Again this year, one of the most contentious issues facing AUSA and its members will be the Administration’s proposal to make changes to TRICARE enrollment fees, deductibles and drug co-pays for military retirees.

The press release accompanying the President’s budget stated, “The Defense Base Budget also provides $38.7 billion in FY 2008 for health care for the military personnel and their families. The Department of Defense’s health benefit program, TRICARE, is the best in the Nation, and the Department will seek legislative support to maintain those exceptional benefits for those who service by planning the program on a fiscally sound foundation for the long-term.

In other words, they will try to shift a larger share of the health care costs to military beneficiaries by imposing disproportionate fee increases. AUSA vehemently opposed their efforts last year and will again this year. Expect to see much more on this in the coming weeks as the Hill starts the budget debate.

Also, the budget echo’s last year’s in that it would increase the pharmaceutical co-pays of veterans who are considered to have no service-related disabilities and are above a certain income threshold. What’s different is the Administration’s plan to charge a VA health system enrollment fee that will be based solely on a veteran’s income, not on their enrollment priority group (assigned based on disabilities associated with service and income level).

Additionally, if you read the fine print, under the plan any money generated from a proposed increase in prescription drug co-payments and a new enrollment fees would go into the U.S. Treasury, not directly into the VA’s budget!

The Association will also fight these unfair increases.


New Legislation Spotlight

Sen. Harry Reid, D-Nev., offered legislation (S.439) that would allow veterans eligible for both disability compensation and retirement pay to collect both at the same time. Also known as concurrent receipt, “The Retired Pay Restoration Act of 2007” also eliminates the 10-year phase-in period for retirees with a disability rating of 50-90 percent and extends concurrent receipt and disability payments to retirees rated at less than 50 percent. Sen. Reid’s legislation is a companion bill to H.R. 303 introduced in the House by Rep. Gus Bilirakis, R-Fla.

Currently, those with combat-related or 100 percent disabilities are authorized full concurrent receipt and those with 50 percent or higher non-combat disabled will see their disability offset phased out over the next seven years.

AUSA strongly supports these bills. Our 2007 Resolution 07-04, Point 5, urges the Administration and Congress to repeal, in its entirety, the Department of Veterans Affairs offset on retirees military entitlement.


Center for the Intrepid Opens

The Center for the Intrepid, a four-story, 65,000 square-foot facility adjacent to Brooke Army Medical Center in San Antonio, and two new Fisher Houses were officially opened Jan. 29. Bill White, president of the Intrepid Fallen Heroes Fund, said the opening "demonstrates forever the commitment of the American community to honor those who serve the twin pillars of freedom and democracy without regard to politics, personality or personal gain." The $50 million physical rehabilitation center was built by the contributions of 600,000 Americans, including "kids who gave pennies ... and mothers and fathers who just wanted to say thank you," said Arnold Fisher, Chairman of the Board for the Intrepid Museum Foundation. The center will provide traumatic amputee patients, burn patients requiring advanced rehabilitation and those requiring limb salvage efforts with techniques and training in one location to help them regain their ability to live and work productively.

Military OneSource Offers Free Online Tax Filing

The Defense Department's Military OneSource family support program is once again offering free, online tax preparation and filing for active duty service members, National Guardsmen and reservists and their families. Filers who use Military OneSource's online system can expect to receive their refund within 10 days, said Jane Burke, principal DoD director for Military OneSource. Tax consultants at the site are trained to answer questions on preparing and filing taxes and provide other financial management information, she said. Additionally service members and their families can get guidance and answers to questions, Burke said. The Military OneSource service augments the voluntary income tax assistance program offered through legal centers at most military installations, said Burke. The Military OneSource Web site is at http://www.militaryonesource.com.