to National Grange Convention.
In the Colorado State Grange Legislative Workshop on March 16, thirteen Grangers went to the State Capitol in Denver and watched the floor activities in the each chamber. Former Agriculture Committee Chairman Rep. Diane Hoppe has introduced the group to the Representatives and she had time to speak to the Grangers in the Gallery of the House. She spoke at length concerning the complicated Colorado water laws which have been subjects of bills for the last few years driven by the drought that has plagued Colorado for several years. She shared with the group her frustration as a rural legislator that urban legislators do not realize how much their actions on agriculture, natural resources and water issues tremendously affect rural citizens daily lives. “I want to listen to the voice of organizations like the Grange before a bill is introduced and we can work as a same team,” the legislator said. After lunch with remarks by Senator Lewis Entz and Representative Mary Hodge and a presentation by National Grange Legislative Research Analyst Chil-Sook Hwang on the National Grange legislative issues and programs, the group went back to the State Capitol to attend a committee hearing of their choice. The event ended with a reception at the Victory Grange Hall.
In Vermont on March 23, fifty five Grangers enjoyed their Legislative Day by visiting the State Capitol in Montpelier and attending a luncheon with statewide officials. The State Capitol visit program included attending the opening of the daily session of the House of Representatives as well as introductions of many Grangers by their VT Representatives on the floor of the House, a tour of the capitol building, visiting individual legislative committees and distribution of the VT State Grange and National Grange 2006 Legislative Policy books to the state legislators. At a luncheon in the Capitol Plaza Hotel, Governor James Douglas, Lt. Governor Brian Dubie, State Treasurer Jeb Spaulding, Commissioner of Agriculture Steve Kerr and nearly one third of state legislators sat with the group. Governor Douglas thanked the Grange members for their participation in the political process and signed a proclamation designating April as Grange Month in Vermont. Lt. Governor Dubie spoke about the importance of agriculture to the history and culture of Vermont and also touched upon the need for eligible Vermonters to sign up for the national Medicare Part D Prescription Drug program prior to the sign up deadline of May 15. In addition, National Grange Legislative Director Leroy Watson gave an outline of the National Grange legislative activities to the group. VT State Grange Legislative Director Jim Ballard closed the event by expressing his excitement over the high turnout of Grangers and legislators. 
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| More Variety Added to Fly-In |
The 2006 Legislative Fly-In scheduled on May 22-23, in Washington DC will feature another exciting program – a visit to an exhibition of the works of “American Gothic” painter Grant Woods at the Renwick Gallery. The event will also have former U.S. Secretary of Health and Human Services Tommy Thompson as a key note speaker. Other highlights of the event include a luncheon in the U.S. Capitol, individual meetings with Members of Congress, and a tour of the Pentagon. Congratulations on six Grangers who have been selected for the Potomac Grange #1 Rural Leadership Project scholarship. For any inquiries on this event, please contact Peter Banks at 1-888-447-2643 ext. 105 or pbanks@nationalgrange.org
Upcoming State Grange Legislative Days |
| April 3rd |
Pennsylvania Legislative Day in Camp Hill, PA |
| April 3rd - 4th |
North Carolina Legislative Day in Washington, D.C |
| April 19th |
Michigan Legislative Day in Lansin, MI |
| June 15th |
New Jersey Legislative Day in Trenton, NJ |
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Managing Editor, Chil-Sook Hwang
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