| Volume XIII, Issue 1 |
Page 6 |
| TROA Legislative
Updates (continued) Issue 4: Congress Adjourns Without Finishing Medicare, Tax Bills. The House of Representatives will adjourn today, joining the Senate, which did so two days ago. This adjournment brings the 107th Congress to a close. All un-enacted bills expire upon adjournment, and will have to be reintroduced in the new 108th Congress next year. On the medical payment increases, the House passed legislation (H.R.4954) to raise Medicare provider reimbursements (and thus raise TRICARE's, which are tied to Medicare rates). But the Senate adjourned without taking action on them, mainly because of disputes between the two chambers over what kinds of providers should receive increases. As a result, no action has been taken to stop Medicare provider cuts of 5.4% in 2002 and 4.4% on January 1st 2003.
Issue 5: New Congress Will Have Fewer Veterans. With each new
Congress, we've noted with dismay the steady decline in the number of
senators and representatives who have experienced some form of uniformed
service. The following figures include any form of active, Reserve, or
National Guard service. 1975 1991 1995 1999 2003 Senate 73% 68% 56% 43% 35% House 70% 48% 37% 31% 27% Issue 6: President Signs Defense Authorization Act. President Bush came to the Pentagon on December 2 and ceremonially signed the FY2003 Defense Authorization Act into law (Public Law 107-314). The defense bill authorizes many other important initiatives, including: * A January pay raise of at least 4.1% for active, Guard and Reserve forces, with some receiving up to 6.5%, depending on grade and years of service. * Extension of time (to 14 years, vs. current 10 years) for use of Montgomery GI Bill education benefits for the Selected Reserve. * Establishment of a Korea Defense Service Medal for military personnel who served in the Korean theater after July 27, 1954 and a date to be set in the future. * Elimination of prior authorization for TFL beneficiaries needing inpatient mental health services. * Automatic designation of Medicare providers as TRICARE providers, effective under the new TRICARE contracts in 2004. * Prohibition of DoD from denying health care benefits to Prime enrollees who receive service connected care through the VA, if the VA cannot meet DoD's access standards. * Requirement for DoD to adopt Medicare claims processing procedures except for those unique to TRICARE requirements. * Further direction to facilitate VA/DoD sharing agreements and authorization for three pilot sites to test collaboration initiatives. |
Among other things, it substantially eliminates the
disability offset to retired pay for certain retirees with at least 20
years of active duty and (a) any disability rating that is associated with
a Purple Heart or (b) a disability rating of 60% or higher that is due to
a combat-related or operations-relateddisability. Eligible retirees will
have to apply for this new compensation. Because the Defense Department
needs time to develop guidelines for approval as well as application forms
and procedures, Congress made the effective date of the new payment 180
days after the President signed the law. President Bush did that on
December 2, so the effective date of the new special compensation will be
June 1, 2003. TROA TRAVEL TIPS 2003 TROA Vacations Selected Journeys. TROA Vacations announces
2003 Selected Journeys that include seven tours and five cruises. For
complete details please visit www.troavacations.com
or call 800-211-5107. INSURANCE NEWS The Medicare age will remain 65, so those workers who elect to wait for the full 100 percent Social Security payment will still have to enroll in Medicare Part B during the open enrollment period around their 65th birthday. That period includes the three months prior to the birth month, the birth month and three months following the birth month. Failing to enroll during the seven-month period will require the retiree to wait until the following open enrollment period of Jan. 1 - March 31 of each year, with coverage starting July 1. Each year's delay adds 10 percent penalty to the premium cost. (continued on Page 8)
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