MRGRG-MS - MOAA Update - Health Fees and Force Cuts Debated

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From: MRGRG-MS@yahoogroups.com [mailto:MRGRG-MS@yahoogroups.com]
On Behalf Of Floyd Sears
Sent: Saturday, February 04, 2006 2:46 PM
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Subject: [MRGRG-MS] [Fwd: MOAA Update: Health Fees and Force Cuts Debated]

 

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MOAA - Legislative Update

February 3, 2006

Issue 1: Force Cuts Off-Base.

The Pentagon is expected to propose big cuts in Army manpower in the FY2007 budget request, especially in the National Guard.  But House Armed Services Committee Chairman Duncan Hunter (R-CA) and other Hill leaders vow to fight the proposals.  Chairman Hunter is right.

Issue 2: Hill Staffers Question TRICARE Fee Hike Plan.

A panel of House and Senate Armed Services Committee staffers at the annual TRICARE conference raised lots of questions about the Pentagon’s plan to sock military retirees with significant health care fee increases.

Issue 3: Medicare Payment Cuts Repealed, Again.

The House reconvened this week and passed Congress’s budget savings package (S. 1932) repealing the scheduled 4.4% Medicare physician payment cut that automatically took effect Jan. 1.


Force Cuts Off-Base

Civilian and military defense leaders keep warning about a long and difficult war on terrorism.  But that isn't keeping them from urging Congress to cut the Army by one combat brigade and the National Guard force by six brigades, about 17,000 thousand Guard billets. 

Last year, after a top-to-bottom force review, Army leaders said they need a total of 77 combat brigades to meet mission requirements.  At that force level, they said, active duty combat soldiers would spend one year out of three away from their families, and Guard and Reserve troops would spend 18 months away from their families every five or six years.

At the time, MOAA expressed skepticism that the all-volunteer force could handle such long-term family sacrifices, which would far exceed the experience of most military members over the last 50 years.  Eventually, we said, such arduous requirements would almost certainly extract a significant toll on retention and readiness. 

Congress shared our concern, and added 20,000 troops to the Army's strength in FY2005 and another 10,000 in FY2006 -- over Pentagon objections. 

Now, Army and Defense leaders say they've reworked the numbers and discovered that the Army only needs 70 combat brigades.

Republican and Democratic leaders have had the same reaction to this number-jimmying:  it's an exercise in budget-capping that has little to do with real military requirements.  It's all about cutting people to pay for weapons.

Senate Majority Leader Bill Frist (R-TN) is introducing a resolution in the Senate to reject the cuts.  House Armed Services Committee Chairman Duncan Hunter (R-CA) says: “The [defense planning process] has become budget-driven, and we can’t allow that to happen.  The one thing we don’t want to see -- and I talked to the White House about this yesterday [Feb. 1] -- is a competition between end strength and modernization.”

MOAA agrees with Chairman Hunter.  Congress must act to fund what the nation needs to win the war on terror and to provide for homeland security -- a vital National Guard mission -- and not cut our military forces to fit under some arbitrary budget cap. Hunter also argues that the nation should commit 4% of its gross domestic product (GDP) to defense, up from today’s 3.8%, to free up enough resources for military manpower as well as weapons. 

 In our view, the Army’s 77-brigade capability should be the "floor," not the "ceiling". 

With recruiting already in trouble and a level of strain on the troops that has to raise concerns for future retention, the Army has already pulled out virtually every other available manpower stop -- paying ever-bigger recruiting and retention bonuses, lowering enlistment standards, and raising the maximum age for enlistment.  And now they want to cut planned force levels?

The National Guard has been the country's savior in sustaining unprecedented combat operations, and those members and families are feeling stresses as well.  And that's not their only vital mission.  The call-up of more than 50,000 Guard troops in the wake of Hurricane Katrina wouldn't have been possible if the proposed force cuts had been in effect.  

Simply said, these budget-driven force cuts fly in the face of reality.  We applaud Chairman Hunter and other congressional leaders for standing up to sustain the force levels needed to protect the nation.

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Hill Staffers Question TRICARE Fee Hike Plan

At a TRICARE conference discussion forum on Jan. 30, Republican and Democratic staff members from the House and Senate Armed Services Committees told TRICARE officials that they shouldn’t expect Congress to just roll over and accept the Defense Department’s plan to impose significantly higher TRICARE fees on military retirees.

While they agreed that rising costs are a concern, several made it clear that many on the Hill don’t share the Pentagon’s view that the answer is to stick retirees with bigger bills.

The Senate staffers questioned the Pentagon analysis and expressed doubt whether private sector solutions (such as higher cost-shares) are the answer for the military situation.  They also indicated the Pentagon hasn’t won any points by failing to brief the Committee about the plan and the rationale behind it, and that Congress is already starting to receive thousands of letters from upset retirees.  There was general agreement among all of the staffers on the panel that military retirees are different from civilians because they earn their benefit through a career of arduous sacrifice, including wartime service. 

House and Senate staffers also agreed that more needs to be done to ensure there are enough providers participating in TRICARE - both TRICARE Standard and TRICARE Prime - to meet beneficiary needs.

We’re pleased and appreciative that these key Committee staff members show a lot more sensitivity to military beneficiary needs than the Pentagon has, and that the fee hike plan is going to get an intense going-over when it arrives on Capitol Hill (which could be as soon as Feb. 6).

In the meantime, it’s essential to keep up a sustained barrage of grassroots inputs to Congress over the next several months.  MOAA members can help that cause by signing, stamping and mailing the tear-out letters to the four top Armed Services Committee leaders that are enclosed in the February MOAA magazine (two at page 34 and two at page 50).  You can add important extra emphasis to your letters with a hand-written “p.s.”

                                                                                                      

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Medicare Payment Cuts Repealed, Again

In December, we reported that Congress’s final budget savings package (S. 1932) struck a compromise that repealed the 4.4% Medicare physician payment cut scheduled for January 1, 2006, but froze 2006 Medicare and TRICARE payment rates at 2005 level.  However, the Senate made some minor, last minute changes in unrelated parts of that bill that required kicking the package back to the House for another vote. 

Unfortunately, the House had already recessed, which meant the law couldn’t be changed until the House came back in late January.  During the congressional recess, Medicare was required by law to implement the 4.4% reduction in physician payment rates on Jan. 1. 

The House reconvened on Jan 31 and voted on the budget savings package on Feb. 1 passing it by a slim margin.

Medicare will now automatically reprocess all claims filed since Jan 1.  Medicare will then pay each doctor one check to make up the total difference for all claims filed since Jan. 1.

Medicare has acknowledged that it could take until July before all the claims have been reprocessed.  Doctors who chose to stop seeing Medicare beneficiaries because of the temporary cut will be given a 45-day reenrollment period to rejoin the program.

During this process, TRICARE continued paying at the 2005 rates, on the assumption that the legislation would be passed shortly after the House returned from its year-end break.

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-- 
Floyd Sears, MSGT, USAF, retired
Retired Military Advocate
6733 Riviera Drive
Biloxi, MS  39532
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