Vol 2002, Issue 04

 

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THE TOTAH CHAPTER NEWSLETTER

                     

An affiliate of The Retired Officers Association

Volume 2002, Issue 04

In This Issue:

Senator Sharer Speaks of NM Budget Issues

Long Term Care Program Creates Buzz

April Calendar

Legislative Update

 

Member News

President's Page

 

Special points of interest:

Monthly General Membership meeting will be held at the Best Western Inn & Suites, April 18, 6:30 P.M.
The Guest Speaker program will be about the National Junior Rodeo to be held in Farmington this Summer.

Senator Sharer Speaks of NM Budget Issues

By Steve White

Vice President Lee introduced our guest speaker, NM State Senator William Sharer. Bill discussed the NM 2002 budget process.

The new fiscal year will have $8 billion. About $3.9 billion comes from the NM residents and the rest from the Federal Government. The initial requests totaled $200 billion.

The legislature sent a bill to the Governor $40 million over the budget. The Governor vetoed the bill which will most likely result in a special session.

The Governor has refused to be the budgetary scapegoat by not doing $40 million in line item vetoes.

Senator Sharer also provided information about Medicaid and how the system currently works. In his opinion, the Medicaid system is broken and needs to be fixed before the program bankrupts the State.

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Long Term Care Program Creates Buzz

By LTG Mike nelson, President TROA (Reprint from April 2002 TROAGram)

Why is TROA continuing to sponsor the General Electric Capital Assurance (GECA) plan? Actually, there are a couple of reasons. First, the GECA plan represents the largest and most successfully operated LTC plan in the industry. GECA has never raised premiums on existing policyholders due to unexpectedly high claims costs, and yet it maintains a 97 percent claims payment rate.

Second, GECA maintains strict underwriting standards, meaning a person has to be healthy before he or she will be accepted. In fact, only about 75 percent to 80 percent of TROA members who apply are accepted. This

allows them to maintain a financially stable plan. TROA is waiting to review and compare the underwriting standards, benefit levels, and premium costs for the new government plan once OPM releases the details. We're hopeful the details will reveal a cost savings and a comparable level of benefits compared with GECA's plan.

One thing that makes us cautious right now is the discussion about underwriting standards. For instance, the 20 percent to 25 percent of members (as well as every one else seeking LTC insurance) who are turned down for heath reasons will be quick to sign up for the new government plan if underwriting standards permit. This situation could result in major premium increases for existing policyholders several years down the road when claims start to increase at a rapid rate.

It is hoped that because both Metropolitan Life and John Hancock are experienced underwriters and OPM is willing to take their advice, this will not become an issue. However, until we are able to complete our due diligence study of the government plan we will continue to endorse the GECA plan for our members, which we know is a good one based on a great deal of prior study.

My advice to members who want to purchase LTC insurance now is "don't wait." First, health conditions might change between now and the open-enrollment period, and second, if the government plan turns out to be all we hope it will be, you can stop paying premiums for the old plan and switch to the new plan, assuming continued good health.

Thank you for giving me the opportunity to address your concerns.

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April Calendar

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Mon

Tue

Wed

Thu

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Sat

 

1

2

3

4

5

6
US Enters WWI

7
Daylight Savings Time

8

9

10

11

12

13

14

15
BOD Meeting

16

17

18 Totah
Chapter Meeting

19

20

21

22

23

24

25

26

27

28

29

30

 

 

 

 

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Legislative Update

By Steve White

This is TROA’s legislative update for Friday, April 2, 2002

Senate Returns to Take Up Budget Resolution.

Before departing for Easter recess, the Senate Budget Committee approved its version of the FY2003 Budget Resolution, including $581 million ($6.1 billion over 5 years) to phase out the disability compensation offset to military retired pay over 5 years for disabled retirees who served 20 years or more and have a 60% or higher service-connected disability rating.

The House Budget Committee approved a similar Budget Resolution proposal a week or so earlier, and the full House already has approved it.

Senate leaders hope the full Senate will be able to consider the Budget Resolution next week, or perhaps the week after.

When it does, Sen. Harry Reid (D-NV) has indicated he will propose an amendment to the Budget Resolution to add the necessary funds to allow complete elimination of the disability offset to retired pay as of October 1 for all disabled retirees with 20 years or more, regardless of disability rating.

This has been TROA’s and The Military Coalition’s goal for many years, and the full Senate approved a similar plan last year – only to see it dropped in negotiations with the House. With 81 Senators having already cosponsored Sen. Reid’s “full concurrent receipt” bill (S. 170), our hope is that the Reid Budget Resolution amendment will be approved.

If the Senate approves a resolution calling for full concurrent receipt, Budget Committee leaders would then meet with their House counterparts in a conference committee to work out their differences on this and other Resolution issues.

For concurrent receipt, the issue would be whether to adopt the House phased approach to eliminate the offset for the more severely disabled, to adopt the Senate “full concurrent receipt” option, or do something in between.

TROA is gratified that previous positive action by both Budget Committees seems to have assured some significant progress this year. But our objective remains to win full concurrent receipt if at all possible.

Now is the time to begin contacting your senators to urge them to vote for the Reid Amendment to the FY2003 Budget Resolution. TROA offers two ways to do this:

a. Visit TROA’s Web site at http://capwiz.com/TROA/home/ , enter your ZIP code in the box and click “GO”. Then click on the “Vote FOR Reid Amendment” link above your legislators’ photos.

b. Use TROA’s toll-free hot line to Capitol Hill (1-877-762-8762). Ask the Capitol operator to connect you with both of your senators’ offices and urge them to “Vote FOR the Reid ‘concurrent receipt’ amendment when the Budget Resolution comes up for Senate floor action.”

Next week, TROA’s Board of Directors and 50 state council and chapter presidents will be “Storming the Hill” to urge legislators to support concurrent receipt and other needed initiatives, including an SBP annuity increase and improved pay raises for active duty, Guard and Reserve members.

Copyright © 2002, The Retired Officers Association (TROA), all rights reserved. Part or all of this message may be retransmitted for information purposes, but may not be used for any commercial purpose or in any commercial product, posted on a Web site, or used in any non-TROA publication (other than that of a TROA affiliate, or a member of The Military Coalition) without the written permission of TROA

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Member News

By Al Garcia

Member, LTC (Dr.) Don Castle, USAF, called on Wednesday, March 27 to let us know that he and Eleanor are doing fine.  They have been in Rocky Mount, NC for a few weeks where he is helping out at a clinic.  He expects to be there for another few weeks. 

Don wanted to know if we could get him  some information on a TROA chapter in that area and we did.  He asked about many of you and we gave him information.  He and Eleanor send regards to all.  He said, "We sure miss you guys."  I thanked him again for having us over for the summer annual picnic at their home. 

Incidentally, he said their house here in Farmington has sold.

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President's Page

By Al Garcia

Spring is here! We are busy cleaning house and yards, especially those of us that are fully retired. Some of us are preparing out garden plots and flower beds while others prune trees. What a beautiful time of the year, the Spring. There are some of us that can take advantage of these joys but there are some members that have to give up these activities due to illnesses and other reasons.

Col. Duckworth underwent knee replacement surgery on April 2. He is recovering at the local hospital and claims to be mending rapidly. He has been in pain but his spirit is strong and he expects to be mobile in a few weeks.

LTC Joe Ziems has had a hard time after the back surgery he underwent last Fall but according to Irene he is improving.

Maj. Mike Mikitka and Mary are getting along. But it is hard from them to get around especially after dark. Mike told me that it was "hazardous" for either of them to go driving at night.

There are others in our Chapter that have medical problems but they get around and aren't house bound. I encourage each of us to call these good members or stop and visit at their convenience. We can do that.

Lastly, I want to thank Heidi for her wonder idea of raffling a German Dinner for two at our March general membership meeting. The Hanharts owned the winning ticket and Heidi honored her commitment in German fashion on March 19. Heidi, the dinner was delicious and very German. THANK YOU!

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