MOAA: FY 2005 Defense Authorization Bill Provisions

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FY 2005 Defense Authorization Bill Provisions

Health Care Issues

Issue

House (H.R. 4200)

Senate (S. 2400)

MOAA Position

TRICARE Standard coverage for certain Guard and Reserve members	Three-year test of fee-based TRICARE coverage at 10 or more sites for Selected Reserve members who have no employer health coverage.	Permanent nationwide fee-based TRICARE coverage for Selected Reserve members who have no employer health coverage.	Strongly support Senate provision.
Employer insurance options for Guard and Reserve	Direct General Accounting Office report by March 2005 about providing stipend to offset the cost of continuing private family health coverage while reserve component member is mobilized.	Allow Selected Reserves who have employer-provided coverage the option of having the government pay part of the premiums to continue family coverage during mobilizations.	Strongly support Senate provision to ensure continuity of members’ family coverage when mobilized.
Permanent ID card for TRICARE For Life (TFL)-eligible	Authorize permanent military ID cards for TFL beneficiaries age 70 and older.	No similar provision.	Strongly support House provision; eliminates potential interruption of TFL for older spouses or survivors.
Review of TRICARE versus Medicare differences	Direct DoD report to Congress by March 2005 on disparities between Medicare and TRICARE benefits and administration rules and how to reduce them.	No similar provision.	Support House provision. Benefit and bureaucratic disparities inhibit provider participation in TRICARE.
Pharmacy cost shares for TFL-eligibles	Prohibit imposing higher pharmacy cost shares for Medicare-eligibles than for other beneficiaries.	No similar provision.	Support House provision.
Waiver of recoupment from certain under-age-65 Medicare-eligibles	Allow DoD to waive recoupment of TRICARE payments for under-65 Medicare-eligibles who weren’t told they had to enroll in Medicare Part B to retain TRICARE.	Similar provision.	Strongly support both provisions; protects 12,000 beneficiaries who won’t be able to enroll in Part B until later this year.
Premobilization Guard and Reserve TRICARE eligibility	Permanently authorize family TRICARE coverage up to 90 days before call to active duty.	Similar provision.	Support both provisions. Current temporary authority expires Dec. 31, 2004.
Transition TRICARE coverage	Permanently authorize up to 180 days of family coverage following separation from active duty.	Coverage ends under both provisions once separatee becomes eligible for other coverage.	Support both provisions. Current temporary authority expires Dec. 31, 2004

Non-Health Care Issues

Issue

House (H.R. 4200)

Senate (S. 2400)

MOAA Position

Survivor Benefit Plan (SBP) age-62 annuity	Raise minimum annuity to 40% of covered retired pay in October 2005, 45% in April 2006, 50% in April 2007, and 55% in April 2008.	Similar amendment from Sen. Mary Landrieu (D-La.) pending at press time.	Strongly support both provisions.
SBP open season	Let nonparticipating retirees enroll in SBP for one year, starting Oct. 1, 2005, with modest premium penalty based on retirement date.	Similar amendment from Sen. Mary Landrieu (D-La.) pending at press time.	Strongly support both provisions.
2005 military pay raise	3.5% pay raise in January 2005 for all uniformed servicemembers.	Similar provision.	Support both provisions to continue progress in reducing military pay gap.
Guard and Reserve civilian income replacement payments	Pay differential from civilian pay (up to $3,000 a month) for involuntarily mobilized reservists after 12 months on active duty, 18 months within five years, or if recalled again within six months.	No similar provision.	Some protection against significant income loss is needed in a high-mobilization environment. The House provision is welcome to stimulate debate on options.
Service manpower levels	Require increase in Army force levels by 30,000 and Marine Corps by 9,000 over three years. Reduce Navy strength by 7,900.	Allow 30,000 increase for Army for five years, at DoD’s discretion. Reduce Navy strength by 7,900.	Support both provisions. Overstressed troops and families need relief from operations pace. Strength reduction requested by Navy.
Special commission on Guard and Reserve	No provision.	Establish commission to review Guard and Reserve roles and missions and assess the need for compensation, benefit, and other changes.	Support Senate provision; 50-year-old reserve personnel and compensation rules need update ASAP in light of higher demands on reserve forces.
Combat-Related Special Compensation (CRSC)	Establish in law as DoD-operated military benefit. Bar contracting-out studies until 2010.	No provision.	Support House provision.
Commissary	Establish in law as DoD-operated military benefit. Bar contracting-out studies until 2010.	No provision.	Support House provision.
Base Realignment and Closure (BRAC)	Delay planned 2005 BRAC until 2007.	No provision.	No objection to a delay.