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Future US Military
Retired_Activities
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The following bulletins are furnished to ANA as important information to retirees by LT EMO Tichacek, USN (Ret) who is the Retired Activities Director in Baguio, P.I. and are used with his permission. If you have questions about the articles, please direct them to the cited reference in the bulletin and NOT to ANA or LT Tichacek. 01 Apr 2005
Legislation of Interest Update 07: Veterans bills, Resolutions, and Amendments related to legislation introduced in the 109th Congress not noted in previous Legislation of Interest Updates: S.614 (Sen. Arlen Specter, R-PA) would allow Medicare-eligible veterans who are not otherwise eligible for VA health care and services to have prescriptions filled at VA pharmacies for a fee not yet determined. S.639 (Sen. Jon Corzine, D-NJ) would lower the age of reserve retirement eligibility from 60 to 55. Companion bill to HR.783 H.R.558 (Rep. Tom Latham, R-IA) would amend title 10, United States Code, to expand health care benefits to all members of the Guard/Reserve and their families, and revise the age and service requirements for eligibility to receive retired pay for non-regular service. House counterpart to S.337. HR.756 (Rep John Culberson, R-TX) would exempt military pay and benefits, except for retired pay, from taxation. HR.783 (Rep. Jim Saxton, R-NJ) would lower the age of reserve retirement eligibility from 60 to 55. H.R.808 (Rep. Henry Brown, R-SC) would end the dollar-for-dollar deduction of Dependency and Indemnity Compensation (paid by the VA when the member's death is due to service-caused conditions) from the survivor's military SBP annuity. HR.848 (Rep Scott GARRETT, R-NJ) would allow the standard combat-zone tax exemption for troops in Iraq to include any income by a spouse paid during the period of deployment, making a family's entire income free from federal tax. H.R.968 (Rep. Jim Saxton, R-NJ) would change the effective date of 30-year, paid-up SBP from Oct 1, 2008 to Oct 1, 2005. House counterpart to S.185. H.R.1268 (Rep. Terry Everett, R-AL) FY2005 Emergency Supplemental Appropriations Act would increase the military death gratuity to $100,000 and maximum Servicemembers' Group Life Insurance (SGLI) coverage to $400,000. Currently coverage's are limited to $12,000 and $250,000, respectively. The House approved H.R. 1268 during the week of 13 MAR including a survivor benefits increase for families of members killed on active duty. House counterpart to S.77. H.R.1366 (Rep. Bilirakis, R-FL) would expand CRSC to those who were medically retired with less than 20 years of service. The same CRSC rules would then apply for all Chapter 61 retirees regardless of years of service. The proposed effective date of the legislation is 1 JAN 06. You can track cosponsorship, current status, and other information on selected bills of interest on MOAA's Web site at: http://capwiz.com/moaa/issues/bills/ By entering your ZIP code, you can locate your legislators and send them personal or suggested messages urging support or nonsupport. You can also track bills at http://thomas.loc.gov/ by entering the bill number into the box at the left that will appear after opening the site. [Source: Various 29 MAR 05] CRSC Update 28: Concurrent receipt champion Rep. Mike Bilirakis (R-FL) has introduced a new initiative (H.R. 1366) to help address a long-standing inequity affecting disabled members who were forced to retire from service before serving 20 years because of combat- or operations-related conditions (i.e Chapter 61 retirees). Currently, only members who served long enough to retire independent of any disability are eligible for Combat-Related Special Compensation (CRSC). Presently, those who were medically retired short of 20 years have to forfeit $1 of military retired pay for each $1 they receive in VA disability compensation. This legislation would ensure combat-wounded members receive the retired pay they earned by service. It would exempt from the VA offset an amount of retired pay equal to 2.5% of their highest 3-year average basic pay times years of service. For example, it would provide a member who is disability retired for combat wounds with 15 years of service at least 37.5% of high-3 average basic pay from the Defense Department in addition to his or her VA disability compensation. This legislation is important to help address a current inequity whereby a member with 20 years of service and a 10% combat-related disability from the VA doesn't have VA compensation for that disability deducted from retired pay, but a member who is 100% disabled from combat wounds and medically retired at 19 years and 6 months suffers the full VA offset. [Source: MOAA Leg Up 18 MAR 05] SGLI Update 05: By a 388-43 vote the House has approved its version of the FY2005 Emergency Supplemental Appropriations Act (H.R. 1268) including a survivor benefits increase for families of members killed on active duty. The Act would increase the military death gratuity to $100,000 and maximum Servicemembers' Group Life Insurance (SGLI) coverage to $400,000. Currently those coverages are limited to $12,000 and $250,000, respectively. The House-approved plan would provide retroactive benefit increases to survivors of certain members killed on active duty since 7 OCT 01 -- the official start date of the war on terrorism. It envisions paying the additional $88,000 death gratuity to families of members whose death on active duty was a direct result of an injury or illness...incurred in Operation Enduring Freedom or Operation Iraqi Freedom, as determined under regulations prescribed by the Secretary of Defense. The additional $150,000 insurance coverage (in the form of a "special death gratuity") would be paid to families of members who died as a direct result of illness or injury incurred "in performance of military duty" as determined by the Secretary of Defense. Military officials queried regarding having to make determinations are concerned about the prospect of being forced to make hair-splitting decisions in defining what deaths meet the "performance of duty" criteria - such as how to determine whether a heart attack suffered in bed was a result of the stress of military duty. Fraternal military organizations and uniformed service leaders had urged Congress to authorize the benefits for all members who died "in the line of duty" -- the more traditional rules that assume active-duty deaths are duty related in the absence of misconduct or other disqualifying circumstances. The Senate is expected to take up action on the supplemental appropriations measure soon. [Source: MOAA Leg Up 18 MAR 05] VA Budget 2006 Update: The Bush administration has maneuvered new support in their effort to reduce the government's veteran expense. In January, Republican leaders removed Rep. Christopher Smith (R-N.J.) as committee chairman for being too close to veterans groups, too supportive of expanding benefits and too dismissive of Bush administration plans to slow VA spending and impose fees on low-priority veterans. His replacement Rep. Steve Buyer (R-Ind) says the medical and rehabilitation needs of a new generation of war veterans leave him more certain than ever that Congress erred in 1996 when it opened VA healthcare to any veteran willing to pay modest fees. A decade ago, in the wake of a Persian Gulf War that saw relatively few U.S. casualties, the VA went back to worrying about an aging patient population and under-used VA clinics and hospitals. Those concerns, along with wishful thinking about the VA billing employer-provided insurance plans for the cost of care, led Congress to open VA facilities to veterans neither poor nor disabled. Time has shown that to be a mistake. Today the VA has $3 billion in uncollected debt for healthcare rendered which insurance companies have not paid. With oversight responsibility now for the second largest department in government, Buyer said he has three short-term priorities: * Re-focus VA
healthcare on its "core constituency" of service-disabled, indigent and
special-needs veterans. VA Budget 2006 Update
04: On 7 FEB 05 President Bush's administration released its
budget request for fiscal year 2006, which would add just $101 million
more for VHA than last year's appropriation. The amount would be an
increase of less than half of one percent; far below the 12 to 14% the
VA itself testified is necessary to offset inflation and the rising cost
of health care. Because the proposed increase is so small and comes at a
time of rapidly rising costs, the budget includes a number of maneuvers
to alleviate the impact by placing some of the financial burden on
veterans. For the third year in a row, the Bush budget proposal included
a plan to implement a $250 user fee for Category 7 and 8 veterans and to
increase prescription co-payments from $7 to $15. This year's proposal
also requires VA to identify and implement an additional $590 million
worth of management efficiencies. In plain language, implementing
management efficiencies means VA must maintain the same level of
productivity with half a billion fewer dollars. User fees and
co-payments are nothing more than an attempt to make veterans pay for
health care they have already earned. Every time such cost-transferal
proposals have been made, the veterans' organizations have voiced
complete opposition. In response to these objections, both the Senate
and the House of Representatives have always rejected the President's
proposals. However, the setting has changed with new House and Senate
Veterans Affairs committee chairmen Rep. Steve Buyer (R-Ind). He has
already stated his support to focus resources on fewer veterans. A
medical system that only treats the sickest of the sick and the poorest
of the poor is not sustainable and would be undesirable. In the end, it
would seriously erode the quality of care for today's and tomorrow's
veterans. The Bush proposal portends other dismal changes. VA indicates
that it will call for a staff reduction of 3,712 employees in medical
care. Federal funding for state-run veteran homes that provide long-term
care will be eliminated, and reduced budgets for VA-run nursing homes
will require the elimination of approximately 5,000 beds. Although the
budget plan would not push out any veterans currently residing in
nursing homes, VA officials said that the cut to long-term care reflects
an 18% increase in "non-institutional" care funding because veterans
increasingly are choosing home care. DAV and other organizations
encourage every member, and anyone concerned about the reduction of
veterans' benefits, especially during a time of war, to contact their
elected officials and express outrage that the men and women who have
fought for our country cannot know with certainty that a reliable VA
health care system will be available in the future to obtain benefits
and health care. Vet Home, Mississippi:
Making sure the Mississippi Veterans Home remains a comfortable
residence for veterans, the Department of Veterans Affairs is targeting
$1.7 million in grant money for improvements to the Jackson facility.
The grant will pay up to 65% of the cost of renovations, which include a
new air-conditioning system, new roofs on all buildings and new bedroom
furniture in the 150-bed facility. The overall cost of the project is
approximately $2.6 million. Mississippi has four state veterans nursing
homes. Each has a 150 bed capacity and provides skilled nursing home
care for eligible veterans and spouses. Eligibility for admission to the
Homes requires that a veteran be or have been a Mississippi resident,
have active duty military service, have a good military discharge, or be
the spouse of a veteran who resides in one of the Veterans Homes. Out of
state veterans may be admitted to the Homes if there are no Mississippi
residents waiting to accept a bed. Applicants must have a medical need
for nursing home care and must be able to pay the daily charge for care
in the Home. Indigent veterans can request assistance with the expense
of care in the facilities. Applications for admission to the state
veterans homes can be obtained from any of Mississippi VA office or the
below: The state veteran home facilitates should not be confused with the Armed Forces Retirement Home (AFRH) located n Gulfport Mississippi. Information on this facility is available by writing or calling the Public Affairs Office, AFRH Gulfport, 1800 Beach Dr., Gulfport MS 39507-1597 Tel: (800) 332-3527 [Source: VA news release 10 MAR 05 ++] Pre-tax Insurance Premiums: Senator John Warner (R-VA) and Congressman Tom Davis (R-VA) reintroduced bills (S. 484 and H.R. 994, respectively) that would let active and retired servicemembers and survivors pay TRICARE Prime enrollment fees, TRICARE Standard supplemental insurance premiums, and TRICARE dental premiums with pre-tax dollars. This measure also would allow federal retirees to pay Federal Employees Health Benefits Plan (FEHBP) premiums with these pre-tax dollars. This premium conversion plan deducts premiums from paychecks before federal and state income taxes are calculated. This saves the beneficiary anywhere from 25% to 40% of the premium cost in taxes. This benefit has been extended to current Federal employees who participate in FEHBP since 2000 and is already available to employees of the vast majority of large private sector firms. Premium conversion is an important benefit that if extended to annuitants would help lower their rising healthcare costs. It is also an equity issue, not just between active and retired employees but between military and federal civilian workers and between Federal and private sector workers. [Source: MOAA Leg Up 4 MAR 05] Vet Cemetery New Jersey: The Department of Veterans Affairs has awarded $6.1 million to New Jersey for the improvement of the Brigadier General William C. Doyle Veterans Memorial Cemetery. Since its opening in 1986, this cemetery has become the busiest state veterans' cemetery in the nation. The grant will ensure the cemetery continues to meet the needs of veterans and their families well into the future. Brigadier General Doyle cemetery, in central New Jersey near the capital of Trenton, provided 2,669 interments in the state's fiscal year 2004 that ended July 30. The cemetery is available to New Jersey's approximately 592,000 veterans and their dependents. Plans call for construction of a new administration and maintenance building. With the cemetery conducting twice as many burials a day as it was designed to accommodate, the new facility will help to increase its capacity to meet the need for burial services. As a complement to VA's system of national cemeteries, the State Cemetery Grants Program has helped establish, expand or improve 56 operational state veterans' cemeteries. States are responsible for operating their veterans' cemeteries after VA assists with construction. State veterans cemeteries provided more than 19,000 burials in fiscal year 2004. Since the program began in 1980, VA has awarded 138 grants for more than $215 million to 30 states and Guam. Eligibility for burial in the Brigadier General William C. Doyle Veterans Memorial Cemetery is based on the same criteria as burial in a VA national cemetery. The veteran or service member must also have established legal residence in New Jersey prior to death or have been a legal resident of the state for at least 50 percent of his or her lifetime. More information about the cemetery is available at (609) 758-7250. Information on VA burial benefits can be obtained from national cemetery offices, from the Internet at http://www.cem.va.gov/ or by calling VA regional offices toll-free at 1-800-827-1000. [Source: VA News Release 28 JAN 05] VA Fee Prescription
Plan: Sen. Arlen Specter, R-Pa., thinks veterans would be
willing to pay for the opportunity to have prescriptions filled at VA
medical facilities. Specter, former chairman of the Senate Veteran's
Affairs Committee proposes to allow Medicare-eligible veterans who are
not otherwise eligible for VA health care and services to have
prescriptions filled at VA pharmacies for a fee, the size of which is
not yet determined. The idea is to expand the number of people who are
benefiting from big drug discounts the VA has been able to negotiate
with pharmaceutical companies. The average cost of drugs through the VA
is 50% less than the average in national chain drugstores. The bill
S.614 to create the new benefit was introduced on 14 MAR. Specter said
he does not want the VA to incur any expenses for filling additional
prescriptions because in a time of flat budgets, this would detract from
care and services for disabled veterans. That is why he proposes to
charge for filling prescriptions for veterans who are not eligible for
VA care, through an enrollment fee, a copayment or even a straight
charge for each prescription. VA is in a better position to decide how
to charge for the drugs, as long as the end result is that veterans
would get a break on the prices they would pay at a chain drug store.
Those who would first benefit from this program are WW-II and Korean War
veterans who answered their country's call over 50 years ago. Specter
pointed out that as they age, many desperately need relief from high
drug price. He made a similar proposal two years ago, and it ended up
being adopted in JUN 04 by the Senate Veterans' Affairs Committee on a
10-5 vote. The bill, however, never advanced to the Senate floor, in
part because of opposition from drug manufacturers who could lose money
under the plan. Records Access Change
for USAF: Newly separated or retired Airmen no longer have to
wait several months to receive requested copies of certain records due
to a recent change on how the Air Force maintains personnel records. The
49-year-old practice of sending nearly 5,500 personnel records each
month to the National Personnel Records Center (NPRC) in St Louis, Mo.
ended FEB 05. This will reduce the annual growth in cost to the Air
Force of maintaining them there and is another step in the effort to
make Air Force personnel records available online anytime. At present
the Air Force pays around $8 million a year to maintain records at NPRC.
Former active-duty Airmen who retired or separated on or after 1 OCT 04
should now request copies of records such as DD Form 214s, performance
reports and other information by writing or faxing: AFPC/DPFFCMP, 550 C
St. West, Suite 19, Randolph AFB, TX 78150 Fax: Commercial
(210)565-4021, DSN: 665-4021. Personnel requesting their own records
need to send a signed note that includes their name, social security
number, contact information and specific record requested. Those
requesting a relative's record also need to provide their relationship
to the former Airman. Former Guard and Reserve Airmen who retired or
separated on or after 1 OCT 04 should write or fax HQ ARPC/PSDC, 6760 E.
Irvington Place, Suite 4000, Denver, CO 80280 Fax (303) 676-7071 DSN
926-7071. Those who retired or separated before 1 OCT 04 can visit the
NPRC Web site
http://www.archives.gov/facilities/mo/st_louis.html for record
request instructions. This change does not affect the disposition of
medical and dental records which will still be stored permanently at the
NPRC. Commissary Update 03: In spite of congressional action last year to retain separate military exchange and commissary systems, the Congressional Budget Office has surfaced the idea again of merging the systems. Under one option the Army and Air Force Exchange Service, the Navy Exchange Command, and the Marine Corps Exchange system would be merged, and under another the exchanges and the commissaries would be combined. The second would eliminate $900 million in subsidies and reduce service families' savings over off-base prices from 30% to 20%. To compensate, a tax-free grocery allowance of $500 per year would go to active duty members, thus committing drilling reservists and retirees to unequal access. A fuzzy area is service allocation of morale, welfare and recreation funding. The Navy and Marines have objected to merger in the past, and retiree organizations are bound to reject the idea again. [Source: Air Force Retiree News 18 MAR 05] IL Deployed Reserve Tax Donation: Beginning last year, Illinois taxpayers could check a box on their state tax returns to donate their tax refunds to families of deployed Reserve Component troops. So far, Illinois has sent $2.7 million to more than 5,000 military families. The state provides $500 grants to help families of its lower-paid Guard and Reserve members cover expenses after their military member is called to active duty. It also provides grants of as much as $2,000 for families in financial need because of a military deployment and $2,000 to troops injured or killed in combat or by terrorist activity. Grants go to service members in pay grades no higher than O-3 or W-3. Nine other states have established similar programs: California, Delaware, Kansas, Maine, Michigan, Rhode Island, South Carolina, Vermont and Wyoming. In addition, 21 states have introduced legislation to create programs. [Source: Air Force Retiree News 18 MAR 05] TRICARE Reserve Select
Rules: On 16 MAR 05 the Defense Department issued new rules for
TRICARE Reserve Select (TRS), its new health coverage plan for eligible
members of the Selected Reserve (members of the National Guard or
Reserve components who regularly train). TRS health coverage is
available to Guard and Reserve servicemembers who are serving or have
served on active duty on or after 11 SEP 01 who agree to remain in the
drilling reserves after they are demobilized. To be eligible for the TRS
benefit, a servicemember must: The TRS benefit structure is similar to
the active duty TRICARE Standard health plan coverage with the same
deductibles ($150 single/$300 family), 20% copay for inpatient and
outpatient care, $3/$9 pharmacy copays for generic/brand name drugs, and
a $1,000 out-of-pocket limit on deductibles and copays. Special TRICARE
programs not part of TRS include the Supplemental Health Care Program,
the Extended Health Care Option (ECHO) program, and the Special
Supplemental Food Program (also known as the Women, Infants, and
Children--Overseas Program). TRS coverage for members and covered family
members will terminate at the end of the Service agreement, or sooner if
the member separates from the Selected Reserve, voluntarily disenrolls
from the TRS Program, or fails to pay the monthly TRS premiums. For more
information about TRS benefits and program limits, visit the TRICARE Web
site at http://www.tricare.osd.mil/reserve
or contact your regional TRICARE contractor at
http://www.tricare.osd.mil [Source: MOAA Leg Up 11 FEB & 18 MAR 05] Welcome Home Package:
Democrats have created a "Welcome Home" package promising
extended health care, education benefits and $5,000 for the down payment
on a home for returning troops. Rep. Rahm Emanuel, D-IL who prepared the
package, said he is trying to come up with a modern version of the World
War II-era GI Bill of Rights. The plan, aimed at active and reserve
members who serve at least six consecutive months in Iraq or
Afghanistan, builds on health care, education and housing benefits
already in law. The veterans' home loan program, which current and
separated service members can use to buy homes for little or no money
down because the federal government guarantees their loans, would become
even more generous by creating a $5,000 grant that returning combat
veterans can use as a down payment. The GI Bill program, which gives up
to $45,000 in benefits over a four-year period for college or vocational
education, would expand for combat veterans to provide $75,000 in
benefits for college or vocational training. The money also could be
used to pay off existing student loans, something not currently allowed.
Separating service members, active or reserve, who are unable to get
health care coverage from an employer would be eligible to keep military
health care benefits for up to five years for themselves and their
families. Emanuel called his package a reward for heroism. The cost of
the Welcome Home package is huge, which will be a large obstacle in
getting the program passed. A formal cost estimate has not been
prepared, but the $5,000 down payment for buying a home, which aides
estimated to be the least costly of the three benefits improvements,
would total $8.5 million if just half of those eligible used the money.
Living Will: Having
a document that specifies in advance what medical treatment someone
wants if they are severely incapacitated and facing death makes the
situation much better for everyone and eases the agony that relatives
and friends often encounter. So far about 25% of American adults have
one. A living will usually authorizes providing, withholding or
withdrawing procedures that would prolong the life of someone in a
terminal condition. Hospitals are not the ideal settings for discussing
living wills and other health-care decisions. Physicians and their
patients should address such issues when a patient is healthy. People
who avoid the topic because they fear a loss of control should be aware
they can change their mind at any time and revise their will. What is
crucial is discussing the contents of a will with relatives, close
friends and one's physician. The important thing is to let the world
know what your desires would be if you should ever be in a persistent
vegetative state. Laws vary by state but usually require that a living
will be signed in the presence of two witnesses who are not a spouse or
blood relatives of the person writing the will. A lawyer is not
necessary for writing a living will, but having legal guidance may be
helpful, especially if there are conflicts among family members. It is
especially important to provide copies of the will to one's physician,
relatives and anyone having health-care power of attorney. The worst
place for it is tucked away in your safe-deposit box where no one can
see it. Comments by Pope John Paul II about artificial nutrition and
water for patients in persistent vegetative states have provoked
speculation about whether Catholic hospitals would override living wills
that refused tube feeding and hydration. The pope said that artificial
feeding for such patients is morally obligatory and that providing food
and water via a tube was a natural means of preserving life, not a
medical act. He did not mention living wills. But the papal statement
has not resulted in changes in the end-of-life medical care guidelines
set by the U.S. Conference of Catholic Bishops and followed by most
Catholic hospitals. It is normally the policy to honor the directions in
a patient's living will unless such requests are judged illegal or
immoral. An alternative document is a health-care power of attorney.
This designates a person who can make some or all health-care decisions
for you if you become incapacitated. In most cases, this person is a
spouse or an adult child. This can be combined with a living will in a
single document. For someone who has assigned health-care power of
attorney to a relative or friend, that responsibility would take effect
only if the person became incapacitated and was unable to make decisions
on their own. The person with power of attorney should be willing to act
as an advocate and take an interest in treatment options. Reserves Enlistment Age Raised: The Army has raised the maximum age for Guard and Reserve recruits from 34 years to 39. The three year test adds 22.6 million potential enlistees. The Army will not relax physical standards for the older recruits, who it said were valued for their maturity and patriotism. As of 28 FEB with only seven months remaining in the 2005 recruiting year, the Army Reserve was more than 10% short of its 2005 recruiting target, and the Guard was 24% behind its goal, according to Defense Department figures. A DoD spokesperson said it was possible after the three-year test ends in September 2008 that DoD would consider an even older enlistment age. In theory an individual could enlist, earn and receive full retirement at age 60 and skip being a gray area reservist. (Source: Armed Forces News 25 MAR 05) Tricare Pharmacy Rates Update 01: For more than a year, the Defense Department has been developing procedures to implement new prescription formulary rules, including the establishment of a "non-formulary" category of drugs for which beneficiaries would pay a $22 copay. Currently TRICARE drug copays are $3 for generics and $9 for brand-name drugs. This week, DoD panels identified the first two drugs for which the higher copayment will be charged: Nexium (a medication for ulcers and other stomach problems) and Teveten (for high blood pressure). Under DoD rules, drugs will be placed in this non-formulary category only when a DoD Pharmacy and Therapeutics (P&T) Panel of physicians and pharmacists determines that other drugs in the same medication class are just as effective at substantially less cost. "Non-formulary" drugs would be available at the regular $9 copay only when DoD approves a determination by the beneficiary's doctor that it is medically necessary to prescribe that medication in the patient's case (because of adverse reactions to other drugs, for example). The recommendations of that panel are then reviewed by a Beneficiary Advisory Panel (BAP). The final decision is made by the Assistant Secretary of Defense (Health Affairs), after taking both panels' recommendations into consideration. In the interim patients now using either Nexium or Teveten may wish to consult with their doctors about the possibility of switching to equally effective but less-costly medications. If the provider can document medical necessity for these drugs, that may be an option. No action is needed pending a final determination by the assistant secretary, but beneficiaries and providers can check out the rules for medical necessity documentation by contacting Express-Scripts customer service at (866)363-8779 or http://www.tricare.osd.mil/pharmacy/trrx_contact.cfm For more details on the uniform Formulary visit http://www.tricare.osd.mil/pharmacy/BAP/default.htm (Source: MOAA Leg Up 25 MAR 05) |
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