Information provided by Alabama Council of Chapters

LEGISLATIVE UPDATE

FEBRUARY 2008

February 22, 2008

COLA Watch. The Consumer Price Index for the month of January jumped 0.5% over December's value.

More $22 Drugs.  DoD has approved moving eight more medications to the $22 co-pay level, and restricted access to three others.

Tell Us What You Really Think. More than 3,000 MOAA members answered a December survey about their feelings on the condition of the U.S. military. The results may surprise you.

Preventive Care? Let's Get Serious. When so much of the rising cost of health care is attributable to care for chronic, preventable conditions, why isn't TRICARE implementing more positive incentives for beneficiaries to use medications and get treatments that have been demonstrated to dramatically reduce long-term health expenditures?

DoD Announces New Autism Program. Starting March 15, TRICARE will authorize a new program aimed at expanding availability of expensive treatment for military children diagnosed with autism.

February 15, 2008

Military Widows Win Right to Pursue Damages.  Survivors suing the federal government to end the VA benefits deduction from their Survivor Benefit Plan annuities got good news this week when a federal judge denied the government's motion to dismiss their suit.

Civilian Rx Plans Would Beat TRICARE's.  According to a respected survey of private benefit plans, the proposed TRICARE pharmacy plan would charge military beneficiaries more than most civilians pay.

Budget Hits Medicare Beneficiaries' Wallets.  The FY2009 budget for Medicare proposes significantly higher Part B premiums for many beneficiaries and lower payments for physicians.

Life after Walter Reed.  One year after The Washington Post reported the debacle at Walter Reed Army Medical Center, the Senate Armed Services Committee held a hearing on progress made in caring for our nation's wounded.

Berkeley Council Retreats Under Fire.  The city council of Berkeley, California, which earlier this month told Marine recruiters they were "unwelcome intruders" in their town, changed their tune this week rescinding a letter that admonished recruiting efforts there.

February 8, 2008

MOAA Tells Congress FY09 Priorities: MOAA's Government Relations director testified before Congress this week on health care, concurrent receipt, SBP, and active duty, Guard and Reserve personnel and compensation needs.

Key Committees Scrutinize Defense Budget.  Secretary of Defense Robert Gates and Joint Chiefs of Staff Chairman ADM Mike Mullen, USN, were on Capitol Hill Tuesday to roll out the $515 billion FY2009 Pentagon budget.

Tax Rebate Covers Retirees, Disabled. It took two weeks, but House and Senate leaders worked out disagreements that threatened to derail tax rebates for some disabled vets and survivors. Check out who will get how much, and when.

Enlisted Leaders Talk Quality-of-Life. At a budget hearing on February 7, military senior enlisted advisors thanked House appropriators for improvements to quality of life programs, but said challenges still exist.

February 1, 2008

CRSC Expansion Rules Place Claims "On Hold."  Recent expansion of the combat related special compensation program has left some newly eligible retirees wondering when they can apply.

MOAA On Stimulants: MOAA endorsed the Senate Finance Committee's proposed economic stimulus package this week, which would plug some eligibility holes in the House-passed plan.

Guard and Reserve Commission Report.  A congressionally chartered commission reports that the National Guard and Reserves are "woefully unprepared" for homeland defense, but there's "no reasonable alternative" to relying on them for missions at home and abroad. MOAA endorses many of the group's recommendations, but was surprised to see the commission endorse a controversial overhaul of the active duty retirement system.

Military Widows Argue Their Case. Three military survivors had their day in court on January 30 to argue that a 2004 law change effectively repealed the offset of the military's Survivor Benefit Plan (SBP) by the VA's Dependency and Indemnity Compensation (DIC).

TRICARE Conference Addresses Big Issues. MOAA leaders participated in panel discussions this week on the future of military health care and what's needed in the next-generation military health record system.

January 25, 2008

Senate Hears Disability Commission Concerns. The Chairman of the Veterans Disability Benefits Commission testified before the Senate Veterans' Affairs Committee, highlighting recommendations on concurrent receipt, the disability claims process, and PTSD, among other things.

No Vet Left Behind in 2009.  With the New Year just beginning, Congress is already busy drafting new bills and scheduling hearings to address gaps in veterans' health care.

Military Widows Take On Uncle Sam.  A group of determined survivors is suing the government over a 2004 law change that they say should have awarded them full payment of military Survivor Benefit Plan annuities as well as compensation from the VA for their husband's service-caused deaths.

January 18, 2008

COLA Watch. The Bureau of Labor Statistics announced that the Consumer Price Index edged down 0.1% in December.

House Passes Defense Bill (Again). The House re-passed the FY2008 Defense Authorization Act on January 16, ending worries that the President's post-Christmas veto might spark political fights and further delay its passage.

MOAA Outlines GI Bill Goals at Hill Hearing. At one of the first hearings of the new year, MOAA testified on its priorities for improving educational benefits under the Montgomery GI Bill including a recommendation to permit officers commissioned from ROTC scholarships and the service academies to enroll.

President Bush OKs Emergency VA Spending. In the normal budget process, the President asks Congress for money. In the topsy-turvy world of emergency appropriations, the process is reversed.

WEP/GPO Opponents Testify before Congress. A House hearing highlighted Social Security inequities faced by many teachers, state and local employees, and older federal civilians and their survivors - a group that includes many military retirees, spouses, and survivors.

ACTIVE DUTY AND GUARD/RESERVE ISSUES

Ø Military Pay Comparability

Key Bills/Status: The FY 2008 defense bill conference report authorizes a 3.5% military pay raise for 2008.  Unfortunately, the House bill provision that would have mandated pay raises for all service members during fiscal years 2009 through 2012 be one-half of 1 percent higher than the annual rise in the ECI, did not survive conference.

Ø Mismatch of Force Structure versus Mission

Key Bills/Status: The 2008 Defense bill conference report includes end strength increases of 13,000 for the Army and 9,000 for the Marines; however, they also include end strength decreases of 12,000 for the Navy and 5,000 for the Air Force.

Ø Relocation Allowances

Key Bills/Status: The House version of the FY08 Defense Bill, which would have allowed transportation of two vehicles on PCS to non-foreign OCONUS duty locations and was supported by MOAA, was pulled in conference.

Ø National Guard and Reserve Service Incentives

Key Bills/Status: H.R. 1593, S.455, H.R.3997 (employer tax credits); H.R.1102, S.644, S.22 (reserve educational benefits).  See MOAA Fact Sheet on Reserve Retirement for update on that issue.

Ø Lowering Reserve Retirement Age

Key Bills/Status: The National Defense Authorization Act (NDAA) for FY 2008 (H.R. 4986) takes an important first step on this issue by reducing the age at which a member of the Ready Reserve can draw retired pay below the age of 60 by 3 months for every aggregate 90 days of active duty performed from the date the NDAA is signed into law.  The lowest possible age authorized under the new authority is age 50.  H.R. 4930 (Rep. Joe Wilson, R-SC) would make the pending change retroactive to September 11, 2001.  MOAA strongly supports this legislation.

Ø Military Family Support

Key Bills/Status: The National Defense Authorization Act for FY 2008 (H.R. 1585) contained the following provisions:

Ø  Authorizes funds for the Defense Education System and facilities and provides impact aid to local educational agencies supporting large numbers of military children.

Ø  Establishes a DoD Military Family Readiness Council to review, evaluate and monitor implementation of recommendations for military family readiness policies and programs

Ø  Establishes a DoD working group called the "Yellow Ribbon Reintegration Program" to identify and assess the needs of reserve component members returning from overseas operational deployments

Ø  Requires Secretary of Defense to carry out a study to enhance and improve support services and programs for deployed servicemembers and their families

Ø  Authorizes servicemembers involuntarily separated from active duty or the Selected Reserve to continue to use commissary and exchange stores for two years after separation

Ø Total Force Montgomery GI Bill

Status: The National Defense Authorization Act for FY 2008 takes important steps to realize a Total Force MGIB by establishing 'portability' for activated reservists, "buy-up" authority, accelerated payments for reservists who enter certain training programs, and aggregate entitlement for multiple periods of active duty.  However, the maximum benefit for 36 months cumulative service performed by reservists is only 80% of the active duty rate.  It should be 100%.

MOAA strongly supports raising MGIB reimbursement rates to the average cost of a four-year public college /university education; month-for-month entitlement to benefits earned for aggregate active duty service; proportional increases to basic reserve benefits; and recodification of all MGIB elements in Title 38.

Ø Health Care Coverage for National Guard and Reserve Servicemembers

Key Bills/Status: No bills yet introduced on this topic for the 110th Congress.

MOAA strongly recommends that Congress should deny any TRS fee increases without sufficient justification of the basis for such increases.

HEALTH CARE ISSUES

Ø Health Care Cost-Shifting to Military Beneficiaries

Key Bills/Status: Representative Chet Edwards (D-TX 17th) and Walter Jones (R-NC 3rd) have introduced The Military Retirees Health Care Protection Act, H.R. 579, a bill that would establish the principle that it's Congress's responsibility, not the Pentagon's, to establish when and by how much military health fees will be increased.

Senators Frank Lautenberg (D-NJ) and Chuck Hagel (R-NE) have introduced S. 604, a bipartisan bill similar to H.R. 579 that would bar the Pentagon from imposing large TRICARE fee increases.

Ø TRICARE Under 65 Improvements

Key Bills/Status:  No bills yet introduced on this topic for the 110th Congress.  MOAA is working with potential sponsors and will update bill information as soon as it is available.

Ø Medicare Improvements

Key Bills/Status:  On August 1, the House passed H.R. 3162.  This bill eliminated the pending cut to Medicare reimbursement rates and will increase physician payments over the next two years.  In addition to increasing payments the legislation will also rework the current payment formula and provide a two year extension to the therapy cap exception.

Ø FEHBP As An Option for Retirees

Key Bills/Status:  No bills yet introduced on this topic for the 110th Congress.  MOAA is working with potential sponsors and will update bill information as soon as it is available.

Ø Support for Transitioning Servicemembers

Key Bills/Status: Following a series of articles in The Washington Post that highlighted shocking inadequacies and failures at Walter Reed Army Medical Center, both the House of Representatives and the Senate adopted bills to improved the overall care, management, benefits, and the quality of life for wounded warriors and their families.  The final version of the National Defense Authorization Act for FY 2008 (H.R. 1585) includes provisions from each chamber's bill.  The Wounded Warrior Act, as a whole, advances the care, management, and transition of recovering servicemembers.  Additionally, the Act opens the door for fundamental reform change in the DoD and Department of Veterans Affairs disability evaluation systems.

The report directs DoD and the VA:

Ø  To develop and implement comprehensive policy, including outpatient facilities, that are consistent across both organizations.

Ø  To establish a recovery plan to track the care and progress of wounded servicemembers.

Ø   The assignment of individual recovery coordinators to help the wounded and injured and their families navigate the systems.

Ø   To allow recovering servicemembers to be referred to public or private health care facilities, or for care and job placement for family members.

Ø  To establish a joint office to implement the transfer of electronic records between each agency.

The conference report also contains many recommendations of the President's Commission on Care for America's Returning Wounded Warriors as well as a number of other recommendations from special task forces and commissions appointed by the Administration and Congress.

Ø Tax Exemption of Premiums for Health Insurance

Key Bills/Status:  Senator John Warner (R-VA) and Congressman Thomas Davis (R-VA 11th) have introduced S. 773 and H.R. 1110, respectively.  These bills would allow uniformed services retiree beneficiaries, their family members and survivors pay TRICARE Prime enrollment fees and TRICARE Standard supplemental insurance premiums with pre-tax dollars.

Ø Health Care Coverage for National Guard and Reserve Servicemembers

Key Bills/Status: No bills yet introduced on this topic for the 110th Congress.

Ø Government Subsidy for TRICARE Retiree Dental Plan

Key Bills/Status: MOAA has not yet been able to secure introduction of a bill in Congress to provide a subsidy for the TRICARE Retiree Dental Plan (TRDP).

Ø TRICARE Uniform Formulary

Key Bills/Status:  No bills yet introduced on this topic for the 110th Congress.  MOAA is working with potential sponsors and will update bill information as soon as it is available.

RETIREE ISSUES

Ø Concurrent Receipt of Military Retired Pay and VA Disability Compensation

Key Bills/Status: Several bills have been introduced in the 110th Congress.  Congressman Gus Bilirakis (R-FL) has introduced H.R. 89, H.R. 303, and H.R. 1436; Congressman Jim Marshall (D-GA) has introduced H.R. 333; and Senator Harry Reid has introduced S. 439 (companion bill to H.R. 303) and S. 986 (companion bill to H.R. 89).

Ø  H.R. 1436 permits certain retired members of the uniformed services who have a service-connected disability to receive both disability compensation from the Department of Veterans Affairs for their disability and either retired pay by reason of their years of military service or Combat-Related Special Compensation.  This eliminates the phase-in period for retirees who are rated 100% due to unemployability (the unemployability provision is included in this year's defense bill).

Ø  H.R. 89 and S. 986 would extend eligibility for combat-related special compensation (CRSC) to chapter 61 (disability) retirees with fewer than 20 years of service (included in this year's defense bill).

Ø  H.R. 303 and S. 439 would eliminate the 10-year phase-in period for retirees with a disability rating of 50%-90% and extends concurrent retirement and disability payments' (CRDP) eligibility to retirees rated less than 50%.

Ø  H.R. 333, called the "Disabled Veterans Tax Termination Act," includes the elements of H.R. 303/S. 439 and H.R. 89, and would also open CRDP to chapter 61 retirees with less than 20 years of service.

Ø  In MOAA's view, H.R. 333 is our ultimate concurrent receipt goal, though we likely will need to continue making incremental progress in getting there.  MOAA is extremely grateful to these great champions for keeping the interests of disabled uniformed service retirees in the forefront.  MOAA fully endorses these bills.

Ø COLAs and Military Retired Pay

Key Bills/Status: No bills on the horizon at this time.  The most likely potential vehicles for future COLA threats are Social Security reform proposals that would limit COLAs as a means of reducing long-term costs or Federal budget reduction bills that would establish statutory caps on discretionary spending.  The 2008 COLA, announced this past October, is 2.3 percent for most recipients of military retired pay, VA disability compensation, Survivor benefit Plan annuities, Social Security, and other federal annuity programs.

Cost of Living Adjustments (COLA) sustain the value of retired pay, survivor annuities, and social security payments by adjusting these payments to track inflation as measured by the Consumer Price Index (CPI-W - Consumer Price Index for Urban Wage Earners and Clerical Workers).

Ø Retired Pay versus Active Duty Pay Adjustments

Key Bills/Status: No current or projected bills.

Ø Uniformed Services Former Spouse Protection Act Reform

Key Bills/Status:  No bills yet introduced on this topic for the 110th Congress.

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

Key Bills/Status: HR 82, sponsored by Congressman Howard Berman (D-CA), and S 206, sponsored by Sen. Dianne Feinstein (D-CA), have been introduced in the 110th Congress and would amend title II of the Social Security Act to repeal the Government pension offset and windfall elimination provisions.

MILITARY SPOUSE, FAMILY AND SURVIVOR ISSUES

Ø 30-Year Paid-up SBP

Key Bills/Status: Rep. Jim Saxton (R-NJ 3rd) has once again introduced Paid Up SBP legislation, H.R. 784 that would move up the current 2008 implementation date for 30-year paid-up Survivor Benefit Plan (SBP) coverage.  In the Senate Senator Bill Nelson (D-FL) has introduced a joint SBP-DIC and SBP Paid up bill.  The Military Retiree Survivor Equity Act, S.935, would repeal the SBP-DIC offset and move up the effective date of paid-up SBP to 1 Oct. 2007.  In the House Representative Solomon Ortiz (D-TX) has introduced H.R.1927, a companion bill to Nelson's S. 935

Ø SBP-DIC Offset for Survivors

Key Bills/Status: Once again Senator Bill Nelson (D-FL) has introduced a joint SBP-DIC and SBP Paid up bill.  The Military Retiree Survivor Equity Act, S.935, would repeal the SBP-DIC offset and move up the effective date of paid-up SBP to 1 Oct. 2007.  In the House Representative Solomon Ortiz (D-TX) has introduced H.R.1927, a companion bill to Nelson's S. 935.  Also the House Representative Brown (R-SC 1st) introduced H.R. 1589, which repeals the provisions of Title 10, which require the offset of DIC payments from SBP annuities.

Recently Representative Walter Jones (R-NC) introduced H.R. 5441, which amends the Special Survivor Indemnity Allowance by making survivors of active duty deaths eligible for the increased monthly compensation.

Ø Pre-Tax Health and Dependent Care Programs

Key Bills/Status:  No bills yet introduced on this topic for the 110th Congress.  MOAA is working with potential sponsors and will update bill information as soon as it is available.

Ø Military Family Support

Key Bills/Status: The National Defense Authorization Act for FY 2008 (H.R. 1585) contained the following provisions:

Ø  Authorizes funds for the Defense Education System and facilities and provides impact aid to local educational agencies supporting large numbers of military children.

Ø  Establishes a DoD Military Family Readiness Council to review, evaluate and monitor implementation of recommendations for military family readiness policies and programs

Ø  Establishes a DoD working group called the "Yellow Ribbon Reintegration Program" to identify and assess the needs of reserve component members returning from overseas operational deployments

Ø  Requires Secretary of Defense to carry out a study to enhance and improve support services and programs for deployed servicemembers and their families

Ø  Authorizes servicemembers involuntarily separated from active duty or the Selected Reserve to continue to use commissary and exchange stores for two years after separation

Ø Spouse Employment

Key Bills/Status: Once again Representative John Carter has introduced a bill that would include spouses of members of the Armed Forces on extended active duty (more than 90 days or for an indefinite period) as members of a targeted group for purposes of the work opportunity tax credit (thus giving employers a tax incentive for hiring military spouses).  We believe H.R. 2682 is a win-win for both military spouses and employers.

Ø "Undue Sacrifice" - SBP Brochure

This brochure outlines the problems with the SBP-DIC offset and the current 2008 effective date for paid-up SBP and argues for change.  This is a great tool to have handy when you visit or call your legislator.

OTHER ISSUES

Ø Flag Anti-Desecration Amendment

Key Bills/Status: No bills yet introduced on this topic for the 110th Congress.  MOAA is working with potential sponsors and will update bill information as soon as it is available.

Ø 1993 Social Security Tax Hike

Key Bills/Status: No bills yet introduced on this topic for the 110th Congress.  MOAA is working with potential sponsors and will update bill information as soon as it is available.

Ø Veterans Benefits Improvements

Key Bills/Status: No bills yet introduced on this topic for the 110th Congress.  MOAA is working with potential sponsors and will update bill information as soon as it is available.

Ø Arlington National Cemetery Burial Rules

Key Bills/Status: No bills yet introduced on this topic for the 110th Congress.  MOAA is working with potential sponsors and will update bill information as soon as it is available.

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

SELECTED LEGISLATIVE GOALS FOR 2008

Active / Reserve Force Issues

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

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

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

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

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

Ø  Protect funding for commissary, dependent schools and other military benefits

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

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

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

Ø  Restore equitable G/R GI Bill benefits

Health Care Issues

Ø  Fully fund the Defense Health Program

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

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

Ø  Upgrade TRICARE to attract more providers and improve beneficiary access

Ø  Fix Medicare/TRICARE payment rate formula to promote provider participation

Ø  Ensure a broad TRICARE pharmacy formulary

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

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

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

Retirement/Survivor Issues

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

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

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

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

Ø  Oppose military benefit changes that are inconsistent with service career sacrifices

Ø  Expand permanent ID card eligibility for elderly / disabled beneficiaries

Ø  Reform the Uniformed Services Former Spouse Protection Act (USFSPA)

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

Ø  Implement a more equitable military disability retirement system

Veterans, Family, Other Issues

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

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

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

Ø  Provide incentives for employers/government contractors to hire military spouses

Ø  Authorize compensation/support for family member caregivers of severely injured

Ø  Win congressional approval of Flag anti-desecration amendment

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

Ø  Prevent disproportional Social Security/Medicare penalties for any population segment

SELECTED LEGISLATIVE GAINS FOR 2007

Health Care Issues

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

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

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

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

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

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

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

Ø  Bar outsourcing of military medical positions

Retirement/Survivor Issues

Ø  2.3% retired pay/SBP COLA

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

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

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

Ø  Require single notice of SBP recoupment amount for DIC widows

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

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

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

Active/Reserve Force Issues

Ø  3.5% military pay raise as of 1 Jan 08

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

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

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

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

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

Military Family / Veterans / Other Issues

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

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

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

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

Issues Still on the Table for 2007

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

FY 2008 Defense Authorization Bill Provisions