Amtrak & High Speed Rail (FY 2011 Funding)

Contact Congress !  1-877-668-3864 and 1-877-668-3866 (NARVRE toll-free #'s)

On July 1, The House Sub-Committee on Transportation voted $1.4 billion for High Speed Rail (down from the necessary $4 billion) and $1.7 billion for Amtrak ($833 million less than Amtrak's request).  This won't get it done and threatens the investment and work already started this year!  The funding for the highways, of course, was increased by another 10% or $4 billion above the Obama's Administration's request, (and $3.1 billion more than this year's funding).  Although this is the first step in very long process in reaching final funding, we can all help in this effort by reminding our Representatives in Congress that while Amtrak continues to see record levels of ridership, Congress must  appropriate the proper funding needed for Amtrak to lead a higher speed rail system into the future.  Responsible funding levels are absolutely necessary for Amtrak to make the necessary capital investments and to purchase new rolling stock, both integral parts of our new National Rail Plan.  Simply tell Congress to do the right thing and fully fund Amtrak and a new efficient rail service for our nation's transportation and energy needs.   Amtrak is the key to building this new higher speed rail network.  The Senate Appropriation Committee will discuss these funding levels on July 20.         

Another Health Care Myth Debunked:  No New Taxes On Health Benefits  

More lies circulating throughout the email system, especially amongst seniors, claiming that the value of any health care benefits with drive up your tax base, and cost you more in taxes.  This is, in fact, false, and another email lie.  "There's a provision that W-2's will now have a box where the employer puts the cost of a worker's or retiree's health care.  Nothing is added to income.  It is simply a for-your-information box and does nothing to change a person's income or taxes owed"...R. Burks, Sec-Trea., The Alliance for Retired Americans (ARA).

Proposed Rules Would Mandate Electronic PaymentsFor RRB Beneficiaries Still Receiving Paper Checks

Paper checks may be a thing of the past for U.S. Railroad Retirement Board (RRB) beneficiaries who still receive them, under a recent initiative announced by the Department of the Treasury.

      One part of the Treasury initiative would eliminate the vast majority of paper checks for federal benefit payments over the next 3 years. New recipients of federal benefits would receive such payments by electronic means starting March 1, 2011. Individuals already on the benefit rolls as of that date could continue to receive paper checks until March 1, 2013.

      The most common form of electronic payment for railroad retirement, social security and veterans benefits is through Direct Deposit, in which the amount is automatically transferred to an individual's bank account. The RRB currently pays approximately 90 percent of its benefits by Direct Deposit, which is greater than the government-wide average of about 85 percent.

      However, a significant number of beneficiaries who receive paper checks do not have bank accounts. As a result, the new initiative will use Treasury's Direct Express debit card to pay these individuals. The amount of the government benefits will be loaded onto the card, which can then be used like an ordinary debit card.

      Currently, individuals applying for federal benefits can obtain a waiver from electronic payment by certifying that they do not have a bank account or that it would otherwise impose a hardship. Under the Treasury proposal, agencies would still be able to grant waivers, but in very limited cases.  Examples include payment to individuals living in foreign countries, certain disaster or military situations, and non-recurring, one-time payments.

      While it only costs 10.5 cents to issue an electronic payment, it costs the government $1.03 to issue a paper check. By shifting the 136 million federal benefit checks issued in a year to electronic payment, the government will save about $125 million in processing costs and more than 2 million pounds of paper.

      In addition to cost considerations, electronic payment has the added benefit of providing a faster, more secure means of payment. Electronic payments are credited to the recipient's account the day the payment is due, and there is no opportunity for the payment to be lost in the mail, stolen or forged. The debit cards, which currently carry a MasterCard logo, also allow the holder to avoid paying fees for check-cashing services. The primary benefit of these cards is that recipients will be able to use them to purchase goods and services at the point of sale or obtain cash through a nationwide network of automated teller machines.

      Treasury published proposed regulations to implement this initiative in the Federal Register on June 17, 2010, with comments accepted until August 16, 2010. Additional information on the initiative is also available on Treasury's web site, www.godirect.gov.

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New Chief Appointed to Centers for Medicare & Medicaid Services

On Wednesday, July 7, President Obama appointed Dr. Donald M. Berwick as administrator of the Centers for Medicare & Medicaid Services (CMS). Considered a leader in efforts to improve the quality of health care, Dr. Berwick has served as a pediatrician at Harvard Community Health Plan, and has taught health policy as a professor at Harvard Medical School and the Harvard School of Public Health. As president and cofounder of the Institute for Healthcare Improvements (IHI), Dr. Berwick worked to reduce hospital-acquired infections and deaths, and released standards to improve health care quality.

Dr. Berwick's term will last only through 2011 due to his appointment during Congressional recess, which bypassed the Senate confirmation process. The post had been vacant since October 2006.

CMS, which oversees the Medicare and Medicaid programs, plays a key role in health reform implementation.

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