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The Military Coalition Presentation to the USCG Retiree Council April 28, 2010 Phil Odom MOAA John Davis FRA PowerPoint Presentation
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The Military Coalition Presentation to the USCG Retiree Council April 28, 2010 Phil Odom MOAA John Davis FRA. Agenda. Who We Are Wins & Goals Current Hill Environment Active Duty Issues Retiree / Survivor Issues Healthcare Issues Q & A. The Military Coalition.

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Presentation Transcript
The Military Coalition

Presentation to the

USCG Retiree Council

April 28, 2010

Phil Odom MOAA

John Davis FRA

  • Who We Are
  • Wins & Goals
  • Current Hill Environment
  • Active Duty Issues
  • Retiree / Survivor Issues
  • Healthcare Issues
  • Q & A
the military coalition
The Military Coalition
  • Organized in 1985
  • 34 Military/Veterans Assns
  • Represents over 5.5 Million Members
  • Each With Its Own Programs/Goals
  • United Purpose: Strong Advocacy
  • Focus on Active, Guard & Reserve, Retired & Survivor Issues
wins last 10 years
Wins Last 10 Years
  • 46% Cum. Pay Raise (vs. 33% Pvt Sector)
  • Major GI Bill Upgrades
  • End Strength Increases
  • Wounded Warrior Protections
  • Repealed REDUX Retirement Penalties
  • Concurrent Receipt
  • Major Survivor Benefit Upgrades
  • Reserve TRICARE Coverage (& Premium Cut)
  • Defeated Major TRICARE Fee Hikes
  • G/R Ret Age Credit for AD Svc (Prospective)
  • TRICARE For Life/TRICARE Senior Pharmacy
  • Military Spouse/Children Protections
2009 wins
2009 Wins
  • Reversed 15% Medicare/TRICARE Cut
  • 30K Army End Strength Plus-Up
  • 3.4% Military Pay Raise
  • Defeated $110/Day Inpatient Fee Hike
  • Preventive Care “Carrots”
  • TRICARE For Gray Area Reservists
  • Military Spouse Residency Relief Act
  • Military Child Education Compact
2010 top goals
2010 Top Goals
  • Minimize Health Cost-Shifting
  • More Concurrent Receipt Progress
  • SBP-DIC Offset
  • Match End Strengths to Missions
  • Guard/Reserve Retirement / TAP
  • Medicare/TRICARE Access/Funding
  • Family Support Programs/Funding
  • Seamless DoD/VA Transition
current hill environment
Current Hill Environment
  • Afghanistan Surge – Iraq Drawdown
  • Obligations to Wounded & Survivors
  • Stress on the Force – Member & Family
    • Economic Recovery & Federal Deficit
    • Entitlement Reform Threats
    • National Health Care Reform
heard on the hill
Heard on the Hill

“Congress has added politically popular pay raises and increased benefits for military personnel…, while stifling repeated efforts…to raise fees for the military’s TRICARE health care system”

personnel cost more
Personnel Cost More
  • Pay Raises: 6 yrs of ECI+1/2% (2006), ECI (2007), ECI+1/2% (2008) ? 2009
  • 4 Rounds of “Pay Table Reform”
  • BAH Increases
  • TRICARE For Life
  • Concurrent Receipt for VA Disability Rating of 50% or Greater
  • Repeal of Redux
  • Repeal of SBP Offset to Soc Sec After 62
active force goals
Active Force Goals
  • Increase End Strength to Match Mission
  • Fairer Treatment of Wounded & Families
  • Upgrade Health Care Access
  • Restore/Sustain Pay Comparability
  • Authorize Flexible Spending Accounts
  • Improve Family Support Programs/Funding
  • Raise PCS Reimbursements
  • Increase Orthodontia Payment Cap
retiree survivor goals
Retiree/Survivor Goals

End ‘Disabled Veterans Tax’

Repeal SBP-DIC Offset

Bar Excess Health Cost-Shifting

Upgrade Health Care Access

Guard Against Devalued Retirement

More Consistent Disability Ret System

Restore DIC If Remarry after Age 55

Final Retired Paycheck for Survivors



  • Further Expand Concurrent Receipt
  • Senate: S. 546 (Reid, D-NV)
  • House: H.R. 303 (Bilirakis, R-FL)
  • H.R. 333 (Marshall, D-GA)
  • White House: Budget submission supports fixing all Chapter 61 retirees; CBO score $5.8B

SBP /DIC Inequity

  • VA Indemnity Payment (DIC) Offsets Paid Insurance on Retired Pay (SBP)
    • DIC Deducted from SBP Dollar For Dollar ($1,154/Mo)
  • Wipes Out Most SBP for E-6 and Below Active Duty Deaths
  • FY ’08 NDAA acknowledged inequity; rebate added; FY10 $60; increases to $345 by 2016


Repeal SBP-DIC Offset

Senate: S. 535 (Nelson, D-FL)

House: H.R. 775

(Brown, R-SC, Ortiz, D-TX)

Discharge Petitionintroduced

CBO Score = $7B

what s next
What’s Next
  • President’s Budget submitted in February
    • Pay raise 1.4% ; smallest since 1962
    • Concurrent Receipt fix for Chapter 61 retirees; no $ provided ($5.8B)
  • G/R Early Retirement credit FY fix
    • Deployment spanning 2 FY’s
  • SBP/DIC Repeal (HR 775) Discharge Petition
  • Fiscal Reform Commission
fiscal reform commission
Fiscal Reform Commission
  • “Everything Is On the Table”
    • Medicare, Soc Sec, Fed/Mil Retirement, VA, Taxes
  • 1995 Commission Revisited, But Worse
  • Challenges:
    • Articulate Earned Benefits vs. Social Programs
    • Avoid Disproportional Penalties on Any Segment


John Davis FRA

healthcare legislative wins for 2009
Healthcare LegislativeWins for 2009
  • TRICARE Co-pays/Fees
  • Medicare/TRICARE Provider Payments
  • Preventive Services Co-pays & Deductibles
  • Improve Access to Health Providers
  • Gray Area Reserve TRICARE Coverage
healthcare legislative wins for 20091
Healthcare LegislativeWins for 2009
  • Special Compensation for Wounded Warrior Caregivers
  • Reserve Component Transition Assistance
  • Prohibition of MIL-CIV conversions
  • Expansion of TRICARE Dental to Survivors
healthcare legislative goals for 2010
Healthcare Legislative Goals for 2010
  • Ensure proper DoD/VA Care for Wounded Warriors and Families
  • Improve TRICARE Access and Provider Participation
  • Fix Medicare/TRICARE Pay Formula
  • Protect Against Benefit Cuts/Avoid Disproportional Cost-Shifting
healthcare legislative goals for 20101
Healthcare Legislative Goals for 2010
  • Allow 3 Yrs of A-D level healthcare for disability retirees/family
  • Improve Seamless Transition Between DoD and VA Healthcare Benefits Systems
  • Authorize Option to Subsidize Retention of Reservists’ Civilian Family Health Insurance
tricare fees
  • Good News
    • Sec Gates Indicated no Fee Increases in Budget and Approves Defense Request
    • Solves a Budget Issue for Congress
  • Bad News
    • Opened Discussion on Dept’s Ability to Sustain Continued Increase in Health Costs as have other lawmakers
tricare fees1
  • DoD Past Arguments for Fee Increases:
    • Need to Restore 1995 Share of DoD Cost
    • Need to Reflect Civilian Practices
    • Cost of Legislated Benefit Increases
    • Need to Free Funds for Weapons
beneficiary fees vs dod costs
Beneficiary Fees vs.DoD Costs
  • Fees Should NOT Reflect % of DoD Costs
  • Bureaucracy Doesn’t Incentivize Efficiency
  • Ops/Readiness/Inefficiency Costs Are “Cost of Nat’l Defense”, Not Patient Responsibility
positive ways to cut dod health costs
Positive Ways to Cut DoD Health Costs
  • Incentivize Preventive Care
    • Eliminate Co-pays/Deductibles for Cost-Saving Treatments/Meds
  • Continue efforts / pilots to re-direct and educate on proper care venues
  • Promote Mail-Order Rx in Positive Way – Now termed “Home Delivery”
positive ways to cut dod health costs1
Positive Ways to Cut DoD Health Costs
  • Promote Retention of Employer Ins.
    • Make TRICARE True 2nd-Payer
    • Provide Optional Subsidy for G/R
  • Maximize Use of Military Medical Facilities / Medical Home Model
  • Overhaul PreAuth and Referral Sys
tricare fee legislation
TRICARE Fee Legislation
  • Need to Establish Principles In Law:
    • Primary Offset for Service Conditions
    • Military Pre-Pay Very High In-Kind Premiums Through 20-30 Yrs of Sacrifice
tricare fee conclusion
TRICARE Fee Conclusion
  • Have not Dodged the Bullet
  • No Budget Battle but Still Pressure on Congress to Increase Fees
  • Potential Savings Could be Used for Other Priorities
  • Allows Reasonable Dialogue and Trade-Offs
healthcare reform current bills of interest
Healthcare ReformCurrent Bills of Interest

S. 3148 & H.R. 4887 amends the IRS Code to provide for the treatment of DoD health coverage as minimal essential coverage; Sen. Webb (March 22); Rep. Skelton (March 19); sent to WH 14 April

S. 3162, clarifies the healthcare provided by VA that constitutes minimum essential coverage; Sen. Akaka ( March 24)

H.R. 4894, amends the PPACA to ensure appropriate treatment of VA and DoD health programs; Rep Buyer (March 20)

H.R. 4923 & S. 3201 amend Title 10, U.S. Code to extend TRICARE coverage to certain dependents under the age of 26; Rep. Heinrich (March 24)

HR 4851 (PL 111-157) delays 21.2% reduction in Medicare reimbursement to medical providers until 1 Jun 2010