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Legislative Overview of the 108th Congress
Fred Nesbitt, Executive Director & Legislative Counsel
Hank Kim, Director of Governmental Relations and Counsel
Delegates received an overview of pending legislation during the first day of the conference from NCPERS’ representatives on Capitol Hill, Fred Nesbitt and Hank Kim. 
Nesbitt reviewed pending legislative issues at the national level, and noted that summaries of significant bills at the state level were included in The Washington Report. Each delegate received a copy of the comprehensive 68-page report. He also updated the members on recent activity that occurred since the report was printed.
In 2006 retired Americans will have access to a new, voluntary prescription drug program, which NCPERS staff member Hank Kim reviewed during today’s opening session. In his presentation Kim gave an overview of the Medicare Prescription Drug Act signed into law last year. The law provides a new, voluntary drug program for Medicare beneficiaries.
In reviewing the new program, Kim noted that participants will incur significant costs. Before receiving any medication a beneficiary will pay $670 for the premium and deductible costs. A beneficiary also will pay $500 of the first $2,500 in expenses, 100% of the next $ 2,850 in out-of-pocket costs, and 10% of costs over $5,100. In total, a beneficiary with drug costs of $5,100 will have out-of-pocket costs totaling $4,020.
Kim reported that NCPERS opposed the bill for three reasons:
- The bill offered no price controls—Medicare cannot use its buying power to negotiate better prices and failed to address drug importation.
- The program threatens retire health care—shifting retirees from more generous employer programs into the government program.
- The law will encourage the privatization of Medicare through HMOs. Studies indicate that Medicare insuring beneficiaries in the traditional plan will cost less than using HMOs.
Nesbitt has been NCPERS’ executive director and legislative counsel since 2000. Prior to this position he served for 12 years as director of Governmental Affairs and Political Action for the International Association of Fire Fighters, and for nine years was special assistant to the president of the National Association of Letter Carriers.
Kim joined NCPERS after serving for six years as a legislative representative for the IAFF. Previously he worked in the field of health care and for former Senator Bill Bradley of New Jersey. Kim earned his bachelor's degree at the University of Wisconsin-Madison and his law degree at Indiana University-Bloomington School of Law.
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