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National Defense Authorization Act
As we went to press, the House Armed Services Subcommittee on Military Personnel had marked up and nearly completed work on their part of HR 1585, The National Defense Authorization Act for FY2008 (NDAA2008) The President and Congress were working on a supplemental appropriation after he had vetoed the first version and partisan wrangling was continuing. However, work on military personnel issues within the personnel subcommittee was exceptionally bi-partisan and directed toward solving many long-standing problems. The entire Department of Defense faces a severe money crunch and it affects agencies throughout the department. This is a major concern of AFTEA. During WWII the percentage of the Gross Domestic Product devoted to defense was about 39 percent, during the Vietnam war, 13 percent and now, with combat raging in Iraq and Afghanistan, the Department of Defense share has fallen to under 4 percent. This is an outrage; AFTEA and other defense related advocates have called for no less than 4 percent in peacetime, which must be significantly increased in wartime. To fight a war as complicated and difficult and important as this one and for the nation to devote no more of its resources than around 4 percent is creating serious funding problems that will be with us for years. Most importantly, some needs will go unfounded, which will place at risk the lives of our military personnel on the battlefield.
Representative Vic Snyder (D-Ark.), Chairman of the House Military Personnel Subcommittee and Representative John McHugh (R-N.Y.), Ranking (Republican) Member, worked together on a bi-partisan basis to complete their part of NDAA 2008.
Personnel Strength
They are recommending an increase in military end strength of nearly 45,000 personnel over the President’s request. This would mean an increase of 36,000 for the Army, 9,000 Marines, 698 Navy and 963 Air Force. Chairman Snyder stated that some of the increase, particularly for the Air Force and Navy are intended to restore the military personnel cuts in the services’ medical departments and to prohibit further conversion of military medical personnel to civilian slots. Those actions are long overdue. DoD civilian officials have complained about the high cost of providing medical care while slashing the military medical personnel spaces. This in turn increases cost because more patients must be sent to private sector providers at much greater expense to the government. Study after study has shown the treatment in private sector facilities is about 40 percent costlier than treatment in Military Treatment Facilities (MTFs).
Medical Care
Once again the committee killed the administration’s proposal for huge increases in TRICARE fees and TRICARE pharmacy program fee increases. However, there are several studies and reports still pending. The DoD Task Force on the Future of Military Health Care still has several months of work to do. The Government Accountability Office (GAO) also has not yet completed an audit of the information DoD used to impose the harsh fee increase proposals. So long as these studies and reports are outstanding, significant recommendations for changes to the military medical benefit can be expected. Congress in the past has been reluctant to adopt many of them. However, with the continuing increase in cost of the Defense Health Program, both the executive and legislative branches are eager to find a solution. AFTEA and other military associations have opposed these fee increases and have waged an intense battle over the past two years to prevent them. We will continue to do so. We ask all of our members to stay in touch on this issue. When Congress stops increases as they have done the past two years-thank them. When threats appear, let your congressional delegation know how you feel and ask them to intervene.
Survivor Benefit Plan/Dependency and Indemnity Compensation (SBP/DIC)
One of the great injustices in the military compensation system is the SBP/DIC offset. Military personnel and their spouses are encouraged to enroll in SBP and increasing numbers over the years have done so. Then, if the service member dies of a service connected disability and the surviving spouse is awarded Dependency and Indemnity Compensation, the government reduces the SBP annuity one dollar for every dollar the survivor receives in DIC. The government returns a proportionate amount of the SBP premium, which is taxed. If insurance companies ran their businesses like this the owners would go to jail. Unfortunately, this is legal and has been going on for many, many years.
The House Military Personnel Subcommittee has taken a small step to begin resolving this issue and has proposed a monthly payment of up to $40 to these surviving spouses. AFTEA and other military associations have worked years and will continue to work to resolve this injustice. Mrs Edie Smith of the Gold Star Wives of America stated that she is pleased that,”the committee has acknowledged the inequity and has begun the long term process of correcting the problem.”
Concurrent Receipt
Another longstanding inequity is the problem of concurrent receipt. Several steps have been taken over the years to correct this injustice, but many problems remain. One such problem involves “Chapter 61” retirees. These are retirees who have been forced to retire from the military because of serious wounds or other injuries. Except for these injuries they would have gone on to serve full careers. This legislative initiative would authorize combat-related special compensation (CRSC) for Chapter 61 retirees so long as they have a minimum of 15 years of creditable service and the level of their disability is rated at 60 percent. Again, many concurrent receipt problems remain and AFTEA and other associations will remain engaged to correct this longstanding problem. AFTEA President Albert Ybanez expressed appreciation to the committee for taking up this issue again this year and stated, “This action by the committee overrules the principle that no Chapter 61 retiree should receive CRSC and lays the groundwork for the next step. AFTEA will continue to work on full concurrent receipt for all service disabled retirees including all Chapter 61 retirees.”
TRICARE Prohibition
Last year’s Defense Authorization Act contained a provision that would make it illegal for the employer of a military retiree to pay TRICARE or supplemental insurance premiums or copays if the military retiree wanted to keep his TRICARE benefit as his primary insurance rather than the group health plan of the company he worked for. AFTEA opposed this unfair provision, because it singled out military personnel for this prohibition. It did not apply to retired Federal civilians or any other employees. Further, the TRICARE benefit is earned by military service and by restricting its use, the government is reducing the value of the retirees’retirement. It was another effort by the Government to control costs by discriminating against military retirees. AFTEA and other associations have worked to change this provision which is scheduled to take effect on 1 January 2008. Congress directed DoD to review the policy and submit a report to Congress by 30 April 2007. The report is late and DoD has not indicated when it will be provided to Congress. AFTEA is hopeful that the policy has been changed and that the broad prohibition will be lifted. While abusive practices by employers should be prevented, the broad, ambiguous language was unfair, confusing and certainly should be corrected.
Summary
AFTEA members have played a key role in legislative successes and have helped prevent some serious injustices in many areas of the lives of military personnel. We still have much to do and with the recurring problems in getting sufficient funding, we will have to work hard to increase the Department of Defense share. The percent of Gross Domestic Product going to our defense in time of war is disgraceful. Military retirees speak not only for themselves and their families, but also for those currently serving. If we don’t stay involved then we do an injustice to the brave young men and women undergoing the hardships and danger, just as you did earlier, to help keep us safe and free.
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