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OBSERVATION POST
Veterans' Class Act

By Tom Philpott
January 2006 Online

On Dec. 31, Col. George “Bud” Day, USAF-Ret., and his staff of volunteers in Fort Walton Beach, Fla., closed down the Class Act Group, a grassroots band of World War II and Korean War era military retirees who had fought for years in federal court and, more recently, in Congress to have the government keep its promises of free lifetime health care.

Truly “free” health care hasn’t been achieved, Day says. But retirees have 95 percent of what they were promised, and in these difficult times, that’s pretty good. The prospect of capturing the remaining 5 percent — with legislation that would exempt older military retirees and spouses from paying Medicare Part B premiums — dimmed this past year following extensive hurricane destruction and given the increasing cost of the war on terrorism.

Day, who is 80, says he and his volunteers, some slowed by age and illness, also “took into account the dilemma of the poor refugees from [hurricanes] Katrina and Rita and felt there was a far greater need for congressional money” to care for those families. Another factor influencing the decision, Day says, was a steady drop in contributions from retirees to pressure Congress to pass the Keep Our Promise to America's Military Retirees Act bill (H.R. 602), which would waive Medicare Part B premiums for military retirees, and waning interest among lawmakers to fund it.

Also, he says, “we are just a little bit burned out. Ten years is a long time to be involved in the same wrangle.”

Day fought in three wars. He was awarded the Medal of Honor for his courage and leadership while a POW in North Vietnam. He later became a lawyer, frequently representing servicemembers and retirees in court battles against their government and bureaucracy.

The Class Act lawsuit in 1996 was not the first filed against the government for broken promises of free lifetime health care, but it was the most effective, particularly at drawing national attention to a shift under way in military medicine. DoD was moving to managed care for active duty force families and younger retirees, which forced military hospitals and clinics to turn away older beneficiaries. They were expected to rely on Medicare and to buy supplemental insurance.

As Day argued in court, this was well short of recruiter promises of free lifetime health care, which was used to entice servicemembers to stay in following World War II and the Korean War. The Class Act lawsuit lost in a couple of early rounds. By the late 1990s the political environment wasn’t promising either, as the Clinton administration and Congress resisted any efforts to reverse a decline in military health benefits.

But as complaints from retirees rose and a robust economy brought on recruiting challenges, Army Gen. Hugh Shelton, chairman of the Joint Chiefs, began pressing Congress and the administration to treat older retirees more fairly. The broken health care promises looked particularly appalling given public celebrations of the generation that won World War II.

Day appeared March 7, 2000, before the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., arguing the Class Act Group lawsuit of Schism and Reinlie vs. U.S. before a three-judge panel that included a West Point graduate who fought in Vietnam and a Naval reservist who had been a recruiter. “You're not telling us that these promises weren't made," said one judge, interrupting the government attorney’s argument. “You're just saying they don't have to be kept.” Correct, the attorney replied.

Congress didn’t wait for a court decision. By the fall of 2000, influenced not only by the lawsuit, but also by election-year politics, projected budget surpluses, and a decade of effective lobbying by military associations, Congress passed TRICARE For Life (TFL) and TRICARE Senior Pharmacy benefits for 1.5 million older retirees, spouses, and survivors.

The following February, Day and the Class Act Group won a stunning decision from the three judges, only to see it set aside by a full nine-judge panel of the same court. In 2003, the Supreme Court declined to review that decision, exhausting the legal remedies. But Day and Class Act already knew they had a part in a major victory, the passage of TFL.

“One of the amazing impacts of the lawsuit was not only restoring free medical care for the World War II and Korean [War] people, but [also that] the bill was broadened to make sure the promise made to everybody after us was also fulfilled,” Day says. “I did not contemplate that when I filed that lawsuit.”

As it closed shop, Day says, the Class Act Group heard from many retirees, congratulating them on what they helped to accomplish. The most memorable notes describe huge medical bills avoided and inheritances preserved.

Some Americans haven’t been as fortunate, Day says, noting the plight not only of Katrina victims, but also of retirees from some large corporations who have seen pensions and health insurance lost to bankruptcies or mismanagement.

“Of course, the difference is [that] we have the taxpayers’ deep pockets and the Congress to assist us,” says Day. And they did — finally.

It didn’t happen without a fight, however, or the best efforts of warriors such as Col. Bud Day and his gray-haired volunteers.

 

Tom Philpott is a freelance writer and syndicated news columnist. His column, "Military Update," appears in 48 daily newspapers throughout the United States and overseas.



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