Veteran's Affairs Update, Part 1, a Castle Publick Service.

NDAA 2008 UPDATE 14: The Senate passed a $696 billion 2008 Defense Authorization Bill H.R. 4986 22 JAN and President Bush signed it into law on 28 JAN. The fiscal 2008 defense budget has been laden with challenges, from Congress' inclusion of non-defense-related earmarks to its insertion of controversial language regarding Iraq. Bush announced 28 DEC that he wouldn't sign the bill until it was revised. Instead, the president signed an executive order authorizing a 3% military pay raise. The amount was 0.5 % lower than the 3.5% rate provided for in the authorization act, but took effect 1 JAN 08. All pays and incentives included in the authorization act will be retroactive to 1 JAN, a defense official said. The bill became law just a week before the next budget cycle begins as Bush sends his fiscal 2009 request to Capitol Hill. That budget proposal, along with a requested $70 billion in emergency war spending, is expected to be delivered to Congress 4 FEB.

The NDAA contains provisions improving the transition from active duty to veterans’ status and improving VA health care for returning service members, especially those with traumatic brain injury (TBI) or mental health issues, including post-traumatic stress disorder (PTSD). Among the key provisions to improve care for veterans and their families, the NDAA:

• Provides an additional three years of access to free VA health care for returning service members from Iraq and Afghanistan.
• Improves and expands VA’s ability to care for veterans returning from Iraq and Afghanistan with TBI, including research, screening, care coordination, and working with non-VA providers to provide the care needed by our veterans;
• Requires a comprehensive policy to address mental health conditions, including PTSD;
• Requires DOD and VA to streamline the records transmission process, including moving forward with fully interoperable medical records;
• Provides for a more seamless transition between active duty and veterans’ status, including a single physical exam for DOD and VA benefits;
• Creates Wounded Warrior Resource Center to serve as a single point of contact for service members, their families, and primary caregivers to report issues with facilities, obtain health care, and receive benefits information;
• Requires VA to provide age-appropriate nursing home care for our veterans;
• Allows members of the National Guard and Reserves that are eligible for Reserve Educational Assistance Program (REAP) to use their education benefits for ten years after separation;
• Requires a study on the feasibility of streamlining statutory provisions addressing GI Bill benefits for active duty and guard and reserves.
[Source: AFPS Donna Miles article 28 Jan 08 ++]

PRESIDENTIAL PROPOSALS TO AID VETS: Democratic lawmakers reacted with skepticism 29 JAN to President Bush's new proposals to aid the families of military personnel and veterans, noting that his administration has repeatedly underfunded the Veterans Affairs Department (VA). In his State of the Union address 28 JAN, Bush proposed a series of measures intended to help military families, including the creation of hiring preferences for the spouses of military personnel and legislation to allow servicemembers to pass on unused GI Bill educational benefits to their spouses and children. “They endure sleepless nights and the daily struggle of providing for children while a loved one is serving far from home,” Bush said of military families. “We have a responsibility to provide for them.” The president also called for expanding military families' access to child care. Democrats and some veterans' advocates sharply criticized the proposals, which they said came after years of lean administration budget requests for the VA and military personnel. “The difficulty . . . that we've had on this issue is that the budgets for Iraq have sucked out all the air,” said Susan A. Davis (D-CA) chairwoman of the House Armed Services Military Personnel Subcommittee. “Families have not been nearly as high a priority as they should be. Maybe that'll change. I doubt it.”

Paul Rieckhoff, executive director of Iraq and Afghanistan Veterans of America, said the GI
Bill proposal would come as “a slap in the face” to newly returning veterans if it is not accompanied by broader improvements, which have proved difficult to advance in Congress because of administration opposition and tight budgets. Bush asserted that VA funding had increased by more than 95% since he had taken office -- another suggestion met with barbs from Democrats. “He didn't tell them that his budget proposals have repeatedly cut funding for veterans, and that the only reason spending on veterans' programs has increased is because Congress raised the level of spending,” said Daniel K. Akaka (D-HI), chairman of the Senate Veterans' Affairs Committee. Bush is set to unveil his 2009 budget proposal 4 FEB Lawmakers already have begun to push for funding of their priorities. Akaka and Bernard Sanders, (I-VA), sent a letter on 25 JAN asking new VA Secretary James B. Peake for increased funding for the VA's National Center for Post-traumatic Stress Disorder, which they said had to cut staff in recent years because of insufficient resources. Bush also will have to include funding to enact proposed recommendations of a presidential commission on “wounded warriors” led by former Sen. Bob Dole (R-KS) (1969-96), and former Health and Human Services Secretary Donna Shalala. In his address, Bush called on Congress to pass the remaining recommendations of
the commission, including a major overhaul of the veterans' disability benefits system. [Source: GQ Today Patrick Yoest article 29 Jan 08 ++]

VDBC UPDATE 24: The Department of Veterans Affairs (VA) has awarded a $3.2 million contract to Economic Systems Inc. of Falls Church, Va., to develop information relating to possible changes in the composition of disability payments to disabled veterans. The contact is based upon recommendations of the Dole-Shalala Commission, which issued its final report in July 2007, and the OCT 07 final report of the Veterans Disability Benefits Commission. The contractor will provide its findings in AUG 08. Economic Systems Inc. will address three basic research questions in two studies.
• 188,000 Chapter 61 medical disability retirees with less than 20 years denied CRDP.
• Examine the nature and feasibility of making “long-term transition payments” to service members separated from the military due to disability while those veterans undergo rehabilitation.
• Provide information on the appropriate levels of compensation necessary to compensate for any loss in earnings capacity caused by service-incurred or service-aggravated conditions.
• Provide information on potential “quality of life” payments called for by both studies.
[Source: VA News Release 30 Jan 08 ++]

VA CLAIM BACKLOG UPDATE 14: Advanced technologies such as artificial intelligence could help the Veterans Affairs Department reduce a backlog of disability claims that has spiked past 1 million, according to computer experts and veterans advocates. The Veterans Benefits Administration, which processes the claims, has a backlog of 650,000 pending claims and another 147,000 that are under appeal and working their way through a process that "is paper intensive, complex to understand, difficult to manage and takes years to learn," Chairman of the Veterans Affairs Subcommittee on Disability and Memorial Affairs Rep. John Hall (D-NY) said at a 29 JAN hearing of the House Veterans Affairs Committee. Training an employee to rate VBA claims can take two to three years and many leave within five years, Hall said. Experienced raters can adjudicate only about three claims a day, spending two to three hours on each claim. He said the VA should consider the use of artificial intelligence technologies, such as automated decision-support tools that can determine disability payments, which would speed up claims processing.

Computer experts who testified at the hearing said technology exists today that can automate the claims process and eliminate the backlog. Tom Mitchell, chairman of the Machine Learning Department at the School of Computer Science at Carnegie Mellon University in Pittsburgh said the VBA needs to emulate health insurers such as Highmark Inc., a Pittsburgh-based company that uses computers to process 90% of its claims. Mitchell said the computer system automatically determines payments because it contains a large collection of rules, each one specifying the payment to be made in some very specific case, defined by the details of the patient's policy, treatment and history. The complex policy for determining what payment is due under which condition is encoded in these rules inside the computer." While the type of claims processed by Highmark are not identical to the kinds of claims processed by the VBA, Mitchell said they are similar enough to "conclude online processing will be of considerable value to the VA." Mitchell said other AI techniques that could work for VBA include case-based reasoning systems, which tap into a database of historical data to
compare past cases with a current case, and machine learning and data-mining, which could discover patterns in a current claim that indicate more information is needed to process the claim.

The VBA could automate its processes by developing a document naming system for paper documents, which are then electronically scanned into a database to make it easier to retrieve, said Ronald Miller, professor of biomedical informatics at Vanderbilt University. VBA repeatedly loses paper records submitted by claimants. Robin Cleveland, wife of retired Marine Gunnery Sgt. Tai Cleveland, told the hearing that since November 2005, she has submitted multiple copies of Tai's medical record and was told that the VBA could not find the records and she needed to resubmit them. She said her husband, a paraplegic after injuries incurred in AUG 03 during a hand-to-hand training exercise in Kuwait, only started to receive benefit payments this month after Congress intervened. Dr. Marjie Shahani, senior vice president of operations at QTC Medical Services, which conducts medical examinations on veterans and active duty personnel seeking VBA compensation, said her company has developed an application called the Evidence Organizer, which creates an electronic file for a claim, which can include multiple medical conditions and is accessible at the click of a mouse. Shahani said the organizer cuts the time to rate an individual claim from 3.5 hours to 2.2 hours. The time savings should allow a VBA ratings specialist to review 711 claims compared with the 533 a specialist processes today, he said.

Kim Graves, director of business process integration for the VBA said the VBA already has bbegun to develop technologies to increase the number of claims that specialists can process. The agency has a comprehensive strategy to develop the Paperless Delivery of Veterans Benefits initiative, which will employ a variety of enhanced technologies to support end-to-end claims processing, Graves said. In addition to imaging and computable data, it will also incorporate enhanced electronic workflow capabilities, enterprise content and correspondence management services. Graves said VBA also is considering the use of business-rules-engine software for workflow management, which could improve processors' decision-making. Stephen Warren, principal deputy assistant secretary for the VA Office of Information and Technology, said the department is preparing a statement of work to engage the services of a lead systems integrator to develop strategy and business requirements for Paperless Delivery of Veterans Benefits, though he did not provide a timeline. Gary Christopherson, who served as chief information officer for the Veterans Health Administration in 2000 and principal deputy assistant secretary for Health Affairs in the Defense Department, said "using artificial intelligence or electronic decision support tools is nothing new." Government and corporations routinely use those tools, and VBA claims processing is no more difficult than any other application of AI. He also called for a radical policy change in how VBA provides benefits. He said that it should presume that a veteran has a valid claim and is entitled to benefits for a period of a year until it completes the processing of that claim, with payment starting in 30 days of the date the claim is filed. [Source: GOVExec.com Bob Berwin article 30 Jan 08++]

VA MILEAGE REIMBURSEMENT UPDATE 03: In the FY2008 Omnibus Appropriations $125 million was allocated to pay for an increase in the travel reimbursement rate for disabled veterans to go to VA hospitals for care. The present 11 cents a mile was set in 1977. The increase is 17.5 cents per mile. However, it could not go into effect until VA Secretary Peake announced the change and directed the VA to put it into effect. In JAN 12 bi-partisan rural Senators wrote the Secretary asking him to put the change in effect as soon as possible. The Secretary of Veterans Affairs has now made the decision to increase VA’s beneficiary travel mileage reimbursement rate effective 1 FEB 08, to 28.5 cents per mile for travel related to health care per VHA Dir 2008-006 . This would include travel for recalls due to a deficient lab, electrocardiogram (EKG), and x-ray in relation to a Compensation and Pension (C&P) examination (convenience of the Government). Mileage reimbursement claims for travel prior to 1 FEB 08, may still be submitted. Such claims will be processed using the previous rates and deductibles.

Title 38 U.S.C. § 111(c)(5) requires VA to adjust proportionately the beneficiary travel mileage reimbursement rate deductibles for travel in relation to examination, treatment or care (currently $3 one way; $6 round trip; with a maximum of $18 per calendar month) effective on he date of a beneficiary travel mileage reimbursement rate change. Therefore, based on the increase of the beneficiary travel mileage reimbursement rate, the deductible is adjusted proportionately to $7.77 per one way trip; $15.54 for a round trip; with a maximum deductible of $46.62 per calendar month. These deductibles may be waived in accordance with Title 38 Code of Federal Regulations (CFR) §17.144(b) when their imposition would cause severe financial hardship. Mileage reimbursement claims for travel prior to February 1, 2008, may still be received. Such claims will be processed using the previous rates and deductibles. [Source: TREA Washington Update 25 JAN 08 ++]

VET BENEFIT EXPIRATION DATES: Many of your benefits have an expiration date. Below are a few important ones to remember so you don't lose out.

• Montgomery GI Bill for Active-Duty (MGIB): 10 years from date of last discharge or release from active duty.
• Veterans Education Assistance Program (VEAP): 10 years from date of last discharge or release from active duty.
• Montgomery GI Bill for Selected Reserve (MGIB-SR): 14 years from the date of eligibility for the program, or until released from the Selected Reserve or National Guard. Some extensions available if activated.
• Vocational Rehabilitation and Employment (VocRehab): Generally, 12 years of separation from service or within 12 years of being awarded service-connected VA disability compensation.
• Servicemembers' Group Life Insurance (SGLI): Coverage ends 120 days after separation or can be extended up to 1 year for totally disabled veterans.
[Source: Military.com http://www.military.com/benefits/veteran-benefits/veterans-benefit-expiration-dates 28 Jan 08 ++]

SBP LAWSUIT: On 30 JAN 08 a group of military widows will get their day in federal court,
pressing their case that a DEC 04 law change should have awarded them full payment of military SBP annuities in addition to the Dependency and Indemnity Compensation (DIC) they receive from the VA because military service caused their husbands' deaths. At the time, the House Veterans Affairs Committee believed its language would not only restore DIC benefits to previously eligible survivors who remarried after age 57, but would also end the deduction of DIC from SBP annuities. Subsequent government legal review indicated the 2004 law didn't, in fact, make the latter change, but the difference of opinion hasn't entirely gone away. And now three widows are taking the government to court. When the case was filed in SEP 07, the Department of Defense responded with a motion to dismiss the case. The widows' lawyers filed a rebuttal, and now there will be a hearing before the US Court of Federal Claims, 717 Madison Street, NW in Washington, DC so the judge can make a decision on the DoD motion to dismiss. The oral arguments in the case will be open to the public at 9:30am. A specific court room won't be assigned until the morning of the 30th. Past efforts to sue the government in this way have rarely been fruitful, but one never knows how the courts might rule when legislative language is murky. [Source: MOAA Leg UP 25 Jan 08 ++]

VA VOLUNTARY SERVICE (VAVS): VAVS was founded in 1946 to provide for our nation's veterans while they are cared for by VA health care facilities. It is a volunteer organization run by the VA which helps veterans in VA facilities throughout the country. Volunteers assist in routine administrative functions to help free VA employees to concentrate more on health care. There are also several VA cemeteries that have VAVS volunteers assisting in maintenance chores. It is one of the largest centralized volunteer programs in the Federal government. Over 350 organizations support it and volunteers have provided over 676 million hours of service since its conception. As a community service volunteers assist veteran patients by augmenting staff with end of life care programs, foster care, community-based volunteer programs, hospital wards, nursing homes, and veteran outreach centers. The program receives annual contributions of over $50 million in gifts and donations. There are two convenient ways to sign up to be a VAVS volunteer:

1) Contact the Department of Veterans Affairs facility nearest you, ask for Voluntary Service, and tell their staff of your interest in becoming a VAVS Volunteer. The staff will take care of everything else including your interview, orientation, and assignment! To locate the VA facility is
nearest you refer to http://www1.va.gov/directory/guide/home.asp?isFlash=12) Volunteer now by filling out and submitting the form located at http://www1.va.gov/volunteer/volnowDB.cfm. Someone from your local VAVS office will contact you with additional information.
[Source: NAUS Weekly Update 25 JAN 08 ++]

NDAA 2009: The previous National Defense Authorization Acts (NDAA) of 2006, 2007, 2008, did not address or correct the following issues --
• 188,000 Chapter 61 medical disability retirees with less than 20 years denied CRDP.
• 375,000 military retirees with less than 50% disability denied CRDP (Concurrent Retirement Disability Pay, 10 US Code 1414)
• 327,000 military retirees age 70 and 30 have paid up to an excess of 6 years' premiums for the Survivor's Benefits Program (SBP).
• 61,000 widows denied full relief from SBP/DIC

The 2008 NDAA did extend CRSC (Combat Related Special Compensation) to a yet to be determined number of Chapter 61 retirees (possibly as many as 40,000) with less than 20 years of service. It also did authorize $50/month "special allowance" to be incremented $10/year for 5 years. This is not much help to restore an offset that approximates $900-$1000/month. Further, it is a shallow gesture as it is valid from 1 OCT 08, and expires 1 MAR 16.

HR 333 would extend the benefits of CRDP to some 375,000 retired career veterans who are
rated less than 50% disabled by the VA and repeal the 10 year phase in of CRDP for those 180,000 retired career veterans who are rated 50 to 90% disabled. While other relevant bills in the Senate and House would correct either deficiency, none of those bills would correct both deficiencies.
Veterans who would like to see this bill enacted and correct the above inequities are urged to contact their legislators to request cosponsorship and inclusion of relevant portions of HR 333 in the 2009 National Defense Authorization Act. USDR has provided sample messages at
http://capwiz.com/usdr/issues/alert/?alertid=10871981&queueid=[capwiz:queue_id] and
http://capwiz.com/usdr/issues/alert/?alertid=10869241&queueid=[capwiz:queue_id] for your use to facilitate doing this. [Source: USDR Action Alert 27 Jan 08 ++]

VETERAN GRAVE VANDALS: A Texas lawmaker has introduced a bill that would make vandalizing the grave of a service member or veteran a federal crime, even if the grave is on private property. The bill sponsored by Rep. Ted Poe R-TX) comes after the grave of a Marine killed in Iraq was vandalized just two days after his burial in Liberty, Texas. “The person responsible has since been arrested and charged with a state felony, but no federal provision exists,” Poe said. Federal laws making it a crime to damage or destroy a memorial, headstone or gravesite apply only to public land, not to gravesites in private cemeteries. This is not the first time the federal government has had to stand by when a veterans’ grave was damaged. Last year, American flags were replaced with Nazi flags on Memorial Day weekend at the gravesites of veterans in Orcas Island WA, but the federal government could do nothing because the graves were in a private cemetery. Poe’s bill, HR 4973, was referred to the House Judiciary Committee for consideration. If enacted into law, it would apply the same penalty for the destruction of graves on public lands — a fine of up to $10,000 and up to 10 years imprisonment — to graves on private property. [Source: MarineTimes Rick Maze article 25
Jan 08 ++]

MOBILIZED RESERVE 30 JAN 08: .The Army, Air Force and Marine Corps announced the current number of reservists on active duty as of 2 JAN 08 in support of the partial mobilization. The net collective result is 1808 more reservists mobilized than last reported in the Bulletin for 9 JAN 08. At any given time, services may mobilize some units and individuals while demobilizing others, making it possible for these figures to either increase or decrease. The total number currently on active duty in support of the partial mobilization of the Army National Guard and Army Reserve is 73,197; Navy Reserve, 5,024; Air National Guard and Air Force Reserve, 7,231; Marine Corps Reserve, 8,695; and the Coast Guard Reserve, 334. This brings the total National Guard and Reserve personnel who have been mobilized to 94,481, including both units and individual augmentees. A cumulative roster of all National Guard and Reserve personnel, who are currently mobilized, can be found at http://www.defenselink.mil/news/Jan2008/d20080130ngr.pdf. [Source: DoD News Release 30 Jan 08 ++]

TEXAS VETERAN TUITION: Tuition waivers are available to Veterans honorably discharged who served at least 180 days of active duty military service, were Bonafide Texas resident at time of entry into service, and who have exhausted all Federal educational benefits. Veterans will receive exemption for payment of tuition and some fees at public colleges and universities. Exemptions from charges for continuing education courses are optional on the part of the institution. Application should be made to the financial aid officer of the state-supported institution of choice. The Texas State Attorney General has ruled that Texas veterans who are legal residents but not U.S. citizens are entitled to free college tuition at Texas public colleges. This ruling reverses an earlier policy that had prompted a federal lawsuit. The Mexican American Legal Defense and Educational Fund sued the State of Texas in 2007 on behalf of six Hispanic veterans who were legal permanent residents when they entered the military. They had applied for benefits under the Hazlewood Act, which waives tuition at Texas public colleges for honorably discharged veterans who served on active-duty. Texas also offers the following education benefits to:

• Dependent children of MIA / POWs: Dependent children of Texas military personnel, MIA, or POW. Exemption for payment of tuition and some fees at public colleges and universities. Exemptions from charges for continuing education courses are optional on the part of the institution. Application should be made to the financial aid officer of the state-supported institution of choice.
• Children of Deceased Veterans: Children of veterans killed or died as a result of service in WWI, WWII, and Korea or since 2/1/55. Exemption for payment of tuition and some fees at public colleges and universities. Exemptions from charges for continuing education courses are optional on the part of the institution. Application should be made to the High school guidance counselor, or financial aid officer of the state-supported institution of choice.
• Orphans of National Guard and Texas Air National Guard: Exemption of certain orphans of National Guard and Texas Air National Guard. Exemption for payment of tuition and some fees at public colleges and universities. Exemptions from charges for continuing education courses are optional on the part of the institution. Application should be made to the financial aid officer of the state-supported institution of choice
[Source: Military.com Benefits 28 Jan 08 ++]

MTU TUITION BREAK: Starting with the first summer term of 2008, Michigan Technological
University will offer in-state tuition to out-of-state students who are the offspring or spouse of a person on active U.S. military duty. Students will be eligible for a Military Family Education Award if a parent or spouse is on active military duty or has been on full-time duty with the National Guard for more than a year. If a parent or spouse goes on active-duty after a student is admitted, the student will be eligible for a Military Service Award at the beginning of the next semester. Once a student receives the award, he or she will continue to receive it until graduation. To learn more call the MTU Admissions office at 888-688-1888. [Source: Military.com 28 Jan 08 ++]

DIABETES UPDATE 04: A new study gives the strongest evidence yet that obesity surgery can cure diabetes. Patients who had surgery to reduce the size of their stomachs were five times more likely to see their diabetes disappear over the next two years than were patients who had standard diabetes care, according to Australian researchers. Most of the surgery patients were able to stop taking diabetes drugs and achieve normal blood tests. The patients had stomach band surgery, a procedure more common in Australia than in the United States, where gastric bypass surgery, or stomach stapling, predominates.Gastric bypass is even more effective against diabetes, achieving remission in a matter of days or a month, said Dr. David Cummings, who wrote an accompanying editorial in the journal but was not involved in the study. "We have traditionally considered diabetes to be a chronic, progressive disease," said Cummings of the University of Washington in Seattle. "But these operations really do
represent a realistic hope for curing most patients."

Diabetes experts who read the study said surgery should be considered for some obese
patients, but more research is needed to see how long results last and which patients benefit most. Surgery risks should be weighed against diabetes drug side effects and the long-term risks of diabetes itself, they said. Experts generally agree that weight-loss surgery would never be appropriate for diabetics who are not obese, and current federal guidelines restrict the surgery to obese people. The diabetes benefits of weight-loss surgery were known, but the Australian study in the JAN Journal of the American Medical Association is the first of its kind to compare diabetes in patients randomly assigned to surgery or standard care. Scientists consider randomized studies to yield the highest-quality evidence. The study involved 55 patients, so experts will be looking for results of larger experiments under way. "Few studies really qualify as being a landmark study. This one is," said Dr. Philip Schauer, who was not involved in the Australian research but leads a Cleveland Clinic study that is recruiting 150 obese people with diabetes to compare two types of surgery and standard medical care. "This opens an entirely new way of thinking about diabetes."

Obesity is a major risk factor for diabetes, and researchers are furiously pursuing reasons
for the link as rates for both climb. What's known is that excess fat can cause the body's normal response to insulin to go haywire. Researchers are investigating insulin-regulating hormones released by fat and the role of fatty acids in the blood. In the Australian study, all the patients were obese and had been diagnosed with type 2 diabetes during the past two years. Their average age was 47. Half the patients underwent a type of surgery called laparoscopic gastric banding, where an adjustable silicone cuff is installed around the upper stomach, limiting how much a person can eat. Both groups lost weight over two years; the surgery patients lost 46 pounds on average, while the standard-care patients lost an average of 3 pounds. Blood tests showed diabetes remission in 22 of the 29 surgery patients after two years. In the standard-care group, only four of the 26 patients achieved that goal. The patients who lost the most weight were the most likely to eliminate their diabetes.

The death rate for stomach band surgery, which can cost $17,000 to $20,000, is about 1 in
1,000. There were only minor complications in the study. Stomach stapling has a 2% death rate and costs $20,000 to $30,000. In the United States, surgeons perform more than 100,000 obesity surgeries each year. The American Diabetes Association is interested in the findings. The group revises its recommendations each fall, taking new research into account. Sixty million Americans are unaware they have diabetes or are at risk for developing type 2 diabetes. Your risk for type 2 diabetes increases as your get older, gain too much weight, or if you do not stay active. Diabetes is more common in African Americans, Latinos, Native Americans, Asian Americans and Pacific Islanders. Risk factors for type 2 diabetes include:
- Having high blood pressure (at or above 130/80)
- Having a family history of diabetes.
- Having diabetes during pregnancy or having a baby weighing more than nine pounds at birth. [Source: Associated Press Carla K. Johnson article 23 Jan 08 ++]

VA ESTATE DEBT COLLECTION: A bill that would block the Department of Veterans Affairs from trying to collect money from the estates of service members who die in combat was introduced Tuesday by Sen. Kay Bailey Hutchison (R-TX). Her bill, S 2536, applies only to debts to the VA, and not to money owed to private-sector creditors or other federal agencies, such as the Internal Revenue Service. Hutchison is asking Senate leaders for quick passage of the bill, hoping to bypass the normal process in which new bills are sent to committee for consideration. She could get high-level support. VA Secretary Dr. James Peake is expected to write a letter to the Senate endorsing her call for expedited passage of the bill, according to Senate sources. VA officials said they supported the bill but did not confirm that Peake would write a letter. Waiving normal procedures would require the Senate Veterans’ Affairs Committee, on which Hutchison serves, to allow the bill to proceed without its involvement. Sen. Daniel Akaka (D-HI) the veterans’ affairs committee chairman, would have to approve the move. Akaka aides said the committee staff would study the measure first.
Few people die owing VA money, but Hutchison aides found that VA has collected more than
$56,000 from the families of 22 deceased soldiers, mostly National Guard and reserve members called to active duty who received overpayments of GI Bill education benefits. Her bill would be retroactive to Sept. 11, 2001, allowing families or estates that paid a debt to VA to receive a refund of any payment made since that date. Hutchison spokesman Matt Mackowiak said few people may be affected, but Hutchison considers it improper for any family of a service member who dies in combat to be contacted with a demand for money. Current law requires contacting a family or estate if there is any outstanding debt to VA at the time of death. A family has 180 days to file a grievance, with the VA secretary permitted to waive the debts. Three of the 22 cases involved constituents of Hutchinson in Texas. One was an Army soldier killed by a sniper while on his third tour to Iraq whose family repaid the government for a $389 overpayment of GI Bill benefits. The family of another Army soldier was billed for $2,282 in outstanding loans after the sergeant, who was married with four children, was killed in an explosion on his second tour in Iraq. Another case involved a Marine Reservist killed by an explosion in Iraq who owed VA $845. Hutchison aides said their review found similar cases in California, Colorado, Connecticut, Georgia, Kentucky, Illinois, Iowa, Michigan, Nebraska, New York, North Carolina, South Carolina, Washington and Wisconsin. [Source: NavyTimes
Rick Maze article 23 Jan 08 ++]

SHINGLES UPDATE 05: Some people are still having problems understanding Tricare overage for the shingles immunization. The problems are occurring primarily in the area of getting reimbursed for the expensive vaccine (Zostavax.). Basic rules published by Tricare for reimbursement eligibility are:

• Tricare cannot pay for any immunization received before it became a Tricare benefit on 19 OCT 07.
• The beneficiary must be at least 60 years old for Tricare to cover the immunization.
• The shot must be given in the provider’s office.
• The vaccine is not a Tricare Pharmacy Program benefit.

The beneficiary cannot buy the vaccine and be reimbursed by filing a pharmacy claim. The doctor should provide the shingles vaccine as he would any other. To be reimbursed by Tricare, he must include its price on the bill for the office visit. Tricare advises all beneficiaries who plan to get the shingles immunization to call their Tricare Service Center first so they can be fully
informed. Some beneficiaries and doctors have complained that claims processor Wisconsin Physician Service was unable to tell them how much it would allow for the vaccine. Tricare indicated on 28 DEC that this problem had been resolved. Beneficiaries and providers can call WPS to confirm the amount allowable for the vaccine.

According to the Tricare the Red Book (a national pharmacy price guide), the average
wholesale price for Zostavax is $196. WPS will allow 95%of that amount, or $186.20. You or the provider should file a claim for the shingles vaccination exactly as you would any other Tricare claim (or Medicare claim, for Tricare for Life beneficiaries). The provider should bill for an office visit, but he must include the price of the vaccine as an item on the bill. The vaccine will be reimbursed as a medical supply item on the provider’s bill. It cannot be covered as a prescription drug through the Tricare Pharmacy Program. That’s the standard operating procedure for vaccines. Providers should know all this. Most who balked did so because they were unable to figure out how much Tricare would allow for the cost of the vaccine. Now they can get that information, officially, by calling WPS. If the above rules are followed, Tricare claims for the shingles shot will be processed and paid in the usual way for beneficiaries who don’t have Tricare for Life.

There is some not-so-good news for Tricare for Life members since federal law requires Medicare and Tricare to process their claims separately. When your original Medicare provider files a claim for the office visit, which includes the price for Zostavax, Medicare will pay its share for the visit only. Medicare will deny payment for the vaccine because, by federal law, it is not a
covered service under Medicare. As usual for TFL beneficiaries, Medicare will pay the provider its share for a covered office visit and automatically forward the claim to Tricare. As usual, Tricare Standard will pay the balance on the Medicare claim for the office visit. You should have no out-of-pocket expense for the visit but there’s still the cost of the Zostavax. Because Medicare paid nothing for the vaccine, Tricare is your only insurance for that part of the claim. All Tricare claims processing rules will apply to that part of the claim. You would file a Tricare claim, which would be subject to a deductible and cost share for which you would have to pay out-of-pocket. Tricare will allow $186.20 for the vaccine. Thus, after your $150 deductible and 25% cost share, Tricare will pay the provider only $27.15. So out-of-pocket costs for the shingles immunization for Tricare for Life members are likely to be $159.05. Questions about any of this should be directed to your Tricare Service Center. (Note: If you are enrolled in a Medicare Advantage Plan or a Medicare Part D Pharmacy Plan, the aforementioned may apply differently or not at all to you. Call your plan’s carrier for more details). [Source: NavyTimes James E. Hamby article 21 Jan 08 ++]

CYBERSPACE COMMAND: Keesler Air Force Base is one of 16 finalists to become the nation's headquarters in the fight against cyberterrorism. The first national command to fight in cyberspace, its location there would be a major coup for Biloxi and Mississippi - "as big as any Nissan plant, Toyota plant, or large casino project”, said Ret. Air Force Lt. Gen. Clark Griffith. He presented the proposal to the Biloxi City Council on 22 JAN and said the Cyberspace Command Headquarters would bring up to 10,000 jobs to the city. That includes several generals, about 500 high-salary, high-ranking Air Force personnel and thousands of civilian employees. The average command comprises about 12,000 people, Griffith said, and contractors, industry and possibly a Mississippi State University engineering-technology center would follow the Cyberspace Command to the Coast. Every 18 seconds the nation's computers, cell phones, radios and other electronics are being hacked. And increasingly, the attacks are coming from China and Islamic extremists, said Griffith. These cyberterrorists have forced shutdowns of computers at the CIA, FBI and other top federal agencies and they have
stolen classified information. The command would protect military cyberspace and homeland
security. The field of candidates narrowed from 56 to 16 and Griffith considers Keesler among the top five contenders.

Biloxi's chief competition is Langley Air Force Base in Virginia; Offutt in Nebraska; Colorado Springs, Col.; and Barksdale in Shreveport, La. All the others except the Shreveport base already have major commands. “Keesler is already the electronics-training headquarters for the Air Force and the home to the second-largest medical facility in the Air Force," said Mayor A.J. Holloway, who is working with Griffith to bring the command to Biloxi. If Biloxi is chosen as the site of the Cyberspace Command, "this will solidify Keesler plus Keesler Medical Center as a major base forever because the Air Force has never closed a major command headquarters.", he said. A meeting should take place at the Pentagon or Sen. Thad Cochran's office in Washington on 13 or 14 FEB. The decision on where to locate the Cyberspace Command is expected by early March; by fall, work should begin to establish the headquarters. Wherever the new Cyberspace Headquarters is located, Keesler will get a piece of the pie. Air Force personnel who staff the center will be trained at Keesler.
[Source: SunHerald Mary Perez article 23 Jan 08 ++]

MEDICARE NEWS:
1. Emergency Room Waiting Times: The average wait time for heart attack patients at American emergency rooms rose 150%, from 8 to 20 minutes, between 1997 and 2004, according to a recent study published in Health Affairs. Researchers attributed the increase to an overall rise in emergency room visits, emergency room closures and barriers to routine or outpatient care.

2. Complaints: New York state residents with Medicare filed only 343 complaints with the state’s Medicare Quality Improvement Organization between 2005 and 2007, a statewide response rate of .01% for the state’s three million people with Medicare, according to a 18 DEC report by IPRO, which contracts with the Centers for Medicare & Medicaid Services (CMS) to resolve quality-of-care complaints. While the .01% complaint rate is the second highest in the nation, the response rate is viewed as inadequate by state officials. By comparison, the New York State Department of Health had received 4,856 general complaints about hospitals and 21,481 about nursing homes during the same period. The IPRO complaint process differs from that of the Department of Health. Although people with Medicare can use either organization to report substandard care, complaints to IPRO must be submitted in writing and do not result in financial penalties. Instead, if IPRO determines a provider or institution provided a substandard quality of care, it will develop and monitor a quality improvement plan.

3. Health Insurance Impact on Deaths: Recent studies by a government advisory group underestimated the number of Americans who die because they lack health insurance, according to a recent report by the Urban Institute. According to their recently released study, Uninsured and Dying Because of It, estimates by the Institute of Medicine that 18,000 Americans died in 2001 due to a lack of health care coverage may be off by as much as 20%. The Urban Institute instead estimates that 21,000 people died in 2001 because they lacked health insurance, amounting to one death every 24 minutes. Between 2000 and 2006, the Urban Institute believes that 165,000 people died because they were uninsured. Researchers at both the Institute of Medicine and the Urban Institute say Americans face an average 25% increase in the likelihood of death when uninsured. Uninsured Americans are at greater risk of death because they do not receive diagnoses, chronic disease checkups or essential medications as quickly or as often as those with coverage, according to the Urban Institute. With life-threatening diagnoses like cancer, stroke or hypertension, the lack of frequent or timely
treatment can lead to premature death. The Institute came up with higher mortality rates because it estimated that older Americans without insurance face higher mortality rates than their younger counterparts.

4. Physician Access: New research suggests the percentage of doctors accepting new Medicare patients has remained stable since 2004. Researchers for Congress’ Medicare Payment Advisory Commission recently presented data showing that 80%of office-based doctors surveyed accepted new Medicare patients in 2006. Data for 2006 also shows that 93% of doctors who depend on Medicare for 10% or more of their revenue accepted new Medicare patients, a figure that has remained unchanged since 2004. Patient surveys yielded similar findings. A survey of 2,036 people with Medicare and 2,025 commercially insured Americans between 50 and 64 found that people with Medicare often have an easier time finding providers for specialty care. Eighty-five percent of respondents with Medicare reported no trouble locating a specialist in 2007, compared to 79% of privately insured Americans. Data on the search for a primary care provider was less encouraging, but has remained relatively constant since 2005. Seventy percent of Medicare patients surveyed had no problem finding a new primary care physician, a drop from 75% in 2005. In contrast, 82% of privately insured patients had no problem finding a new primary care physician, an increase of 7% since 2005. In addition to locating providers, survey data shows stable rates in accessing and receiving care. Three-fourths of respondents with Medicare who have a primary or routine care provider had never experienced care delays. In contrast, only 67 percent of privately insured Americans gave a similar response. [Source: Medicare Watch www.medicarerights. org 22 Jan 08 ++]

ARIZONA TAXES: Arizonans interested in providing financial help to military families now can reap a state tax break in the process. Starting JAN 08, donations made to a new fund that assists the families of Arizonans injured or killed in the line of duty can qualify for a state tax credit worth up to $200 for singles and $400 for married couples filing joint income-tax returns. Credits are dollar-for-dollar reductions in a person's tax bill and thus are more valuable than deductions, which reduce taxable income. The new state tax break, which is applicable for the 2008 through 2012 tax years, is designed to encourage donations to the Military Family Relief Fund. Gov. Janet Napolitano signed the legislation in December. The fund has started to receive donations and will begin to provide assistance in coming months. The fund will help meet costs incurred by relatives in the event of the death or injury of a member of the armed forces. Arizonans who give more than the $200/$400 credit limits can receive federal and state deductions for excess amounts, as would normally apply on itemized charity donations. However, taxpayers won't have to itemize to receive the credit on their state tax forms. As it stands now, credits for the program will be capped at $1 million, raising the possibility that the tax break might not last the full five years if a lot of people take advantage of it. The Arizona Department of Revenue doesn't yet have forms for the new credit and won't have them until it prepares 2008 tax-filing documents later this year, said Dan Zemke, an agency spokesman. The credits won't be refundable, he added, meaning they can be used only to whittle down a person's tax liability to the state. Robert Hockensmith, a Phoenix certified public accountant, certified financial planner and colonel in the Arizona National Guard, called the credit an "amazing" benefit that complements other efforts by the state to ease the tax burden on military families. Specifically, he referred to a new Arizona policy under which the state no longer taxes military pay received by Arizonans, including members of the National Guard and reservists. That began in 2007 and builds on a tax-free military-pay rule that has applied for active-duty personnel since 2006. [Source: The Arizona Republic Russ Wilues article 20 Jan 08 ++]

VET CEMETERY VIRGINIA: A University of Virginia study says a new veterans cemetery in Nelson County may be needed to serve the tens of thousands of veterans living in the area. The study, commissioned by the state Department of Veterans Services, said the cemetery would serve the area including Lynchburg, Buena Vista, Lexington, Waynesboro and Charlottesville. "The most important finding is the location and need of another cemetery," said Terance Rephann, an economist with University of Virginia’s Weldon Cooper Center for Public Service, who conducted the study. The study also found that veterans cemeteries should have a 50-mile service-area boundary to properly serve the veteran population, though the current service area is 75 miles. "Veterans have a strong preference for the burial site to be close to their family," Rephann said. The Nelson cemetery would be mandatory if the state adopts a 50-mile service area as the study recommends, especially if the veterans cemetery in Culpeper Virginia closes as expected in about 15 years. There are three national cemeteries in Arlington County, Quantico and Culpeper County, and two state veterans’ cemeteries in Amelia County and Suffolk. An additional state veteran’s cemetery will be built in Dublin in Pulaski County within a few years. The study also found that many veterans are not aware of their cemetery veteran benefits and recommended that the department improve its outreach. [Source: AP article 19 Jan 08 ++]

TAX AUDITS: The Internal Revenue Service is increasing its audit presence. A new Act has been passed that penalizes preparers who take unacceptable positions on tax returns. IRS is turning its attention to auditing Form 2555 - Foreign Earned Income Exclusion - and Form 1116 - Foreign Tax Credit. And the national debt, funded by income taxes, has exceeded $9 trillion. So with the taxman increasing his presence in the lives of American taxpayers, both at home and abroad, tax compliance this year will have to be more carefully orchestrated to avoid problems with the IRS. Approximately 6.6 million Americans live outside the United States excluding military. Beginning in 2008, the Internal Revenue Service in its Form 1040 National Research Program will increase audits of American expatriate tax returns claiming the Foreign Earned Income Exclusion and the Foreign Tax Credit. The Service will also be improving its use of Forms 1042-S information documents as well as information provided by US treaty partners via the Exchange of Information provisions. Audits will be conducted for the purpose of assessing penalties for understated tax liabilities, particularly where the Foreign Tax Credit applies when the taxpayer's tax rate is below 30%. [Source: Tax Barron Report Jan 08 ++]

TAX FILING OBLIGATIONS OVERSEAS: Residents of foreign countries generally have to report and pay taxes on their world-wide income to the tax authority of the country wherein they reside. But US citizens or deemed US residents are also obliged to report world-wide income to the Internal Revenue Service (IRS). And without due diligence in how to go about reporting that income, they could in certain circumstances end up paying taxes stateside in spite of double taxation treaties. Understanding whether there is a filing requirement is therefore essential - since anyone receiving earnings below a threshold is not obliged to file. This threshold is merely the combination of two categories: exemption(s) and standard deduction (or itemized deductions). Anyone receiving income below the following combined category amounts need not file:

- Single: $8,750 / Over 65 $10,050
- Head of Household: 11,250 / Over 65 12,550
- Qualifying widow(er): 14,100 / Over 65 15,150
- Married filing jointly: 17,500 / 1 spouse over 65 18,550 / both spouses over 65 19,600
- Married filing separately: 3,400

So any taxpayer whose earnings exceed an applicable threshold amount must file a tax return. Foreign earned income (wages, salaries, self- employment) must also be included in the calculation of total income even if excluded by the foreign earned income exclusion (FEIE). To reduce the chances of double taxation, IRS allows that FEIE be applied against foreign earnings; $87,500 in 2007. Foreign earnings above this $87,500 excludable amount are taxable stateside, but the US tax may be offset by a foreign tax credit (FTC) applied against taxes paid to the foreign country of residence. In fact, the FTC is available on any income taxes paid abroad. A problem is that the FTC does not always fully offset US taxes.

Certain penalties apply for failing to comply with US tax laws. IRS assesses penalties at 5% a month against any unpaid taxes up to 25%. In cases where fraud is deemed to have been committed - for instance, in failing to report foreign earned income - IRS can assess 75% while denying the taxpayer the foreign earned income exclusion. It may also seek criminal penalties for not reporting foreign earnings, in which case the taxpayer could face jail time. Americans are also obliged to file information returns on investments in foreign corporations, foreign partnerships and foreign accounts, or risk very severe penalties. The due date for filing tax and certain information returns is 16 JUN 08 (15 OCT by filing Form 4868). However any taxes due for 2007 must be paid by 15 APR along with first quarter 2008 estimated taxes. Any US citizen or deemed resident living abroad who has not filed a tax return for some years should promptly do so as an offensive position is always better than a defensive one. IRS is actively increasing its powers of audit in order to catch non-compliers. Generally the revenue service will only require the last three years tax returns be filed. [Source: Tax Barron Report www.taxbarron.com Jan 08 ++]

TAX CHANGES 2007: The following changes are applicable to your 2007 Federal tax:

• Standard Deduction: MFJ $10,700
• Head of Household: $7,850 / Single $5,350 / MFS $5,350. The additional deduction for the aged is $1,050 if married or $1,300 if Single or Head of Household.
• Tax Rates Single: $0 - $7,825, 10%; $7,826 - $31,850, 15%; $31,851 - $77,100, 25%; $77,101 - $160,850, 28%; $160,851 - $349,700, 33%; $349,700, 35%.
• Tax Rates MFJ: $0 - $15,650, 10%; $15,651 - $63,700, 15%; $63,701 - $128,500, 25%; $128,501 - $195,850, 28%; $195,851 - $349,700, 33%; $349,700, 35%.
• Tax Rates MFS: $0 - $7,825, 10%; $7,826 - $31,850, 15%; $31,851 - $64,250, 25%; $64,251 - $97,925, 28%; $97,926 - $174,850, 33%; $174,850, 35%.
• HH: $0 - $11,200, 10%; $11,201 - $42,650, 15%; $42,651 - $110,100, 25%; $110,101 - $178,350, 28%; $178,351 - $349,700, 33%; $349,700, 35%.
• The Capital Gains Tax Rates are 5% for taxpayers in the 10% and 15% tax brackets and 15% if they are in the upper 25% - 35% brackets.

On 17 DEC 07 Representative Gregory Meeks introduced the Working American Competitiveness Act. The proposed legislation stipulates: At the election of a qualified individual, there shall be excluded from the gross income of such individual, and exempt from taxation under this subtitle, for any taxable year, the foreign earned income of such individual. The bill has been referred to the House Ways and Means Committee. If this legislation passes both houses of Congress, the foreign earned income exclusion will be unlimited. [Source: Tax Barron Report Jan 08 ++]

FLUORIDATION: California’s largest water agency, the Metropolitan Water District (MWD) of Southern California, has completed its efforts to fluoridate the water that reaches some 18 million residents in Southern California. The MWD serves 26 cities and water systems in Los Angeles, Orange, Riverside, San Diego, and Ventura counties. The California Dental Association Foundation subsidized the effort with $5.5 million to design and construct fluoridation facilities at MWD’s five treatment facilities. Since 1995, California state law has required fluoridation of any public water supply with at least 10,000 customers, provided funding is available. Los Angeles and Santa Monica proceeded without outside funding. Long Beach, Beverly Hills, Fountain Valley, Huntington Beach had fluoridated water prior to passage of the law. The U.S. Centers for Disease Control and Prevention (CDC) estimates that approximately 67% of Americans who receive water from a public water supply now drink water with optimal fluoride levels for preventing decay. [Source: Consumer Health Digest 15 Jan 08 ++]

VETERAN EMPLOYMENT UPDATE 02: This New Year brings new job opportunities for transitioning servicemembers and veterans interested in careers in health care, technology and consulting. The Bureau of Labor Statistics (BLS) predicts that these industries will have the largest employment, salary and wage growth into 2016. If clicking on the below items does not open a website for further details refer to http://www.military.com/NL_MR/1,14852,5391,00.html. Here are the top jobs for 2008:

1) Network systems and data communications analyst
2) Personal and home care aides
3) Home health aides
4) Computer software engineers, applications
5) Veterinary technologists and technicians
6) Personal financial advisors
7) Medical assistants
8) Veterinarians
9) Substance abuse and behavioral disorder counselors
10) Financial analysts
11) Social and human service assistants
12) Gaming surveillance officers and gaming investigators
13) Physical therapist assistants
14) Forensic science technicians
15) Dental hygienists
16) Mental health counselors
17) Mental health and substance abuse social workers
18) Dental assistants
19) Computer systems analysts
20) Database administrators
21) Computer software engineers, systems software
22) Gaming and Sports book writers and runners
23)- Environmental science and protection technicians, including health
24) Physical therapists
25) Physician assistants
[Source: Military.com article 14 Jan 08 ++

VA BURIAL PROGRAM SURVEY: The VA is conducting a program evaluation of the Burial Benefits program. VA will use information gathered from the evaluation to ascertain how well it has reached its goals and the impact of its burial program on the lives of veterans and their families. This information will enable VA to evaluate current and potential burial benefits, consider new policies and set priorities for the future. As part of the evaluation, a national survey on burial preferences will be conducted with veterans. Focus groups with veteran next of kin and funeral directors will also be conducted. Data collection from the survey and focus groups will take place from 3 JAN thru 28 FEB 08. Approximately 38,000 veterans and 1,000 next of kin and funeral directors have already been randomly selected from VA administrative databases to participate in the evaluation. A notification letter was mailed to these participants on 3 JAN, informing them of their selection to participate in either the survey or a focus group. Sites selected for focus groups include Springfield VA; Tampa FL; Minneapolis MN; Denver CO; and Los Angeles CA. Participation of veterans, veteran next of kin, and funeral directors in this evaluation is voluntary. Respondents will be assured that their answers will be kept confidential under the Privacy Act, will be used for research purposes only, and will be reported at the group-level only. If you have questions about the survey or focus groups, call an ICF International Caliber representative at 1(888) 556-6355 09-1700 EST. [Source: NAUS Weekly update 18 Jan 08 ++]

GI BILL UPDATE 17: At a hearing before the House Veterans Affairs Economic Opportunity Subcommittee on 17 JAN the MOAA and others presented their recommendations for upgrading the Montgomery GI Bill (MGIB). Vic Snyder (D-AR), a member of the Subcommittee and former Chairman of the Armed Services Military Personnel Subcommittee, was thanked by the Military Officers Association of America (MOAA) representative COL Bob Norton, USA (Ret) for his pivotal role in winning a 10-year post-service readjustment benefit for reservists who earn MGIB benefits for service on active duty. That change will take effect when the FY2008 National Defense Authorization Act is signed into law. MOAA endorsed the seven legislative proposals under consideration at the hearing, especially bills such as H.R. 2702 that would raise MGIB reimbursement rates. The bill also would allow 15 years (vice 10) of post-service use eligibility and extend eligibility to all entering recruits, without the current $1,200 fee. MOAA believes strongly that
• GI Bill benefits should be raised to cover the average cost of a four-year public college or university. They now cover about 75% of that amount.
• Reservists should be entitled to full active-duty MGIB benefits if they complete a cumulative 36 months on active duty. At present, that only earns them 80% of the full benefit.

Rep. John Hall (D-NY), whose district includes West Point, asked about educational incentives to retain military academy graduates. Norton noted that the Army already has lost more than half of the West Point class of 2002 and has growing shortages of mid-grade officers. He urged making service academy graduates and ROTC scholarship recipients (who are excluded on the rationale that the military funded their undergraduate degrees) eligible for the MGIB if they agree to extend their initial service commitment. [Source: MOAA Leg Up 18 Jan 08 ++]

VA BUDGET 2008 UPDATE 12: In a White House conference call on 17 JAN the President announced he had approved the $3.7 billion in emergency supplemental appropriations passed by Congress in the waning days of 2007. VA needs the additional $3.7 billion in emergency funding to help reduce the unacceptable claims backlog and hire PTSD counselors and claims adjudicators to work with returning OEF/OIF veterans. Under the strange rules of appropriations, Congress authorized the extra money, over and above the President's budget request. But because it exceeded the budget authority, Congress designated it as "emergency" supplemental spending. Under the budget rules, the President has the discretion to decide whether or not to spend that extra money. In this particular case, the extra $3.7 billion to meet VA health care and other needs would only be available if the President sent a special budget notice to Congress by 18 JAN. [Source: MOAA Leg Up 18 Jan 08 ++]

WEP/GPO: On 16 JAN the House Ways and Means Subcommittee on Social Security conducted a hearing on the impact of the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), taking testimony from Social Security and Congressional Research Service officials as well as a diverse group of advocates for state government employees and teachers. Social Security covers approximately 96% of U.S. workers. But 25% of public sector employees (federal, state, and municipal) have unique retirement systems that aren't covered by Social Security. Federal civilian employees who were hired before 1984 also fall under an independent retirement system. In all, about 6.5 million federal, state and local workers aren’t covered by Social Security. If people in this category also held at least one job during their working lives that was covered by Social Security, they find in retirement that they suffer a statutory penalty called the Windfall Elimination Provision (WEP). This entails a complicated formula that reduces their Social Security benefit by up to $340 per month.

They may also suffer a penalty if they themselves held Social Security-exempt jobs that provide an independent retirement annuity, but are married to someone who spent a working career under Social Security. If the Social Security-covered spouse dies and the remaining spouse draws a Social Security benefit as a survivor, the spouse runs into a separate penalty called the Government Pension Offset (GPO). The GPO reduces the survivor's Social Security benefit by an amount equal to two-thirds of the survivor's federal civilian/state/teacher's retirement pension. According to the National Active and Retired Federal Employees Association (NARFE), the GPO affects 400,000 people, and causes the vast majority to lose their entire Social Security benefit. When WEP and GPO offsets were enacted decades ago, their intent was to mitigate the progressive nature of Social Security benefits, which were seen as providing disproportional rewards for people who spent a relatively small part of their careers paying into Social Security.

MOAA and NARFE believe the WEP and GPO impose disproportional penalties, and actively discourage public service just when there's a crying need for more teachers and experienced personnel in state and municipal governments. Also that GPO and WEP significantly undermine important programs like Troops to Teachers. But changing the law will be a major challenge, to say the least. Repeal would cost $80 billion over ten years, and more modest reforms would still carry daunting price tags for Congress at a time when long-term financing of Social Security is already a major national issue. Those who believe that something needs to be done to ease the current inequity can support this effort by asking your legislators to cosponsor H.R.82 and S.206. An easy way to accomplish this is to enter your ZIP code in the indicated box at http://capwiz.com/moaa/issues/bills/?bill=9286191 for H.R.82 &
http://capwiz.com/moaa/issues/bills/?bill=9287906 for S.206 to send them a MOAA-suggested message.
[Source: MOAA Leg Up 18 Jan 08 ++]

This data is too long for this software! The rest will be in a separate post.