Veterans and Military Retiree News Updates 061505

Since 06-17-05

From: Waspscpo@aol.com [mailto:Waspscpo@aol.com]
Sent: Wednesday, June 15, 2005 5:18 AM
To: undisclosed-recipients
Subject: Veterans & Military Retiree News Updates

SOCIAL SECURITY COLA 2006:

Seniors will get little help from their Cost-Of-Living Adjustment (COLA) next year to cover the expected jump in Medicare costs. The Social Security Trustees recently estimated that the COLA paid on 1 JAN 06 would be about 2% to 2.6%. This is hardly enough to keep up with a planned 15% Medicare Part B premium and deductible increase from $78.20 to $89.20 per month.

Nevertheless, despite the low COLAs in recent years some Social Security reform proposals that include provisions to cut COLAs are being considered by Congress. Although most supporters of proposals to add private accounts to Social Security have promised that the benefits of current retirees would not be cut, Comptroller General David Walker recently testified before the House Committee on Ways and Means, that some of the proposals to reform Social Security do include COLA cutting options.

The proposals include cutting COLAs so they are less than the CPI, limit the COLA to a specific threshold, or delay COLAs as was done in 1983 as part of reforms under the Greenspan Social Security Commission. Senator Maria Cantwell (WA) has introduced legislation which, if approved, would nullify SSA COLA reduction proposals.

S.275 would provide a more fair COLA by computing the annual increase using a seniors only index (i.e. Consumer Price Index for the Elderly). Seniors concerned over this issue have the option of contacting their legislators to sign on to this bill as sponsors. [Source: TREA Senior Citizens League Newsletter 10#5 dtd 1 JUN 05]
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VA COMP PAYMENT DISPARITY UPDATE: VA has released IG Report# 05-00765-137 entitled: "Executive Summary and Management Comments of State Variances in VA Disability Compensation Payments".

The report was commissioned after a Chicago Sun-Times article presented the fiscal year (FY) 2003 ranking of average annual disability compensation payments by state in which Illinois ranked 50th. Payments by state range from a high of average of $11,073 to low average of $7,127. The report, which can be viewed at www.va.gov/oig/52/reports/2005/vaoig-05-00765-137.pdf reveals a number of interesting factors leading to the state variances and recommends that the Under Secretary for Benefits take the following improvement actions:


1. Conduct a scientifically sound study using statistical models, such as a multi-variant regression analysis, of the major influences on compensation payments to develop baseline data and metrics for monitoring and managing variances, and use this information to develop and implement procedures for detecting, correcting, and preventing unacceptable payment patterns.


2. Coordinate with the Veterans’ Disability Benefits Commission to ensure all potential issues concerning the need to clarify and revise the Schedule for Rating Disabilities are reviewed, analyzed, and addressed.

3. Conduct reviews of rating practices for certain disabilities, such as PTSD, IU, and other 100% ratings, to ensure consistency and accuracy nationwide. At a minimum, these reviews should consist of data analysis, claims file reviews, and onsite evaluation of rating and management practices.

4. Expand the national quality assurance program by including evaluations of PTSD rating decisions for consistency by regional office, and to ensure sufficient evidence to support the rating is fully developed and documented, such as verifying the stressor event.
5. Coordinate with the Veterans Health Administration to improve the quality of medical examinations provided by VA and contract clinicians, and to ensure medical and rating staff are familiar with approved medical examination report templates and that the templates are consistently used.

6. In view of growing demand, the need for quality and timely claims decisions, and the ongoing training requirements, reevaluate human resources and ensure the VBA field organization is adequately staffed and equipped to meet mission requirements.
7. Consider establishing a lump-sum payment option in lieu of recurring monthly payments for veterans with disability ratings of 20% or less.

8. Undertake a more detailed analysis to identity differences in claims submission patterns to determine if certain veteran sub-populations, such as World War II, Korean Conflict, or veterans living in specific locales, have been underserved, and perform outreach based on the results of the analysis to ensure all veterans have equal access to VA benefits.

The Under Secretary for Benefits agreed with the review findings and recommendations and provided acceptable improvement plans. [Source: Various May 05]
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VA COMP PAYMENT DISPARITY UPDATE:

The VA has struggled for months to explain why veterans in some states receive lower payments than those in others. In releasing a new report on the issue, the agency recently said demographic factors partly explained the state-to-state difference -- saying, for example, that veterans of some wars are far more prevalent in certain states than others. But an analysis of VA data shows that veterans of the same war get vastly different payments depending on their state.

The average payment for World War II veterans, for example, goes from less than $6,000 a year to more than $13,000, depending on the state. A spokesman for Sen. Barack Obama, (D-IL), who has been battling the VA over the low average payments to Illinois veterans, stated the real problem comes down to the amount of subjectivity that seems to be favoring veterans in some states. In Illinois, World War II vets bring home an average of $5,722 a year; in New Mexico, it's $13,558 -- or 137% more.

Among veterans of all time periods, the average annual check in Illinois is $6,961; in New Mexico, it's $12,004 -- or 72% more. The VA pointed to World War II veterans nationwide, who get smaller checks from the agency than veterans of the Vietnam or Korean wars. So, the VA said, a state with a higher-than-average percentage of World War II vets is likely to have lower-than-average veteran payments. The more World War II vets in these low states pulls down your average payment.

The same holds true for most of the other demographic categories the VA used to explain the variation from high to low states, according to Knight Ridder's analysis of the same data used by the VA's inspector general. It also holds true when looking at the cluster of states at the high end of the compensation ladder compared with those at the bottom. The inspector general did say that several factors contribute to the overall variation, and that he couldn't pinpoint which ones were more important than others.

He pointed to inconsistent decisions from office to office, particularly in cases involving a veteran's claim for post-traumatic stress disorder, as also contributing to the variations. The inspector general also said the VA's antiquated disability regulations, as well as staffing and training problems, can affect the state-to-state averages.

The detailed information that shows how much veterans receive by state and by each demographic group was in the inspector general's 200-page Report# 05-00765-137 which can be viewed at www.va.gov/oig/52/reports/2005/vaoig-05-00765-137.pdf. [Source: Charlotte Observer 1 JUN 05]
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SHINGLES UPDATE:

Relief from the painful symptoms of shingles is closer for millions of Americans, thanks to a pioneering study by researchers from the Department of Veterans Affairs. In one of the largest medical studies involving the Department, VA researchers found that an experimental vaccine cut the incidence of shingles in half and dramatically reduced its severity for other victims.

Shingles is a painful nerve and skin infection that afflicts half of the people who live to age 85. It can last months, or even years. Victims develop painful blistering, and some may have permanent nerve damage. It afflicts about one million Americans each year. The study involved 38,000 people, all aged at least 60, who agreed to participate. Half the participants received a new vaccine, the other half a placebo. The study’s results were reported in the 2 JUN edition of the New England Journal of Medicine. [Source: VA News Release 1 JUN 05]
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PENTAGON WASTED SUPPLIES: Government investigators told House members 7 JUN 05 that the Department of Defense (DoD) spent at least $400 million in fiscal 2002 and 2003 buying boots, tents, bandages and other goods at the same time it was getting rid of identical items it had paid for but never used. That finding came as part of a broader inquiry by the Government Accountability Office (GAO) that uncovered deep flaws in the Pentagon's system for determining when it needs to buy new supplies and how it disposes of supposedly excess inventory.

Investigators discovered that out of $33 billion of goods the DoD marked as excess from 2002 through 2004, $4 billion was in excellent condition. Only about 12% of that was reused by the department. The other $3.5 billion the GAO alleged included significant waste and inefficiency because new or good-as-new items were transferred and donated outside of DOD, sold for pennies on the dollar, or destroyed. Investigators brought some of that equipment with them to the hearing of a House Government Reform Committee subcommittee.

Among the items on display were unused military uniforms and medals that GAO had purchased off of a publicly available Web site intended for disposing of unwanted government property. The GAO also obtained the power-supply system for a component of a nuclear submarine that was on the Pentagon's "critical shortage" list at the time. Subcommittee members reacted angrily to the findings.

Pentagon officials testified that they generally agreed with the GAO's findings, saying new items had been accidentally labeled in some cases as excess inventory. The officials said they have made improvements, however, and plan to have a computer system up and running by January that would prevent Pentagon officials from buying new equipment that is already available internally.

The report followed GAO inquiries that uncovered evidence the DoD was selling unused biological- and chemical-weapons-resistant suits for $3 each. At the same time it was buying hundreds of thousands more for $200 apiece. Investigators found that example typified a broader problem. For instance, they paid $2,898 for $79,649 worth of tires, badges, circuit cards and medical supplies. In some cases, the goods had been marked as junk but were delivered in their original packaging.

At the same time, the Pentagon continued to order more of the same items from its suppliers. GAO investigators also found that at contractor-operated facilities where excess equipment was supposed to be liquidated, items were left exposed to rain and wind. Much of it ended up damaged beyond repair. In addition, the DoD said that between 2002 and 2004, $466 million of equipment marked as excess -- including sensitive equipment such as missile warheads -- had been lost, stolen or damaged.

The GAO will continue to investigate where those items ended up. In spite of this waste and mismanagement DoD continues to say they cannot afford to support concurrent receipt and retired members health care. [Washington Post Griff Witte article 8 June 05
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VA CLAIMS ASSISTANCE UPDATE:

The Department of Veterans Affairs has begun applying a new standard that works in favor of disabled veterans when deciding whether a disability has been aggravated by military service. Under a revised policy applying to claims pending on or filed after 4 May 05 the VA presumes when making benefits decisions that a service member was physically sound upon entering the military, and can reject claims for disability pay or medical treatment only by proving the disability was a pre-existing condition that was not aggravated by military service.

Under the previous policy, a person was presumed physically sound upon entering the military, but if an injury or disease was found to have existed prior to joining the military, the burden was on the veteran seeking benefits to prove that military service made the condition worse. The VA claims system generally favors veterans, but the policy requiring veterans to prove that military service aggravated their disabilities was an anomaly that leaned the other way.

Recent opinions from the VA’s general counsel and the U.S. Court of Appeals for the Federal Circuit have questioned whether Congress intended veterans to be faced with the task of proving service connection for worsening disabilities, which is what led the VA to review its regulations. The new policy, announced in a notice in the Federal Register, presumes a veterans’ disability is service-connected unless it was noted at the time of entry into the military.

For the VA to deny a claim, it would have to prove the veteran had the disability but that the condition was not noted during the veteran’s entrance exams upon joining the military. For a veteran with a pre-existing illness or injury, the new policy presumes the condition was aggravated by military service. In those cases, the VA could deny a claim only by providing convincing evidence the disability had worsened due to natural progression or some other cause not related to military service. [Source: Navy Times article by Rick Maze 10MAY 05]
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VA BUDGET 2006 UPDATE:

The House approved the newly developed VA/Military Quality of Life Appropriations Bill (H.R. 2528). Under a new reorganization of appropriations subcommittees, funding for VA benefits and military housing, construction, health care and other military quality of life issues is included in a single bill this year. A separate appropriations bill will address other military funding needs.

The most controversial issue in the bill concerned the funding level for VA health care. The House added $1 billion to the President’s budget figure, but many House members acknowledged that that amount wouldn’t be enough to offset expected inflation and increased use by returning combat veterans - meaning that the VA will face some belt-tightening. Efforts by some senior House Democrats to increase funds by raising taxes on millionaires or reducing funds for expected base closures were not successful.

No date has been set for Senate action on the bill. The bill did not incorporate a number of controversial cuts/fee increases that had been proposed in the President’s budget. State veterans homes will retain their current funding levels; no enrollment fees will be imposed; and VA drug co-pays will remain at their current levels. [Source: MOAA’s Leg Up 27 May 05]
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MINT STRIKES MARINE CORPS COIN:

The U.S. Mint at Philadelphia celebrated National Military Appreciation Month 25 May with the ceremonial strike of a new commemorative coin, the 2005 Marine Corps 230th Anniversary Silver Dollar. The Marine Corps 230th Anniversary Silver Dollar represents the first time the United States has honored a branch of the military with a commemorative coin.The official launch of the Marine Corps 230th Anniversary Silver Dollar will be at Marine Corps Base Quantico, Va., on 20 JUL.

Surcharges from the sale of the Silver Dollars will be paid to the Marine Corps Heritage Foundation to help construct the National Museum of the Marine Corps in Quantico. The obverse, or "heads" side, design of the coin features the raising of the American flag at Iwo Jima from the famous photograph by Joe Rosenthal during World War II.

On the reverse, "tails" side, is the Marine Corps eagle, globe and anchor emblem and motto, "Semper Fidelis" - Latin for "always faithful." Congress authorizes two official commemorative coins annually, and only the United States Mint may produce them. The Marine Corps 230th Anniversary Silver Dollar is the second and final commemorative coin that the United States Mint will produce in 2005. The Chief Justice John Marshall Commemorative Silver Dollar was launched earlier this year. [Source: American Forces Press Service 26 MAY 05]
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Contributed,
YNCS Don Harribine, USN(ret)