Category Archives: National Legislative Updates

Legislative Update 6 November 2015: Pay, Retirement, Pharmacy Changes Moving

We have No Action Items today.

 

 

Summary of Issues

At Issue 1. we see PAY, RETIREMENT, PHARMACY CHANGES MOVINGHouse approves defense bill, Budget deal clears the way. (See Issue 1 below for the details. GF)

At Issue 2 we see PRICED OUT OF TRICARE? Beneficiaries shoulder hikes as costs exceed estimates. 2016 TRICARE Young Adult premiums up 47 percent. (See Issue 2 below for the details. GF) 

At Issue 3. we see MOAA IS GAINING A NEW LEADERChange to occur in January. Board approves Lt Gen Dana Atkins, USAF (Ret.).(See Issue 3 below for the details. GF) 

At Issue 4. we see SURVEY: FAMILY READINESS STILL A STRUGGLEDespite improvements, spouses still face employment challenges. A new survey highlights stressors for military families.. (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. PAY, RETIREMENT, PHARMACY CHANGES MOVING

November 6, 2015

On Thursday, the House passed a new FY16 National Defense Authorization Act (NDAA). Armed Services Committee leaders amended the defense bill after the president vetoed the original version over budget and other issues.

This is the bill that includes reduced housing allowances and pay raises for the troops, a reduced retirement system for new service entrants starting in 2018, and $2 to $4 increases for most prescription copays next year (the copay for mail-order generic drugs will stay at zero).

Congress and the White House resolved their fiscal differences in the budget deal signed into law this past Monday. But the budget agreement cut $5B from the FY16 defense budget.

In deciding what to cut in order to trim $5B, lawmakers spared personnel and benefit programs. Over $1B in savings came from reduced fuel prices, $250M from Army readiness, $192M from Army National Guard readiness, $230M from the Long Range Strike Bomber, and another $125M from the program to train and equip Syrian rebels.

“So what we have before us now is the same bill…with funding adjustments to reflect the [budget] bill we passed last week,” said House Armed Services Committee Chairman Thornberry. “Otherwise, it’s the same bill.”

The bill now goes to the Senate, where it’s expected to pass promptly.

Although there is some grumbling from the White House regarding its provisions on the U.S. military prison in Guantanamo Bay, Cuba, most expect the president will sign it into law.

Issue 2. PRICED OUT OF TRICARE?

November 6, 2015

TRICARE Young Adult (TYA) beneficiaries will see a steep rise in their premiums next year.

TRICARE provides coverage for dependents of active duty servicemembers and retirees up to age 21 (or 23 for full-time students). After that, TYA allows qualified adult children to purchase TRICARE coverage until age 26, consistent with other civilian health plans.

Beginning Jan. 1, premiums are increasing to $306 monthly for TYA Prime and $228 monthly for TYA Standard.

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Why are costs spiking 26 to 47 percent?

The TYA program is required to charge its young adult beneficiaries premiums that cover the full government cost of coverage.

DoD originally had to rely on estimates when establishing premium costs. Now that the program has been up and running, it has several years of actual costs to set premiums based on real health care usage.

The cost of the TYA program is spread over a small beneficiary group of approximately 45,000 enrollees.

This is the big difference between the military TYA program and other civilian insurance programs that cover young adults. Most civilian plans spread their young adult costs over their entire enrolled population, so every insured person, regardless of age, pays a small amount more.

MOAA questions the affordability of this benefit for military families, especially those with more than one child in this age range, and is looking into possible solutions to lower this cost.

Issue 3. MOAA Names Lt. Gen. Dana Atkins as New President and CEO

 

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Alexandria, Va. -The Military Officers Association of America (MOAA) today announced its board of directors has unanimously selected retired Air Force Lt. Gen. Dana Atkins, a distinguished military officer and seasoned private-sector business leader, as its new president and chief executive officer. The appointment is effective as of Jan. 4, 2016.     (Click onMilitary Officers Association of America (MOAA) here or above for more detail.  GF)

Atkins will succeed retired Navy Vice Adm. Norbert R. Ryan, who has led the association since 2002 and announced his retirement earlier in 2015.

In his new role at MOAA, Atkins will lead the more than 390,000 members of the nation’s largest military service organization and fourth-largest veterans service organization in its advocacy mission on behalf of the entire uniformed services community.

Atkins has been the president of Chronicle Media, a large communications company providing print and digital media products in the Augusta, Ga., metro area, since his 2012 retirement from the Air Force.

“We are delighted to have someone with Lieutenant General Atkins’ stature, leadership ability and business experience to assume the president and CEO position,” said retired Air Force Gen. Tony Robertson, chairman of MOAA’s board of directors. He continued, “A strong, top-quality career force requires compensation and a benefits package that is commensurate with the extraordinary demands and sacrifices imposed upon it. Dana brings a proven track record of strategic military and corporate leadership that makes him the absolute right choice to lead MOAA and our advocacy efforts into the future.”

At the time of his retirement from the Air Force, Atkins, a Portland, Ore., native, served as the commander of Alaskan Command, Alaska NORAD Region, Joint Task Force Alaska and 11thAir Force at Joint Base Elmendorf-Richardson, Alaska.

During his career in the Air Force, Atkins served as a command pilot with more than 4,000 hours in fighter aircraft, as vice commander of the 7th Air Force and U.S. Air Force Korea, as director of operations (J3) U.S. Pacific Command and as special assistant to the Supreme Allied Commander Europe during the air war over Serbia. During his career, he flew as a demonstration pilot for both the European A-10 demonstration team and the U.S. Air Force Thunderbirds.

Atkins earned his bachelor’s degree in biology from the University of Portland. He also holds two master’s degrees, one in aeronautical science from Embry-Riddle Aeronautical University and another in national security strategy from the National War College.

“I am honored by the confidence expressed in me by the MOAA board and to have the opportunity to continue serving the uniformed services, veterans and retirees and their families and surviving spouses,” said Atkins. “I look forward to working with the MOAA team and its partners in a time of great challenges. I see this opportunity as a natural intersection where my experience and passion can best serve the membership of MOAA.”

Atkins has taken an active role in his community, serving on the boards of directors for Augusta Metro Chamber of Commerce, Central Savannah River Area (CSRA) Alliance for Fort Gordon, United Way of CSRA, University Health Care System, American Red Cross of Augusta and Augusta Warrior Project and on the developmental board for the Air Force Enlisted Village.

He and his wife, Laura, were the 2004 recipients of the General and Mrs. Jerome F. O’Malley Award, which recognizes the wing commander and spouse whose contributions to the nation, the Air Force and the local community best exemplify the highest ideals and positive leadership of a military couple. Atkins and his wife have two children, a son who served in the Air Force and is currently a student at the University of Nebraska-Omaha and a daughter who earned her doctorate in education and teaches in Washington state.

Issue 4. SURVEY: FAMILY READINESS STILL A STRUGGLE

 

Nov 06 2015

Last week, Blue Star Families (BSF) released their 2015 Military Family Lifestyle Survey. They received over 6000 responses from active duty servicemembers, family members, retirees, and veterans.

The survey asked for respondents’ views of service, benefits, transition, mental health and permanent change of station (PCS).

The survey results on military spouse employment challenges echo the data MOAA found in our 2014 Military Spouse Survey on Employment with Syracuse University.

Spouses continue to face unemployment due to poor labor market alignment, demands of unpredictable schedules, and demands for their servicemember spouse, as well as difficulty finding reliable childcare.

Approximately half of military spouses seeking employment require a license or certification to work, and have found it difficult to maneuver into new jobs after a PCS to another state because each state has its own requirements. Military spouses continue to find “work around” jobs to remain employed, causing them to lose income and promotion opportunities.

These challenges affect the overall wellbeing and readiness of our military families. Military spouse employment has a positive impact on financial readiness, mental health, and long-term family stability. While many programs have either been created or made more robust by research into military families, we have more work to do.

MOAA supports legislative efforts to offset the costs of repeated licensing and testing after PCS, reduce barriers to employment because of licensure requirements, and provide more options for success in education and employment.

Military families serve too, and they need better support in meeting the demands of our country.

   

 

   
   
   

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

 

 

 

 

 

*Legislative Update 30 October 2015: Defense Bill, Medicare Premiums Addressed in Budget Deal

We have No Action Items today.

 

 

Summary of Issues

At Issue 1. we see BUDGET DEAL CLEARS WAY FOR DEFENSE BILLCongress reaches two year budget deal, New budget lines mean the White House’s main objections to the defense bill are likely resolved. (See Issue 1 below for the details. GF)

 

 

At Issue 2. we see MAJOR PART B SPIKES REDUCEDMedicare Part B solution included in budget deal. The deal stops a 52 percent hike, but millions will still see an increase. (See Issue 2 below for the details. GF)  

                               
At Issue 3. we see MOAA TOP GUN, AGAINA proud tradition continues.For the 9th consecutive year, The Hill newspaper names MOAA a top lobbyist in the associations category.. (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. BUDGET DEAL CLEARS WAY FOR DEFENSE BILL

October 30, 2015

Congress has acted to avert both a government shutdown and a federal default with a budget deal that lifts spending caps and suspends the national debt ceiling.

The Bipartisan Budget Act of 2015 increases spending caps for defense and non-defense spending by a total of $80 billion for two years. According to the Congressional Budget Office, the bill adds more than $4 billion in savings, and eases the projected 52 percent premium hike for nearly one-third of Medicare beneficiaries.

 (Click on 52 percent premium hike for nearly one-third of Medicare beneficiaries here or above for more details and/or see Issue 2 below.  GF)

Congress only had until Nov. 3 to address the debt ceiling before the government ran out of money to pay its bills.

That threat disappeared at 3 A.M. Friday morning when the Senate followed the House in voting to approve the budget deal. It now goes to the White House for signature.

Legislators now have about six weeks to pass an appropriations bill and avoid a government shutdown. But the main appropriations sticking point was removed when legislators voted to approve the total budget amount.

Further, the agreement on new defense spending caps means lawmakers can move forward with an amended FY2016 Defense Authorization Act, which the president had vetoed over budget concerns.

The primary challenge is that, despite all the technical readjustments to budget caps, the new deal means a $5 billion net reduction in spending authority from the previously approved defense bill.

House and Senate Armed Services Committee leaders are now huddling to decide how to cut that amount from the defense budget. At this point, it’s unclear whether that could involve any further cuts to personnel or benefit programs.

MOAA will keep you posted, as the decisions could come as early as next week.

Issue 2. MAJOR PART B SPIKES REDUCED

 

October 30, 2015

The newly passed budget deal will keep millions of Medicare beneficiaries from being stuck with a 52 percent premium hike.

Seventy percent of Medicare beneficiaries will be “held harmless” and see no premium hike for 2016. The other 30 percent will still see a (lower) premium increase in 2016.

Those who will see higher Part B premiums include people who:

  • will enroll in Medicare for the first time in 2016,  or
  • have incomes above $85,000 a year ($170,000 for couples), or
  • are enrolled in Medicare but not receiving Social Security payments.

All Medicare enrollees will see an annual deductible increase to $167 from the current $147. Without the budget deal, it would have been $233.

In essence, anyone receiving a Social Security check, who is already paying $104.90 in monthly premiums, and won’t exceed the income level shown above, will keep paying the same $104.90 per month next year. 2016 income thresholds are based on the adjusted gross income from your 2014 federal tax return.

Those below the income threshold who aren’t receiving Social Security checks or who will enroll in Part B for the first time next year will pay a monthly premium of $120.

Because Medicare is a needs-based entitlement program, the government subsidizes less and less of the Medicare premium as income rises.

The following chart shows how much 2016 premiums will rise for those in the higher income brackets. These are not official numbers, but are estimates based on the information currently available.

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The bill pays for the reduced increases by treating the saved amount like a government loan, and implements a mandatory immediate payback. Beneficiaries subject to the increased premiums in the lowest income bracket will see an additional $3 added on to their monthly premium. Those in higher income brackets will pay proportionally more. The fee will remain in place until the loan is completely paid.

In the event of no cost-of-living increases in 2017, the budget agreement extends these changes to affected beneficiaries in that year as well.

MOAA members sent over 24,000 messages asking their elected officials to tackle the inequity in Part B premiums. Your efforts helped protect millions of Medicare beneficiaries from a 52 percent increase in monthly premiums. The premium increases will still come as a surprise to many who haven’t been paying attention as this situation unfolded. But those of you who answered the call to action know you saved them from a far greater hike.

Issue 3. MOAA TOP GUN, AGAIN

October 30, 2015

The Hill, a Capitol Hill daily newspaper that covers public policy and political news, cited MOAA President Vice Adm. Norb Ryan, USN (Ret.) for his defense of military members and families in its annual list of top association lobbyists.

The paper noted that Ryan “spent the last year fighting to preserve U.S. troop pay and benefits against budget cuts, a cause he’ll continue to champion in upcoming fiscal fights.”

“This recognition belongs to our 390,000+ members, MOAA Chapter and Council leaders, our Board of Directors and superb MOAA staff,” Ryan said.  “We take seriously our motto to ‘Never Stop Serving’ our members and the entire military community including currently serving families, retirees, veterans, and survivors.  Political leaders need to remember that our men and women in uniform are the only weapon system that has never let the nation down.”

The complete list of association top lobbyists is on The Hill website.

(Click on The Hill website here or above for the details.  GF)

 

   

 

   
   
   

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

 

 

 

 

 

*Legislative Update 23 October 2015: Hidden Retirement Fee and 52% Cost Hike

We have 1 Action Item today at issue 1

 

 

Summary of Issues

At Issue 1. we see STOP THE 52% PREMIUM HIKE Thousands of MOAA members are among the 7 million set to see a giant spike in Medicare premiums, Time is running out for lawmakers to fix the problem.. (See Issue 1 below for the details and to send an Email to our legislators.. GF)

                               

At Issue 2. we see MILITARY RETIREMENT REFORM…AND YOUThink you’re fully grandfathered? Think again, MOAA’s Director of Government Relations, Col. Steve Strobridge, USAF (Ret), examines the new retirement system in his As I See It column. (See Issue 2 below for the details. GF)  

                               
At Issue 3. we see PRESIDENT VETOES DEFENSE BILL Bill goes back to Congress, Disagreements over funding cause president to veto for only the fifth time.. (See Issue 3 below for the details. GF) 

At Issue 4. we see WHAT HAPPENS IF THE GOVERNMENT DEFAULTS? For starters, nobody wins, Congress has little time to act before the Nov. 3 deadline. (See Issue 4 below for the details. GF)

At Issue 5. we see A MOAA HAIL AND FAREWELL. Military family advocates transition. The Government Relations team says goodbye to one of its own and welcomes a new face. (Click on A MOAA HAIL AND FAREWELL above to see 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. STOP THE 52% PREMIUM HIKE

Thousands of MOAA members are among the 7 million set to see a giant spike in Medicare premiums

Time is running out for lawmakers to fix the problem. Act now to send your elected officials a MOAA-suggested message.

(Click on STOP THE 52% PREMIUM HIKE here or above or go to Here is the Processat the end of this Email to send messages to our Legislators. GF)

Issue 2. MILITARY RETIREMENT REFORM…AND YOU

By: Col. Steve Strobridge, USAF (Ret)Director, Government RelationsClick to read about the author. About the Author

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.   

·

If you think you’re “fully grandfathered,” think again.

We’ve told you the FY 2016 Defense Authorization Act includes a dramatic overhaul of the military retirement system that reduces retired pay value by 20 percent and substitutes a lower-value savings match under a 401(k)-style system.

We’ve also told you the new plan will be imposed only on new service entrants on or after Jan. 1, 2018.

In other words, all currently in uniform and everyone already retired will be “grandfathered” under the current retirement system.

But that’s definitely not the same thing as saying, “No currently serving or retired servicemember will experience any financial penalty from this change.”

Now that I have your attention, let’s look briefly at the new system.

Reduced retired pay: Instead of providing 2.5 percent of the highest three years’ average basic pay for each year of service (50 percent at 20 years; 75 percent at 30), it provides 2 percent per year (40 percent at 20 years; 60 percent at 30).

Thrift Savings Plan (TSP): To help offset the lost retired pay, servicemembers will be expected to contribute part of their pay to a 401(k)-like TSP.

Government TSP contributions: DoD will put 1 percent of basic pay in each servicemember’s TSP account each year. Starting after two years of service, DoD also will match the servicemember’s contribution up to 4 percent of basic pay. Matching deposits will stop after 26 years of service.

Vesting: Unlike the current system, servicemembers separating after one or more terms would be able to keep the government contributions to their TSP.

Lump-sum retired-pay option: Retirement-eligible servicemembers will be able, if they choose, to receive a portion of their retired pay as a lump sum. The option is to take 25 percent or 50 percent of the total retired pay they would draw between initial receipt of retired pay and age 67. But the amount would be steeply discounted for every year before age 67.

The new system will save DoD more than $13 billion in the first 10 years alone.

In effect, it makes people who serve 20-plus years substitute their own money for the government’s. It also makes career servicemembers foot the bill for new payouts to separatees.

We’re also concerned the lump-sum payment will entice too many retiring servicemembers to forfeit a very large amount of retired pay for a small fraction of the value in a lump sum. DoD and Congress bash payday lenders for doing essentially the same thing.
Some ask, “Why are you making a big deal about this, since it will be years and years before anyone retires under the new system, and it doesn’t affect anyone already serving or retired?”

For one thing, wrong is wrong. If these changes were being inflicted on today’s retirees, we’d say the reduced pay is not commensurate with their sacrifice. We don’t think future servicemembers’ sacrifices will be any less.

MOAA has no problems with a vesting provision, but the fact that the changes save billions even after adding this big new cost tells you this is a drill to save money at the expense of those who serve longest and sacrifice most.

All the talk about rising personnel costs is simply code for “We don’t think your service and sacrifice is worth what we’re paying you.” MOAA disagrees.

But what’s particularly wrong about this drill is it’s not just future retirees being made to foot the bill.

Because of the technicalities of congressional budgeting, the changes “scored” as having some relatively near-term costs.

And to solve that problem, Congress turned to … you.

The next time you pay more for your TRICARE-covered medications, you won’t have to wonder where the extra money went. It went to cover start-up costs for the new military retirement system that (mostly) grandfathered you.

Issue 3. PRESIDENT VETOES DEFENSE BILL

October 23, 2015

 

On Thursday, President Obama vetoed the FY 2016 National Defense Authorization Act, which sets budgets and policies for the military.

 

Thousands of MOAA members wrote the president urging him not to do so.“We are deeply disappointed by the president’s veto of this bipartisan defense authorization bill,” said MOAA President Vice Adm. Norb Ryan, USN (Ret). “It sends the wrong signal to our troops and their families at the wrong time.

 

”It’s especially disappointing that the main sticking point involves what we see as a budget technicality.

 

Under the 2011 Budget Control Act, there are hard caps on both defense and non-defense spending.

 

Everyone agrees the defense cap is too low and jeopardizes readiness. But the President and many in Congress believe the cap on non-defense spending is too low as well. The debate over whether and how to raise the caps has Congress tied up in knots.

 

But a nation at war needs a defense bill, and it needs more money than the cap allows. So House and Senate Armed Services Committee leaders used a technicality to get around the cap. They authorized an extra $38 billion in a wartime contingency account that’s not subject to spending limits.

 

The President vetoed the bill for two main reasons. First, he says (rightly) that using this one-year mechanism fails to let the Pentagon plan for the future. Second, he agrees with many in Congress that it’s wrong to let defense spend above the legal limits while keeping the cap on non-defense accounts.

 

MOAA believes the defense bill is the wrong vehicle to wage this battle. It only authorizes things; it doesn’t provide funding. The funding bills are tied up in a separate political fight that Congress is going to have to work out over the next month or two.

 

At this point, legislators are scheduling votes to override the veto. But that takes a two-thirds majority vote in both the House and Senate, and most think the votes aren’t there. So it looks like the veto will stand until Congress finds a way to untie the budget cap knot.

 

What does the veto mean for national defense, and potentially for you? We covered that in a previous update, which you can read here.

 (Click on the word here. just above to see the details. If that doesn’t work, click on PRESIDENT VETOES DEFENSE BILL above and click on the word ‘here’ at the end of the article GF)

 

Issue 4. WHAT HAPPENS IF THE GOVERNMENT DEFAULTS?

October 23, 2015

A possible government shutdown is yesterday’s news – at least until Dec. 11, when the current continuing resolution expires.

That’s all about keeping the government running.

The new looming crisis concerns the country’s debt limit, which the Treasury Secretary says the U.S. will hit around Nov. 3.

Why is that significant?

Well, national spending exceeds revenue every year, and we have to make up the difference by borrowing – i.e., selling government bonds.

The amount America can borrow is limited by statute. So when we hit the debt limit, Congress must raise the debt limit to allow additional borrowing, or else America will default on its obligations.

There’s a general consensus among government leaders, economists, and wall street insiders that a default would be very, very bad in many, many ways.

Our national credit rating would be hurt, which would mean higher interest rates on everything from student loans to credit cards, cars and mortgages.

The stock and bond markets would take a big hit, which means your 401(k)s, IRAs, and investments would, too.

Most of all, it could very well hit currently serving and retired military and federal civilians where it hurts most – in the paycheck.

Hitting the debt limit and defaulting doesn’t mean all government payments would stop.

The country would still have money coming in…just not enough to pay all of its current obligations.

So who/what will still get paid and who/what won’t?

Most observers believe bondholders would be first in line for payment. But then some level of priority would have to be established among Social Security, Medicare, active and retired federal workers and military, government contracts, Medicaid payments to states, student loans, etc.

At that point, it’s all about the politics and the level of pain.

What payments are most vital to the country? Whose screams of pain will be thought most likely to get Congress off the dime and raise the debt limit? Someone, somewhere in the federal government is likely starting to make those assessments, just in case.

But nobody at this point can say for sure whether current troops, retirees, veterans, survivors, or Social Security annuitants will get paid or will see their checks help up during a default period. It’s all possible.

There’s no doubt the debt limit will end up getting raised one way or another.

MOAA believes strongly it must be done before we hit the last available day.

The consequences for the country are simply too dire to be playing Russian roulette with a national default.

   

 

   
   

Here is the Process:  There are some minor changes below this week and if the steps below are new to some, I recommend that you review all of the steps and then you might want to copy this process by high lighting all of the steps below.  Then click on “File” at the top of your screen, select “Print“, then click on “Selection” at the next display and then hit “Print“; or print the selected portion as you usually do this kind of task.

 

  1. Click here onhttp://capwiz.com/moaa/issues/ or copy and paste it in your browser to put you at the  “Legislative Action Center” screen.
  2. Scroll downunder “Current Action Alerts” and below Congress click on Protect All Medicare Beneficiaries in 2016”.
  3. If applicable, at the next screen scroll down to the TAKE ACTION NOW! lineand enter or confirm your Zip code and /or hit “Go!”
  4. Or at the next screen under“COMPOSE MESSAGE” leave the recipients area checked at your discretion.
  5. Scroll down to the  “Editable text” areaand edit/modify the text of the message if desired,
  6. Insert “Your Closing” (I show ‘Respectfully), and “Your Name” and fill in the rest of the mandatory {asterisked} SENDER INFORMATION. The “Phone”number is now required by some Legislators (it’s required if your Senator is from Arizona) .
  7. Fill in the “Guest Type“, “Service“, “Rank“, “Component“, and “Status” if you want that information to show in your message (recommended).  You may be prompted to include a phone numberif you try to send the message without entering your phone number. Don’t be concerned about entering a phone number. I haven’t  received return calls except on rare occasions to thank me for my interest in a particular piece of Legislation, at which time you can comment (pro or con) to the staff member on how the Senator stands on the issue.
  8. Check “Remember Me” (recommended) if you don’t want to have to re-enter all of your Sender Information the next time you send a message. You can always change your information or uncheck ‘Remember Me’ anytime in the future.
  9. Hit “Send Message”
  10. If Printed Letter was selected at Step 4 above, at the screen after hitting “Send Message” leave “Plain Paper Style” and “Word Processor (RTF)” checked unless you have another preference. Then left click on “Print Letter(s)” at the end of the “PRINT LETTER” screen. At the File Download” alert that appears next, click on “Open”. You can then edit and print or save the letter for editing, printing, signing and mailing.
  11. For Arizona residentsbecause of some continuing problems with contacting Sen Flake by Email,you will see after hitting “Send Message” at Step 9 above that your message got sent to Sen John McCain and Rep Martha McSally, and that Printed Letter Option is the only option for getting your message to Senator Flake. Click on’ Print Letter(s) ‘ at the end of the screen to see and print a letter for your signature and mailing to Senator Flake if desired. Add any comments before printing at your discretion.

 

   

 

   

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

 

*Legislative Update 16 October 2015: No COLA in 2016

We have 1 Action Item today at issue 2

 

 

Summary of Issues

At Issue 1. we see NO COLA IN 2016You’re paying for lower gas prices. It’s official: there won’t be a 2016 COLA for people collecting military retired pay, Social Security, VA compensation, or survivor benefits.   (See Issue 1 below for the details. GF)

                               

At Issue 2. we see WILL YOU PAY (LOTS) MORE IN PART B PREMIUMS?  Jarring hike for some beneficiaries. Despite no COLA next year, 7 million Medicare beneficiaries will see steep increases.  (See Issue 2 below for the details and to send an Email to our legislators. GF)  

                               
At Issue 3. we see AGENT ORANGE SCAPEGOATINGVA provision lapses. Lawmakers are leaving VA Secretary Bob McDonald in difficult position. (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. NO COLA IN 2016

October 16, 2015

The Bureau of Labor Statistics (BLS) released the September inflation figure this week and confirmed what most retirees already knew – there won’t be a cost-of-living adjustment (COLA) in 2016 for people collecting military retired pay, Social Security, VA compensation, or survivor benefits.

Falling gas prices are a key reason why the inflation index (and your COLA) tanked over the summer.

Retired pay increases are made each year to maintain the same level of purchasing power each servicemember had at retirement. This is accomplished through annual COLAs, which are based on the BLS’ Consumer Price Index (CPI) – the measure of inflation.

While most COLA increases are automatic, Congress must approve COLAs for veterans every year. This is largely so lawmakers can return to their home districts and say they did something for local constituents.

One question we get every year is “Why is the retired pay COLA (higher or lower) than the active duty pay raise?”

The simple answer is they’re tied to different things. COLAs are tied to changes in consumer prices, whereas active duty pay raises are (supposed to be) tied to the average American’s pay growth, as measured by BLS’ Employment Cost Index (ECI).

In many years from the mid-1970’s through the mid-90’s, COLAs were higher than active duty pay raises, primarily because active duty pay raises were capped below the ECI.

The track record for keeping annual retired pay COLAs up with the CPI has been far better, in part because inflation has been relatively low for many years.

In the late 1990’s, chronic retention problems (from all those years of pay raise caps) led Congress to plus up active duty pay, so those raises were larger than COLAs from 1997-2005. More recently, the retiree COLA has exceeded the pay raise percentage in two of the past three years.

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So what happens now, and what’s the implication for the 2017 COLA? 

Because inflation for the full fiscal year actually declined by 0.4 percent, that means we’ll start 0.4 percent in the hole in measuring cumulative inflation for the January 2017 COLA.

Issue 2. WILL YOU PAY (LOTS) MORE IN PART B PREMIUMS?

October 16, 2015

70 percent of Medicare beneficiaries will be happy to know they won’t see a Medicare Part B premium increase in 2016. If you’re paying $104.90 a month in 2015, you’ll pay the same next year (unless you had a big jump in your 2014 income—see below).

But it’s quite another story for the other 30 percent, who will see a 52 percent hike over what they’re paying now.

How can this happen?

The law says, in years when there’s no Social Security COLA, Part B premiums can’t be raised, either.

But that protection doesn’t apply to everybody. The law doesn’t protect the following groups:

·         new Medicare enrollees in 2016 (who aren’t grandfathered because they never paid the lower premium);

·         Medicare enrollees with incomes above $85,000 a year ($170,000 for a married couple), who already pay premiums higher than the basic $104.90; and

·         people who suspended or delayed their Social Security benefits (your Social Security check can’t be protected against reduction if you’re not getting a check).

So why the huge 52 percent increase for these non-grandfathered groups?

While one part of the law protects the 70 percent from premium hikes if there’s no COLA, another says total premiums collected still have to cover the same total amount that would be collected if there were no grandfathering.

For 2016, that means premiums for the unprotected 30 percent must be raised enough to cover the grandfathered people’s share, too.

That’s the law.

The chart below shows how much that will change 2016 premiums for the various groups.

For the first line of the chart, the only people who will be hit with the $159 premium are those who will enroll in Part B for the first time in 2016.

It’s also important to know that the income thresholds for the higher-income 2016 premiums are determined by the adjusted gross income on your 2014 federal tax return – the latest one the IRS has on file.

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In addition, 2016 will see a hike in the Part B deductible—up to $223 from this year’s $147. There’s no grandfathering for the deductible increase. It will affect all beneficiaries.

The law covering the disproportional Part B hikes isn’t anything new. The same thing happened when there was no COLA in 2010 and 2011.

The cold comfort is the next time we see a positive annual COLA – hopefully for 2017 – the normal premium relationships will be restored. That is, the people being made to overpay in 2016 will actually see their premiums drop, as they did after the previous zero-COLA years.

Law or no law, MOAA thinks it’s wrong to foist the whole premium load on the few – and some in Congress agree.

Sen. Ron Wyden (D-Ore.) and Rep. Dina Titus (D-Nev.) have sponsored legislation in their respective chambers to extend the grandfathering protection to all Medicare beneficiaries.

Act now to send your elected officials a MOAA-suggested message, urging them to support these bills and protect all Medicare beneficiaries in 2016. (Click on  here or above or go to Here is the Processat the end of this Email to send messages to the President GF)

Issue 3. AGENT ORANGE SCAPEGOATING

October 16, 2015

 

At a recent hearing on the future of the VA health care system, Rep. Tim Walz (D-Minn.), complained that his MOAA-supported bill – H.R. 3423, an extension of the Agent Orange Act (AOA) – was allowed to expire in September. Walz, an Operation Enduring Freedom veteran and retired Army National Guard sergeant major, hoped the bill would be bundled with other expiring measures in a VA “extenders package.”

 

Under the extension, the VA would renew an agreement with the National Academy of Sciences (NAS) to evaluate the scientific evidence regarding links between certain diseases and exposure to dioxin and other chemical compounds in herbicides.

This includes any association between exposure to herbicides in Vietnam and diseases suspected to be associated with such exposure.

 

The evidence produced would form the basis of any recommendation from the NAS’ independent Institute of Medicine (IOM) to add medical conditions to the list of diseases presumed caused by exposure to the herbicides. The AOA gave the Secretary of Veterans Affairs express authority to decide whether to authorize veterans’ disability benefits for the diseases (and effectively required him to do so if the evidence indicated the link).

 

The IOM expects to finish its final report on Agent Orange exposure in March 2016. With the expiration of the AOA on Sept. 30, some believe an extension is essential to assure the report is implemented by the VA.

 

The House Veterans Affairs Committee thinks an extension is unnecessary because the Secretary already has general rulemaking authority to add more diseases to the presumptions list.

 

Walz’ office staff said they were told through informal discussions that the Congressional Budget Office estimated the cost of H.R. 3423 in the billions.

 

Congress’ hand-washing failure to extend the virtual mandate leaves Secretary Bob McDonald in a difficult position.

 

If he decides to add to the list of presumptive diseases, politicians and deficit hawks likely will blame him for incurring huge new government costs. (When former Secretary Eric Shinseki added three diseases to the Agent Orange presumptive list in 2010, hundreds of thousands of new claims flooded the VA system, helping to create the mountain of backlogged claims only recently brought under control.)

 

On the other hand, if McDonald doesn’t act promptly to add diseases based on reasonable evidence from the IOM, he’ll be accused of not taking proper care of Vietnam veterans.

 

MOAA thinks the VA Secretary deserves more congressional support in his exercise of this national responsibility.

 

 

 

 
 

Here is the Process:  There are some minor changes below this week and if the steps below are new to some, I recommend that you review all of the steps and then you might want to copy this process by high lighting all of the steps below.  Then click on “File” at the top of your screen, select “Print“, then click on “Selection” at the next display and then hit “Print“; or print the selected portion as you usually do this kind of task.

 

  1. Click here onhttp://capwiz.com/moaa/issues/ or copy and paste it in your browser to put you at the  “Legislative Action Center” screen.
  2. Scroll downunder “Current Action Alerts” and below Congress click on Protect All Medicare Beneficiaries in 2016 ”.
  3. At the next screen scroll down to the TAKE ACTION NOW! lineand enter or confirm your Zip code and /or hit “Go!”
  4. At the next screen under“COMPOSE MESSAGE” leave the recipients area checked at your discretion.
  5. Scroll down to the  “Editable text” areaand edit/modify the text of the message if desired,
  6. Insert “Your Closing” (I show ‘Respectfully), and “Your Name” and fill in the rest of the mandatory {asterisked} SENDER INFORMATION. The “Phone”number is now required by some Legislators (it’s required if your Senator is from Arizona) .
  7. Fill in the “Guest Type“, “Service“, “Rank“, “Component“, and “Status” if you want that information to show in your message (recommended).  You may be prompted to include a phone numberif you try to send the message without entering your phone number. Don’t be concerned about entering a phone number. I haven’t  received return calls except on rare occasions to thank me for my interest in a particular piece of Legislation, at which time you can comment (pro or con) to the staff member on how the Senator stands on the issue.
  8. Check “Remember Me” (recommended) if you don’t want to have to re-enter all of your Sender Information the next time you send a message. You can always change your information or uncheck ‘Remember Me’ anytime in the future.
  9. Hit “Send Message”
  10. If Printed Letter was selected at Step 4 above, at the screen after hitting “Send Message” leave “Plain Paper Style” and “Word Processor (RTF)” checked unless you have another preference. Then left click on “Print Letter(s)” at the end of the “PRINT LETTER” screen. At the File Download” alert that appears next, click on “Open”. You can then edit and print or save the letter for editing, printing, signing and mailing.
  11. For Arizona residentsbecause of some continuing problems with contacting Sen Flake by Email,you will see after hitting “Send Message” at Step 9 above, that “Printed Letter” is the most readily observable option for getting your message to him. Step 10 above tells you how to do that..

 

 

 

 

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

*Legislative Update 9 October 2015: Don’t Veto the Defense Bill

We have 1 Action Item today at issue 1

 

 

Summary of Issues

At Issue 1. we see DOES A DEFENSE BILL VETO MATTER? Why would President Obama veto the defense bill? Why is MOAA urging him not to? (See Issue 1 below for the details and to send an Email to the President. GF)  

                               

At Issue 2. we see COMMISSARY CATCH-22Cut costs without raising prices. Congress tells DoD to fix the commissary, but did lawmakers stack the deck? (See Issue 2 below for the details. GF) 

At Issue 3. we see WE WANT YOUR FEEDBACKCommissaries are constantly on the chopping block. Help MOAA better represent your interests by answering a few simple questions.. (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. DOES A DEFENSE BILL VETO MATTER?

October 9, 2015

On Wednesday, the Senate passed the defense bill, a few days after the House. Now it’s gone to the White House for signature.

But President Obama has said he will veto it next week. He is concerned Congress skirted statutory budget caps by adding (a much needed) $38 billion in a supplemental wartime account exempt from budget caps.

Why does the White House see that as a problem?  For one thing, the Pentagon needs funding in the baseline defense budget to make longer-term plans and commitments. A one-year supplement does not make that easy.

But the bigger political issue is that the president and many in Congress think the arbitrary budget cap is too low for non-defense programs, too. If the Pentagon is to get needed relief, they believe non-defense programs should as well.

The message of a veto is that the full funding should be in the basic defense budget, and the non-defense spending caps should be raised at the same time.

On Oct. 1, MOAA President Vice Adm. Norb Ryan, USN (Ret.) wrote the president urging against a veto. “As much as we disagree with some of the provisions,” Ryan said, “the fact is that we are still a nation at war, and this legislation is vital to fulfilling wartime requirements.”

Some concerned MOAA members have already asked, “Why not support the veto and try to get fixes to some of the things we don’t like?”

The reality is that a veto will not reopen any of the things MOAA is concerned about in the bill.

Those fights have been fought in the Armed Services committees, with compromises – sometimes grudgingly – reached in the interest of getting a bill passed. There is zero possibility of any of those things being renegotiated in a Hill environment that is focused almost exclusively on budget issues.

If the president vetoes the defense bill, the only thing that has any chance at all of being reworked is the portion of the budget that’s carried in the regular budget vs the supplemental piece. But the issue of how those changes are paid for is exactly what has Congress tied up in knots.

The worst-case veto scenario is a frustrated Congress could just eliminate the supplemental account, and pass a defense bill with $38 billion less funding.

Alternatively, the defense bill would go back into the roiling pot with the other major budget issues – raising the debt ceiling, figuring out the entire government budget, and funding it through a continuing resolution or some other measure.

MOAA is already concerned that negotiations on these political hot potatoes may still lead to a federal shutdown.

We do not want to risk losing the defense bill as well by kicking it back to what will be an even more severely divided congress due to current uncertainty in leadership.

To MOAA, the best option is to sign the defense bill with the $38 billion in contingency money now, keep the White House and Congress focused on negotiations on the already huge challenges for the remaining legislative year, and push our remaining legislative agenda in 2016.

Act now to send President Obama a MOAA-suggested message asking him not to veto the defense bill.

(Click on MOAA-suggested message here or above or go to Here is the Processat the end of this Email to send messages to the President GF)

 

Issue 2. COMMISSARY CATCH-22

Oct 09 2015

Published by Karen at 2:42 pm under Legislation,sequestration,Voting

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By:  Jamie Naughton

In budget cutting exercises, commissaries are often easy pickings for the chopping block. Critics say the $1.4 billion Congress spends on groceries for military families could be better spent on other purposes.

The almost 12 million patrons authorized to use the commissary tell a different story. Being able to buy groceries at cost, with a five percent surcharge, can save military families big bucks. DeCA, the Defense Commissary Agency, estimates that a military family of four can save almost $3,000 a year.

This year’s defense bill calls for DoD to figure out how to make the commissary system cost neutral. The report, due in March, will look at how DoD can privatize commissaries while keeping the same level of customer savings and satisfaction. It will also look at strategically closing commissaries in markets with competing shopping options, and the willingness of commercial grocers to provide eligible commissary patrons discounts.

If cutting funding without increasing costs for consumers seem like conflicting ideas, it’s because they are. It’s unlikely that commissaries will be able to take the budget cut without passing the buck to shoppers.
“The language of the report establishes standards that are impossible to meet,” said Karen Golden, Deputy Director at MOAA.

Commissary patrons are particularly sensitive to price fluctuations. For many commissary shoppers, particularly junior enlisted members without access to off base shopping, they are literally a captive audience.

According to RAND, a consultancy, “the elimination of the appropriation, while reducing the DoD budget, comes at a cost borne primarily by those currently and formerly in the armed forces.” RAND’s findings go on to note that increasing commissary pricing may have negative effects on retention and recruitment, cuts to Morale, Well-Being, and Recreation programs, and possible changes in the calculated cost of living adjustment. (Click on RAND or RAND’s findings here or above to see the details. GF)

Previously, some national chains expressed willingness to provide discounts to military families to match commissary prices. But to date, no major retailer has made good on the offer.

After the report, DoD has the authority to launch a two year study on privatization in five of the largest stateside commissary markets.

MOAA will continue to work with Congress and make sure there are no significant changes to this critical benefit without looking at all the facts and the broad range of consequences.

We want to know what you think about the commissary. Please take a moment to take our short survey on your opinions on the commissary system. (See Issue 3 below and take the survey at the end of that article by clicking on WE WANT YOUR FEEDBACK, or click on short survey here or above to participate in the survey now. GF)

Jamie Naughton serves as Assistant Director, Government Relations

Issue 3. WE WANT YOUR FEEDBACK

 

Commissaries are constantly on the chopping block.

 

Help MOAA better represent your interests by answering a few simple questions.

( Cick on WE WANT YOUR FEEDBACK here or above to participate in the survey if you didn’t do it at Issue 2 aboveGF)

 

 

 

 
 

Here is the Process:  There are some minor changes below this week and if the steps below are new to some, I recommend that you review all of the steps and then you might want to copy this process by high lighting all of the steps below.  Then click on “File” at the top of your screen, select “Print“, then click on “Selection” at the next display and then hit “Print“; or print the selected portion as you usually do this kind of task.

 

  1. Click here onhttp://capwiz.com/moaa/issues/ or copy and paste it in your browser to put you at the  “Legislative Action Center” screen.
  2. Scroll downunder “Current Action Alerts” and below “President” click on Tell POTUS to NOT Veto the Defense Bill”.
  3. At the next screen scroll down to the TAKE ACTION NOW! lineand enter or confirm your Zip code and /or hit “Go!”
  4. At the next screen under“COMPOSE MESSAGE” leave the recipients area checked at your discretion.
  5. Scroll down to the  “Editable text” areaand edit/modify the text of the message if desired,
  6. Insert “Your Closing” (I show ‘Respectfully), and “Your Name” and fill in the rest of the mandatory {asterisked} SENDER INFORMATION. The “Phone”number is now required by some Legislators (it’s required if your Senator is from Arizona) .
  7. Fill in the “Guest Type“, “Service“, “Rank“, “Component“, and “Status” if you want that information to show in your message (recommended).  You may be prompted to include a phone numberif you try to send the message without entering your phone number. Don’t be concerned about entering a phone number. I haven’t  received return calls except on rare occasions to thank me for my interest in a particular piece of Legislation, at which time you can comment (pro or con) to the staff member on how the Senator stands on the issue.
  8. Check “Remember Me” (recommended) if you don’t want to have to re-enter all of your Sender Information the next time you send a message. You can always change your information or uncheck ‘Remember Me’ anytime in the future.
  9. Hit “Send Message”
  10. If Printed Letter was selected at Step 4 above, at the screen after hitting “Send Message” leave “Plain Paper Style” and “Word Processor (RTF)” checked unless you have another preference. Then left click on “Print Letter(s)” at the end of the “PRINT LETTER” screen. At the File Download” alert that appears next, click on “Open”. You can then edit and print or save the letter for editing, printing, signing and mailing.

 

 

 

 

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