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The Department of Veterans Affairs (VA) announced the distribution of more than $568 million in dividends to 1.5 million active policyholders of veterans' life insurance.

Dividends cover only veterans with government life insurance policies who served between 1917 and 1956. Government insurance programs that cover veterans of subsequent eras do not pay dividends. Also, no dividends are paid on Service members' Group Life Insurance covering current active-duty service members and reservists, or on policies converted upon retirement to Veterans Group Life Insurance policies.

The largest group receiving 2003 payments will be 1.3 million veterans of World War II with National Service Life Insurance ("V") policies. Total payments are expected to reach $461.5 million.

Veterans who have questions about their policy may call the VA Insurance toll-free number: 1-800-669-8477, or may send their e-mail to: mailto:VAinsurance@vba.va.gov

5. New TRICARE Mail Order Pharmacy to Open March 1, 2003

More than 400,000 military pharmacy mail order customers will be switched March 1, 2003, to a new TRICARE Mail Order Pharmacy program, according to the TRICARE Management Activity, Falls Church, VA.

Services will continue under the National Mail Order Pharmacy contract until Feb. 28, 2003. The next day, March 1, Express Scripts Inc. will provide services under the new TRICARE Mail Order Pharmacy program. Express Scripts Inc. of Maryland Heights, Mo., won the $275 million, five-year contract in September to provide mail order pharmacy services for TRICARE beneficiaries.

Beneficiaries who have refills remaining on prescriptions on March 1 would be transferred to Express Scripts so they can continue ordering medications on time, with a few exceptions: narcotics or other controlled substance prescriptions and compounded prescriptions (those that are physically prepared by the pharmacy) cannot be transferred.

In early January, current users or the Mail Order Pharmacy received a post card announcing the new services. That was followed by a mailing, which will include a registration form, a description of benefits and a brochure covering the TRICARE program.

Those eligible to use the current mail order program or the retail benefit are eligible to use the new TRICARE mail order program. New customers have to register for the program. Information will be provided through the TRICARE service centers, military treatment facilities pharmacy as well as their marketing points of contact.

It's up to each one of us to advise any window/widower of the TRICARE for Life programs.

6. CHAMPVA Extended To Surviving Spouses Who Remarry After Age 55

The VA Benefits Act of 2002, passed by Congress November 11, 2002, authorizes retention of CHAMPVA benefits for surviving spouses who remarry after age 55. There is a 1-year open season

Those beneficiaries eligible for Tricare are not eligible for CHAMPVA. That provision has not changed.

Those interested may visit the CHAMPVA web site, http://www.va.gov/hac/champva/champva.html to determine eligibility. At this writing, the VA had not incorporated the new provisions passed by Congress. Further guidance is expected from the VA in the near future.

MOAA's Legislative Update for Friday, January 17, 2003:

Issue 1: Medicare Coming to VA. The VA and Medicare have agreed to set up a Medicare HMO program in VA facilities for non-disabled veterans who are eligible for Medicare. VA Secretary Anthony Principi made two surprise announcements 16 January that are important to non-disabled veterans who want to use VA medical facilities.

First, he announced that, because demand by non-disabled veterans has far outstripped the VA's funding capacity, the VA will bar enrollment of any new "category 8" veterans, at least for the rest of this year. These are non-disabled veterans who have incomes above the threshold that qualify them as indigent, depending on where they live.

But he tempered that declaration by announcing that he has worked out a deal with Medicare officials and the White House to credential VA facilities as Medicare HMOs and use that route to bring some Medicare-eligible category 8 veterans back into VA care. Under this concept, known as Medicare subvention, Medicare would pay the VA for enrolling these older veterans.

MOAA is concerned about the budget constraints that have forced prioritization of VA eligibility, but is encouraged by Secretary Principi's innovative efforts to help address the situation. We have long supported VA Medicare subvention as a way to help close the gap between demand and resources that has plagued the VA for years.

Issue 2: President Bush Nixes OMB Pay Cap Plan. The White House has agreed to support an average 2004 military pay raise of 4.1% -- almost a full percentage point above private sector pay growth. Score one for common sense.

We've been disappointed, to say the least, by Pentagon civilian leaders' recent opposition to needed changes like concurrent receipt and military manpower increases. But give them all the credit for standing tall in battling the President's budgeteers to protect the troops' pay raises.

Earlier this week, the President agreed with Pentagon leaders and rejected his budget chief's penny-wise and pound-foolish plan to cap active duty, Guard and Reserve members' 2004 and future raises below the average American's.

Issue 3: 108th Congress Starts with New Bills

With the start of the new Congress, legislators have begun offering a stream of new bills. Here is a list of selected bills of interest to MOAA members, many of which are carryovers from last year's unenacted initiatives: