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Legislative Update

This is TROA's Legislative Update for Friday, November 1, 2002.

ISSUE 1: TROA's Concurrent Receipt Press Release

There are only a few days left before the Nov. 5 election, and TROA has been pulling out all the stops to make sure incumbents and candidates understand how important the concurrent receipt issue is to the uniformed service and veterans' community.

We've asked TROA members around the country to help get this issue before the public, and we've been gratified by feedback that many have been interviewed for newspaper, radio and other media reports. TROA headquarters staff has received calls for interviews from media across the country -- from the Associated Press and the Wall Street Journal to the Ft. Worth Star-Telegram and Tampa Tribune.

To help spur such stories as much as possible, TROA issued a strongly worded concurrent receipt press release on October 30, and had it sent to over 1,000 media outlets across the nation. You can view the release on TROA's Web site at www.TROA.org/about/Press/ConcurrentReceiptAction.asp

ISSUE 2: TROA Pushes for Medicare/TRICARE Rate Increases

Congress recessed for the Nov. 5 election without passing much-needed legislation to increase Medicare payments to physicians, hospitals and other health care providers. Despite a full court press from influential groups such as the American Medical Association (AMA), action to reverse recent provider payment cuts and forestall future ones will have to wait for the lame duck session beginning Nov. 12.

Medicare provider reimbursements already were cut an average of 5.4 percent earlier this year. Absent legislative action to reverse additional economy-driven cutbacks specified in current law, Medicare officials are preparing to announce an additional 4.4 percent decrease in January 2003. Unless the law is changed, additional cuts accumulating to 12 percent are expected over the next four years.

Senate Finance Committee Chairman Max Baucus (D-MT) and ranking member Charles E. Grassley (R-IA) haven't yet been able to convince the Senate to take up their bill (S.3018) to increase provider payments by $44 billion over ten years. Despite bipartisan support for such payment increases, time is running out for the 107th Congress.

This issue is important to all uniformed services beneficiaries, Medicare-eligible or not, because TRICARE payment rates are linked to Medicare's. So any Medicare rate cut further depresses the already low TRICARE reimbursement schedule. With doctors increasingly reluctant to see Medicare and TRICARE patients, we must reverse the payment cuts, not add to them.

In letters addressed to Karl Rove, Senior Adviser to the President, and Mitchell E. Daniels, Director of the Office of Management and Budget, TROA President VADM Norb Ryan, Jr. (USN-Ret) urged Administration action to assure sufficient provider participation to care for our members. Ryan stated, "With our nation at war, the Administration can show its support for those who currently serve and those who have gone before by making it a priority to restore equitable Medicare reimbursement rates and ensure that providers don't turn Medicare and TRICARE beneficiaries away."

You can help by asking your senators to make this legislation a priority. Visit TROA's Web site ( http://capwiz.com /TROA/home/ ) and click on the "Urge Senate to Act on Medicare Reimbursement" Action Alert link at the top of the page.

ISSUE 3: Savings Plan Limits Raised for 2003

Scheduled increases in Thrift Savings Plan (TSP) limits will let servicemembers invest more in their plans in 2003.

The federal TSP-extended to military members last January-has limits on members' annual deposits, but these limits are scheduled to increase annually until 2006. Deposits are limited to a specific percentage of basic pay and also a specific dollar maximum.

In 2003, members will be able to deposit up to 8% of basic pay (increased from 7% in 2002). This limit will grow by one percentage point each year until 2006, when the percentage limit will go away.

The maximum amount that can be invested in these tax-deferred accounts will be $12,000 in 2003 (a $1,000 increase from 2002). This may include deposits from basic pay (up to the percentage limit) or from special pays or bonuses. The maximum deposit will grow by $1,000 a year until 2006, when it will remain capped at $15,000. TSP participants who are age 50 or older can make slightly larger additional "catch-up" contributions, as outlined in last week's legislative update.

There's one exception to the $12,000 limit on deposits. Members who receive tax-free income in a combat zone can invest a maximum of $40,000, but not more than 100% of their annual compensation. (Any deposit exceeding 8% of basic pay must come from special pays or bonuses.) This is a positive way for servicemembers to invest in their future. Visit the TSP Web site at www.tsp.gov for more information.

ISSUE 4: Some 2002 Retirees Will Receive "Partial COLA"

For most retirees, the 2002 COLA will be 1.4% (effective December 1, 2002, and payable in the January 2, 2003 checks). But, members who retired during 2002 and who first entered service on or after Sept 8, 1980 will receive a COLA based on the calendar quarter in which they retired. This group has a slightly different COLA system in the first year after retiring, because their retired pay is calculated on their highest 36 months' basic pay rather than final basic pay.

Such members who retired during the first 6 months of 2002 will receive the same 1.4 percent COLA as other retirees. Those retiring in the third quarter of the year will receive a .5 percent COLA. Those retiring after September 30, 2002 won't receive a COLA on Dec. 1, because the COLA calculation measures inflation from October through September. Such partial COLAs apply only in the first year of retirement. All members retiring in 2002 will receive full-inflation COLAs in 2003 and subsequent years.

Subscription Information

To subscribe/unsubscribe or change your email address for the legislative update, please go to http://www.TROA.org /email. If you are a TROA member you will need your membership number to sign in to the site. If you are NOT a TROA member, and you have not already completed the guest form and received a customer number, please go to the Guest Form and provide the requested information on the "Sign Up" page to receive your customer number before signing in to the site. If you have created a guest record you will need to go back to the original page and sign in to the Member/Guest sign in page to complete the process.

If you have questions regarding the content (ONLY) of the update, please send an email to legis@TROA.org (subscriptions and changes will NOT be processed through this address).

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. All retransmissions, postings, and publications of this message must include this notice.

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Benefits Information Update

Partial reprint from TROA Benefits Information Update for November 2002 E-newsletter

COLA is 1.4% for 2003

Monthly Social Security and Supplemental Security Income (SSI) benefits to more than 50 million Americans will increase 1.4 percent in 2003.

Military retirees will also get the 1.4 percent increase since raises are based on the Consumer Price Index which determines the cost-of-living adjustment (COLA) to various programs including military retired pay, survivor benefits, and veterans compensation, in addition to Social Security benefits.

The 1.4 percent increase will begin with benefits that beneficiaries receive in January 2003.

Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $87,000 from $84,900 in 2002. As a result of the increase in the taxable maximum in 2003, the maximum yearly Social Security tax paid by employees and employers will increase by $130.20 each for a total of $5394.00. For self-employed workers, it will rise by $260.40 to a total of $10,788.00. Of the approximately 155 million workers who pay Social Security taxes, about 9.7 million are affected by the higher wage base in 2003.

HHS Announces Medicare Premium And Deductible Rates For 2003

On the heels of the slight 1.4 percent Social Security increase, the Department of Health and Human Services (HHS) announced a more substantial increase in the Medicare premium, deductible and coinsurance amounts to be paid by Medicare beneficiaries in 2003.

The monthly premium paid by beneficiaries enrolled in Medicare Part B, which covers physician services, outpatient hospital services, certain home health services, durable medical equipment and other items, will be $58.70, an increase of 8.7 percent over the $54.00 premium for 2002.

Medicare law requires that the deductibles and premiums be updated annually in accordance with statutory formulas. The law sets the Part B premium at the amount needed to cover 25 percent of estimated program costs for aged enrollees. General revenue tax dollars cover the other 75 percent of the costs. The same statute prescribes the method for computing the Part A inpatient hospital deductible.

All Medicare beneficiaries enrolled in Part B pay the monthly premium. The Part A deductible applies only to those enrolled in the original fee-for-service Medicare program.

Most of Medicare's 40.4 million beneficiaries are enrolled in the optional Part B, which helps pay for physician services, hospital outpatient care, durable medical equipment and other services, including some home health care. Nearly 90 percent also have some form of supplemental coverage (such as Medigap, Medicaid, or TRICARE For Life) to help reduce out-of-pocket medical costs.

The Part A deductible is the beneficiary's only cost for up to 60 days of Medicare-covered inpatient hospital care. However, for extended Medicare-covered hospital stays, beneficiaries must pay an additional $210 per day for days 61 through 90 in 2003, and $420 per day for hospital stays beyond the 90th day in a benefit period. For 2002, per day payment for days 61 through 90 was $203, and $406 for beyond 90 days. For beneficiaries in skilled nursing facilities, the daily co-insurance for days 21 through 100 will be $105 in 2003, compared to $101.50 in 2002. Most military retirees with TRICARE For Life do not incur these costs.

States have programs that pay some or all of beneficiaries' premiums and coinsurance for certain people who have Medicare and a low income. Information is available at 1-800-MEDICARE (1-800-633-4227) and, for hearing and speech impaired, at TTY/TDD: 1-877-486-2048.

Information concerning the Social Security Cost of Living increase for 2003 was also released today and can be found at http://www.SSA.gov.

FLTCIP Open Enrollment Passes Midway Point

The open enrollment season for the Federal Long Term Care Insurance Program has now past the halfway point. The season started July 1 and eligible individuals can enroll through Dec. 31.

Those eligible include active-duty members, retirees, reservists, federal civilian employees, their spouses, parents, stepparents, parents-in-law, and adult children. The insurance is offered by John Hancock and MetLife and is administered by Long Term Care Partners, a joint venture between the two companies.

For more information, call (800) LTC-FEDS or visit www.LTCFEDS.com. Please note that Federal Long Term Care Insurance is not a TRICARE program.

"myPay" Improves DFAS Electronic Pay Services

Members of the retiree community can now enjoy improved services from "myPay" to manage their pay account information more easily and more securely than ever before. Formerly known as E/MSS, myPay allows retirees and annuitants as well as active, Reserve, and Guard members and civilian employees to take charge of their pay accounts online. The new improved service on the Internet at http://mypay.dfas.mil. With myPay, customers can perform the following activities by simply using their existing E/MSS Personal Identification Number (PIN).

Copyright (c) 2002, The Retired Officers Association (TROA), all rights reserved.

Let's Roll - Flight 93

By Author Unknown

She heard him say, "Let's roll", and then
As he laid down the phone.
She knew at once what he had meant,
Now she'd be all alone.

He had called to tell her, of his love,
From a hijacked plane that day.
And as she heard his little prayer,
He started on his way.

He and others made a pact,

To fight for what was right.

They knew that none of them would live,

They'd not be home tonight.

The terrorists were taken down,
The plane fell from the sky.
These heroes will forever live,
We'll hear their final cry.

"Remember Pearl Harbor"
Was the cry in another big war.
Just like they did in '41,
We'll rise up from the floor.

The battle cry, will now ring out,
As one voice, we'll shout, "Let's roll"
For to rid the world of terrorists,
Is now our Country's goal.

A monument will soon be built,
Where these heroes took their stand.
We owe each one our gratitude,
From all across the land.

Tonight let's pray, for these brave souls,
Who gave their very lives.
And for the parents, siblings too,
The children, husbands and the wives.

So look around and you might see,
A hero by your side.
We never know who might stand up,
And fight instead of hide.

I'm proud of those who serve today,
I hope we stand our ground.
It may take years for us to win,
'Till the killers all are found.

Now GOD, I ask YOUR blessing,
On this country we hold dear.
'Till the warriors return safely home,
Then we can stand and cheer!

President's Page

By Al Garcia

Time is a fleeting commodity. Here we are into the last two months of the year. Soon 2002 will have passed on to memories and we will continue sailing (navy talk) into the third year of the 21st Century. The term "21st Century" bugles my imagination.

A very important election is coming up on November 05. Watching and reading candidates political advertisements on TV, radio, and other media makes one want to stay home on this important day. But be it as it is we have a duty to cast our vote. I hope we all went out and exercised this privilege.

Veteran's Day is a special day for all members of TROA. Each of us will celebrate and remember in our own special ways. However, our chapter will participate in the annual Veteran's Day parade celebrated in Aztec. This will be the third year we provide a float. We are all invited to come ride on the float or just watch this event.

Thanksgiving is a very special day to all Americans. Each of you will join with families and friends to celebrate in your own traditional ways. Heidi joins me in wishing you all a very happy Thanksgiving day.

For two more months we will be known as TROA. The name change seems to be adjusting into my brain. The Military Officers Association of America (TROA) has a good sound to it. Say it many times, it makes good sense.