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THANK YOU!

MOAA Chapter Presentation Shane Ostrom Lt Col, USAF (Ret) Deputy Director, Benefits Information Department. THANK YOU!. Legislative Overview. Legislative Gains 2000-2007. Tricare For Life 28% A/D Pay Raise FY00-FY07 2.2% in 2007 Combat-Related Special Compensation

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THANK YOU!

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  1. MOAAChapter Presentation Shane OstromLt Col, USAF (Ret)Deputy Director, Benefits Information Department

  2. THANK YOU!

  3. Legislative Overview

  4. Legislative Gains2000-2007 • Tricare For Life • 28% A/D Pay Raise FY00-FY07 • 2.2% in 2007 • Combat-Related Special Compensation • Concurrent Receipt for 50% disability • Repeal of Social Security offset for SBP

  5. Current Washington Political Environment • The war • The election • AD/Grd/Res, Family, Employer Sacrifices • Not Much Other Nat’l Sacrifice • Recruiting / Retention Risks • Military vs. Entitlements vs. Domestic Spending • Declining Military Experience in Congress

  6. Declining Military Experiencein Congress 199119951999200320052007 Senate 68%     56%    43%      35%     31%     29% House 48%      37%     31%      27%     25%     23%

  7. The Arguments Against Us • Size of the Defense Budget • People vs. Weapons Costs • Health care costs • War costs • Previous legislative successes

  8. 2008 NDAA(National Defense Authorization Act)Recap

  9. Key NDAA ProvisionsSuccesses • No Tricare fee increases for FY 2008 • Military 3.5% pay raise • Start towards SBP-DIC offset fix (eff Oct 08) • $50 month increases $10 per year over next 5 years • Guard/Reserve retirement age reduction • 3 month age reduction for 90 days deployed • Guard/Reserve GI Bill good for 10 years

  10. Key NDAA Provisions Successes • VA health care to 5 years (vs 2) after combat theater service • Concurrent receipt—100% immediate for “Unemployable” (starts Oct 2008) • Retro to 31 Dec 04 • Concurrent receipt—Chap 61 with less than 20 years (Combat Related)

  11. Key NDAA ProvisionsFell short of the goal • No laws for controlling Tricare costs • Did not recognize Tricare premiums are paid by Service • 100% Concurrent Receipt for all • Reduced Reserve / Guard retirement age not retroactive to 9/11/01 • Reduce Tricare age requirement for reduced retirement age Reserve / Guard members • SBP – DIC offset issue

  12. Legislative Goals

  13. Primary Goals - 2008 Stop Tricare fee increases Eliminate offsets between VA compensation and Survivor Benefit Plan / Retirement Pay Active duty pay raise of 3.9%

  14. Other Priorities • Stop Tricare / Medicare payment cuts to doctors • Upgrade GI Bill benefits; improve Guard/Reserve program • Full funding for VA health care plus administrative streamlining • Lower permanent ID Card age

  15. Benefits Update Tricare FeesSBPConcurrent Receipt

  16. Tricare Fees

  17. DoD-Proposed Fee Hikes(TRICARE Prime Family Fee)

  18. Proposed TRICARE Prime Fees

  19. DoD-Proposed Fee Hikes(TRICARE Standard Family Rate)

  20. Proposed TRICARE Standard Fees

  21. DoD-Proposed Retail Rx Co-Payment Hikes

  22. DoD Rx Plan Worse than Most Civilian Employer Plans

  23. DoD Should Be Fixing TRICARE Problems • Many Doctors Refuse TRICARE Patients • Pays 25-33% Less Than Private Insurance • Excessive Admin. Burdens • TFL/Medicare Rates Scheduled for Further Cuts - beaten back in 2007 • Contractors Have No Incentive to Recruit Standard Providers • Works Poorly w/ Other Ins. • High Standard Inpatient Copays

  24. MOAA Position • Oppose These Ultra-Large Increases • $1,000 Rtmt Benefit Cut Hurts Readiness • Recruiting, Retention Already Worrisome • Civilian Comparisons Don’t Apply • Congress Refused $250 VA Fee • For Nondisabled Vets w/ few as 2 Yrs Svc • DoD Has Other Ways to Cut Costs • MOAA-Suggested 16 Are Getting Attention

  25. Help Keep Tricare Fees Low! Support: • Senate: S. 604 (Lautenberg, D-NJ) • House: H.R. 579 (Edwards, D-TX)

  26. Shingles Vaccine Explanation • Shingles vaccine (Zostavax): • Effective October 19, 2007 • Authorized for those over age 60 • Medicare Part D is first payer for those who enrolled • Tricare is first payer for all others. As first payer, TFL beneficiaries must meet annual deductible and 25% cost share

  27. Survivor Benefit Program(SBP)

  28. SBP: Social Security Offset Eliminated SS Offset phased out April 2008 • Annuity payment is now: • 55%* • 55% is the max payout *Of Annuity “Base Amount” elected at retirement

  29. Didn’t Congress Fix SBP? Although the SS Offset was eliminated, two major inequities remain a part of SBP: • SBP-DIC Offset • 2008 Effective Date for Paid-Up SBP • Nothing left to do about this

  30. Congress Admits Inequity 2008 First Legislative Step: • Special $50/mo payment • Add $10/mo each yr for 5 yrs • BUT excluded active duty deaths

  31. Survivor Benefit PlanOur Arguments • SBP & DIC Paid for Different Reasons • SBP is Purchased Insurance • DIC Should Be Added Indemnity for Service-Caused Death • Survivors of Fed Civ Vets Don’t Forfeit SBP When DIC Payable

  32. The FIX • To Repeal SBP-DIC Offset: • Senate: S. 935 (Nelson, D-FL) • House: H.R. 1927 (Ortiz, D-TX ) H.R. 1589 (Brown, R-SC)

  33. Concurrent ReceiptFull Payment ofRetired Pay and VA Compensation

  34. Congress Has Fixed For Some Cmbt Non-Cmbt RelatedRelated 20+ Yrs/100% Disability Yes Yes 20+Yrs/50+% Disability Yes Phasing In 20+ Yrs/0-40% Disability Yes No Under 20 Yrs—Med Retire Yes No

  35. 270k HAVES 553k Have-nots Concurrent ReceiptHaves vs. Have-nots

  36. 10% - $117 20% - $230 30% - $356 40% - $512 50% - $728 60% - $ 921 70% - $1,161 80% - $1,349 90% - $1,517 100% - $2,527 What’s Concurrent Compensation worth? (2008) Equal to VA Compensation Only Up to Total Amount of Retired Pay

  37. The FIX • Concurrent Receipt Bills • Senate: S. 439 (Reid, D-NV) • House: H.R. 333 (Marshall, D-GA) H.R. 303 (Bilirakis, R-FL)

  38. What’s Working with the 2009 NDAA?

  39. Status of the 2009 NDAA • Too early to tell, contact your reps • MOAA Stormed the Hill in April • GI Bill reform—lots of positive attention • Tricare fee issue—verbal support for MOAA • Testimony before Congress "Are we going to keep our commitments to our Servicemembers? Are we going to keep our promises, or is it just going to be bumper stickers?“ Vice Adm. Norb Ryan, Jr. (USN-Ret.) MOAA president

  40. WWW.MOAA.ORG

  41. WWW.MOAA.ORG

  42. WWW.MOAA.ORG

  43. Wrap it Up

  44. MOAA BenefitsforAll Military Members • Student Loan Program (interest free) • Scholarship program • Higher Education 529 Plan **Undergraduate only, MOAA mbr officers and enlisted (active duty, retired, Reserves, Guard), under 24 yo, borrow each year for up to 5 years,

  45. Life Membership Convert for spouse and chapter • Spouse -- support of MOAA for life • Chapter will get “Give Me Ten” credit

  46. “Give Me 10” Power on the Hill is reflected in numbers • In 2007, 3270 new members • For 2008, 1422 so far To thrive, we must grow

  47. Bottom Line YOU! Without Your Grassroots Support and Pressure on Your Legislators… we can’t be effective on your behalf!

  48. Military Officers Association of AmericaBenefits Information Department201 N. Washington StreetAlexandria, VA 22314-25391 800 234-6622Email: BenInfo@moaa.orgWeb: www.moaa.org

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