Games the White House is Playing With Military Retirees

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Since 04-21-05


From: Waspscpo@aol.com [mailto:Waspscpo@aol.com]
Sent: Thursday, April 21, 2005 9:39 AM
To: undisclosed-recipients
Subject: Fw: Games the White House is Playing With Military Retirees

On 4/20/05 BGEN Bob Clements, USAF, ret writes:

Subj: Games the White House is Playing With Military Retirees
Date: 4/20/2005 10:59:25 PM Eastern Standard Time
From: p38bob@deepwell.com
Sent from the Internet (Details)

A provision enacted in the FY 2005 National Defense Authorization Act (NDAA) was designed to relieve the Department of Defense (DOD) of the responsibility for TRICARE-for-Life (TFL) accrual payments (i.e., TFL costs for future beneficiaries..today's active duty and practicing reserve forces), just as was done for concurrent receipt.

As explained in documents from the President's budget request for FY 2006, the TFL accrual payments are still being counted against the DOD discretionary top line. Although the accrual amount is less that what the Congressional Budget Office (CBO) estimated a year ago, we are still talking about big bucks: $10+ billion next year and escalating in the outyears.

The White House Budgeteers ( OMB) are saying, "Forget the Clear Intent of the FY 2005 National Defense Authorization Act - the Costs of TRICARE-for-Life are DoD's Responsibility, and we're going to make DoD eat that cost out of the current budget -- no topline increase to cover the cost of benefits congress added."

Now, what does this all mean to you as:
1. ) a military retiree getting blamed for taking funds a way from the warfighters

2. ) or, as a future Medicare eligible Tricare for Life (TFL) entitled uniformed service retiree, including retired guard members and reservists.

A little explanation of the funding for current and future recipients is in order:

There are two deposits to the trust fund...one from Treasury (for current retirees) and one from DoD (an accrual deposit to cover the future TFL costs of current active duty and drilling reserves 20-40 years in the future).

When DoD first started complaining about being forced to eat this money out of the current DoD budget at the expense of other DoD needs, the Military Coalition tried to influence switching the DoD deposit impacting future retirees to the Treasury budget so that kind of choice couldn't be forced on DoD.

But OMB wouldn't buy into it. OMB thinks it should be charged to DoD since it's a payment for current DoD active duty and drilling reserve folks, but they're not willing to give DoD extra money for it.

So, with OMB against giving DOD enough of an increase in the DOD topline to accommodate the trust fund deposit for future retirees it is actually OMB ( the White House) that is making DOD eat the TFL costs out of money needed to fund other DOD projects

Anyone who is complaining about the cost of retiree medical care, disability fixes, health care, etc. coming at the expense of other things in the DoD budget....which includes Rumsfeld, Chu, and just about all of the Service chiefs and vice chiefs.. can't place the blame on the Office of Management Budget (OMB), or the President ( or they'll get fired)... so, they conveniently blame military retirees rather than going back to ask for more money so they can meet both needs.

The person who has been most outspoken relative to the costs of benefits earned by military retirees for loyal service to their country is Under Secretary of Defense for Personnel and Readiness , David Chu.

Anyone who thinks he is acting alone doesn't understand the pipe line drainage of the Beltway. His conduit is to Rumsfeld and Rumsfeld's conduit is to the White House. If you don't believe that, look at a photograph of the President's cabinet The leakage of stories to the media isn't by accident and Chu isn't making his statements without approval from the top of the ladder...

As to the Underlings under Chu's control, it is a repeat of the classic case of not standing up....toe the line or lose your job. Chu has made comments like ³Benefits that apply mainly to retirees and their families are making it harder for the Pentagon to afford financial incentives for today's military." He has continued on that theme saying, "Congress has gone too far in expanding military retiree benefits." His claim is the benefits are now a heavy burden. He could go to Congress, ask for the extra money, and his boss would throw him out the window, head first after a call from Crawford, TX...

This puts DOD on the offensive with a multi part program

1. Blame the retirees for depriving the warfighters of needed equipment

2. Go to the Congress and ask them to cut the Tricare benefits for both the Tricare programs and Tricare for Life..OR very likely start looking at such things as:

a.)Raising fees for current Tricare programs for retirees under 65?

b.)Stop paying the Medicare and hospital deductibles they are paying for TFL beneficiaries?

c.)Pay the Medicare deductible on a sliding scale based on rank?

d.)Charging an annual fee for enrolling in TFL, again, based on rank?

e.)Raising the pharmacy copays across the board even including, for the first time, copays for retiree pharmaceuticals in the MTFs?

f.)Changing the frequency for rewrites for retirees in the MTF from
3 mos refills to 2mos with a maximum of 2 refills?

g.)Move the more expensive drugs to a non formulary basis (this has already started)

Now where does this all leave you?

That's up to you and how much you are willing to get involved corresponding with your members of Congress to protect one of the finest healthcare programs for you and your family that anyone in the United States has, bar none. There was a tremendous amount of work, time and effort involved in getting TFL for past and future warriors. You had better stand up and fight for it or people like Chu with no conscience, acting for his boss, will dismantle it for you, piece by piece...

We also have a responsibility to our future retirees. However, they too have a responsibility to weigh in, with their family members, and be counted as gatekeepers to preserve a major part of the security given to them and their followers, by law, to comfort their golden years.....

It is yours to enjoy or yours to lose!

It really is about honor, too. Isn't it.

chk6 bob
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Contributed, YNCS Don Harribine, USN(ret)