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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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."
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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.
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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.
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March 14, 2008
Ø1 COLA Watch.
The Consumer Price Index for the month of February jumped 0.3
percentage points over January's value.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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 Lin e
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
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