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GyG1345
01-20-03, 12:57 PM
This is MOAA's legislative update for Friday, January 17, 2003.

Issue 1: Medicare Coming to VA. The VA and Medicare have agreed to set up a Medicare HMO program in VA facilities for nondisabled veterans who are eligible for Medicare.

Issue 2: President Nixes OMB Pay Cap Plan. The White House has agreed to support an average 2004 military pay raise of 4.1% -- almost a full percentage point above private sector pay growth.

Issue 3: Senate Finance Committee Seeks Quick Action on Medicare Payments. The Committee supports killing the 4.4% Medicare payment cut now scheduled for March 1.

Issue 4: MOAA Coming to Nevada TV. MOAA President VADM Norb Ryan, Jr., USN-Ret, taped a Nevada cable TV segment with Sen. Harry Reid (D-NV) this morning, discussing 2003 legislative plans and outlook.

Issue 5: 108th Congress Kicks Off New Bills. Legislators have begun introducing a stream of new bills for 2003.

Issue 1: Medicare Coming to VA

VA Secretary Anthony Principi made two surprise announcements yesterday that are important to nondisabled veterans who want to use VA medical facilities.

First, he announced that, because demand by nondisabled veterans has far outstripped the VA's funding capacity, the VA will bar enrollment of any new "category 8" veterans, at least for the rest of this year. These are nondisabled veterans who have incomes above the threshold that qualify them as indigent, depending on where they live.

But he tempered that declaration by announcing that he has worked out a deal with Medicare officials and the White House to credential VA facilities as Medicare HMOs and use that route to bring some Medicare-eligible category 8 veterans back into VA care. Under this concept, known as Medicare subvention, Medicare would pay the VA for enrolling these older veterans.

The suspension of category 8 enrollments will affect about 164,000 veterans expected seeking enrollment this year. All veterans currently enrolled - including those in category 8 - are "grandfathered" in the VA health care system. Enrollment will remain open this year to all new category 1 to 7 veteran applicants. VA enrollment stands at about 6.8 million veterans.

Medicare HMO plans provide care under Medicare contracts. The VA would offer a prescription drug benefit as part of the plan. VA officials say no law change will be required to implement the new system, but it will take some time to work out the details, including how the VA will meet Medicare access standards. The HMO plan will be phased in over time, as facilities are able to meet those standards. Category 8 veterans who want to enroll will have to have both Medicare Part A (inpatient) and Part B (outpatient) coverage.

MOAA is concerned about the budget constraints that have forced prioritization of VA eligibility, but is encouraged by Secretary Principi's innovative efforts to help address the situation. We have long supported VA Medicare subvention as a way to help close the gap between demand and resources that has plagued the VA for years.

Issue 2: President Nixes OMB Pay Cap Plan

Score one for common sense.

We've been disappointed, to say the least, by Pentagon civilian leaders' recent opposition to needed changes like concurrent receipt and military manpower increases. But give them all the credit for standing tall in battling the President's budgeteers to protect the troops' pay raises.

Earlier this week, the President agreed with Pentagon leaders and rejected his budget chief's penny-wise and pound-foolish plan to cap active duty, Guard and Reserve members' 2004 and future raises below the average American's.

Given that the country is already putting the troops in harm's way around the globe and is deploying over 100,000 more for a potential war in Iraq, that should have been a no-brainer. But this pay raise dust-up is an important warning that some highly placed people in the Administration want to put people programs on the casualty list in future budget battles.

The good news is that the military pay raise the President will propose to Congress would continue to reduce the pay comparability gap with the private sector. If Congress agrees, most officers would see a 3.7% raise in 2004 - one-half percentage point higher than the average American's 3.2% raise. Some warrant officers would get larger raises. E-1s (basic trainees) would see a 2% raise, reflecting Pentagon studies that show entry level pay is already competitive. But E-2s and higher grades would receive at least the average American's 3.2%, with significantly higher raises for mid-career and senior NCOs (up to 6.25%, depending on grade and years of service).

Issue 3: Senate Finance Committee Seeks Quick Action on Medicare Payments

Committee Chairman Charles Grassley (R-IA) has persuaded his committee that it needs to act quickly to prevent the 4.4% cut in Medicare payments to providers that is now scheduled to take place March 1.

The committee agreed to put an additional $1.6 billion in the omnibus FY2003 Appropriations Bill that congressional leaders hope to pass before the end of January. The plan would provide relief for Medicare-participating doctors, some rural hospitals, and certain others.

This would solve the immediate problem and give Congress more time to change the statutory Medicare payment formula that virtually everyone in government recognizes is flawed and underpays doctors.

There are still many legislative hurdles left to clear, but winning Grassley's and the Finance Committee's support was a very big one.

Issue 4: MOAA Coming to Nevada TV

Concurrent receipt champion Sen. Harry Reid (D-NV) invited MOAA President Norb Ryan, Jr. (USN-Ret) and Veterans of Foreign Wars Washington Office Executive Director Bob Wallace to join him this morning in taping a cable TV segment for Nevada viewers.

All three reiterated their commitment to pursuing full concurrent receipt, and VADM Ryan took the opportunity to outline several other MOAA goals, including increasing the Survivor Benefit Plan annuity, providing needed pay and quality of life support to active, Guard and Reserve forces, upgrading military health care coverage, and providing needed funding for VA health care.

If you live in Nevada, the segment will be made available to PBS and local cable access channels, most likely sometime in February.

Issue 5: 108th Congress Starts with New Bills

With the start of the new Congress, legislators have begun offering a stream of new bills. Here is a list of selected bills of interest to MOAA members, many of which are carryovers from last year's unenacted initiatives:

*H.R. 303 (Bililrakis, R-FL) would eliminate the disability offset to military retired pay for all retirees with 20 or more years of service.

*H.J. Res. 3 (Thomas, R-CA) would prevent implementation of planned March 1 reductions in Medicare reimbursement rates. It would freeze Medicare payments at the higher 2002 levels until Congress can change the flawed rate formula.

*H.R. 26 (Cardin, D-MD) would reverse planned Medicare payment cuts and implement a schedule for yearly increases in the rate of Medicare reimbursements to providers.

*H.R. 36 (Bilirakis, R-FL) would allow qualifying survivors over age 55 to retain Dependency and Indemnity Compensation (DIC) if they remarry after the age of 55. Currently, they must forfeit that compensation if they remarry at any age.

*S. 19 (Daschle, D-SD) would authorize full concurrent receipt; restore tax equity form military homeowners and drilling Reservists; establish a mandatory funding mechanism for the VA health care system; and permit prescriptions from non-VA providers to be filled at VA pharmacies. NOTE: S. 19 is not intended as a vehicle for legislative action, but as a statement of the Democratic leadership's support for these initiatives in the 108th Congress. The individual provisions of S. 19 will be introduced as separate bills, and we'll list the separate bills on MOAA's Web site.

*S. 55 (Johnson, D-SD) would tie the yearly rate of Montgomery GI Bill Assistance to the cost of attending a public college or university.

*S. 58 (Johnson, D-SD) and H.R. 56 (Edwards, D-TX) would allow military retirees to enroll in the Federal Employees Health Benefit Plan (FEHBP) as an alternative to TRICARE. Retirees who entered service before June 7, 1956 would be exempt from paying FEBHP premiums.

We anticipate imminent introduction of bills on other MOAA-supported issues, including Survivor Benefit Plan (SBP) upgrades, health care improvements for under-65 beneficiaries, and active-duty pay and benefit increases.

We are grateful to all of the sponsors listed above for their legislative support of military and veterans' issues. For further details, visit MOAA's Web site at http://capwiz.com/moaa/issues/bills/. Note: since these are new bills, it may be 72 hours or more before some of the bill-specific information is available on the Web.