LEGISLATIVE UPDATE

MARCH & APRIL 2008

April 11, 2008

Ø1 TRICARE Supplement Law Clarified. Last week, DoD issued a proposed regulation that would clarify exactly what is allowed under the 2007 law that bars employers from providing TRICARE-specific incentives not to enroll in a company’s health plan

Ø2 House Steps Up on GI Bill.  A new House bill (H.R. 5740) modeled after Senator Jim Webb's Post-9/11 GI Bill (S. 22) would greatly increase educational benefits for veterans including activated members of the National Guard and Reserve forces. Another bill, H.R. 5684, also proposes big increases to the existing Montgomery GI Bill framework.

Ø3 Recruiting Report Card.  The Army is meeting its 2008 recruiting goal so far, and has met its yearly goal for the last two years. But it’s important to take a step back and analyze what past trends could mean for Army recruiting in 2008.

April 4, 2008

Ø1 Military Will Remove Social Security Numbers from Military IDs.  The Department of Defense announced this week that it plans to remove Social Security Account Numbers (SSAN) from military identification cards by the end of 2010. Instead, the cards will display only the last four digits of the SSAN.

Ø2 MOAA Storms Hill for Troops, Survivors, Retirees.  MOAA leaders and staff members teamed up to visit almost every U.S. representative’s and senator’s office this week, urging them to oppose disproportional TRICARE fee increases, fix Survivor Benefit Plan and concurrent receipt inequities, and push for a bigger military pay raise.

Ø3 MOAA and AMA Join Forces.  MOAA’s Director of Government Relations spoke at an AMA Capitol Hill press conference on April 2, opposing the 10.6% cut in Medicare and TRICARE payments to doctors scheduled to take effect on July 1.

Ø4 Veterans’ Groups: Fix VA Problems this Year.  When asked at a joint Senate and House Committees’ on Veterans Affairs hearing this week, MOAA and other veterans’ organizations told legislators they intend to hold Congress’ feet to the fire to get the VA spending bill done before October 1.

Ø5 MOAA Honors Hill Champions. On April 1, MOAA honored several legislators, congressional staff members, and private citizens for their efforts in supporting the military community.

March 28, 2008

Ø1 New Legislation Helps Military Children. Legislation to help military children transition from different schools has been introduced in 19 states, find out if your state is one of the 19.

Ø2 Top Five Member Questions. This week, we asked MOAA’s member service representatives what kinds of questions our members are asking them most frequently. Check out the answers to the top five questions on MOAA members’ minds.

Ø3 Age-62 Widow’s Tax Is History. The age-62 Social Security offset of the military’s Survivor Benefit Plan (SBP) will officially end on April 1. Find out when SBP annuitants can expect the government to "show them the money."

March 21, 2008

Ø1 Reducing Copays Saves Everyone Money. A panel of Congressional, defense, health and beneficiary experts convened this week to discuss ways to encourage better use of preventive medical care. Such care has been proven to save money for health plans and improve quality of life for beneficiaries in the long run.

Ø2 As I See It: Dreaming Of Unfunded Military Personnel Requirements.  MOAA's Director of Government Relations would like to see service leaders push Congress on unfunded personnel needs as hard as they do on unfunded weapons needs.

March 14, 2008

Ø1 COLA Watch. The Consumer Price Index for the month of February jumped 0.3 percentage points over January's value.

Ø2 House, Senate Approve Budget Resolutions. This key document favors, but doesn't guarantee, fixes for TRICARE fees, Medicare payments, concurrent receipt and survivor benefits.

Ø3 QRMC: Count Retirement, Health Care in Compensation Standard. A new military pay study group says military people are well paid, especially when health and retirement benefits are included.

Ø4 Key Panel: No Health Fee Increases.  Leaders of a key House subcommittee stated their intention to oppose TRICARE fee increases for military beneficiaries, and expressed interest in finding ways to cut DoD costs without charging patients more.

Ø5 Veterans Panel Gets Earful from Families of Wounded.  At a hearing before the Senate Veterans' Affairs Committee, members heard from the families of wounded who said care for injured servicemembers is still confusing and fractured.

March 7, 2008

Ø1 Economic Stimulus Rebate Rules. Important information has surfaced indicating that even those who don't have taxable income will have to file with the IRS to get their rebate.

Ø2 Budget Blueprint. House - Senate budget resolutions express opposition to TRICARE fee increases but fell short of recommending how to pay the $1.2 billion price tag.

Ø3 Disability "Overhaul" Bill Introduced. A measure aimed at reforming the DoD and VA disability systems was introduced this week. The measure closely follows the recommendations of the Dole/Shalala Commission, which was established by the president in the wake of the Walter Reed scandal

Ø4 Webb Offers New GI Bill.  Sen. Jim Webb (D-VA) has re-introduced a sweeping plan to increase educational benefits for Iraq - Afghanistan veterans.

ACTIVE DUTY AND GUARD/RESERVE ISSUES

Premiums Already Paid - In Full

View this brochure to see why the administration's plan to tax military retirees for health care is unfair and unwise. (Requires Flash Player 8)

MOAA Talks TRICARE Fees With Hill Staffers

CDR John Class, USN-Ret., MOAA Deputy Director of Government Relations, conducted a special Capitol Hill briefing for House staffers on February 29 to provide MOAA's perspective on DoD's proposal to increase military health care fees.

Budget Hits Medicare Beneficiaries' Wallets

The FY2009 budget for Medicare proposes significantly higher Part B premiums for many beneficiaries and lower payments for physicians.

Civilian Rx Plans Would Beat TRICARE’s

Raising military pharmacy copays by 100% to 400%, as recommended in the FY2009 Defense budget proposal would put military pharmacy benefits among the lower half of civilian plans, according to the HayGroup 2007 Benefits Prevalence Report.

VA Budget Plusses and Minuses

The Dept. of Veterans Affairs is seeking a healthy $2.3 billion increase for the care of veterans for fiscal year 2009, but would slash funds for research into traumatic brain injuries and PTSD. And, for the fifth year in a row, the VA wants Congress to adopt income-based enrollment fees and raise drug copays for some veterans.

Current vs. Proposed TRICARE Fees

Comparison between current TRICARE fees and fees recommended by the DoD Task Force on Future of Military Health Care.

Military Health Costs – A Relative Bargain

Those who complain about the cost of military health care aren't paying attention to what's happening in the rest of America.

Medicare Part B Premium Changes

The chart below shows how much people in various income brackets will be paying for Medicare Part B in 2008 versus what they're paying this year. Those filing jointly you will need to double the income amount as well as the premium amount.

Loss of Health Care Option Could Affect 170,000 Beneficiaries

DoD is in the first stage of soliciting new bids for regional TRICARE contracts, and MOAA has expressed concern to DoD health leaders that the new contract plan could curtail coverage options for nearly 170,000 retired beneficiaries and their families.

Disability Commission Nears Finish Line

The Veterans' Disability Benefits Commission addressed more than 40 recommendations during its three-day meeting last week, touching on payments to members rated "unemployable" and considering quality-of-life issues for disability compensation.

FY 2008 Defense Authorization Bill Provisions

Health Care Cost-Shifting to Military Beneficiaries

The Coalition assumes that DoD will again propose a reduction to the defense health budget based on the assumption that Congress will approve beneficiary fee increases for FY2009 at least as large as those as outlined last year for military retirees under age 65 based upon the recommendations of the Task Force on the Future of Military Health Care.

TRICARE Under 65 Improvements

Many upgrades are underway, but more needs to be done.

Medicare Improvements

Increase Provider reimbursements and seek relief from late enrollment penalties.

FEHBP As An Option for Retirees

FEHBP as an alternative to TRICARE for uniformed services beneficiaries.

Support for Transitioning Servicemembers

MOAA supports improving services and support for separating servicemembers to ensure that they receive timely, quality care and benefits earned through their service.

Tax Exemption of Premiums for Health Insurance

Tax exemption or credit on premiums they pay for health, dental, or long-term care insurance.

Health Care Coverage for National Guard and Reserve Servicemembers

MOAA supports more robust healthcare coverage options for National Guard and Reserve servicemembers and families. This includes ensuring continuing health care coverage for Guard and Reserve and families activated in support of counter-terror or other operations.

Government Subsidy for TRICARE Retiree Dental Plan

Fight to achieve a subsidy for TRDP.

TRICARE Uniform Formulary

TRICARE prescription drug benefit to undergo changes.

RETIREE ISSUES

 

Social Security Numbers Off ID Cards

The Department of Defense announced this week that it plans to remove Social Security Account Numbers (SSAN) from all military identification cards by the end of 2010.

Undue Sacrifice

Conflicting military SBP laws cut the annuities by over a $1,000 a month (requires Flash Player 8).

Economic Stimulus Rebate Rules

More information on the economic stimulus rebate and how to apply.

CRSC Changes on the Way

Passing of the FY08 Defense Bill has opened up CRSC for those with less than 20 years of service.

Senate Hears Disability Commission Concerns

The chairman of the Veterans Disability Benefits Commission testified before the Senate Veterans' Affairs Committee, highlighting recommendations on concurrent receipt, the disability claims process, and post-traumatic stress disorder (PTSD), among other things.

VA Retro Payment Completion Delayed

It was just over a year ago when Defense Finance and Accounting Service (DFAS) and Department of Veteran Affairs (VA) first initiated "VA Retro" payments to approximately 133,000 disabled retirees who were impacted by concurrent receipt legislation and had filed their VA claim since the inception of Combat-Related Special Compensation (CRSC) in June 2003 or Concurrent Retirement and Disability Pay (CRDP) in 2004.

SBP- Show Me the Money

Ever wonder what happens to your SBP payments and how much money the government is receiving from SBP?

Baby Boom, Military Retiree Bust

As Social Security and Medicare reform come under the gun, MOAA explains why the military demographic is completely different than the baby boomers.

COLA Watch

Check out the latest on COLA.

COLAs and Military Retired Pay

Government retired pay promises must be kept, including annual cost-of-living adjustments (COLA) to prevent erosion of retirees' purchasing power by inflation.

Concurrent Receipt News

For additional information concerning this issue, visit MOAA's concurrent receipt resource page.

Concurrent Receipt of Military Retired Pay and VA Disability Compensation

Congress needs to fully eliminate the law that makes most disabled uniformed services retirees forfeit part or all of their military retired pay for VA disability compensation.

Retired Pay versus Active Duty Pay Adjustments

Retired pay and active duty pay increases are different in most years because they are based on different compensation principles.

Uniformed Services Former Spouse Protection Act Reform

The Uniformed Services Former Spouse Protection Act (USFSPA), which governs division of military retired pay in divorce cases, contains significant inequities.

Government Pension Offset (GPO)/Windfall Elimination Provision (WEP)

Significant changes to Social Security in 1977 and 1983 cut Social Security benefits of many federal (Civil Service Retirement System) retirees and state retirees who did not participate in Social Security.

1993 Social Security Tax Hike

Social Security annuitants are subject to paying federal income taxes on up to 85% of their Social Security benefits.

Older Vets Paid Too Much?

A study presented to the Veterans Disability Benefits Commission (VDBC) says VA disability payments are too low for those severely disabled at younger ages and may be too high for those disabled later in life.

Immigration Fences Out Defense Bill

While the Senate was diverted by immigration, the defense authorization bill slipped across the border into July.

Commission Decides on Survivor Benefits and Concurrent Receipt

The Veterans' Disability Benefits Commission (VDBC) met in Washington, D.C., to make recommendations on two highly debated topics: survivor benefits and concurrent receipt.

What You Can Do

Stay up-to-date on the issues and how you can help MOAA win more legislative gains for you.

MILITARY SPOUSE, FAMILY AND SURVIVOR ISSUES

Undue Sacrifice

Conflicting military SBP laws cut the annuities by over a $1,000 a month (requires Flash Player 8).

Widow’s Tax No More; Survivor Benefit Plan Fix is Final

The phase-out of the Social Security Offset for Survivor Benefit Plan (SBP) annuitants will be complete effective April 2008. All survivors will receive the full 55 percent of the elected annuity base amount covered by SBP. The increased benefit is automatic for everyone — no applications or requests are required

New Legislation Helps Military Children

Legislation to help military children transition from different schools has been introduced in 19 states, find out if your state is one of the 19.

Special Survivor Indemnity Allowance Correction

Representative Walter Jones, Jr., (R-NC) a member of the House Armed Services Committee recently introduced H.R. 5441, a bill which would extend the special survivor indemnity allowance passed in the FY2008 Defense Authorization Act to survivors of active duty military deaths.

Military Widows Win Right to Pursue Damages

The US Court of Federal Claims has ruled in favor of three Survivor Benefit Plan (SBP) annuitants who are suing the federal government As a practical matter, he went a big step further, systematically refuting every argument in the Pentagon's motion.

House Endorses In-State Tuition for Military Children

The path to higher learning for military children may become less costly thanks to action by the House of Representatives yesterday that would establish/continue in-state tuition eligibility for families of servicemembers assigned in a state - even if later reassigned

MOAA Spouse Council Shares Insights

Benefits for wounded warriors and those who care for them, in-state tuition for military spouses, and unemployment compensation for spouses who must leave their jobs on government-directed moves were just three of many topics raised at a meeting of MOAA's Currently Serving Spouse Advisory Council at MOAA headquarters this week.

Survivor Improvements Since 9/11

Here is a year by year breakdown since 2001 of various benefits and improvements you may be entitled to.

Why Shave Widows’ Benefits?

Active Duty widows still have full SBP/DIC offset.

Death Gratuity & Servicemembers Group Life Insurance

Recent increases in SGLI and the death gratuity were first included in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief of 2005.

30-Year Paid-up SBP

The FY1999 Defense Authorization Act authorized a 30-year paid-up Survivor Benefit Plan (SBP) provision. Retired SBP enrollees who have attained age 70 and paid SBP premiums for at least 30 years will be able to stop paying premiums, while retaining SBP coverage for their survivors. But instead of making it effective Oct. 1, 2003 as proposed in the legislation, Congress delayed the effective date of this change until Oct. 1, 2008.

SBP-DIC Offset for Survivors

Congress should repeal the law that reduces military Survivor Benefit Plan (SBP) annuities by the amount of any survivor benefits payable under the VA Dependency and Indemnity Compensation (DIC) program.

Eliminating the Reduction in SBP Annuities

SBP questions and answers about legislation passed in the FY 2005 Defense Authorization Act.

Military Family Support

More support is needed for families left behind during contingency operations, especially Guard and Reserve families without access to on-base support facilities.

Support for Transitioning Servicemembers

MOAA supports improving services and support for separating servicemembers to ensure that they receive timely, quality care and benefits earned through their service.

Commissary Benefit

The commissary benefit has very high compensation and retention value for the military community and must not be diluted or privatized.

Uniformed Services Former Spouse Protection Act Reform

The Uniformed Services Former Spouse Protection Act (USFSPA), which governs division of military retired pay in divorce cases, contains significant inequities.

OTHER ISSUES

Flag Anti-Desecration Amendment

Should Congress have the authority to ban the physical desecration of the Flag of the United States?

1993 Social Security Tax Hike

Social Security annuitants are subject to paying federal income taxes on up to 85% of their Social Security benefits.

Veterans Benefits Improvements

Veterans' benefits value must be maintained and adjusted periodically to accomplish their intended objectives, especially in a protracted conflict period.

Commissary Benefit

The commissary benefit has very high compensation and retention value for the military community and must not be diluted or privatized.

Arlington National Cemetery Burial Rules

The rules for interment in Arlington National Cemetery (ANC) are intended to allocate diminishing burial capacity in the cemetery to those who made the ultimate sacrifice in military service and other veterans most deserving of the honor. But confusion over the rules and the potential for abuse indicate a need to codify them in public law. The rules exist only in Army regulations and the Code of Federal Regulations.

 

SELECTED LEGISLATIVE GOALS FOR 2008

Active / Reserve Force Issues

Sustain defense budget of at least 4% of GDP to fund both people and weapons needs

Increase active duty, G/R force sizes (end strength) to match mission

Restore full military pay comparability with private sector (2.9% gap remains)

Upgrade G/R retirement/compensation to reflect "operational reserve" demands

Strengthen financial, legal, reemployment protections for mobilized G/R force

Protect funding for commissary, dependent schools and other military benefits

Raise relocation payments to cover members' costs for government-directed moves

Protect members against travel credit card interest/credit risks for late government payments

Upgrade GI Bill benefits to cover 4-year public college costs

Restore equitable G/R GI Bill benefits

Health Care Issues

Fully fund the Defense Health Program

Ensure proper DoD and VA care for/outreach to wounded warriors and families

Protect against benefit cuts/avoid disproportional cost-shifting to beneficiaries

Upgrade TRICARE to attract more providers and improve beneficiary access

Fix Medicare/TRICARE payment rate formula to promote provider participation

Ensure a broad TRICARE pharmacy formulary

Improve seamless transition between the Defense and VA health care/benefits systems

Provide full funding for veterans enrolled in the VA health care system

Authorize option to subsidize retention of reservists' civilian family health insurance

Retirement/Survivor Issues

Preserve full-inflation cost-of-living adjustments (COLAs)

Eliminate the Dependency and Indemnity Compensation (DIC) deduction from SBP

Authorize full concurrent receipt of military retired pay and VA disability compensation

Restore VA survivor annuities for qualifying widows who remarry after age 55

Oppose military benefit changes that are inconsistent with service career sacrifices

Expand permanent ID card eligibility for elderly / disabled beneficiaries

Reform the Uniformed Services Former Spouse Protection Act (USFSPA)

Authorize survivors to retain the deceased sponsor's full final-month retired pay

Implement a more equitable military disability retirement system

Veterans, Family, Other Issues

Improve quality, efficiency, and timeliness of VA claims-processing system

Authorize pre-tax payment of health, dental and long-term care premiums

Authorize currently serving families to use pre-tax health/dependent care programs

Provide incentives for employers/government contractors to hire military spouses

Authorize compensation/support for family member caregivers of severely injured

Win congressional approval of Flag anti-desecration amendment

Reduce Social Security penalties for certain civil service and state retirees/survivors

Prevent disproportional Social Security/Medicare penalties for any population segment

SELECTED LEGISLATIVE GAINS FOR 2007

Health Care Issues

Ø Ban TRICARE fee/pharmacy co-pay increases for FY2008

Ø Require comprehensive plan for care, management and transition of wounded members, and plans for PTSD and TBI treatment and prevention

Ø Establish joint electronic health records, seamless transition plan, and single separation physical for disabled service members transitioning between DoD and VA

Ø Establish joint office to implement DoD/VA electronic health record

Ø Review all post 9/11 disability separations for retirement reconsideration

Ø Require DoD to include all unfitting conditions in disability retirement ratings

Ø Allow three years of active-duty-level health care for disability retirees/families

Ø Bar outsourcing of military medical positions

Retirement/Survivor Issues

Ø 2.3% retired pay/SBP COLA

Ø Raise minimum SBP annuity to 55% of covered retired pay (as of 1 Apr 08)

Ø Establish $50 per month allowance to survivors of service-connected deaths for FY09 (to increase by $10 each year until $100 in FY14)

Ø Expand CRSC eligibility to disability retirees with less than 20 years of service

Ø Require single notice of SBP recoupment amount for DIC widows

Ø Reduce reserve retirement age 3 months for each 90 days on active duty (prospective)

Ø Allow up to 130 (vs. 90) annual drill points creditable for Reserve retirement

Ø Full concurrent receipt for those rated "unemployable" eff. Jan 05 (payable Oct 08)

Active/Reserve Force Issues

Ø 3.5% military pay raise as of 1 Jan 08

Ø Increase force levels for active duty Army/USMC and Army/Air National Guard

Ø Authorize DFAS to make mid-month contributions to Thrift Savings Plan

Ø Reimburse up to $300 in drill-travel expenses for short specialties/units or relocated units

Ø Authorize Selected Reserve members 10 years after separation to use MGIB benefits earned from active duty service

Ø Allow carryover of 75 (vs. 60) days accumulated leave (expires Dec. 31, 2010)

Military Family / Veterans / Other Issues

Ø Allow family members of mobilized personnel to use family medical leave

Ø Authorize Military Family Readiness Council, with member, spouse, assn participation

Ø Bar courts from vacating child custody agreements based on member's deployment

Ø Authorize veterans the option of saluting the US Flag (vs. hand over heart)

Issues Still on the Table for 2007

Ø Reverse 9.9% Cut in 2008 Medicare and TRICARE payments to doctors