TREA Legislative Update for March 31, 2006

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TREA Legislative Update for March 31, 2006

If you have any questions please call TREA’s Washington Office on their toll free number: 1-800-554-8732. Also remember that TREA’s April E-Mag edition of The Voice has been posted on TREA’S Home Page www.trea.org

TREA’s Congressional Report Card is now available on the website. Check it out at www.trea.org/CongressionalReportCard.htm See who is co-sponsoring the bills that are important to you. If your Senators and Representatives are not supporting a bill – write to them and ask for their support!!!!

Representative Lane Evans announces his retirement-Representative Lane Evans (D-IL), the ranking member on the House Veterans Affairs Committee, has announced that he will retire at the end of this term. Mr. Evans, a great and long term supporter of Military Veterans, Retirees and their families will be a great loss for our issues. In 1998 he was diagnosed with Parkinson’s disease. He recently decided that his health would not allow him to serve past this term. To read a full copy of his statement please go to:: http://veterans.house.gov/democratic/welcome/htm

Hearing on proposed TRICARE cost increases-On Wednesday March 29, representatives from DoD faced boxes full of 40,000 letters when testifying before the House Armed Services Personnel Subcommittee. Subcommittee Chairman John W. McHugh (R-NY) said that these were the letters received by members of Congress since the Administration proposed severe increases in TRICARE Prime and TRICARE Standard costs for Military Retirees under the age of 65. The dramatic display shows how effective communicating your concerns are to members of Congress. Representative McHugh said, “These are the voices of beneficiaries that we cannot ignore.” This shows how important it is for you to contact your Senators and Congress members to tell them of your opinions and concerns. They do listen to you. At the hearing representatives of both The Military Coalition and the National Military and Veterans Alliance testified against the proposed increases. TREA is an active member of both coalitions.

TRICARE Program to push the Mail Order Pharmacy Option-TMA (Tricare Management Activity) is starting a PR campaign to try and convince Military beneficiaries to use the Mail Order Pharmacy to get their drugs. Their plan is to reinforce their proposed plan to change the formulary’s co-pay structure. Unless the Congress intervenes as early as October 1 of this year the co-pays for mail order (for up to a 90 day supply) will be $0 for generics, $9 for brand name and $22 for the third tier. The co-pays for retail drug stores (for up to a 30 day supply) will rise to $5 for generics, $15 for brand name and remain the same $22 for the third tier.(There will still be $0 co-pays for all prescriptions filled at an MTF, but the MTF’s formularies are shrinking). Last year only 6% of the 6.6 million military beneficiaries who used the Pharmacy Plan used the Mail Order Program. 51% used the Retail Pharmacy Program. The reason DoD is promoting the use of the Mail Order Pharmacy is that it saves them money. The prescriptions filled in the Mail Order Program are 30%-40% cheaper than prescriptions filled in the Retail Pharmacy. This proposed change is a major focus of DoD. If this would affect you, please call our office and tell your situation so we can pass it on to Congress. Also please contact your own Representatives directly and tell them of your concerns.

Support for Edwards/Jones bill HR 4949 Grows-The support in the House of Representatives for Representatives Chet Edward’s (D-TX) and Representative Walter Jones (R-NC) bill HR4949 is growing. In just 2 weeks the number of co-sponsors has grown to 118. This bill would stop DoD from increasing the present enrollment fees and co-pays for TRICARE Prime and Standard for Retirees under the age of 65 without Congressional approval. This is a very important bill. This is the time to call your member of the House (and indeed your Senators as well) and tell them you oppose the proposed increases.

Edwards' Amendment To Block Military Retiree Health Care Tax Rejected On Party Line Vote in Budget Committee

The House Budget Committee rejected an amendment offered by U.S. Representative Chet Edwards (TX-17) to the fiscal year 2007 Budget to block the Administration's proposal to double and triple health care premiums for about 3 million enlisted and officer retirees under Tricare, the military's health insurance system. Edwards' amendment would have added $735 million to Department of Defense (DoD) healthcare budget to block the proposed increases. It failed on a party line vote 15-22 (see Budget Committee members below).

"Minutes after this committee acted in a bipartisan fashion and voted down increased enrollment fees and prescription co-pays for veterans, my Republican colleagues endorsed a $1000 annual tax on military retirees' health care by rejecting my amendment," said Edwards. "I believe that keeping our promise of quality, affordable health care for military retirees is the right thing to do and the smart thing to do. It is right because our nation has a moral obligation to keep our promises to those who have kept their promise to defend our nation. It is the smart thing to do because we cannot attract the best and brightest to fight our war on terrorism in the years ahead if they see us breaking faith with those who served in years past. To win the war on terrorism, we must keep faith with our warriors and stop this military retiree tax," said Edwards, also ranking member of the Appropriations Subcommittee on Military Quality of Life and Veterans Affairs.

For the first time under the Administration's budget proposal, annual enrollment fees for Tricare Prime, the military's managed care option, would triple by October 2008 for working-age retired officers and double for enlisted retirees. Yearly deductibles for retirees using Tricare Standard, the fee-for-service health insurance option, would double for officers and rise by a third for enlisted. Also, for the first time, retirees who use Tricare Standard would pay an enrollment fee in addition to their deductible.

Edwards introduced HR 4949 (see above), the Military Retirees' Healthcare Protection Act, which already has 118 cosponsors. Edwards' bill, co-authored by Representative Walter Jones (NC-03), is also supported by numerous associations representing military retirees.

Hearings of Interest Next Week-Next week the House and the Senate will both be having hearings of interest to TREA Members. They include:

4/4/06 1:30 p.m. House Committee on Appropriations-Defense Health Programs at H-143 Capitol

4/4/06 2:30 p.m. Senate Armed Services Committee, Subcommittee on Personnel-Military Health Programs and Programs 325 Russell Senate Office Building

4/5/06 10:00 a.m. House Committee on Appropriations-BRAC 2005 Implementation at H-143 Capitol

4/6/06 1:00 pm. House Veterans ‘Affairs Committee, Subcommittee on Disability and Memorial Affairs-Pending Memorial Legislation 334 Cannon House Office Building

4/6/06 9:30 a.m. House Committee on Appropriations-Veterans Affairs at 2359 Rayburn House Office Building. This hearing can be seen on WEBCAST