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News and Opinion Concerning Health Savings Accounts, Medical Costs and Health Care Reform

• San Francisco Chronicle: Taxpayers pick up Bush's bill. By David Lazarus. Excerpts: Democratic lawmakers in Washington say they're drafting a health care reform bill that would expand coverage for low-income kids. President Bush says he'll veto any such legislation, warning that it would lead the nation "down the path to government-run health care for every American."

  Like that would be a bad thing.

  What's particularly galling about Bush's position is that it's coming from a man who just underwent a colonoscopy performed at the taxpayer-funded, state-of-the-art medical facility at Camp David by an elite team of doctors from the taxpayer-funded National Naval Medical Center in Bethesda, Md.

  If anyone understands the benefits of government-run health care, it's the president.

  But let's not get sidetracked. Bush wasn't being entirely accurate when he derided the notion of government-run health care for every American. That might make for a fine little sound bite, especially among those who fear the specter of "socialized medicine," but it's not really what's at stake.

  Rather, advocates of health care reform are seeking government-run insurance for every American, leaving the health care part to those who know best - doctors and nurses.

  This is a crucial distinction at a time when 47 million Americans lack medical coverage and, according to researchers at Harvard University, about a third of the $2 trillion spent annually on health care in this country is squandered on bureaucratic overhead.

  "Cuba is socialized medicine," observed Dr. Kevin Grumbach, who heads the Department of Family and Community Medicine at UCSF. "The government employs all the physicians and owns all the hospitals. That's not what anyone is talking about for this country."

  Rather, the focus here is on two indisputable facts: that the United States spends about twice as much per person on health care as most other industrialized democracies, and that Americans on average do not live as long as people in countries that guarantee medical coverage to their citizens.

  "Why have all other countries figured out a way to do this?" Grumbach asked. "Why are we the only ones that are so uncivilized?"

  The United States spent an average of $6,102 per person on health care in 2004 (the latest year for which figures are available), according to the Organization for Economic Cooperation and Development.

  Canada spent $3,165 per person, France $3,159, Australia $3,120 and Britain a mere $2,508. Life expectancy in the United States was lower than in each of these other countries and infant mortality was higher. [...]

  Bush told an audience in Nashville last week that the Senate bill is "the beginning salvo of the encroachment of the federal government on the health care system." He said he'd veto any such legislation making its way to his desk.

  That's a fine how-do-you-do for a guy who had five growths removed from his colon on Saturday largely at the government's expense and had them promptly examined by government experts at the government-run National Naval Medical Center.

  Happily, the tests showed no sign of cancer. So Bush can rest easy for another few years, thanks to all that government health care.

  No one at the White House could be reached to discuss how much the president paid out of his own pocket for the colonoscopy and subsequent testing.

  Presidents typically have their own health insurance, although the first-class treatment they receive is largely defrayed by taxpayer funds. In other words, they're prime beneficiaries of government-run health care - just like in Cuba.

  In a paper found on the Web site of the Defense Department's Armed Forces Institute of Pathology ( www.afip.org ), former White House physician George Fuller outlines the mission of the taxpayer-funded White House Medical Unit.

  He writes that a primary purpose of the group is to provide "confidential, immediate and private access to preventive, routine and urgent care for the principals." This, Fuller adds, "is a 24-hour, seven-days-a-week commitment with no exceptions."

  The quality of health care is so exacting, he observes, "that the president cannot even ride an elevator in the Eisenhower Executive Office Building without a physician escort."

  According to Fuller, the president enjoys the benefits of medical and dental clinics in the White House, as well as "a fully equipped and supplied outpatient clinic" at Camp David, where Bush's colon was explored.

  He says the White House Medical Unit also "keeps a unique and extensive library of medical facilities throughout the world" to provide for the president's health care needs during overseas travel.

  All in all, Bush is the last person with a right to complain about government-run health care for every American. We should all be so lucky.

• Financial World: As costs rise, more CFOs look to shift health-care burden to employees. By Matthew Scott. Excerpts: Financial executives are worried about the rising cost of health care and many are implementing measures that will shift more of the burden of increasing costs to workers. A new survey by the American Institute of Certified Public Accountants found that 91% of financial executives polled had concerns about rising health-care costs, and 81% reported employee health-care costs at their companies had increased anywhere from 5% to 20% in the past year. [...]

  In an effort to contain soaring health-care costs, most organizations are trying a variety of strategies, including offering high-deductible, consumer-driven plans, changing providers or reducing company contributions,” said Mr. Morrow. These measures shift some costs to employees, but in most cases, maintains the level of benefits.

• New York Times editorial: Vetoing Children’s Health. Excerpts: President Bush is threatening to veto any substantial increase in spending for a highly successful children’s health program on the bizarre theory that expanding it would be the “beginning salvo” in establishing a government-run health care system. His shortsighted ideological opposition would leave millions of children without health insurance at a time when medical costs are soaring. [...]

  President Bush is threatening to veto any substantial increase in spending for a highly successful children’s health program on the bizarre theory that expanding it would be the “beginning salvo” in establishing a government-run health care system. His shortsighted ideological opposition would leave millions of children without health insurance at a time when medical costs are soaring.

• Physicians for a National Health Program: Will single-payer buzz from "SiCKO" last? Supporters hope Michael Moore’s latest movie will sway public opinion. The AMA and others counter that government-run health care isn’t the right solution. By Doug Trapp. Excerpts: Michael Moore’s latest film, “SiCKO,” has energized single-payer supporters and drawn attention to their cause. But what, if any, long-term effect the movie will have on the national debate on universal health care system reform is up for debate. [...]

  In the film, Moore unapologetically targets the profits and influence of the health insurance and drug industries while questioning the profit motive of the American public-private system. He challenges the country’s inability to provide basic, affordable health care to everyone the way other countries do. The movie mentions the American Medical Association as a longstanding opponent to socialized medicine. [...]

  Moore, at the Capitol Hill news event, said there are many myths about other countries’ health care systems. “Yes, they have their flaws. All human systems do. But ask a Canadian if they would trade their national health care card for your HMO card. You won’t find a Canadian willing to do that. Or a Brit or anyone from Ireland or from France.”

• Yahoo! message board post:"Re: NYT: Retirees’ Health Costs Loom Over U.A.W. Talks" by Kathi Cooper. Full excerpt: Well of course our health care system costs GM/Ford $1,000 for each vehicle. We don't have universal health care like Japan does and the cost of health care in America falls upon the shoulders of corporations. As long as corporations pay for our medical, they have to pass the cost on to the consumer. (unlike ALL other countries with universal health coverage).

  What makes me mad is that GM/Ford want to solve their 'problem' by taking away our medical benefits. That would make us a country with less medical coverage than we already have. Instead, we should switch to a universal care system, like the rest of the world. We are the ONLY big country in the WORLD without it.

  Can we do that? Or will our benefits continue to erode 'in the spirit of global competition'?

  We need a level playing field, where the cost of the product is not hindered by health benefits to the employees. As long as corporations are in charge of our medical, we will lose.

  I'm voting for the candidate that endorses universal health coverage. Why? I'm sick and tired of leaving my health care in the hands of billionaire CEO's and greedy corporations.

  Global competition is here. We must make the playing field level by not 'falling' for the "$1000 cost of vehicles is health coverage so we need to reduce health coverage to remain competitive" bull. Watch out for those fallacies. See through them. Vote your conscience when the time comes.

New on the Alliance@IBM Site:

• Historic Gains in 2007 IUE-CWA/ GE Contract (PDF). Excerpts:
  • Wage package, including COLAs, delivers projected 16.1% increase for average IUE-CWA member over term of contract
  • Almost $17,000 additional pay net of increased health care contributions over four-year term of contract for average hourly employee
  • Two SERO windows with a total of 900 opportunities
  • Veterans Day holiday added
  • GE will recommend special pensioner increase
  • Nearly $4,000 average improvement under regular pension update
  • Workers could see as much as a 30% improvement from guaranteed pension tables when combined with income boosts over length of contract
  • Short-service workers gain extra week of vacation
  • 66% increase in night shift differential for short-service workers
  • Eligibility for preferential placement expanded to include layoff situations
  • 25% premium pay for service shop work performed in Mexico
• From the Job Cuts Status & Comments page (Note: There were a massive number of posts to this page during the last week. The following is a sampling of the large list of posts received by the Alliance@IBM.)
  • Comment 07/21/07: Hurray! Great Quarter! An IBM commemorative quarter with Sam's mug on it will be placed on everybody's desk or couriered to your home at your expense. If you stare at it long enough it will grow fangs and pointed ears. There is a tiny chip inside that spits out subliminal messages of how wonderful IBM is and how lucky you are to be there and for you to pray to Sam everyday for the wonderful things he does for you. Then you come to your senses and put it on a railroad track. -samsquarter-
  • Comment 07/22/07: I would also like to congratulate everyone on a great quarter! You've all worked so hard that we're going to think up more ways to make it impossible for you to get a raise next year. No need to worry about the people at the top, the share price is up and they are getting richer. More jobs going to South America soon! -Sam Palm O'Casho-
  • Comment 07/23/07: One thing to definitely keep in mind with the FHA, especially those of you who think that staying longer will result in more benefits: If you die before you pull out the first dollar out of the FHA account, your dependents will lose it all. If you die while using the FHA, your dependents get to use whatever's left of it. Use it before you die or lose it for your family. This applies no matter how you qualified for the FHA. -FHA Flower Child-
  • Comment 07/23/07: If you are eligible to retire, and you get RA'd, it's just plain stupid to volunteer to retire. Essentially you are giving up 6 months salary plus additional severance benefits (CORBA, severance medical, etc.) in exchange for"doing the right thing for the sleaze balls in management and HR". There is no loss of honor in getting an RA. There is however, those who smile as they get they 6 month severance check PLUS their retirement. -Never Be a Blue Pig RA Volunteer-
  • Comment 07/23/07: Internal sources tell me there is a big resource related announcement August 1st. I also hear another team will lose all of its contractors -Anonymous-
  • Comment 07/24/07: see a ton of vendors leaving end of August from Global Admin. -Anonymous-
  • Comment 07/25/07: Add this to the list of reduced benefits to ibm employees. Sam just released a note stating they will pay up to $500 towards employee education. They put this wonderful spin on things making it sound like they are setting up a wonderful account for each employee to help with training. No where does it say that they are getting rid of the current education plan that paid for college courses. IBM you suck! -miss understanding-
  • Comment 07/25/07: Just heard that in our area we will be loosing all our North American contractors soon (September time frame). To be replaced by off shore slugs. -TiredToTheBone-
  • Comment 07/26/07: Do I read this right? IBM is going to cut my job, so I need to retrain for some other employment where more positions are available. Like maybe from software engineer to truck driver. IBM will therefore give a 50% match on the first thousand dollars that I spend toward downgrading myself from white collar to blue. IBM then gets to claim the moral high ground for having assisted the transition. -Denim-
  • Comment 07/26/07: We just attended a 2Q meeting in RTP where our VP said that this past quarter was the best quarter we had in 6 years but we didn't meet our numbers. If this is the best quarter in 6 years, how can we not meet our numbers? I think the projection is too high on purpose by the exec. He also said that we went over in our expense. I have no idea how that happen. I buy my own office supplies at work since we don't have any. IBM prides itself in innovation. They are innovated on how to screw employees. -Anonymous-
  • Comment 07/26/07: The federal government (US) currently has a large number of positions available. www.usajobs.gov -Snakehips-
  • Comment 07/26/07: Denim- Perhaps blue collar work isn't too bad. I know I would lose my big gut. I know some "undocumented workers" that make 70k per year building fences, 6 months out of the year. So basically you trade off air conditioning for losing your gut and not having to deal with corporate BS. As these Execs get greedier and greedier they will always need someone to build bigger houses or clean their pools. Then when their companies collapse because no one in america needs computers anymore because we are all blue collar workers, they will lose their houses, etc. thus the "frugal pool boy or fence builder" can now take over for pennies on the dollar. -Anonymous-
  • Comment 07/26/07: Too bad that all the wrong people are being RA'd. I know plenty of people, with whom I work on an all-to-regular basis, whose absence would remove some roadblocks I encounter during the course of my workday. The those who are LEANed were solid contributors. -SoylentLEANisPeople-
  • Comment 07/26/07: I am currently an IBM employee at the East Fishkill site and starting on Monday July 30th, 500 employees are going to get layed off. This was right out of the mouth of a manager on the site. I along with so many of my fellow co-workers are so disgusted. Management spends most of there days hiding in their offices for fear of having to deal with all of the angry employees, and finally to Sam Palmisano, Thanks for allowing all of this to happen under your watch. You should be ashamed. You've made your millions along with all of your cronies in Armonk.

    For a company who's motto was "Respect for the Individual" you have certainly done nothing but disrespect all of your once greatest assets, Your Employees. IBM is going down the tubes and I only hope that all of the share-holders take a moment of their time to actually look at the numbers and see how IBM is manipulating them. This is another Enron in the works....... -Anonymous-

• From the General Visitor's Comment page:
  • Comment 07/22/07: Yes, team based were held. 1st Line managers are forced to pony up '3' performers, whether it's legit or not. "Relative Contribution" to force '3' performers are forced down every managers' throat. HR's goal is to eliminate a percentage of jobs each year (I think its 3 to 5% of an org) through UNFAIR PERFORMANCE MANAGEMENT. It's another way to screw the employee. When did IBM become some employee hostile? -Color me sick of this sh*t.-
  • Comment 07/23/07: Team-based decision making is a method used for over 12 years. It allows the blame for unjustly firing people to be spread into a team, to avoid personal guilt and repercussions. As the unjust victim, you'll blame the team, not the management. It is also an excellent anti-union technique, because it puts employees at odds with their unionizable colleagues. Another nice touch of psychology from your friendly HR partner -Ex-Manager-
  • Comment 07/23/07: To "Color me sick..." who stated "HR's goal is to eliminate a percentage of jobs each year..." and others. Please stop blaming HR, folks. Think about it: HR just executes what the finance guys tell them. Most HR people hate layoffs and prefer to work for growing businesses with happy employees. -Not HR-
  • Comment 07/23/07: IBM continues no education budget for Americans per an email received today saying no discretionary budget for 3rd quarter. Probably will go to year end! We hear colleagues in South America and elsewhere overseas do get education paid for. So we Americans are getting screwed. The same email said that recruitment for hot skills should continue but prudent judgment is to be used in the management of recruiting expense. So they spend money to bring in NEW people with hot skills but will not provide training for existing Americans FOR A YEAR???? Please explain Sam and Randy ! The email was signed by: Rick Genovese Global Business Services General Manager Americas- Application Services -Anonymous-
  • Comment 07/24/07: I stand corrected "Not HR", you're right. HR just manages what is dictated to them. Most HR folks I've worked with are good people. The responsibility for this mess falls squarely on the shoulders of the TOP DOG: Sam P. -Color me sick-
  • Comment 07/25/07: "RE: IBM continues no education budget for Americans" Oh they continue it .. but effective today - it appears IBM has delivered the message 'you can F^$*(%* pay for it yourself.' http://www.iht.com/articles/2007/07/25/technology/train.php?page=1 -BlueBlows-
  • Comment 07/25/07: RA'ed with last day at IBM of 6/30. $0.00. Job interview for a new position that afternoon. $5.62 for lunch. Starting the new job on 7/15 making $20K/year more... Priceless. Thanks for R/A'ing me IBM. You got me off my ass and into a better position. -Fubar-
  • Comment 07/25/07: So IBM is now forcing us to pay for our own education. The $1000 account is still not pre-tax dollars until any law changes. And so IBM kicks in $500? What will $500 do for you? One 3-day course is more than this total. They also require you to fill out and implement a development plan, so they will FORCE YOU to pay much more to keep those planned skills up-to-date and to acquire new skills. Think about that. Your skill plan, in order to get your next seat in IBM might require you update 3 skills you now have, and a new skill or two to advance to the next level. You have to do that. At your expense. WOW. -Anonymous-
  • Comment 07/25/07: The critical question related to this announcement is if it replaces the ALAP and DWSP programs. If it does, then it's very likely that there will be no more advanced degrees earned by working IBMers. Here's the math (if the ALAP/DWSP goes away). In-state tuition at our local university is about $500 per credit for graduate work. Taking two courses per year toward an MS costs $3000/year. You can put $1000 into the account and IBM kicks in $500. You're out $2500 per year. An MS requires about 30 credits (5 years at one course/semester), your cost is now $12,500 (was $0). IBM's cost is now $2,500 (was $15,000). I'll reserve judgment, but I can't find any reference to ALAP or DWSP on the education web pages. You can find it with the search engine, but it's not directly linked from Your Career or Your Life anymore (I'm sure it was linked from there last year).-No more continuing education?-
  • Comment 07/25/07: Wow. IBM takes away pension accounts and raises, and replaces them with this feeble 'resource action' account for use towards retraining when they kick you out the door. Interesting how they're only rolling it out in the U.S. for now. It's just corporate a**-covering for their blame the victim posture: if you lose your job to another country it's your own fault for being too stupid. The truth is if you lose your job to another country it's your own fault for not being in a developing nation where IBM can replace you for half your salary or less. -Anonymous-
  • Comment 07/25/07: I found out today after several years of my manager telling the entire dept they are free to look for other jobs, that effective today no one can transfer out of the dept anymore, after all the RA's people finding other jobs in IBM and retirements (people who waited until after the RAs, they figured might as well stick around if I get RA'd i leave with 6 months salary). Advancing my career at IBM was an option, but now my only option is to look elsewhere. I can't wait too see the look on my manager's face when i find another job and resign, with about 30 work requests lined up in my queue. Time to move onward. Even more ideally I'll hit the lottery huge and walk in and tell my manager i quit effective today. -Anonymous-
• Pension Comments page
  • Comment 07/21/07: Regarding terminating the pension plan - termination of a pension plan incurs a 50% tax of the pension funds, thus it is likely IBM or any other large company will terminate a plan unless it is a distress (as in near bankruptcy) termination, in which case the tax is 25%. However, since IBM has a recurring history of violating and stretching the pension and tax laws, the company leadership is fully capable of doing so again. -Anonymous-
  • Comment 07/22/07: Given the grain of truth to the idea that at some point a person is"hanging on until retirement", I am not sure, other than the need to work somewhere and perhaps the 25k donation to future health insurance, what advantage there is to reaching retirement, given the pension changes and IBM insurance cost to retirees. Please enlighten me if I have missed something. -significant other-
  • Comment 07/23/07: To Significant Other.... I can answer for the cash balance plan, there's actually a little discussed part of the plan that if you retire after 30 years and before age 65, that will boost the amount of annuity you can get with your cash balance. Still haven't found the formula anywhere, but have seen description of this boost....5 years and counting. And as for FHA, you have to collect it for 10 years to max it out....if it's worth having and that's still debatable. -Anonymous-
  • Comment 07/25/07: To significant Other: If I understand your situation correctly, if you make 55 and retire, you get a lovely parting gift and a letter from Sam (oh wait, Sam will be on the Riviera by then, so, Sam's follow-on) thanking you for your contributions (insert your own joke here). You also get a bump to your pension, even though pension contributions are otherwise frozen by that time. (Standard disclaimer: based on Q&A's by HR and presentations by Randy M. Actual mileage may vary.) In addition, if you have *any* reason that you will have trouble getting insurance (e.g., too tall, too heavy, etc., see "Sicko" for examples), the FHA (again, not guaranteed by law, etc., etc.), as it currently stands, will allow you to continue to get, albeit expensive, health insurance. I know a few people who are continuing at IBM precisely for this reason. Even though the IBM insurance is expensive, it is available. Otherwise, they would probably be unable to get insurance at all. -alreadyGone-
• Raise and Salary Comments
  • Comment 07/20/07: Salary = was 46k; Band Level = was band 6; Job Title = IT Specialist Years Service = 7; Hours/Week = was 50; Div Name = IGS; Location = Boulder, Colorado; Message = I was "resourced" 5/31 (after my mgmt team flew me out to NY for a week that same month, talk about a waste of money), however, it's the best thing that has happened to me in 7 years of service with big blew! Took a month off with package money, found a new job making 10k more a year about a week after starting to look and am absolutely loving it.

    For everyone left at IBM think long and hard about what you are actually achieving by staying around and doing your "bloated" projects which in my experience typically accomplish nothing each month other than continuous customer let down, creating jobs for technically ignorant long time ibm'ers, and excuses from mgmt on why your career (and salary) are stagnant. I was once told IBM is a "way" of life ... you got that right! I finally gave that life up and now after only 1-2 months in a new career am more successful than I was in over 7 years with IBM and am actually smiling while at work.

    Maybe it’s not IBM, maybe it’s simply big business and sell out CEO’s who care more about the money in their pocket than the sweat and tears put in by their dedicated (not to mention fellow American) employee’s. IBM just isn’t what it was, I agree it used to be THE place to work, something to say with pride, now it's simply comedy. Sorry to say but in my opinion a union won't do anything, the company (and its name) is garbage now. To end my rant, thanks IBM (and all of my fellow (ex)co-workers for training me only to let me go so another company can reap the benefits of IBM, now that's lean (only I leaned IBM out of my life) ;) -Anonymous-

  • Comment 07/23/07: I received a letter stating it was from the alliance. They stated they were looking into employees from the FAB lines not being paid for time while getting into and out of their garments. Any truth to this? We at the packaging end are told the same, be at your workstation at your start time. Getting into your bunny suits and getting you items from lockers several hundred feet from the lines has to be on your time. Sounds like pennies but multiple 15 minutes everyday from all those entering clean rooms and that adds up to a bunch of bucks for good ol beamer land. Come on IBM, save money by canning the fat cats, not shafting the little guys -EFK-

    Alliance reply: The Alliance received an initial complaint about this and contacted the New York State Department of labor. Having you change into bunny suits on your own time is a violation. You should be getting paid. We need affected employees to come forward so we can go through with getting the Labor Department involved. Please call Lee Conrad at the Alliance office at 607 658 9285 or e-mail at bboru11@yahoo.com

• PBC Comments
  • Comment 07/18/07: PBC "2" (or even worse)= 0% raise 2007 = you "helped" IBM make 2nd qtr. profit results that will give Sam and the rest of the executives more $$$ -not_so_fuzzy_IBM_math-

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