ParfumGigi@aol.com

The $47 Million Retiree Sellout

How White House/GOP donors bought a Medicare bill that lets them cut health benefits

May 14, 2004

On Oct. 29, 2003, President Bush reassured seniors that "corporations have no intention to what they call dump retirees" from their existing drug coverage after the Medicare bill passed. But according to the Wall Street Journal, the White House and its allies in Congress added "a little-noticed provision" to the law which rewards companies with a tax subsidy even if they reduce retirees' existing drug coverage. In effect, the provision creates a financial incentive to reduce retiree benefits.

The Wall Street Journal notes that the provision was pushed primarily by a group called the "Employers' Coalition on Medicare" – an organization made up of corporations that have given President Bush and the RNC more than $47 million since 2000. These same corporations stand to profit from the provision. And it appears at least 10 of them (representing tens of thousands of workers) are have either tried in the past or are trying to slash retiree benefits. These 10 companies, which include 3M, AT&T, Bank of America, DaimlerChrysler, GM, IBM, and Verizon, have alone given more than $17 million. Here is the breakdown of the contributions given to President Bush and his allies in Congress by all of the members of the "Employers Coalition" – contributions that no doubt helped buy this provision. For the official list of members of the "Coalition" please see their Web site at www.employersandmedicare.org.

$17 Million From Companies Actively Cutting Retiree Benefits

These 10 companies, which are members of the "Employers Coalition on Medicare," have tried to seriously reduce health/drug benefits for their retirees. And because of their campaign contributions to the White House/Congress, they new Medicare bill insures they will now receive tax subsidies even as they continue to reduce those benefits.

3M Total Contributions: $347,305

3M Company hard money contributions to Bush since 2000: $9,250

3M Company soft money contributions to RNC since 2000: $165,305

3M Company PAC money contributions to Republicans since 2000: $172,750

3M Reducing Employee/Retiree Health Benefits: According to the Austin Business Journal, Austin's 3M is now requiring employees and retirees to "shoulder more of the burden" for health care/drug benefits with its public relations manager admitting "we're asking them to pay more." [Source: Austin Business Journal, 11/29/02]

AT&T Total Contributions: $4,660,815

AT&T hard money contributions to Bush since 2000: N/A

AT&T soft money contributions to RNC since 2000: $4,141,772

AT&T PAC money contributions to Republicans since 2000: $519,043

AT&T Reducing Employee/Retiree Health Benefits: AT&T informed its retirees that current "company-paid health insurance benefits guaranteed to retirees were being canceled" and that any new coverage would cost far more. [Source: Baltimore Sun, 2/23/04]

Bank of America Total Contributions: $1,261,823

Bank of America hard money contributions to Bush since 2000: $88,100

Bank of America soft money contributions to RNC since 2000: $181,655

Bank of America PAC money contributions to Republicans since 2000: $992,068

Bank of America Reducing Employee/Retiree Health Benefits: "At Bank of America Corp., the liability for retiree health benefits rose by $69 million, to $1.1 billion, in 2003. But federal filings show that what the bank actually spent for these benefits in 2003 declined to $63 million from $84 million the year before, a 25% drop. Retirees' portion rose 27% to $62 million." [Source: Wall Street Journal, 3/22/04]

DaimlerChrysler Total Contributions: $919,421

DaimlerChrysler hard money contributions to Bush since 2000: $2,250

DaimlerChrysler soft money contributions to RNC since 2000: $141,091

DaimlerChrysler PAC contributions to Republicans since 2000: $776,080

DaimlerChrysler Reducing Employee/Retiree Health Benefits: DaimlerChrysler is currently engaging in "efforts to increase employees' contributions and cut costs." [Source: AP, 3/18/04]

General Motors Corporation Total Contributions: $760,060

General Motors Corporation hard money contributions to Bush since 2000: $92,050

General Motors Corporation soft money contributions to RNC since 2000: $95,260

General Motors Corporation PAC contributions to Republicans since 2000: $572,750

General Motors Reducing Employee/Retiree Health Benefits: "Automakers such as General Motors Corp. are making retirees pick up more of the tab" for health/drug coverage that they were promised. [Source: Philadelphia Inquirer, 1/15/04]

IBM Total Contributions: $25,083

IBM hard money contributions to Bush since 2000: $25,083

IBM soft money contributions to RNC since 2000: $0

IBM PAC contributions to Republicans since 2000: $0

IBM Reducing Employee/Retiree Health Benefits: "IBM retirees as a group saw their health-care premiums rise nearly 29 percent in 2003, on the heels of a 67 percent-plus increase in 2002. For IBM, with its caps in place, spending on retiree health care declined nearly 5 percent, after a drop of 18 percent the year before. The company confirmed that retirees' spending has risen as its own has fallen." [Source: Wall Street Journal, 3/22/04]

Motorola Total Contributions: $635,764

Motorola hard money contributions to Bush since 2000: $11,500

Motorola soft money contributions to RNC since 2000: $305,839

Motorola PAC contributions to Republicans since 2000: $318,425

Motorola Reducing Employee/Retiree Health Benefits: "Companies including Motorola Inc. have stopped covering new retirees." [Source: Philadelphia Inquirer, 1/15/04]

SBC Communications Total Contributions: $4,087,981

SBC Communications hard money contributions to Bush since 2000: $9,450

SBC Communications soft money contributions to RNC since 2000: $1,762,206

SBC Communications PAC money to Republicans since 2000: $2,316,325

SBC Reducing Employee/Retiree Health Benefits: In March, 2004, SBC announced it "will begin charging retirees monthly premiums and higher fees for using medical care…The plan will save SBC $300 million to $600 million annually. Then, in May of 2004, executives at SBC "divulged plans to force 90,000 retirees and their families nationwide to pay significantly more for health care insurance." [Sources: Wichita Eagle 3/20/04; San Francisco Chronicle, 5/10/04]

Sears, Roebuck and Co. Total Contributions: $898,987

Sears, Roebuck and Co. hard money contributions to Bush since 2000: $21,450

Sears, Roebuck and Co. soft money contributions to RNC since 2000: $594,737

Sears, Roebuck and Co. PAC money to Republicans since 2000: $282,800

Sears Reducing Employee/Retiree Health Benefits: "Sears is eliminating company-subsidized medical insurance for employees after retirement. Employees under 40 will have access to medical benefits at group rates when they retire but the company will no longer provide a subsidy. Employees who are 40 and older will continue to receive subsidized medical benefits at retirement, but the subsidy will be capped at 2004 levels." [Source: HR Focus, 4/2004]

Verizon Total Contributions: $3,882,181

Verizon hard money contributions to Bush since 2000: $65,900

Verizon soft money contributions to RNC since 2000: $2,100,923

Verizon PAC money to Republicans since 2000: $1,715,358

Verizon Reducing Employee/Retiree Health Benefits: "Verizon Communications stated it expects its obligation for post-retirement benefits to fall by $1.3 billion as a result of the new Medicare prescription drug benefit….Verizon is relieved of liability for promises to pay benefits for retirees now that liability shifts to the federal government and the taxpayers. A corporation improves its bottom line, but at the expense of the taxpayer and to the detriment of retirees." [Source: Allentown Morning Call, 3/24/04]

Other 'Coalition' Members Contributions

Aluminum Total Contributions: $4,000

Aluminum Association hard money contributions to Bush since 2000: $0

Aluminum Association soft money contributions to RNC since 2000: $4,000

Aluminum Association PAC money contributions to Republicans since 2000: $0

American Benefits Council Total Contributions: $40,456

American Benefits Council hard money contributions to Bush since 2000: $0

American Benefits Council soft money contributions to RNC since 2000: $0

American Benefits Council PAC money contributions to Republicans since 2000: $40,456

American Chemistry Council Totally Contributions: $956,021

American Chemistry Council hard money contributions to Bush since 2000: $2,000

American Chemistry Council soft money contributions to RNC since 2000: $672,550

American Chemistry Council PAC money contributions to Republicans since 2000: $281,471

The Business Roundtable Total Contributions: $0

The Business Roundtable hard money contributions to Bush since 2000: $0

The Business Roundtable soft money contributions to RNC since 2000: $0

The Business Roundtable PAC money contributions to Republicans since 2000: $0

Cargill Total Contributions: $415,300

Cargill, Incorporated hard money contributions to Bush since 2000: $69,100

Cargill, Incorporated soft money contributions to RNC since 2000: $1,700

Cargill, Incorporated PAC money contributions to Republicans since 2000: $344,500

Case New Holland, Inc. Total Contributions: $308,580

Case New Holland Inc. hard money contributions to Bush since 2000: $6,000

Case New Holland Inc. soft money contributions to RNC since 2000: $198,080

Case New Holland Inc. PAC money contributions to Republicans since 2000: $104,500

Caterpillar Inc. Total Contributions: $1,052,750

Caterpillar Inc. hard money contributions to Bush since 2000: $8,250

Caterpillar Inc. soft money contributions to RNC since 2000: $510,000

Caterpillar Inc. PAC contributions to Republicans since 2000: $534,500

Coors Brewing Company Total Contributions: $413,650

Coors Brewing Company hard money contributions to Bush since 2000: $14,000

Coors Brewing Company soft money contributions to RNC since 2000: $230,900

Coors Brewing Company PAC contributions to Republicans since 2000: $168,750

Corporate Health Care Coalition Total Contributions: $0

Corporate Health Care Coalition hard money contributions to Bush since 2000: $0

Corporate Health Care Coalition soft money contributions to RNC since 2000: $0

Corporate Health Care Coalition PAC contributions to Republicans since 2000: $0

Cummins Inc. Total Contributions: $24,000

Cummins Inc. hard money contributions to Bush since 2000: $0

Cummins Inc. soft money contributions to RNC since 2000: $500

Cummins Inc. PAC contributions to Republicans since 2000: $23,500

Deere & Company Total Contributions: $714,500

Deere & Company hard money contributions to Bush since 2000: $11,500

Deere & Company soft money contributions to RNC since 2000: $255,250

Deere & Company PAC contributions to Republicans since 2000: $447,750

Delphi Corporation Total Contributions: $95,400

Delphi Corporation hard money contributions to Bush since 2000: $13,000

Delphi Corporation soft money contributions to RNC since 2000: $0

Delphi Corporation PAC contributions to Republicans since 2000: $82,400

The Dow Chemical Company Total Contributions: $968,379

The Dow Chemical Company hard money contributions to Bush since 2000: $23,200

The Dow Chemical Company soft money contributions to RNC since 2000: $631,354

The Dow Chemical Company PAC contributions to Republicans since 2000: $313,825

Eastman Kodak Company Total Contributions: $401,044

Eastman Kodak Company hard money contributions to Bush since 2000: $2,000

Eastman Kodak Company soft money contributions to RNC since 2000: $239,741

Eastman Kodak Company PAC contributions to Republicans since 2000: $159,303

EDS Total Contributions: $715,852

EDS hard money contributions to Bush since 2000: $22,250

EDS soft money contributions to RNC since 2000: $368,512

EDS PAC contributions to Republicans since 2000: $325,090

Employer Health Care Alliance Cooperative Total Contributions: $0

Employer Health Care Alliance Cooperative hard money contributions to Bush since 2000: $0

Employer Health Care Alliance Cooperative soft money contributions to RNC since 2000: $0

Employer Health Care Alliance PAC contributions to Republicans since 2000: $0

ERISA Industry Committee (ERIC) Total Contributions: $0

ERISA Industry Committee (ERIC) hard money contributions to Bush since 2000: $0

ERISA Industry Committee (ERIC) soft money contributions to RNC since 2000: $0

ERISA PAC contributions to Republicans since 2000: $0

Financial Executives International Total Contributions: $0

Financial Executives International hard money contributions to Bush since 2000: $0

Financial Executives International soft money contributions to RNC since 2000: $0

Financial Executives International PAC contributions to Republicans since 2000: $0

Fisher Scientific International Inc. Total Contributions: $65,000

Fisher Scientific International Inc. hard money contributions to Bush since 2000: $0

Fisher Scientific International Inc. soft money contributions to RNC since 2000: $20,000

Fisher Scientific International PAC contributions to Republicans since 2000: $45,000

Food Marketing Institute Total Contributions: $1,573,751

Food Marketing Institute hard money contributions to Bush since 2000: $2,000

Food Marketing Institute soft money contributions to RNC since 2000: $600,899

Food Marketing Institute PAC contributions to Republicans since 2000: $970,852

Ford Motor Company Total Contributions: $1,287,457

Ford Motor Company hard money contributions to Bush since 2000: $71,000

Ford Motor Company soft money contributions to RNC since 2000: $268,257

Ford Motor Company PAC contributions to Republicans since 2000: $948,200

General Dynamics Corporation Total Contributions: $2,009,315

General Dynamics Corporation hard money contributions to Bush since 2000: $6,150

General Dynamics Corporation soft money contributions to RNC since 2000: $571,704

General Dynamics Corporation PAC contributions to Republicans since 2000: $1,431,461

The Goodyear Tire & Rubber Company Total Contributions: $430,100

The Goodyear Tire & Rubber Company hard money contributions to Bush since 2000: $3,000

The Goodyear Tire & Rubber Company soft money contributions to RNC since 2000: $50,000

The Goodyear Tire & Rubber Company PAC contributions to Republicans since 2000: $377,100

Hewlett-Packard Company Total Contributions: $173,250

Hewlett-Packard Company hard money contributions to Bush since 2000: $3,750

Hewlett-Packard Company soft money contributions to RNC since 2000: $29,000

Hewlett-Packard Company PAC contributions to Republicans since 2000: $140,500

Honeywell International Total Contributions: $439,419

Honeywell International hard money contributions to Bush since 2000: $7,500

Honeywell International soft money contributions to RNC since 2000: $18,100

Honeywell International PAC contributions to Republicans since 2000: $413,819

HR Policy Association Total Contributions: $0

HR Policy Association hard money contributions to Bush since 2000: $0

HR Policy Association soft money contributions to RNC since 2000: $0

HR Policy Association PAC contributions to Republicans since 2000: $0

International Paper Company Total Contributions: $1,801,619

International Paper Company hard money contributions to Bush since 2000: $21,000

International Paper Company soft money contributions to RNC since 2000: $1,008,232

International Paper Company PAC contributions to Republicans since 2000: $772,387

Kellogg Company Total Contributions: $342,369

Kellogg Company hard money contributions to Bush since 2000: $10,750

Kellogg Company soft money contributions to RNC since 2000: $250,000

Kellogg Company PAC contributions to Republicans since 2000: $81,619

Lucent Technologies, Inc. Total Contributions: $222,415

Lucent Technologies, Inc. hard money contributions to Bush since 2000: $14,415

Lucent Technologies, Inc. soft money contributions to RNC since 2000: $27,000

Lucent Technologies, Inc. PAC contributions to Republicans since 2000: $181,000

Monsanto Total Contributions: $197,600

Monsanto hard money contributions to Bush since 2000: $10,000

Monsanto soft money contributions to RNC since 2000: $65,500

Monsanto PAC contributions to Republicans since 2000: $122,100

Motor & Equipment Manufacturers Association Total Contributions: $0

Motor & Equipment Manufacturers Association hard money contributions to Bush since 2000: $0

Motor & Equipment Manufacturers Association soft money contributions to RNC since 2000: $0

Motor & Equipment Manufacturers PAC contributions to Republicans since 2000: $0

National Association of Manufacturers Total Contributions: $46,207

National Association of Manufacturers hard money contributions to Bush since 2000: $3,000

National Association of Manufacturers soft money contributions to RNC since 2000: $43,207

National Association of Manufacturers PAC contributions to Republicans since 2000: $0

National Mining Association Total Contributions: $718,435

National Mining Association hard money contributions to Bush since 2000: $1,000

National Mining Association soft money contributions to RNC since 2000: $126,050

National Mining Association PAC contributions to Republicans since 2000: $591,385

National Retail Federation Total Contributions: $404,876

National Retail Federation hard money contributions to Bush since 2000: $0

National Retail Federation soft money contributions to RNC since 2000: $212,126

National Retail Federation PAC money to Republicans since 2000: $192,750

National Rural Electric Cooperative Association Total Contributions: $1,472,062

National Rural Electric Cooperative Association hard money contributions to Bush since 2000: $0

National Rural Electric Cooperative Association soft money contributions to RNC since 2000: $16,265

National Rural Electric Cooperative Association PAC money to Republicans since 2000: $1,455,797

Peabody Energy Co. Total Contributions: $986,693

Peabody Energy Co. hard money contributions to Bush since 2000: $0

Peabody Energy Co. soft money contributions to RNC since 2000: $760,595

Peabody Energy Co. PAC money to Republicans since 2000: $225,998

Pitney Bowes Total Contributions: $217,202

Pitney Bowes hard money contributions to Bush since 2000: $3,250

Pitney Bowes soft money contributions to RNC since 2000: $145,000

Pitney Bowes PAC money to Republicans since 2000: $68,952

PPG Industries, Inc. Total Contributions: $55,728

PPG Industries, Inc. hard money contributions to Bush since 2000: $1,500

PPG Industries, Inc. soft money contributions to RNC since 2000: $0

PPG Industries, Inc. PAC money to Republicans since 2000: $54,228

Printing Industries of America Total Contributions: $524,354

Printing Industries of America hard money contributions to Bush since 2000: $0

Printing Industries of America soft money contributions to RNC since 2000: $92,198

Printing Industries of America PAC money to Republicans since 2000: $432,156

PSEG Total Contributions: $196,900

PSEG hard money contributions to Bush since 2000: $0

PSEG soft money contributions to RNC since 2000: $40,000

PSEG PAC money to Republicans since 2000: $156,900

RAG Total Contributions: $174,400

RAG American Coal Holding, Inc. hard money contributions to Bush since 2000: $0

RAG American Coal Holding, Inc. soft money contributions to RNC since 2000: $17,500

RAG American Coal Holding, Inc. PAC money to Republicans since 2000: $156,900

Raytheon Total Contributions: $1,288,270

Raytheon hard money contributions to Bush since 2000: $15,350

Raytheon soft money contributions to RNC since 2000: $392,785

Raytheon PAC money to Republicans since 2000: $880,135

Rohm and Hass Total Contributions: $80,601

Rohm and Haas hard money contributions to Bush since 2000: $2,500

Rohm and Haas soft money contributions to RNC since 2000: $4,300

Rohm and Hass PAC money to Republicans since 2000: $73,801

Southern Company Total Contributions: $1,709,478

Southern Company hard money contributions to Bush since 2000: $44,800

Southern Company soft money contributions to RNC since 2000: $1,162,428

Southern Company PAC money to Republicans since 2000: $502,250

Sprint Total Contributions: $908,628

Sprint hard money contributions to Bush since 2000: $19,750

Sprint soft money contributions to RNC since 2000: $442,778

Sprint PAC money to Republicans since 2000: $446,100

Texas Instruments Total Contributions: $166,490

Texas Instruments hard money contributions to Bush since 2000: $25,950

Texas Instruments soft money contributions to RNC since 2000: $40,500

Texas Instruments PAC money to Republicans since 2000: $100,040

The Timken Company Total Contributions: $929,272

The Timken Company hard money contributions to Bush since 2000: $12,500

The Timken Company soft money contributions to RNC since 2000: $671,772

The Timken Company PAC money to Republicans since 2000: $245,000

UPS Total Contributions: $4,593,296

UPS hard money contributions to Bush since 2000: $14,270

UPS soft money contributions to RNC since 2000: $1,438,210

UPS PAC money to Republicans since 2000: $3,140,816

U.S. Chamber of Commerce Total Contributions: $779,487

U.S. Chamber of Commerce hard money contributions to Bush since 2000: $0

U.S. Chamber of Commerce soft money contributions to RNC since 2000: $242,754

U.S. Chamber of Commerce PAC money to Republicans since 2000: $536,733

United States Steel Corporation Total Contributions: $175,234

United States Steel Corporation hard money contributions to Bush since 2000: $0

United States Steel Corporation soft money contributions to RNC since 2000: $5,000

United States Steel Corporation PAC money to Republicans since 2000: $170,234

Washington Business Group on Health Total Contributions: $0

Washington Business Group on Health hard money contributions to Bush since 2000: $0

Washington Business Group on Health soft money contributions to RNC since 2000: $0

Washington Business Group PAC money to Republicans since 2000: $0