In this week’s edition:
Debt Ceiling Increased with Spending Cuts
Report Recommends Drastic TRICARE Fee Increases and More
TRICARE Access in Philippines Discussed
Happy Birthday, U.S. Coast Guard!
Debt Ceiling Increased with Spending Cuts
President Obama signed the Budget Control Act of 2011 (S. 365) into law, authorizing a debt ceiling increase ($2.1 trillion – $2.4 trillion) to allow the federal government to operate beyond 2013. The debt limit increases by $900 billion immediately and a second increase of $1.2 trillion to $1.5 trillion will be available after November 23, 2012. The size of the second increase will be determined by a new joint committee made up of six senators and six representatives who will identify cuts to meet the goal of reducing at least $1.2 trillion in spending over 10 years. The House and Senate will then vote to approve the committee’s recommendations without amendments or Senate filibuster. If the committee recommendations are not approved, automatic across-the-board cuts for every agency and program will be implemented by January 2, 2013, and continue over the remaining fiscal year.
The debt ceiling agreement also requires both the House and Senate to vote on a balanced budget amendment to the Constitution by the end of the calendar year. The House version of the FY 2012 budget must also be reduced by $24 billion to meet spending caps. It remains unclear how this will impact current military and veterans’ benefits, pay, and quality-of-life programs. FRA is concerned about the potential impact of drastic funding reductions on military and veterans’ health care, pay and other benefits; will closely monitor implementation of the new law and weigh in with legislators and their staff regarding threats to hard-earned benefits.
Report Recommends Drastic TRICARE Fee Increases and More
Senator Tom Coburn (Okla.) released a 614-page report, entitled “Back in the Black,” detailing suggestions for reducing the federal deficit by $9 trillion over 10 years. NOTE: This is only a report and these suggestions for balancing the budget have NOT been introduced as legislation. Recommendations include:
- Requiring all military retirees to take TRICARE Standard and increasing annual enrollment fees to $3,500 for families/$2,000 for individuals,
- Increasing co-pays for prescription drugs from $3 to $15 for generic and from $9 to $25 for brand-name drugs,
- Making TRICARE Prime available only for active duty personnel and their dependents. Creating an annual $550 co-pay for TRICARE for Life (TFL) and requiring beneficiaries to pay half of the cost of expenses not covered by Medicare, up to $3,025,
Consolidating commissaries and exchanges, - Eliminating Department of Defense (DoD) schools, and
- Eliminating DoD tuition assistance programs for active duty service members.
The plan also suggests the Department of Veterans’ Affairs (VA) assess a $250 annual fee for veterans in Priority Groups 7 and 8 who seek VA health care and increase prescription co-pays for these vets to $15 for a 30-day supply of medicine.
The report is an example of cost-saving proposals associated with growing pressure to reduce government spending. FRA will continue to monitor the legislative process and alert its membership about proposals to balance the budget by making drastic cuts in pay and benefits for those currently serving and those who’ve served in the past.
Read Tom Philpott’s Military Update column (8-4-11) at www.fra.org to learn about other potential impacts of the proposed cuts.
TRICARE Access in Philippines Discussed
FRA recently met with RADM Christine Hunter, USN, Deputy Director, TRICARE Management Activity, to discuss shipmates’ concerns regarding health care access in the Philippines. FRA’s Health Care Advisor Bob Washington reported that she is committed to working with FRA to resolve these issues and the Association will report on efforts to address this situation.
Happy Birthday, U.S. Coast Guard!
In recognition of the U.S. Coast Guard’s 221st birthday (August 4th), FRA is highlighting the critical work of Coast Guard Port Security Units (PSUs) this month. In addition to a feature article in the August edition of FRA Today magazine, FRA is hosting a teleconference at Noon (EDT) on Wednesday, August 10, 2011, to further underscore the unique mission of these specialized units.
Master Chief Petty Officer of the Coast Guard Reserve Force Mark Allen will be the featured guest for the call and will provide a brief overview of the roles PSUs play in national defense and homeland security. His comments will be followed by a question-and-answer period for call participants.
The call is part of FRA’s “Your Voice” monthly teleconference series, which features a live discussion of topics related to military and veterans’ benefits. The August teleconference begins at Noon (EDT) on Wednesday, August 10, 2011. To participate in the teleconference, dial 1-800-391-1709 and use bridge number 444143.
