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The Justice Report Newsletter0412 12/23/04 8:46 AM Page 2 January 2005 TheAn Justice update from the Foundation Report for Taxpayer and Consumer Rights Rx Express # # # # President’s Message Americans Take to Rails to November’s election has led FTCR to some important lessons. Protest High Cost We live in a defining moment for our social mores and cultural values. If we don’t Prescription Drugs state our case for justice plainly, repeatedly and in identifiable terms, then the n the summer and fall of 2004, the Foundation struggles of the last two hundred years for the rule of law and social progress could for Taxpayer and Consumer Rights sponsored be lost. Itwo chartered train trips, dubbed the “Rx Basic health care will become more expensive and less available. FTCR’s role in Express,” that took seniors and other patients to advocating for affordable prescription drugs, health insurance premium regulation Canada to purchase prescription drugs at 60% and greater health coverage will become increasingly more important for the public. discounts. Holding press conferences along the route, the Rx Express riders raised public awareness The assault on the legal rights of consumers on Capitol Hill, in Sacramento and about the failure of U.S. health care policy to at the ballot box will only escalate until pro-active proposals put the attackers on the effectively address the high cost of prescription defense. drugs. In California, there’s a greater need than ever to educate the public about the gap The first Rx Express took seniors and other between Governor Schwarzenegger’s promises and his actions. ArnoldWatch.org will patients from San Diego, California up the West have an increasingly vital role. Coast to Vancouver, British Columbia. The Rx New methods of “e-advocacy” over the Internet can provide cost-effective ways to Express-East Coast traveled from Miami to organize and activate millions of people. This is an investment FTCR must make. Toronto. Below are just a few of the headlines our staff will be working to create in 2005. “I’m going to Canada to get the word out that we If you believe in our cause, please help by using the enclosed envelope to make a have to change the system,” said 76-year old tax-deductible contribution. Mildred Fruhling of Trenton, New Jersey. Best wishes, Rx Express rider June Marie Hicks of Philadelphia “would like our government to become aware of the plight of the people, not to work with the drug companies.” Jamie Court (continued on page 4) Headlines FTCR is Working to Create in 2005 Health Care Giant Blue Cross Repays $500 Million Under Taxpayer Lawsuit Bush Attack on Consumers’ Rights and Safety Defeated California Reduces Rx Drug Costs 60% ArnoldWatch.org Blamed by Schwarzenegger for Ruining His ‘Fantastic’ Image Insurers Forced to Lower Workers’ Comp Premiums Momentum Building to Repeal 30 Year Old Cap on Medical Malpractice Damages in California Voters Asked to Dock Politicians’ Jerry Flanagan and the Rx Express arrive in Canada to purchase lower cost Pay When They Refuse to Vote prescription drugs. www.consumerwatchdog.org ##########1 Newsletter0412 12/23/04 8:46 AM Page 3 Rage for Justice ‘05 Schwarzenegger’s Electricity Deregulation Plans Blocked Mark your calendar for TCR kept the heat on the Governor and Sacramento politicians and squelched FTCR’s Annual Rage for Justice Flegislation that would have sent Awards dinner on California back to the days of energy deregulation, rolling blackouts and market March 11, 2005 in Los Angeles. manipulation. These plans to revive deregulation were defeated, and Californians FTCR will be honoring longtime avoided the multi-billion dollar price tag that would have come with putting our energy actor/activist and recent Kennedy future back in the hands of unregulated Center awardee Warren Beatty, energy companies. In addition to blocking the dangerous and legal crusader Bruce Broillet, deregulation plan, FTCR pushed among others. policymakers to increase regulatory oversight of the state’s energy system. Legislation to For more information about the reregulate the state’s energy system was passed by the legislature. However, Governor event, email: Schwarzenegger, who has received huge support from the energy companies, including [email protected] a power company-funded ad campaign touting Schwarzenegger and opposing the reform bill, vetoed that proposal. RX LA Born At FTCR Town Hall n 2004, FTCR’s California Health A Few of FTCR’s 2004 Headlines IConsensus Project organized three televised town halls as part of an ongoing project to forge a consensus on health care policies providing greater access to affordable health care. More than 200 people—including patients, small business owners, nurses and physicians—attended an event co-hosted by Councilman Antonio Villaraigosa at Los Angeles City Hall. Based on the consensus reached at that meeting, Councilman Villaraigosa pledged to work with FTCR to design a Los Angeles County program to negotiate prescription drug discounts on behalf of all residents. This program, named L.A. Rx, will be the first county-based drug bulk purchasing program in the country. 2 ##########www.consumerwatchdog.org Newsletter0412 12/23/04 8:46 AM Page 5 FTCR Reveals Insurance Industry Smoking Guns in Fight Shell Prevented From Over Legal Rights Manipulating US Senate Blocks rights to full compensation in the case of Gasoline Supply, Medical Malpractice Caps medical negligence. Closing Profitable n insurance industry document Throughout the year, FTCR helped Refinery uncovered by FTCR revealed that expose the failure and injustice of ith the help of Athe nation's largest medical arbitrary limits on injured patients’ right whistleblowers, FTCR malpractice insurer, GE Medical to recover full and fair compensation. Whas exposed a series of Protective, believes that caps on FTCR’s successful challenges to medical internal documents from Shell Oil. malpractice damage verdicts and other malpractice insurance companies’ rating The documents show the company limitations on compensation for injured practices under California’s Proposition was closing its highly profitable patients do not lower physicians’ 103—saving California doctors nearly refinery in Bakersfield in order to insurance premiums. This smoking gun $50 million in two years – illustrate that artificially reduce the gasoline contradicts the public lobbying campaign the most efficient way to address high supply and drive up pump prices. by insurers to pass such caps in DC and insurance premiums for doctors is to cap The company had no plans to sell around the country on the grounds that insurance rates, not patients’ rights. the refinery, but rather intended to caps are necessary to lower premiums. FTCR’s work and information was crucial demolish the plant October 1st. The insurer was planning a 19% rate as Senators took on and defeated President Bush’s bill to limit injured FTCR’s disclosures led to media hike on Texas doctors just six months patients’ rights. scrutiny and political pressure on after the state enacted caps on medical Shell to put the facility up for sale. malpractice compensation; the company 2005 will see another push for caps In August, Shell agreed to keep claimed the caps law would have an from insurers and the Bush open the Bakersfield refinery until insignificant impact on insurance costs. administration, and FTCR will be there March 2005 to find a buyer. As of The revelations garnered national to fight it and draw attention to the need December, negotiations had not attention and helped patient rights for real insurance reform and real yielded a buyer; FTCR has urged groups in Oregon and Wyoming defeat solutions to the national epidemic of the Attorney General to police the initiatives from the medical-insurance medical negligence and malpractice. process. lobby that would have limited patients’ FTCR Launches Arnoldwatch.org Keeps Eye On “Unfair Competition Schwarzenegger Administration Watch” To Chart Impact n the day of Governor of Prop 64 Schwarzenegger’s inauguration in he passage of Prop 64 November 2003, FTCR launched means that illegal O Home | Subscribe | Donate | Get Involved | Contact Us ArnoldWatch.org to hold the Governor to his activity by polluters, ArnoldWatch Web Log: - Dec 16, 2004 - 01:45 PM T promises of sweeping the special interests /i mur jen see/ false advertisers and by: Carmen Balber companies that threaten the out of power in Sacramento. As it turns out, Sign up to receive free web logs via email Schwarzenegger has a far different definition public health, consumers and e.mer.gen.cy /i mur jen see/ n. An of “special interests” than most Californians. unexpected and sudden event that must be the environment can no longer dealt with urgently. be stopped in court by average He excludes big corporations which have Arnold really needs to work on his definitions. For the past year he has defined special citizens under California’s contributed most of the more than $30 interests as anybody that criticizes Arnold. Now he can't figure out the meaning of the word Unfair Competition Law. million the Governor has raised during his "emergency." On Friday, the Gov submitted an "emergency" regulation to change enforcement FTCR’s attorneys are working first year—that’s $72,000 per day, twice the of California's mandatory meal and break rules. The regulation would severely weaken workers' through the court system to amount raised by former Governor Gray legal right to a lunch hour. Who benefits when it's harder to enforce labor laws? Big hourly prevent big companies from Davis. employers, like Arnold-backers Target ($240,000 donor to the Gov), the Gap misapplying the initiative. Our ($197,400) and Wal-Mart ($210,000). With every fundraiser, each unsavory veto, advocates are chronicling the California law allows a governor to implement impact of the measure and and each appointment of special interest regulations on an emergency basis -- with no Arnold wants to exclude his donors from the definition of public hearing or input -- only when "a educatingspecial interests.
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