We have No Action Items today.

 

Summary of Issues

At Issue 1. we see MOAA TO CONGRESS: REPEAL “WIDOWS’ TAX”. MOAA testifies on SBP-DIC offset, With an important benefit for military survivors set to expire. Congress needs to act. (See Issue 1 below for the details. GF)

At Issue 2. we see CONGRESS CAN’T MEET DEADLINE . Short-term bill buys some time. With the government poised to shut down at midnight, lawmakers scramble to keep the lights on. (See Issue 2 below for the details. GF)

 

At Issue 3. we see GI BILL HOUSING BENEFIT CUT 

Stay abreast of impending changes. Congress levies a 50 percent housing cut for children using Post-9/11 GI Bill benefits. 

. (See Issue 3 below for the details. GF) 

Collectively We Can and Are Making a Difference

 

FOR ALL, Please feel free to pass these Weekly Legislative Updates on to your group of Veteran Friends –

don’t be concerned with possible duplications – if your friends are as concerned as we are with Veteran issues, they probably won’t mind getting this from two or more friendly sources

 

ISSUES

 

Issue 1. MOAA TO CONGRESS: REPEAL “WIDOWS’ TAX”

December 11, 2015

MOAA’s Director of Government Relations, Col. Steve Strobridge, USAF (Ret.), testified before the House Armed Services military personnel subcommittee on Wednesday about the huge financial penalty imposed on 63,000 military survivors. Current law unfairly makes military survivors forfeit part or all of their military Survivor Benefit Plan (SBP) annuity when military service caused the member’s death.

SBP provides the survivor 55 percent of the servicemember’s military retired pay. Enrollment is elected at the time of retirement, and the retired member pays 6.5 percent of retired pay as a premium.

Dependency and Indemnity Compensation (DIC) is a VA program providing a $1,254 monthly annuity for survivors of veterans whose death is ruled service-connected. SBP payments are reduced dollar-for-dollar by DIC. This is often called the “widows’ tax.” MOAA has been seeking repeal of this unfair law for decades.

Rep. Joe Wilson (R-N.C.), whose proposed legislation to end the offset (H.R. 1594) has gathered 171 bipartisan cosponsors, reiterated his determination to see an end to the offset at the hearing.

In 2008, Congress authorized a modest Special Survivor Indemnity Allowance (SSIA) for SBP-DIC widows as a first step toward phasing out the offset.

“Because of budget issues, our hope has been Congress would do that by steadily increasing the SSIA amounts,” Strobridge said. “As of FY 2017, the $310 monthly SSIA will restore about 25 percent of the offset.”

However, SSIA is set to expire Oct. 1, 2017, and Congress needs to extend the SSIA in the upcoming FY17 defense bill or survivors will forfeit the $310 monthly allowance.

“You have [our] support because you have been so effective outside of this hearing in our offices… the argument that you’ve made in my opinion is incontrovertible, and you’ve made it on its merits, on the facts,” said Rep. Beto O’Rourke (D-Tex.) to the panel.

Though committee members acknowledged the inequity of the offset, Ranking Member Susan Davis (D-Calif.) pointed out that a full repeal has a price tag approaching $7 billion, and securing funds will be difficult.

“We’re sensitive to the [funding] challenge,” said Strobridge. But he noted, “When congressional leaders recently managed to find far larger [funding] to provide Medicare premium relief to millions of wealthier beneficiaries, it’s hard to explain to SBP-DIC widows – who have suffered five-digit annual losses for decades – why their situation gets lower priority.”

Even in a budget-constrained environment, fair treatment for survivors of servicemembers who gave their lives for their counry shouldn’t be last in line for funding. Congress needs to extend and increase the SSIA in the FY17 National Defense Authorization Act.

Issue 2.  CONGRESS CAN’T MEET DEADLINE 

December 11, 2015

As negotiations over a $1.1 trillion dollar funding bill fell apart, Congress quickly scrambled to put together a short-term deal to keep the government funded until Dec. 16. Without the measure, the government faced a shutdown at midnight on Dec. 11.

Five additional days gives Congress scant time to resolve their differences on how to fund the government. The White House has said that it will sign the five-day continuing resolution (CR), but won’t support a long-term one.

Progress on a yearlong deal crumbled as lawmakers failed to resolve several divisive policy disputes.

The government has operated under a CR since Oct. 1 as part of a wider deal to increase the debt ceiling and lift defense spending caps.

Unfortunately, CRs aren’t an uncommon phenomenon. . (See Issue 3 below for the details.

MOAA hopes this short extension will finally provide Congress enough time to pass a long-term funding bill.

– See more at: http://www.moaa.org/Content/Take-Action/Top-Issues/Currently-Serving/Congress-Can-t-Meet-Deadline.aspx#sthash.aXveaSCM.dpufDecember 11, 2015

As negotiations over a $1.1 trillion dollar funding bill fell apart, Congress quickly scrambled to put together a short-term deal to keep the government funded until Dec. 16. Without the measure, the government faced a shutdown at midnight on Dec. 11.

Five additional days gives Congress scant time to resolve their differences on how to fund the government. The White House has said that it will sign the five-day continuing resolution (CR), but won’t support a long-term one.

Progress on a yearlong deal crumbled as lawmakers failed to resolve several divisive policy disputes.

The government has operated under a CR since Oct. 1 as part of a wider deal to increase the debt ceiling and lift defense spending caps.

Unfortunately, CRs aren’t an uncommon phenomenon.

(Click on wider deal and uncommon phenomenon here or above for more details. GF)

MOAA hopes this short extension will finally provide Congress enough time to pass a long-term funding bill.

(Click on  CONGRESS CAN’T MEET DEADLINE  here or above and go to the end of that page if you wish to rate content of this issue. GF)

Issue 3. GI BILL HOUSING BENEFIT CUT 

December 11, 2015

The Post-9/11 GI Bill includes a generous housing allowance that enables student veterans to pursue their education or training goals on a full-time basis in most cases.

The benefit is pegged to the active duty housing allowance for an E-5 family of four at the location of the college or training facility where the student is enrolled. Full-time online students get a set rate for their housing.

Service men and women who serve six or more years in a uniformed service and agree to reenlist or extend their service for another four years earn the right to transfer their new GI Bill entitlement to their spouses and dependent children.

But the housing allowance will be cut in half for future GI Bill transfers to children.

Senate lawmakers matched House action this week by levying a 50 percent housing cut for children with transferred Post-9/11 GI Bill benefits. The change does not apply for members who already have transferred benefits to their children.

The House version of the provision would also raise the minimum service requirement to 10 years’ service with an agreement to serve two more years to secure GI Bill transfer rights. The final Senate language was not available at the time of this writing, but is expected to be the same.

MOAA testified earlier this year that DoD and the Services should retain the authority to set the service requirements for transferring the GI Bill to match force needs, not the Veterans Affairs Committees. In the end, the House adopted a recommendation of the Military Compensation and Retirement Modernization Commission (MCRMC) to change the transfer rules.

Spouses with transferred benefits may use their GI Bill immediately. Children must be 18 years old and the sponsor must have completed at least 10 years’ service before they can access the benefit under current rules.

The housing allowance cut applies only to children with (future) transferred benefits. Spouses will receive the current rate going forward.

Transfer contracts in place prior to 180 days after the date of enactment of the legislation will be grandfathered. Transfer contracts signed after that date will be subject to the lower housing rate.

The MCRMC found that the GI Bill housing benefit often exceeded the actual cost of housing at colleges and recommended it be ended for dependents. But the Veterans Affairs Committees agreed to keep the current benefit for spouses and reduce the amount by 50 percent for children.

MOAA urges families who meet or exceed the current six year service requirement to carefully consider their options on GI Bill transferability. They will have only six months after the bill is signed into law to decide if they want to preserve the current housing rate for their kids by agreeing to serve another four years (after completing at least six) under a transfer-of-benefits reenlistment or service extension contract. (Click on transfer-of-benefits reenlistment here or above for more details. GF)

 

That’s it for today- Thanks for your help!

 

 

 

 

 

We have No Action Items today.

 

Summary of Issues

At Issue 1. we see MILITARY HEALTH CARE: WHAT’S WORKING, WHAT’S NOT. MOAA President testifies before Congress.

(Click on MILITARY HEALTH CARE: WHAT’S WORKING, WHAT’S NOT here or above to see the details and then click on the red TESTIMONY Tab at the end of the article to read the oral testimony if desired GF)

At Issue 2. we see MOAA’S TRICARE REFORM SURVEY RESULTS  We asked and you answered, Over 30,000 people provided input on their military care experiences. (See Issue 2 below for the details. GF)

 

At Issue 3. we see OFFICER PROMOTIONS UNDER FIRE. Scrutiny of “up or out” system. Congress examines defense reform, beginning with military promotions. (See Issue 3 below for the details. GF) 

Collectively We Can and Are Making a Difference

 

FOR ALL, Please feel free to pass these Weekly Legislative Updates on to your group of Veteran Friends –

don’t be concerned with possible duplications – if your friends are as concerned as we are with Veteran issues, they probably won’t mind getting this from two or more friendly sources

 

ISSUES

 

Issue 1. MILITARY HEALTH CARE: WHAT’S WORKING, WHAT’S NOT.

 

. (Click on MILITARY HEALTH CARE: WHAT’S WORKING, WHAT’S NOT here or above if you didn’t do so above to see the details on the MOAA President, Vice Adm. Norb Ryan, USN (Ret.), testimony before the House Armed Services Personnel Subcommitte this past week and access a copy of the oral testimony if desired. GF )

Issue 2.  MOAA’S TRICARE REFORM SURVEY RESULTS

December 4, 2015

As part of the FY2016 National Defense Authorization Act, the House and Senate Armed Services Committee Chairmen included language indicating that they anticipate their committees will be undertaking a reform of military health care programs as part of next year’s defense bill.

The Chairmen expressed concern that most reform efforts to date have focused on raising beneficiary fees, and that while they believe increased fees will be on the table in their reform consideration, they also want to look at the whole system from top to bottom to sustain readiness, implement efficiencies and deliver better care.

To help prepare for these discussions, MOAA developed a survey and asked for your inputs.  MOAA’s intent was to gauge beneficiaries’ experiences in accessing their health care, what they perceive as a reasonable cost for their care, and the quality of that health care received.

Over 30,000 of you responded.

Once accessed, the vast majority of survey respondents are satisfied with their health care.  Here is a summary of satisfaction ratings on several key topics:

	TRICARE for LIFE	TRICARE Standard	TRICARE Prime
Care Quality	95%	86%	81%
Ability to Pick Dr	90%	81%	62%
How Much You Pay	86%	68%	80%

 

On the ability to get routine care within the 7-day DoD timeliness standard, 20% of TRICARE Prime beneficiaries said they “rarely or never” can get care that fast – almost double the TFL and Standard responses.

Among Prime beneficiaries, those seeking care in military facilities reported much greater problems getting appointments than those seeing civilian providers.

The most consistent responses among all survey takers were on the question, “Is it reasonable to ask military beneficiaries to pay more?”  The percentage saying “definitely not” or “probably not” was 76% for TFL beneficiaries, 74% for Prime, and 78% for Standard, with all categories reporting 56-58% saying “definitely not”.

MOAA greatly appreciates everyone that participated in the survey. We used your responses to substantiate our testimony to Congress on Thursday, and your voices were heard.

Issue 3. OFFICER PROMOTIONS UNDER FIRE

December 4, 2015

Senate Armed Services Committee Chair John McCain (R-Ariz.) held a hearing this week on the current military promotion system as part of the committee’s ongoing focus on defense reform.

Congress enacted current officer promotion guidelines in the early 1980s through the Defense Officer Personnel Management Act (DOPMA) to reflect the professional development needs and requirements of the force in the post-Vietnam era.

The 1986 Goldwater/ Nichols legislation added new requirements for joint duty as a factor in promotion consideration.

In order to remain competitive in their professional military career fields, officers have had to successfully meet their individual service requirements under DOPMA as well as the joint service obligations required under the Goldwater/Nichols legislation.

McCain wants to review and make changes to a system that he says “is overly focused on schedules as compared to merit.” He echoed recent criticism that the system is too inflexible given the nation’s current and future national security requirements.

Dr. David Chu, a former Undersecretary of Defense for Personnel and Readiness, testified at the hearing. “I think fundamentally it’s not about a particular constraint, it’s about the paradigm that the defense department follows that all officers look the same,” said Chu. “We are grooming all officers to be chief of staff.”

Ranking Member Jack Reed (D-R.I.) voiced concern over the military’s current “up or out” policy, which has governed officer promotions for the last 70 years. Although he acknowledged some aspects of the system work well, he worried “[i]n some circumstances, it requires divestiture of talent at its peak.”

Witnesses cited the medical fields as examples where officers compete separately for promotion from the line ranks and are allowed to serve until later ages.  Some propose treating more fields this way, such as information systems or other technical specialties.

One issue of concern to MOAA is the past experience with longer service that caused the “up or out” provisions to be enacted in the first place.  Prior to modernizing the officer promotion system initially after WWII, top-notch officers stagnated for years at the same rank in the inter-war period, because older officers who had been passed over for promotion were not forced to leave the service-thereby “freezing” the promotion system and causing many good officers to leave the service out of frustration.

MOAA is first and foremost concerned with how potential changes might affect the overall readiness of the future all-volunteer force.  We will continue to monitor discussions on this and other aspects of military personnel reform.

 

That’s it for today- Thanks for your help!

 

 

 

We have No Action Items today.

 

And with this pre-Thanksgiving update, we will probably not have an Update on Friday 27 November

 

 

Summary of Issues

At Issue 1. we see RETIREMENT REFORM AND YOU.  Major changes coming to military retirement, Do you have all the financial information you need to make the right decision? (See Issue 1 below for the details. GF)

At Issue 2. we see HOUSE MEMBERS HOST SURVIVOR ROUNDTABLE . MOAA advances survivor agenda, MOAA met with lawmakers to untangle the complicated world of survivors’ benefits. (See Issue 2 below for the details. GF)

 

At Issue 3. we see WHAT’S THERE TO BE THANKFUL FOR?  As we approach this Thanksgiving Day holiday, there is much to be thankful for, even in this time of war and great fiscal challenges. (See Issue 3 below for the details. GF) 

Collectively We Can and Are Making a Difference

 

FOR ALL, Please feel free to pass these Weekly Legislative Updates on to your group of Veteran Friends –

don’t be concerned with possible duplications – if your friends are as concerned as we are with Veteran issues, they probably won’t mind getting this from two or more friendly sources

 

ISSUES

 

Issue 1. RETIREMENT REFORM AND YOU

November 25, 2015

Military retirement is going to look a lot different in 2018.

In order to provide up to a five percent government match to servicemembers’ federal Thrift Savings Plan (TSP) accounts, military retirement will be cut by 20 percent for new service entrants starting that year, as will their future disability retirement calculation.

The new blended retirement system comes with lots of unpredictable variables, including fund choice, return rates, member contributions, inflation, cost-of-living increases, the economy, etc.

Servicemembers will be taking on much more responsibility for managing their own retirement and need to be informed about their financial options.

If you entered the service in 2006 or later, you’ll have a choice between keeping the current retirement plan or electing the new one.

In that case, you’ll want to know all of the considerations involved, and discuss them with your peers and family.

To help servicemembers thinking about these issues, MOAA is offering a webinar on the ins and outs of the new system. We invite you, your spouse, and your fellow servicemembers to sit in on the webinar on Dec. 16 at 2 p.m. EST.

Registration is free and open to the public. Don’t miss this opportunity to start getting smart on the choices and their pros and cons. (Click on RETIREMENT REFORM AND YOU here or above. Then click on Registration at the beginning of the last sentence on the page to register for the seminar. GF )

Issue 2. HOUSE MEMBERS HOST SURVIVOR ROUNDTABLE 

November 25, 2015

House Veterans Affairs Committee ranking members Corinne Brown (D-Fla.), Tim Waltz (D-Minn.), and Raul Ruiz (D-Calif.) hosted a November 17 roundtable discussion of survivor benefits. Both DoD and VA representatives were present as well as MOAA, Gold Star Wives, The Retired Enlisted Association, the Tragedy Assistance Program for Survivors (TAPS) and others. After the two-hour meeting, Rep. Brown said she wants to continue meeting with beneficiary groups on a regular basis.

Discussion focused on the evolution of survivor benefits, consolidating VA educational assistance programs for survivors, improving VA Dependency Indemnity Compensation (DIC), and extending the DoD Special Survivor Indemnity Allowance (SSIA) for SBP-DIC survivors, which is presently set to expire in October 2017. SSIA was authorized by Congress as the first step toward eliminating the current deduction of DIC from Survivor Benefit Plan (SBP) annuities.

It was recognized that various survivor benefits evolved over a historical course, extending as far back to the pre-Civil War era, for different reasons. DIC was conceived to replace family income and partially as a reparation for the death of a veteran (1862). The precursor of the Survivor Benefit Plan was enacted in 1953 for retiring military members to ensure their surviving widows were not left penniless after a retiree’s death.

SBP as we know it today was enacted in 1972. However, SBP annuities were subject to offsets by both Social Security and VA DIC, thus reducing overall government costs.

“We all appear to be in agreement that the evolution of these benefits addressed different needs in different social eras, but that the needs of today’s survivors are often not adequately addressed by the existing and sometimes conflicting programs. The income provided is simply inadequate and often leaves survivors in poverty,” stated Col Phil Odom, Deputy Director of MOAA Government Relations.

There was consensus amongst the non-government participants that DIC should mirror what other Federal agencies pay, 55% of the veteran sponsor’s disability compensation; that the age at which eligible widows can retain DIC even if they remarry (currently 57) should be reduced to 55 (the same as all other federal survivor annuities), and that it’s critical to extend authority for the Special Survivor Indemnity Allowance (SSIA) in the coming legislative year to protect eligible widows from losing the $310 monthly rate of SSIA as of Oct 1, 2017.

Representative Brown agreed the SSIA should be extended, with the ultimate goal of repealing the unfair SBP/DIC offset. The cost of full repeal would exceed $6 billion.

The group strongly recommended that the Veterans Affairs Committee consider consolidating survivor educational benefits to simplify the program and reduce VA administrative overhead.

Presently there are huge disparities between the three existing survivor educational benefit: Dependents Educational Assistance (DEA), which provides no housing or book allowance; the Montgomery GI Bill, which pays almost $1,800 more per month than DEA but offers no housing allowance; and the Post-9/11 Gunnery Sergeant Fry Scholarships that pay tuition, housing and book allowances. MOAA’s goal is to make all survivors eligible for the Fry Scholarship program.

Issue 3. WHAT’S THERE TO BE THANKFUL FOR?

November 25, 2015

As we approach this Thanksgiving Day holiday, there is much to be thankful for, even in this time of war and great fiscal challenges.

First and foremost, we should be thankful we live in a nation where we enjoy freedoms other countries can only dream of.

We are thankful for our men and women in uniform – both past and present. For the past 239 years, the freedoms we enjoy as Americans have been preserved by our uniformed servicemembers. Today, they continue to defend our freedoms all over the world separated from family and friends and sometimes in harm’s way – without grumbling or complaints.

Also, we should be thankful for our self-correcting American democracy. While the politicians we elect and the policies we pursue as a nation don’t always end up being right, our electorate inevitably ends up tossing out the politicians and policies when they’ve drifted too far from the national will in either direction.

We’re thankful for the legislative champions – senators, representatives, and their staff members – who continue to do their best to support the military and veterans community.

Finally, we’re thankful for our loyal members like each of you and your family – who continue to support our vital mission through your leadership and personal involvement.

MOAA wishes you and yours a very happy – and safe – Thanksgiving holiday. –

 

 

That’s it for today- Thanks for your help!

 

 

 

 

 

Check out the December Heliogram.  You can also see past editions at the newsletter link above.

We have No Action Items today.

 

 

Summary of Issues

At Issue 1. we see COLA: WORSE THAN ZERO. Falling gasoline prices cause FY16 COLA to start in the hole, Follow trends on MOAA’s COLA Watch.  (See Issue 1 below for the details. GF)

At Issue 2. we see CALLING ALL TRICARE BENEFICIARIES. Congress wants to reform military health coverage, If you are a TRICARE beneficiary, MOAA needs your help in filling out a 5-10 minute survey. (Click on CALLING ALL TRICARE BENEFICIARIES here or above to participate in the survey.  GF)

 

At Issue 3. we see PENTAGON SHAKING UP PERSONNEL PROGRAMS. Defense officials outline Force of the Future, DoD’s top personnel chief is under a tight timeline to implement changes before the next administration. (See Issue 3 below for the details. GF) 

At Issue 4. we see HEALTH CARE AND MILITARY KIDS. Improving family health care remains a top priority, MOAA focuses on the unique health care needs of military children. (See Issue 4 below for the details. GF)

Collectively We Can and Are Making a Difference

 

FOR ALL, Please feel free to pass these Weekly Legislative Updates on to your group of Veteran Friends –

don’t be concerned with possible duplications – if your friends are as concerned as we are with Veteran issues, they probably won’t mind getting this from two or more friendly sources

 

ISSUES

 

Issue 1. COLA: WORSE THAN ZERO

The October Consumer Price Index (CPI) is 232.373, starting the year .8 percent below the FY 2016 COLA baseline.

The CPI for November 2015 is scheduled to be released on December 15, 2015.

Note: Military retiree COLA is calculated based on the CPI for Urban Wage Earners and Clerical Workers (CPI-W), not the overall CPI. Monthly changes in the index may differ from national figures reported elsewhere.

Issue 2 at

Issue 2. See Issue 2 at Summary of Issues above if you want to participate in a TRICARE Beneficiary survey.

Issue 3. PENTAGON SHAKING UP PERSONNEL PROGRAMS

November 20, 2015

On Nov. 18, Acting Undersecretary of Defense for Personnel and Readiness Brad Carson briefed military and veteran service organizations on the first group of initiatives that are part of the new Force of the Future plan.

The Force of the Future is one of Defense Secretary Ash Carter’s top priorities, and looks at changing the way that DoD operates in the area of human resource management.

Some of Carter’s plans include:

• creating a one year fellowship program in industry specific fields;
• expanding the DoD sabbatical program; and
• increasing opportunities for servicemembers to pursue advanced degrees.

In a memo outlining the initiative, Carter said, “In this ever changing environment, one of my top priorities is to ensure that the Force of the Future remains as great as the Force of Today, especially in terms of our most important competitive edge—our people.”

Carson’s goal is to improve the talent management within the department. He wants to recruit and retain more young people into government service by providing them with opportunities and incentives to move between DoD and the private sector, fostering professional growth and development.

Most of the initial programs will not require legislative approval since they are “simply changing the way we do business,” and therefore only require executive action.

The services are under a short timeline for implementation. Carter and Carson would both like to see the program fully implemented by January 2017, before the next administration begins.

Any initiatives requiring legislative authorization will be included in the Pentagon’s FY17 budget request.

Issue 4. HEALTH CARE AND MILITARY KIDS

November 20, 2015

This week, MOAA joined the Military Kids Matter Coalition, a group of children’s hospitals caring for military families, to establish a framework in the advancement of access and quality of care improvements for pediatric beneficiaries in TRICARE. This year’s event was hosted by the Children’s Hospital of Colorado, which cares for a large population of military children from the Colorado Springs area.

Children’s hospitals across the country work to address policy issues that affect their ability to fulfill their missions to serve children and their families.  The Military Kids Matter Coalition is the only provider advocacy group committed to protecting, preserving, and optimizing provider and children’s hospital relationships within the TRICARE program.

As a key leader and advocate for the health care of military children, MOAA has been influential in collaborating with DoD and hospitals on the effort to serve our military families.

Working together, we are addressing issues that uniquely affect the health care needs of military children.  Most importantly, children of military families experience both opportunities and challenges unique to their parents’ service.  The objective of advocacy efforts is to improve DoD’s understanding of military children’s unique health needs and enhance the experiences of military families seeking care in children’s hospitals.

“Children’s hospitals are in position to identify issues that impact military family health and readiness,” said MOAA Government Relations deputy director, Capt. Kathy Beasley, USN (Ret.). “Our advocacy efforts have made a difference on many issues which are unique to our military children, but we still have a long way to go.”

 

That’s it for today- Thanks for your help!

We have No Action Items today.

 

 

Summary of Issues

At Issue 1. we see CALLING ALL TRICARE BENEFICIARIES. Congress wants to reform military health coverage, If you are a TRICARE beneficiary, MOAA needs your help in filling out a 5-10 minute survey. (Click on CALLING ALL TRICARE BENEFICIARIES here or above to participate in the survey.  GF)

At Issue 2 we see EXACTLY WHICH HEALTH COSTS ARE “SPIRALING?”  Is the cost of military health care really out of control? MOAA’s Director of Government Relations, Col. Steve Strobridge. USAF (Ret), examines the facts and draws some conclusions in his As I See It column.  (See Issue 2 below for the details. GF) 

At Issue 3. we see CAREER RESERVISTS NEXT BIG WIN . Millions of vets to receive the credit they deserve. Senate approves a major change for members of the Guard and Reserve.(See Issue 3 below for the details. GF) 

At Issue 4. we see OFFICIAL MEDICARE RATES RELEASED. 2016 Part B premiums announced,.Most beneficiaries won’t see a hike, but many MOAA members will. (See Issue 4 below for the details. GF) 

At Issue 5. we see MOAA HOSTS NATIONAL VETERANS DAY CEREMONY. MOAA honors the shared sacrifice of members of the uniformed services. MOAA was privileged to serve as the 2015 host organization for the Veterans Day National Committee.

. (See Issue 5 below for the details. GF) 

Collectively We Can and Are Making a Difference

 

FOR ALL, Please feel free to pass these Weekly Legislative Updates on to your group of Veteran Friends –

don’t be concerned with possible duplications – if your friends are as concerned as we are with Veteran issues, they probably won’t mind getting this from two or more friendly sources

 

ISSUES

 

Issue 2. EXACTLY WHICH HEALTH COSTS ARE “SPIRALING?” As I See It

 

By: Col. Steve Strobridge, USAF (Ret)Director, Government Relations 

Strobridge, a native of Vermont, is a 1969 ROTC graduate from Syracuse University in Syracuse, N.Y. He was called to active duty in October 1969 and began his career as a Basic Military School training officer and commander and as a military personnel officer. He subsequently served as a compensation and legislation analyst at HQ U.S. Air Force and in the Office of the Secretary of Defense as director, Officer and Enlisted Personnel Management, with intervening assignments in Thailand and Germany.

His final assignment was as chief of the Entitlements Division at HQ U.S. Air Force, with policy responsibility for military compensation, retirement and survivor benefits, and all legislative matters affecting the military community. He is a graduate of the Armed Forces Staff College and National War College. 

Strobridge retired from the Air Force in January 1994 to become MOAA’s deputy director for Government Relations. In 2001, he was appointed as director of Government Relations and elected as cochair of The Military Coalition.

He retired from MOAA in April 2013 but was recalled as Government Relations director in September 2015.   

Defense leaders have complained for years about “spiraling military health costs,” and their main proposals for action have centered on foisting more costs on beneficiaries.

Congress has acted on those concerns by raising TRICARE Prime enrollment fees 23 percent since 2011, doubling or tripling most TRICARE pharmacy copayments over that period, and requiring annual inflation-based fee hikes going forward.

The president’s budget projections still show military health care costs growing in the outyears.

Armed Services Committee leaders say they intend major action next year to reform military health coverage and that “increased fees will be a necessary part of this reform.”

But looking at the health care cost facts rather than the rhetoric also will be crucial in that effort.

Fact 1: Every year, the Pentagon budget forecasts significant cost increases for future years.

Fact 2: For the past five years, those projections have proven false, as overall DoD health costs (as reflected in annual Pentagon reports to Congress) have stayed flat.

Fact 3: DoD fee hike proposals, in the main, have targeted beneficiaries who get their care outside military hospitals and clinics.

Fact 4: For the past five years, these “purchased care” costs have remained flat (other than a $2 billion anomaly for FY 2015 that DoD has acknowledged was a one-time oversight failure on compounded medications that has now been brought under control).

Fact 5: DoD costs for TRICARE For Life (TFL) (that is, annual Pentagon deposits to the TFL trust fund, which cover both care and medications) have declined dramatically, from $10.8 billion in FY 2010 to $6.6 billion for FY 2016.

Fact 6: Virtually the only elements of the DoD health care budget that have been increasing over the past five years are care delivered in military facilities (over which the Pentagon has the most control and which mainly reflect military readiness needs) and pharmacy costs for non-Medicare-eligibles.

Fact 7: At current levels, TRICARE pharmacy copayments are at about the 50th percentile of copayments charged by civilian employer plans (as measured by the Hay Group, one of the most respected surveyors of benefit programs).

Fact 8: Congress’ multiple recent adjustments to TRICARE pharmacy copayments have been relatively arbitrary, driven in part by the need to raise more revenue to pay for other programs.

Fact 9: The 2016 $10 retail pharmacy copayment for generic drugs is more than twice the $4 copayment Wal-Mart charges for most common generics for people with no insurance.

So what can we conclude from all these facts?

Conclusion 1: DoD consistently projects large cost increases that don’t materialize. If they’ve been consistently bad at making past projections, why should we give much weight to their current projections?

Conclusion 2: If past misprojections formed the entire basis for pushing more costs to beneficiaries, one has to question the validity of continuing that argument.

Conclusion 3: If you believe the military health benefit should be at the very top tier — the gold standard that exceeds private-sector plans in recognition of currently serving and career members’ and families’ decades of service and sacrifice — then pharmacy copayments already are plenty high. The 50th percentile is not a gold standard.

Conclusion 4: If the main area of cost increases has been in care delivered through military facilities rather than care obtained from civilian providers, then maybe, just maybe, the focus of future cost-containment efforts should be on DoD’s inefficient management of those in-house programs rather than simply blaming beneficiaries for cost problems they’re not causing.

Conclusion 5: One of the main pillars of any major health care reform effort should be an explicit acknowledgement of the significant, in-kind premium value of servicemembers’ and their families’ decades of service to their country

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Issue 3. CAREER RESERVISTS NEXT BIG WIN 

November 13, 2015

In recent years, House of Representatives action on significant veterans’ matters often cleared the chamber before the Senate. This year the full Senate went first by favorably voting out the “21st Century Veterans Benefits Delivery and Other Improvements Act,” which addresses veteran health care and benefits needs.

With the Senate’s action, a longstanding MOAA and Military Coalition goal of honoring certain career reservists with no active duty service as veterans, is poised to be enacted in law. The Senate bill – S. 1203, Amended – however, differs slightly from the House bill – H.R. 1384 – sponsored by Rep. Tim Walz (D-Minn.). Walz’ bill would amend the laws governing veterans benefits in Title 38 of the U.S. Code by creating a new definition honoring the career reservists as veterans, but denying them any new benefits.

The Senate provision simply honors the career reservists as veterans but does not codify the provision in Title 38. The compromise approach was apparently taken to overcome concerns that putting the honorific in Title 38 could be used in the future as a gateway to other veterans’ benefits. Walz dismissed the concern since his bill contains an explicit prohibition against new veterans benefits.

The Walz bill has cleared the full Veterans Affairs Committee. It could be voted out of the full House in the near future or combined with other measures in a House veterans omnibus. In that case, the differences between the two provisions would have to be reconciled.

Other components of the Senate bill would improve the transition process for separating servicemembers, upgrade the claims and appeals system and expand VA health care capacity. Among the changes, the bill would:

• Revive a pilot program to hire veteran medics and corpsmen to be skilled nursing assistants in VA’s emergency departments;
• Expand the provision of chiropractic services to veterans;
• Accelerate recognition of DoD medical credentials to boost VA recruitment of medical providers;
• Encourage DoD to permit veteran service organizations to assist servicemembers who are leaving the military during their Transition Assistance Program training;
• Expand the use of video-teleconferences for hearings before the Board of Veterans Appeals;
• Assist surviving spouses of veteran owners of small businesses; and
• Direct GAO to study the consistency of claims decision in VA regional offices.

 

Issue 4. OFFICIAL MEDICARE RATES RELEASED

November 13, 2015

This week, Medicare released the official 2016 Part B premium rates. They’re very close to, but slightly lower than, what MOAA projected in an earlier legislative update.

(Click on  an earlier legislative update here or above to see the earlier figures. GF)

Because of the Bipartisan Budget Agreement, beneficiaries not protected by the “hold-harmless” provision will see some relief in premium costs.

Seventy percent of Part B enrollees won’t see any change from the $105 monthly premium they’re now paying.

The only people with incomes less than $85,000 ($170,000 for a married couple) who will pay the higher $122 monthly rate are those who first become eligible for Medicare in 2016, or who are not receiving a Social Security Check, or certain lower-income beneficiaries who are dually eligible for Medicare and Medicaid.

The budget agreement protected these groups and the higher-income groups from a much larger 52 percent premium increase. Under the new calculations, these groups will only pay what they would have paid anyway if there had been a normal retiree COLA.

For more information, please visit the Medicare website.

(Click on  Medicare website here or above for more detail GF)

Issue 5. MOAA HOSTS NATIONAL VETERANS DAY CEREMONY

November 13, 2015

On Nov. 11, MOAA’s President, Vice Adm. Norb Ryan, USN (Ret.), represented the Association’s 390,000 members at Arlington National Cemetery. President Obama, the Secretary of Veterans Affairs, and other senior officials joined Ryan at the Presidential Armed Forces Full Honor Wreath-Laying Ceremony at the Tomb of the Unknown Soldier.

Ryan made remarks at the observance program in the amphitheater. Following the ceremonies, MOAA hosted this year’s reception at the Women in Military Service for America Memorial. Veterans and military service organizations, as well as military and civilian officials, including VA Secretary Bob McDonald attended.

“I am extremely proud that MOAA was the co-host of the ceremony for the first time in our 86 year history. It was an especially significant day for our association,” said Admiral Ryan. “Honor, Valor and Love of Country have always been the defining characteristics of America’s Military. That is why we never stop serving, for if we do, we risk breaking the faith that will inspire future generations to serve.”

 

That’s it for today- Thanks for your help!