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RAO Bulletin Update
1 November 2006


THIS BULLETIN UPDATE CONTAINS THE FOLLOWING ARTICLES:

== USFSPA Lawsuit [11] ----------------- (Supreme Court Appeal Next)
== NDAA 2007 [16] -------------------------- (Authorization Act Signed)
== Veterans Day  ------------------------------- (History)
== Veterans Day [01] -------------------------- (Wear Your Medals)
== Veterans Day [02] -------------------------- (Free Offers to Vets)
== Agent Orange Lawsuits [06] -------------  (Awaiting VA Appeal)
== Tricare/CHAMPUS Fraud [02] ---------- (Health Visions Indictment)
== Tricare/CHAMPUS Fraud [03] ----- (Medco $155 million Settlement)
== VA Claim Delay Causes [01] ------------- (New Vet Impact)
== VA COLA 2007 [03] ---------------------- (Increase of 3.3%)
== SSA COLA 2007--------------------------- (3.3% Increase)
== CSRS COLA 2007-------------------------- (2.3% &3.3% Increases)
== VA Mental Health Care [02] ------------- (Escalating Demand)
== VA Budget 2007 [06] -----------------  ($10 billion Underestimated)
== VA Health Care Enrollment [01] -------- (Are You eligible?)
== VA Copay [04] ----------------------------- (2006 Rates)
== VDBC Update 07--------------------------- (OCT Meeting Summary)
== VA Disability Buyout [02] ---------------- (CNA Report Conclusions)
== Health Care Quality/Price [01] ----------- (DoD Improvements)
== Medicare Reimbursement Rates [02] ---- (Tricare Users Impacted)
== Navy Electronic Service Record --------- (Paper Phase Out)
== Mobilized Reserve 25 OCT 06------------ (Net Decrease 362)
== Tricare Uniform Formulary [15] ----------(More Tier Changes)
== VA "IU" Growth [02] ---------------------- (GAO Conclusions)
== PTSD Reevaluation [07] ------------------ (Heart Disease Risk)
== Tricare Overseas Programs --------------- (Point-of-service)
== Gulf War Syndrome [01] ------------------ (DoD Report Available)
== Purple Heart Museum --------------------- (Debut on 10 NOV)
== Military Bank Scam ----------------------- (BOA Users Targeted)
== VA Data Privacy Breach [26] ------------ (Legal Data Loss)
== USMC Personal Data Breach ------------ (Another Laptop Lost)
== Vet Benefits – FL [01] -------------------- (Tax Exemption)
== Credit Card Offers ------------------------- (How to Reduce)
== NEXCOM Telephone Call Rates -------- (1 NOV Reduction)
== Daylight Savings Time -------------------- (Different in 2007)
== TSP Update 07 ------------------------ (Legislative Agenda 2007)
== Military Legislation Status ---------------- (Where we stand)


USFSPA LAWSUIT UPDATE 11:  A 1982 law that allows state courts to
divide military retirement as marital property in divorce proceedings has
grown a skin of armor, making it impenetrable to court challenge or
legislative change. That, at least, is how it must seem to long-time critics
of the Uniformed Services Former Spouses Protection Act (USFSPA) and to
bureaucrats seeking changes just to improve how the law is
administered. Last month, a federal appeals court rejected a host of constitutional
challenges to the USFSPA brought by 58 divorced retirees and
active-duty members. Also last month, Congress declined to allow the first minor
adjustments to the ex-spouse law in 14 years, shelving three
Senate-passed provisions.  The reason said a congressional staff member was that
Lawmakers were peppered with complaints from divorced members and
ex-spouses, some saying more than planned should be done to ease their
grievances and others wanted the law be left alone. There is still power
going through the third rail from the wave of complaints. He was comparing
the political hassle of amending the USFSPA to the deadly third rail
that lawmakers believe they touch when they try to change the Social
Security program.

     Divorced members who continue to challenge the legality of the
USFSPA in court suffered their latest disappointment 18 SEP 06 when the
U.S. Court of Appeals for the Fourth Circuit, in Richmond VA ruled in the
Adkins v. Rumsfeld case. The three-judge panel upheld a district court
judge’s rejection of the lawsuit, examining the various constitutional
challenges raised and finding none has merit.  The plaintiffs in this
case raised money for their legal challenge through a limited liability
corporation they established called the USFSPA Legal Support Group. The
ULSG has almost 2,500 members of which half donated money to pursue the
case.  Their lawsuit argued:
- The ex-spouse law violates divorced members’ rights to due process
and equal protection.  Plaintiffs argued persons who joined the military
before the law was enacted should be protected from its effect because
they served with the expectation of receiving full retired pay, not of
seeing it divided as marital property.
- States do not apply the law uniformly, which steps on Congress”
authority to raise and support armies.
- The law is discriminatory toward female servicemembers. Their
reasoning on this point is that the law was enacted so that ex-spouses are
not left destitute after military marriages dissolve. Yet the 24-year-old
law fails to recognize the number of women now in service, and the
reality that their male ex-spouses are more likely to have independent
incomes that lessen their financial need to share in military retired pay.

Writing for the appeals court majority opinion, Judge M. Blane Michael
considered and dismissed each of these arguments. He wrote:

- It is incorrect to allege that before the USFSPA was enacted that
Congress had promised to shield military retirement from valid court
orders. Some states were dividing retired pay until 1981 when the Supreme
Court ruled in its McCarthy decision that such division was not back by
law. Congress promptly nullified that decision by passing the USFSPA so
it can not be held that a promised benefit was taken in violation of
due process of law.
- The appeals court found, because USFSPA gives state courts the option
to divide military retirement upon divorce, it tolerates variation
among the states in how that pay is actually divided between spouses in
individual cases. Congress can prescribe uniformity regarding treatment of
service personnel but with this law it chose not to do so. Therefore,
there is no constitutional encroachment by state courts on federal
authority.
- Regarding the law’s impact on the guarantee of equal protection he
noted that the USFSPA does not distinguish between men and women but
between retired servicemembers and their former spouses.  That distinction,
he concluded, is based on a legitimate government interest in the
personal and economic sacrifices of spouses to sustain marriages through the
rigors of service life.
- The argument that the USFSPA is inequitable because it allows
ex-spouses access to retired pay without the same service obligation that
retirees continue to face including possibility of recall to duty
presupposes that the retirement pay can only be characterized as compensation
for service rendered during retirement. The presupposition is false.
Although military retirement pay has some unique features, it also
resembles an ordinary civilian pension in many respects, and Congress grasped
that resemblance in passing the Act.”
    
The ULSG intends to appeal the decision to the Supreme Court..Congress,
meanwhile, refuses to make any change to the USFSPA or even to hold
hearings. Those Senate-passed provisions knocked from the final defense
authorization bill would have repealed the 10-year rule that dictates
what court orders the Defense Finance and Accounting Service deems
eligible for automatic payment of retired pay to former spouses.  Another
provision would have directed DFAS to honor all valid court orders
involving making cost-of-living adjustments to ex-spouse shares of retirement.
A third change would have ended a DFAS requirement to notify retirees
when DFAS receives a court order directing division of retired pay. 
[Source:  Stars & Stripes Tom Philpott article 26Oct 06 ++]


NDAA 2007 UPDATE 16:  On 17 OCT President Bush signed into law H.R.
5122, the “John Warner National Defense Authorization Act for Fiscal Year
2007.”  The annual authorization act addressed a number of priorities
for the military community, including some very good and long needed
provisions.
• The conference report prohibits DoD from increasing any premiums,
deductibles, copayment, or other charges under Tricare medical care for
retirees, dependents, survivors or members of the Selected Reserve until
30 SEP 07. 
• The conference report rejects the Pentagon Plan to double current
pharmaceutical copays. 
• The conference report makes all drilling reserve members eligible for
Tricare coverage at the lowest current premium (28% of cost). 
• The bill adopted the minimum 2.2% military pay raise as requested in
the administration’s budget. 
• The conference report authorizes $23.8 billion immediate replacement
of Army and Marine Corps supplies and equipment.
• The bill contains a number of provisions to end predatory payday
lending practices that trap servicemembers in uncontrollable debt. 

Provisions not adopted and/or not put made law by the 109th Congress:
• No action on ending the dollar-for-dollar offset in the military
Survivor Benefit Plan (SBP) against the Department of Veterans Affairs
Dependency and Indemnity Compensation (DIC), which presently provides
55,000 survivors a flat monthly payment after a service-connected death. 
• No action to accelerate the date for termination of the SBP paid-up
plan.  Thus, 327,000 Military retirees age 70 and older, who have paid
into the plan for more than 30-years, will be required to continue to
pay until OCT 08. 
• Conferees did not accelerate the phase-in of concurrent receipt for
28,000 retirees rated 100% disabled and unemployable by the VA.
• The conference dismissed provision of a new postal benefit program
for members of the Armed Forces serving in Iraq and Afghanistan or
hospitalized as a result of such service. 
• The conference also dropped a provision to lower the age reservists
can start drawing retired pay by 3 months for every 90 days deployed
since 9/11.
• 17,000 POW who died in captivity will be denied the Purple Heart
• 188,000 Chapter 61 retirees with less than 20 years were denied
CRDP/CRSC
• 4 million military & civilian retirees were denied pretax payment of
their Tricare & FEHB premiums

One of the provisions of the NDAA directs the Secretary of Defense to
establish a task force on the future of military health care. He is
supposed to establish the task force within 90 days after the bill is
enacted (signed) and to report no later than 31 MAY 07.  The establishment
of this task force is one of the best solutions to make DoD really look
at the overall picture of health care. One of the major items it is to
consider is the utility of a universal enrollment fee. The military and
veterans community will be represented, as at least one of the members
will be an MSO/VSO representative who has experience in health care.
Providing that DoD completes the study in time as directed, the timing
could be excellent as many of the budget appropriations and authorization
hearings for 2008 should still be ongoing and maybe they can be
positively influenced by the report. When it is released a summary will be
provided in an update.  [Source:  NAUS Weekly Update 20 Oct & USDR Action
alert 29 Oct 06 ++]


VETERANS DAY:  World War I – known at the time as “The Great War” -
officially ended when the Treaty of Versailles was signed on 28 JUN 19 ,
in the Palace of Versailles outside the town of Versailles , France.
However, fighting ceased seven months earlier when an armistice, or
temporary cessation of hostilities, between the Allied nations and Germany
went into effect on the eleventh hour of the eleventh day of the eleventh
month. For that reason, 11 NOV 18, is generally regarded as the end of
“the war to end all wars.”  In November 1919, President Wilson
proclaimed 11 NOV as the first commemoration of Armistice Day. 

     The original concept for the celebration was for a day observed
with parades and public meetings and a brief suspension of business
beginning at 11 a.m.  Congress officially recognized the end of World War I
when it passed a concurrent resolution on 4 JUN 26, with these words:
Whereas the 11th of November 1918, marked the cessation of the most
destructive, sanguinary, and far reaching war in human annals and the
resumption by the people of the United States of peaceful relations with
other nations, which we hope may never again be severed, and
Whereas it is fitting that the recurring anniversary of this date
should be commemorated with thanksgiving and prayer and exercises designed
to perpetuate peace through good will and mutual understanding between
nations; and
Whereas the legislatures of twenty-seven of our States have already
declared November 11 to be a legal holiday: Therefore be it Resolved by
the Senate (the House of Representatives concurring), that the President
of the United States is requested to issue a proclamation calling upon
the officials to display the flag of the United States on all
Government buildings on November 11 and inviting the people of the United States
to observe the day in schools and churches, or other suitable places,
with appropriate ceremonies of friendly relations with all other
peoples.

     An Act approved 13 MAY 38, made the 11NOV of each year a legal
holiday - - a day to be dedicated to the cause of world peace and to be
thereafter celebrated and known as “Armistice Day.” This was primarily a
day set aside to honor veterans of World War I, but in 1954, the 83rd
Congress, at the urging of the veterans service organizations, amended
the Act of 1938 by striking out the word “Armistice” and inserting in
its place the word “Veterans.” With the approval of this legislation
(Public Law 380) on 1 JUN 54, November 11th became a day to honor American
veterans of all wars. Later that same year, on 8 OCT President
Eisenhower issued the first “Veterans Day Proclamation” which stated: “In order
to insure proper and widespread observance of this anniversary, all
veterans, all veterans’ organizations, and the entire citizenry will wish
to join hands in the common purpose. Toward this end, I am designating
the Administrator of Veterans’ Affairs as Chairman of a Veterans Day
National Committee, which shall include such other persons as the
Chairman may select, and which will coordinate at the national level necessary
planning for the observance. I am also requesting the heads of all
departments and agencies of the Executive branch of the Government to
assist the National Committee in every way possible.” 

     In 1958, the White House advised VA’s General Counsel that the
1954 designation of the VA Administrator as Chairman of the Veterans Day
National Committee applied to all subsequent VA Administrators. Since
MAR 89 when VA was elevated to a cabinet level department, the Secretary
of Veterans Affairs has served as the committee’s chairman.  The
Uniforms Holiday Bill (Public Law 90-363)) was signed on 28 JUN 68, and was
intended to insure three-day weekends for Federal employees by
celebrating four national holidays on Mondays: Washington’s Birthday, Memorial
Day, Veterans Day, and Columbus Day. It was thought that these extended
weekends would encourage travel, recreational and cultural activities
and stimulate greater industrial and commercial production. Many states
did not agree with this decision and continued to celebrate the
holidays on their original dates.

     The first Veterans Day under the new law was observed with much
confusion on 25 OCT 71. It was apparent that the commemoration of this
day was a matter of historic and patriotic significance to a great number
of our citizens, and so on 20 SEP 75 President Ford signed Public Law
94-97 which returned the annual observance of Veterans Day to its
original date of 11 NOV, beginning in 1978. This action supported the desires
of the overwhelming majority of state legislatures, all major veterans
service organizations and the American people. Veterans Day continues
to be observed on 11 NOV, regardless of what day of the week on which it
falls. The restoration of the observance to 11 NOV not only preserves
the historical significance of the date, but helps focus attention on
the important purpose of Veterans Day: A celebration to honor America’s
veterans for their patriotism, love of country, and willingness to serve
and sacrifice for the common good. [Source:
http://www1.va.gov/opa/vetsday/ NOV 05]


VETERANS DAY UPDATE 01:  The Honorable R. James Nicholson, Secretary of
Veterans Affairs, and leaders of major veterans organizations on 18 OCT
called on America's veterans to help kindle a new spark of patriotism
on Veterans Day 11 NOV by wearing the medals they earned during military
service. "We are announcing a Veterans Pride Initiative to remind
Americans of the pride and honor in the hearts of those who have served,"
Nicholson said. "We expect Americans will see our decorated heroes unite
in spirit at ceremonies, in parades and elsewhere as a compelling
symbol of courage and sacrifice on Veterans Day, the day we set aside to
thank those who served and safeguarded our national security. The campaign
is modeled after a tradition in Australia and New Zealand, countries
who honor the Australian and New Zealand Army Corps (ANZAC) on 25 APR. 
ANZAC Day sees veterans wearing their military decorations whatever they
are doing on that day.” Nicholson said he hopes a U. S. tradition will
ensue to emulate this pride in being a veteran and in honoring our
veterans.  VA is offering information about the campaign on its Web page,
http://www.va.gov/veteranspride/ where veterans also can obtain
information on the correct order of precedence for each military service's
award, about how to replace mislaid medals, and learn how to confirm the
decorations to which they are entitled.  [Source: VA News Release 18 Oct
06]


VETERANS DAY UPDATE 02:  In their annual salute to all veterans
McCormick & Schmick’s Seafood Restaurants will again provide free meals in
honor of Veterans Day. All veterans can receive a free lunch or dinner
entrée at McCormick & Schmick’s Seafood Restaurants nationwide on Sunday,
5 NOV 06. Vets should show proper identification (VA card, VFW card,
veterans ID, discharge papers, etc.) Reservations Are Strongly
Encouraged! In a show of thanks to our nation’s veterans, Bill McCormick and Doug
Schmick offer to serve those who’ve served at their McCormick &
Schmick’s Seafood Restaurants. Last year the company served nearly 15,000 vets
nationwide. This year’s event is taking place on the Sunday before
Veterans Day so that families can participate. McCormick & Schmick’s annual
veterans program began as a small effort in just one restaurant in
1999. Due to its overwhelming popularity and positive response received
from veterans the program has expanded nationwide. A complete list of
participating restaurants may be found at www.McCormickandSchmicks.com .

     Also thanking active duty and veterans, the Golden Corral
restaurants will be having their annual salute to the military on Monday
November 13, from 5-9pm. Military Appreciation Monday (First Monday after
Veteran’s Day) is set aside for Golden Corral to honor all active duty and
retired military personnel with a free “thank you” dinner and beverage
at any Golden Corral restaurant. No identification is required. Since
2001, Golden Corral has served 1,230,960 free meals to active duty and
retired military personnel. For more information go to their website
http://www.goldencorral.net/. 

     The U.S. Department of the Interior and Department of Agriculture
have announced a waiver for fees on Veterans Day. On 11 NOV, soldiers
and their families will be allowed to use selected lands and parks
without being charged the customary fees. This is a gesture of support for
the men and women of the U.S. Armed Services, and will be repeated every
Veterans day hereafter as well. Participating facilities include
recreation lands under control of the National Park Service (www.nps.gov),
areas under the Fish and Wildlife Service (www.fws.gov), and the U.S.
Forest Service (www.fs.fed.us).  Refer to their respective web sites to
locate a facility near you.  [Source: NAUS weekly Update 20 Oct &
Military.com 30 Oct 06 ++]


AGENT ORANGE LAWSUITS UPDATE 06:  The U.S. Court of Appeals for
Veterans' Claims in the case of Haas v. VADC-Nicholson slapped-down the VA's
"boots on the ground" definition of who served in Vietnam...thus opening
up the area of Agent Orange claims to "Blue Water Navy," "Fly-Through
Air Force" and troops serving in nearby countries.  DVA announced they
were going to appeal the Court's decision and asked the Department of
Justice (DOJ) to appeal the Haas decision for which they have until 7 NOV
to act.  In the interim the Secretary of Veterans Affairs implemented a
stay on the adjudication of Haas-like claims contrary to the VA’s
"benefit of the doubt" policy when it comes to filing claims.  A recent
decision of the Court of Appeals for Veterans Claims made it clear that the
VA had not followed the proper procedure for taking such action. 
Richard V. Spataro Staff Attorney for the National Veterans Legal Services
Program (NVLSP) on 28 SEP filed a Writ of Mandamus with the Court,
requesting that the Court order the VA to rescind its illegal stay of
proceedings on Haas-like claims. The judge then ordered the VA to file an
answer to NVLSP’s Writ by 26 OCT. 

     As of 30 OCT the precise grounds of the VA appeal was not known
and will not until since VA files their brief.  The deadline to do this
will be in about three months.  NVLSP recommends all veterans who fall
into this category go ahead and file their claims now since the VA has
not asked the Court to stay its decision.  This way they will be on file
and, should this all shake out in favor of veterans, the claim will be
dated from the day it was received by the VA.  VA Regional Offices are
not presently processing the new claims while the Central Office
considers appealing the Court's decision. Regional Offices have not been
given any legal guidance in order to adjudicate the claims.  Their hands
are tied in this matter.  Since VA has not released any special procedure
to be followed on how claims should be submitted normal VA claim filing
procedures for submitting claims should be followed.  NVLSP is an
independent, nonprofit, veterans service organization dedicated to ensuring
that the U.S. government honors its commitment to our veterans by
providing them the federal benefits they have earned through their service
to our country.  Additional info on them and this subject can be found
at www.nvlsp.org. [Source:  NVLSP memorandum 30 Oct 06 ++]


TRICARE/CHAMPUS FRAUD UPDATE 02:  Erik C. Peterson, United States
Attorney for the Western District of Wisconsin, announced the unsealing of a
seventy-five count indictment yesterday charging Thomas Arthur Lutz,
DOB 04/24/1967, of Olongapo City, Republic of the Philippines, and the
Health Visions Corporation, a Philippine corporation, with defrauding the
federal Tricare program. The indictment had been previously returned by
a federal grand jury sitting in Madison on 13 JUL 05, and was unsealed
in conjunction with the appearance of Lutz in Guam, after his arrest in
the Republic of the Philippines.

     According to the indictment, between OCT 98 and AUG 04, Lutz and
the Health Visions Corporation devised a scheme to defraud the federal
Tricare program. Specifically, as part of the scheme, Lutz on behalf of
the Health Visions Corporation entered into a kickback agreement with a
medical provider in the Philippines in which the provider, at the
request of Lutz, paid 50% of the amount of the bills for medical services
rendered to Tricare patients referred by Health Visions back to the
corporation. In addition, Health Visions and Lutz inflated the bills of
other providers by one hundred percent or more before submitting the bills
for payment by the United States Government. The defendants also
created a sham insurance program to circumvent Tricare’s requirement that
beneficiaries pay a deductible and cost share, and they also submitted
fictitious and fraudulent Tricare claims falsely claiming that
beneficiaries had been hospitalized and had been rendered services when, in fact,
they had not.    

     Lutz and Health Visions Corporation are specifically charged with
32 counts of mail fraud, 41 counts of filing a false claim, one count
of conspiracy to violate the laws of the United States, and the
forfeiture count. If Lutz is convicted, each violation of the mail fraud
statute carries a maximum sentence of twenty years imprisonment and a
$250,000 fine. The conspiracy and false claim counts each carry a maximum
sentence of five years imprisonment and a $250,000 fine. The Health Visions
Corporation, if convicted, is subject to a fine on each count of
conviction of $500,000, or, in the alternative, potentially two times the
amount of gain to the defendant or two times the loss to the government.
The indictment seeks forfeiture of more than $900,000 owed to the
government.

    The charges were the result of an investigation by the Defense
Criminal Investigative Service (DCIS) of the Department of Defense’s Office
of Inspector General, the Naval Criminal Investigative Service, the
U.S. Postal Inspection Service, and the Internal Revenue Service. The
charges were brought in the Western District of Wisconsin because Wisconsin
Physicians Service, the fiscal intermediary which processed and paid
these alleged fraudulent claims, is located in Madison, Wisconsin which
is in the Western District of Wisconsin. The prosecution is being
handled by Assistant U.S. Attorneys Peter M. Jarosz and Daniel J. Graber.
Readers are advised that a charge is merely an accusation and that a
defendants are presumed innocent until and unless proven guilty. Those
previously involved with Health Visions who want to determine their status
or to participate in the Federal Witness/Victim Program can call Barb
Williams at (888) 415-9821 or (608) 264-5158, write United State’s
Attorney’s Office, Western District of Wisconsin, PO Box 1585, Madison WI
53701-1585, or email usawiw.webmaster@usdoj.gov.  [Source:  Office of the
U.S. Attorney, Western District of Wisconsin Press Release 18 Oct 06 &
www.usdoj.gov/usao/wiw ++]


TRICARE/CHAMPUS FRAUD UPDATE 03:  A prescription drug provider used by
federal employee health insurance plans agreed in Late OCT to pay the
government $155 million to settle multiple claims of fraud.  Medco
Health Solutions of Franklin Lakes, N.J., allegedly paid kickbacks to health
plans to gain their business, took money from drug manufacturers to
favor their drugs and destroyed prescriptions to avoid penalties for
delays in filling them.  The U.S. Attorney's office in Philadelphia
announced the settlement 23 OCT, several months before the case was scheduled
to go to court. Medco did not acknowledge any wrongdoing in the
settlement. Medco is the second largest pharmacy benefit management company in
the country, handling prescriptions for more than 60 million Americans. 
The Office of Personnel Management, which administers the Federal
Employees Health Benefits Program, promised not to bar Medco from future
participation in government contracts.

     Medco has contracts with Blue Cross Blue Shield, the Government
Employees Hospital Association, the National Association of Letter
Carriers, and several other FEHBP insurers to provide prescription drugs. The
$155 million settlement involves more than just the FEHBP, though.
Medco also provided drugs for the Defense Department's TRICARE health
insurance program, and for Medicare. "Millions of federal employees and
Medicare beneficiaries rely on pharmacy benefit managers such as Medco for
their prescription drugs," Assistant Attorney General Peter Keisler
said. "Hidden financial agreements between [pharmacy benefit managers] and
drug manufacturers and health plans...can influence which drugs patents
receive, the price we all pay for drugs, and whether pharmacists serve
patients with their undivided professional judgment."

     This settlement is not the first of its kind for OPM. In JAN 06,
the agency's inspector general announced several multimillion-dollar
settlements for pharmaceutical wrongdoings as part of his semiannual
report to Congress. A similar case ended in a $54.6 million settlement from
AdvancePCS, another pharmacy benefit manager. OPM's IG claimed that
AdvancePCS took money from pharmaceutical manufacturers in return for
favorable treatment of its drugs in FEHBP contracts. The government also
alleged that the company illegally paid health insurance plans to ensure
its selection as their pharmacy benefit manager. The IG uncovered $1.5
million in improper rebates to Group Health Inc., a New York area
medical plan. GHI, the inspectors claimed, also was late in repaying another
$5 million in rebates. The company did not respond to requests for
comment.

    The JAN IG report noted that two FEHB physicians were found to have
unethically prescribed painkillers. One, a Washington state
psychiatrist, over-prescribed oxycodone and hydrocodone to patients so that he
could keep some for himself. A Virginia doctor overly prescribed similar,
highly addictive painkillers. Several of his patients died of
overdoses, although it was not clear that his prescriptions were the source.
Both physicians were debarred from practicing under the FEHB. In an effort
to step up its investigations into FEHB drug providers, IG Patrick
McFarland said his group is in the process of auditing multiple firms that
manage pharmacy benefits and he was focusing more resources on
prescription drug fraud.  The OPM IG also is investigating some cases involving
drugs that are prescribed for uses other than their Food and Drug
Administration-approved purpose.  [Source: GOVEXEC.com Daily Briefing 12 Jan
& 26 Oct 06]


VA CLAIM DELAY CAUSES UPDATE 01: The National Security Archive, a
nonpartisan research organization affiliated with George Washington
University, has obtained figures about claims made by veterans of Iraq and
Afghanistan that portend an inundation of the VA claims system. The
figures, obtained through a Freedom of Information Act (FOIA) request,
indicate 32% of veterans of the 1991 Persian Gulf War have filed disability
claims over 15 years, while five years into the Afghanistan and Iraq
campaigns, 27% of newly discharged veterans already have filed nearly
153,000 claims. The current deluge of claims is adding to a large existing
backlog. To counter this, Rep. Steve Buyer, R-Ind., chairman of the
House Veterans’ Affairs Committee, proposed earlier this year to hire 200
more claims adjudicators and provide $400,000 for training The VA has
reduced its average processing time for initial benefits to 174 days, but
the two wars continue to increase claims.

     Veterans' groups have criticized the VA for using emergency
appropriations to fund veterans' benefits rather than realistically planning
and budgeting for the veterans' needs. According to Veterans for
America (VFA) the newly released data suggests official estimates
dramatically understate the future cost of the current Iraq and Afghanistan Wars.
If the current trend continues, then VA could receive as many as
400,000 disability claims from the 1.6 million deployed active duty and
reserve service members in the Global War on Terrorism. Jonathan Powers,
Associate Director of Veterans for America and an Iraq War veteran,
warned, "VA already has a backlog, and the claims process is only going to
get worse unless VA takes action now. VA has no plan or funding to
process and pay existing and future claims to ensure our veterans promptly
receive the disability benefits and healthcare care they earned."

     Veterans for America (VFA) posts FOIA documents at
www.veteransforamerica.org/moduleid/114 to inform the public about the causes,
conduct, and consequences of the Iraq and Afghanistan wars.  The first FOIA
law was enacted in 1966 to promote learning and understanding about
government programs and policies. Congressman John Moss thought FOIA was
essential to equip the American public with information so they could be
responsible citizens. In its most recent FOIA annual report available at
www.va.gov/foia/report/FY2005/Terms.html, the VA purported to process
1.9 million FOIA requests during FY 2005, with a median processing time
of 11 days. For further information on FOIA refer to
www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB194/index.htm, For further information on VFA refer to
/www.veteransforamerica.org/.  For further information on the National
Security Archive refer to www.gwu.edu/~nsarchiv/index.html. [Source:
Armed Forces News 27 Oct 06 ++]


VA COLA 2007 UPDATE 03:  Military retired pay and veterans’ disability
compensation will increase by 3.3% on 1DEC, marking an annual
cost-of-living adjustment that is both less than expected and smaller than last
year’s 4.1% increase. The 3.3% increase will first appear in January
checks. For the second straight year, it is larger than ` JAN increase in
military basic pay, which will be just 2.2%. The main reason the
retirement COLA is below 4% is that energy prices and transportation costs
have dropped in the last three months, according to statistics provided
by the U.S. Labor’s Department’s Bureau of Labor Statistics, which
compiles consumer prices. In the past year, some consumer costs have risen
by more than 4%. Health care costs increased an average of 4.2% and
housing costs jumped by 4.1%, according to the BLS. Food price, on the
other hand, rose by just 2.5%. At the same time, transportation costs have
dropped by 3.2% from a year ago and overall energy costs have declined
by 4.3%. 

     Annual increases in military and federal civilian retired pay and
military survivor benefits are automatic, linked by law to the increase
in Social Security benefits. All the benefits are tied to a comparison
of consumer prices from the last three months of each fiscal year,
which ends on 30 SEP, to the same period of the previous fiscal year.
Veterans’ disability benefits, veterans’ dependency and indemnity
compensation for survivors and veterans’ pensions do not automatically increase.
But Congress passed and President Bush signed a bill guaranteeing they
would get the same 1 DEC increase. Military pay raises also are
approved only by an act of Congress, but that is not the reason why the 1 JAN
basic pay increase will be less than the retirement adjustment.
Military and federal civilian pay raises are computed by law to keep pace with
private-sector wage growth, not with inflation.  Often, such as in 2002
through 2005, this results in military raises that are larger than
retirement increases. But the 1 JAN 06 military raise and now the coming 1
JAN 07 military increase will be lower because private-sector wage
growth has been lower than inflation.  [Source: NavyTimes Rick Maze article
18 Oct 06]


SSA COLA 2007:  The Social Security Administration announced 18 OCT Tat
the monthly Social Security and Supplemental Security Income benefits
for more than 53 million Americans will increase 3.3% in 2007. Social
Security and Supplemental Security Income benefits increase automatically
each year based on the rise in the Bureau of Labor Statistics' Consumer
Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from
the third quarter of the prior year to the corresponding period of the
current year.  This year's increase in the CPI-W was 3.3%. The 3.3
percent Cost-of-Living Adjustment (COLA) will begin with benefits that
nearly 49 million Social Security beneficiaries receive in JAN 07. 
Increased payments to more than 7 million Supplemental Security Income
beneficiaries will begin on 29 DEC. 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 $97,500 from $94,200. The
retirement earnings test exempt amount applicable to earnings for
months prior to attaining full retirement age will rise from $33,240 to
$34,440 a year. For those who are fully retired this will rise from $12,480
to $12,950.  Exceeding these limits will result in one dollar in
benefits being withheld for every $3 or $2 in earnings respectively above the
limit.  Of the estimated 163 million workers who will pay Social
Security taxes in 2007, about 11 million will pay higher taxes as a result of
the increase in the taxable maximum in 2007. Information about Medicare
changes for 2007 can be found at www.cms.hhs.gov.  [Source:  SSA.gov
press release 18 Oct 07]


CSRS COLA 2007:  Federal retirees in the Civil Service Retirement
System will receive a 3.3% percent larger pension check in 2007.  The
government unveiled next year's cost-of-living allowance 18 OCT. It is based
on the change in the Labor Department's Consumer Price Index for urban
wage earners from the third quarter of one year to the same quarter of
the next. The 3.3% boost is smaller than the 4.1% increase for 2006,
which was the highest since 1991. But the 2007 rate still is bigger than
the several years before 2006. In 2005 the increase was 2.7%, in 2004
it was 2.1%, in 2003 it was 1.4% and in 2002 it was 2.6%. The COLA will
not be the same for retirees in the newer Federal Employees Retirement
System. If the change in the CPI is more than 3%, FERS retirees get the
COLA minus 1%. So FERS members will get a 2.3% adjustment next year.
FERS is more dependent on government matching contributions to the Thrift
Savings Plan, a 401(k)-style retirement investment vehicle for federal
employees. As a result, FERS retirees sometimes get smaller COLAs, and
they only receive the cost-of-living allowance if they are 62 or older.
CSRS annuitants must have been retired one full year to receive the
full COLA. If they do not meet that threshold, they will receive prorated
annuities, encompassing one-twelfth of the applicable increase for each
month they've received their pension. Federal retirees will receive
their first checks reflecting the increase in JAN 07. Current employees in
the civil service will get a different annual increase altogether which
is based on a pay hike determined by Congress and approved by the
president.  Lawmakers still are debating between a 2.2% raise, which they
already approved for the military, and a 2.7% raise, which they included
in initial drafts of legislation for civilians. If civilians get a 2.2%
raise, the Federal Salary Council recommended it be allocated between a
1.7% across-the-board boost and a 0.% locality hike. With a 2.7% raise,
the breakdown would be 1.7& and 1%.  [Source: GOVEXEC.com Daily
Briefing 19 Oct 06]


VA MENTAL HEALTH CARE UPDATE 02:  A network of community-based walk-in
veterans’ treatment centers is under increasing pressure as more and
more former troops who served in Iraq and Afghanistan have come looking
for help. A report to be issued 19 OCT from the House Veterans Affairs
Committee’s Democratic staff says that nearly a third of all Vet Centers
have seen the demand rise for outreach and other services.  The report
surveyed Vet Centers operated by the Department of Veterans Affairs. It
found that the number of Iraq and Afghanistan veterans who have sought
help for post-traumatic stress disorder (PTSD) doubled, from nearly
4,500 to more than 9,000 from October 2005 through June 2006. The number
of veterans with other types of possible mental health and readjustment
problems also doubled, and in some cases tripled, the report said. Half
of the Vet Centers sampled reported that their expanding caseloads have
affected their ability to treat their current clientele. “The
administration’s failure to increase staffing and other resources for Vet
Centers has put their capacity to meet the needs of veterans and their
families at risk,” the report said. Among the other findings in the report:
- 40% of the centers have sent veterans with readjustment issues who
should be receiving individualized therapy into group therapy.
- 30% said they need more staff.
- 25% has taken or will take some action to manage their increasing
workload, including limiting services and establishing waiting lists.
- 20% said they have either limited or no capability to provide
counseling or therapy for families dealing with veterans suffering from PTSD
or other mental health problems.
 
Rep. Michael Michaud, D-Maine, the House VA Committee member who
requested the report said, “The Vet Centers’ staff are dedicated and deeply
committed to meeting the needs of veterans and their families, but
without additional resources, even dedicated staff has limits.”  The study
was obtained on the afternoon of 18 OCT and efforts to contact the VA
for comment were unsuccessful. It was unclear when the VA received the
report which can be viewed at
http://veterans.house.gov/democratic/officialcorr/pdf/vetcenters.pdf.
It is the result of a confidential survey of Vet Center staffs.  The
committee’s Democratic staff contacted a sample of 64 centers in all 50
states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin
Islands. Urban and rural areas were represented. Sixty centers
responded.  In addition to this report, the GAO recently reported that the
Administration failed to fund $300 million in resources which the
Administration previously touted for veterans’ mental health services in 2005 and
2006 (GAO-06-1119T).
 
    The centers, part of the VA’s Readjustment Counseling Service, were
created in 1979 under then-VA Administrator Max Cleland, a
triple-amputee Vietnam veteran. They were designed to be accessible, storefront
clinics where veterans could be seen almost immediately by a staff largely
composed of combat veterans. Vet Centers provide a host of readjustment
counseling services to assist veterans in successfully transitioning
from military service to civilian life.  There are currently 207 Vet
Centers located throughout the 50 states, Puerto Rico, the Virgin Islands,
the District of Columbia, and Guam. Their core mission is to help
veterans suffering from mental and emotional concerns. PTSD, which wasn’t
even recognized as a medical condition at the centers’ founding, is the
most widespread mental health problem experienced by soldiers in combat.
It can cause nightmares, flashbacks, depression, survivor’s guilt and
other types of anxiety. Paul Sullivan, director of programs for Veterans
for America (a veterans advocacy group) said, “ The Vet Center report
was disturbing but not surprising. We’ve been saying that VA is in
crisis. It shows that VA does not have a plan. This is additional evidence.”

     The VA vastly underestimated the number of PTSD cases it expected
to see this year, predicting it would see 2,900 cases. As of JUN 06, it
has seen more than 34,000 Iraq and Afghanistan veterans for PTSD. A
recent VA report shows that more than 1 in 3 Iraq and Afghanistan veterans
who’ve gone to the agency for medical help report that they’re under
stress or have mental problems. A top Walter Reed Army Medical Center
official told Congress last month that 41% of National Guard and Army
Reservists reported mental health concerns up to six months after
deployment, compared with 32% of the active-duty force. 15% of the Guard and
reservists were at risk for PTSD, compared with 9% of active-duty troops.
[Source: McClatchy Newspapers Kansas City Star David Goldstein article
19 Oct 06 ++]


VA BUDGET 2007 UPDATE 06:  In JAN 06 the National Security Archive
(NSA) asked the Department of Veterans Affairs for records about the number
of disability claims filed by veterans who served in the Iraq and
Afghanistan wars. The NSA is an independent, nongovernmental research group
located at George Washington University. Researchers there use the
Freedom of Information Act to obtain declassified government documents and
make them available to the public.  In response to their initial
request the VA made the pronouncement that no documents existed. The
archive’s researchers were asked to believe that the government had no records
of claims by Iraq and Afghanistan veterans. Of course, this could not
be true. For the next nine months, the NSA made repeated requests and
finally threatened to sue the VA if it did not turn over the records.
This month, the government relented and complied. There were plenty of
reports and plenty of documents. "For the agency to take nine months to
find information that is of current public interest in the context of the
ongoing global war on terrorism is astounding," said Meredith Fuchs,
the NSA’s general counsel. "It is one thing for the VA to be reluctant to
deliver bad news but another thing entirely to deny the existence of
the information."

     The news definitely was bad. The records show that about one in
five service members leaving the military after serving in Iraq and
Afghanistan has been disabled to some degree. More than 104,000 of the
567,000 returning veterans from the two wars have been given disability
compensation so far, and more are applying for it each day. At least 1.5
million U.S. troops will serve in Iraq and Afghanistan, which suggests
the possibility of 400,000 disabled veterans if current proportions hold.
The potential burden to U.S. taxpayers is staggering. The Bush
administration last year had to send the VA Secretary to ask Congress for $2
billion more for veterans’ care because of an embarrassing series of
inadequate budget requests. Senate Republicans are pushing a bill that
would appropriate $26 billion for veterans medical services next year -
about 15% more than the administration proposed. “Failure to do
otherwise,” says Sen. Olympia Snowe, R-Maine, “would be an open invitation to
returning to the budget shortfalls of the past that contributed to
historic primary care backlogs.” The Congressional Budget Office estimates
that the administration’s 2007 veterans’ health budget is $10 billion
below what’s needed. Backlogs in claims processing and appointments with
physicians have increased during the past two years, due to the troops
returning from the battlefields.

     The administration admits that the year began with 52,000 people
stuck on waiting lists to receive care at VA hospitals, but veterans
groups believe the number is much higher now. The White House cannot begin
to defend its budget requests if all the numbers are put on the table.
The numbers will only get worse, as healthy veterans develop symptoms
of service damage years later. About 30,000 Iraq and Afghanistan vets
already have sought treatment for post-traumatic stress, and that number
could increase exponentially as war-related psychological problems
develop. Now that the Pentagon is making contingency plans to keep 140,000
troops in Iraq through 2010 raises the ominous prospect of creating a
generation of disabled veterans that would rival those from the Vietnam
War. Were it not for the Freedom of Information Act and the NSA,
Americans might be tempted to believe that the White House has a plan to care
for the nation’s veterans.  [Source: Palm Beach Post Dan Moffett
article 15 Oct 06 ++]


VA HEALTH CARE ENROLLMENT UPDATE 01:  Many veterans believe if they
lose their job and its associated health care insurance they will be able
to get health care at their local Veterans’ hospital.  Primarily
because they were told upon discharge that, as veterans, they were eligible
to use these facilities.  But under federal rules blamed on budget
constraints, millions of middle-class veterans who weren't injured in the
military can no longer enroll in the U.S. Department of Veterans Affairs
health-care system.  The change occurred in 2003, and news of it has
gradually trickled down to veterans.  Under the 2003 enrollment policy, a
single veteran in who earns $32,600 or more, and doesn't have a
service-connected injury or illness, is not allowed to enroll in the VA
medical system. Those enrolled before 17 JAN 03 are grandfathered in, and
there's a special provision for veterans returning from Iraq or
Afghanistan.  The Washington Post has reported that as many as 10 million
veterans who aren't in the system will not be allowed to enroll under the new
rule. In just the past three years, more than 250,000 veterans who
sought care at the nation's VA hospitals have been turned away because of
the new rule.

     VA officials contend the changes were necessary, given limited
funds, the growing numbers of veterans seeking care, and the need to focus
on those with service-connected disabilities and the poor. Nondisabled,
higher-income veterans made up much of the rapid growth in its
health-care enrollment between 1996 and 2003, hindering the system's ability to
care for the disabled and poor. This growth is reflected in the VA's
medical budget, which reached $30.7 billion this year.  Generally those
who are turned away state they had not heard of the rules change. There
have been no mass mailings or other wider effort to inform all
veterans.  Information is available on the internet and at local VA offices and
there is a pamphlet that describes enrollment policies.  Recent
veterans returning from war do receive letter notification from the VA. 

        Under the current enrollment policy, veterans fall into one of
eight priority groups established in 1998. The highest-priority
veterans are those with service-connected disabilities considered 50% or more
disabling, and those determined to be unemployable because of
service-related conditions.  Those no longer eligible for care as a result of
the 2002 policy change are in the lowest-priority group -- Priority Group
8, which includes veterans without service-connected injuries or
illnesses and with an income above a geographically specific cutoff. The VA
calls the change a suspension but does not say when it will end.
The new rule isn't the only way the VA has tried to limit enrollment.
In 2002, rising demand for services prompted the VA to issue a national
memo that discouraged recruiting veterans for enrollment.  A similar
directive issued in 2004 for the VA MidSouth Healthcare Network, said
"facilities may not aggressively take steps to recruit new enrollees or
new workload."  There are an estimated 24 million veterans in the United
States, and about 5.4 million are expected to seek care from the VA
this year, compared with 2.9 million a decade ago.  [Source:  Louisville
Courier-Journal Laura Ungar article 15 Oct 06 ++]


VA COPAY UPDATE 04:  There is no monthly premium required to use VA
care. You may, however, have to agree to pay copays. If you have
insurance, it may cover the cost of copays. Veterans are categorized into
Priority Groups 1 through 8 by the VA to establish their eligibility to
receive VA medical care. These groups plus a few other factors determine the
amount of copay they must pay for their medicine or medical care.
Following is a breakdown of who must pay what:

- For 2006 an annual Medication copayment cap of $960 was established
for veterans enrolled in priority groups 2 thru 6. Medications will
continue to be dispensed when the copayment cap is met. Medication provided
for treatment of nonservice-connected (NSC) conditions is $8 per
prescription. An annual medication copayment cap was not established for
veterans enrolled in priority group 7 or 8.
- Veterans in Priority Group 1 (50% or more) are not subject to
copayments.
- Veterans in Priority Group 2 (30% & 40%) and below are subject to
copayments.  Basic and specialty outpatient care is $15 & $50 per visit
respectively. Inpatient care is $10 per day per diem charge or $953 for
first 90 days and $465 for each subsequent 90 days. Nursing Home or Day
Care/Inpatient Respite Care/Geriatric Evaluation is $97 & $15 per day
respectively.  Domiciliary care is $5 per day.
- Veterans in Priority Group 3 (10% & 20%) are subject to copayments.
Those in receipt of a Purple Heart or are former POWs are also placed in
this priority group. Veterans who have been POWs are exempt from
Medication Copays.
- Veterans in Priority Group 4 are subject to copayments. 
Catastrophically Disabled veterans placed in this priority group can be subject to
full medical care copayments or to reduced inpatient copayments under
the Geographic Means Test criteria.
- Priority Group 6 Health insurance and all applicable copayments will
be billed when the care is for conditions not related to the veteran's
exposure or experience. Veterans in this priority group are subject to
full medical care copayments or to reduced inpatient copayments under
Geographic Means Test criteria and to medication copayments.
- Veterans in special Categories are subject to copayments when their
treatment or mediation is not related to their exposure or experience.
The initial registry examination and follow-up visits to receive results
of the examination are not billed to the health insurance carrier and
are not subject to copayments. However, care provided that is not
related to exposure, if it is NSC will be billed to the insurance carrier and
copayments can apply.
- All veterans receiving prescriptions for NSC conditions who meet the
low-income criteria (income limits for the VA NSC pension program) are
exempt from the medication copayment.
- Veterans enrolled in priority group 7a and 7c have income above the
VA Means Test threshold but below the Geographic Means Test threshold
and are responsible for 20% of the inpatient copayment and 20% of the
inpatient per diem copayment. The geographic means test copayment
reduction does not apply to outpatient and medication copayments and veterans
will be assessed the full applicable copayment charges. Note that
reduced inpatient copayments can apply to veterans in Priority Groups 4 and 6
based upon the income of the veteran.
- Veterans assigned to Priority Group 7e or 7g are not eligible for
enrollment if a decision to restrict enrollment of new Priority Group 7
veterans has been made. These veterans are eligible for care of their NSC
conditions on a humanitarian emergency basis and are charged the
applicable tortuously liable billing rate for services provided. Veterans in
Priority Group 7e are eligible for care of SC conditions at no charge.
- Veterans enrolled in this priority group 8a and 8c are responsible
for the full inpatient copayment and the inpatient per diem copayment for
care of their NSC conditions. Veterans in this priority group are also
responsible for outpatient and medication copayments for care of their
NSC conditions.
- Veterans assigned to Priority Group 8e or 8g are not eligible for
enrollment. These veterans are eligible for care of their NSC conditions
on a humanitarian emergency basis and are charged the applicable
tortuously liable billing rate for services provided. Veterans in Priority
Group 8e are eligible for care of SC conditions at no charge.
[Source: www.va.gov/healtheligibility/costs/ Nov 06 ++]


VDBC UPDATE 07:  At the Oct. 19 Veterans' Disability Benefits
Commission hearing, military and veterans' organizations joined in opposing the
concept of offering disabled veterans a single lump-sum payment rather
than monthly disability compensation. The Commission had asked for
association inputs on a draft report on this subject by the Center for
Naval Analyses (CNA).  The AUG 06 report can be viewed at
https://www.1888932-2946.ws/vetscommission/e-documentmanager/gallery/Documents/September_2006/CNA_Draft_LumpSum_Aug2006.pdf.
The report  explored the advantages and disadvantages of a lump-sum
program to both the veteran and VA and raised its own questions about the
idea.  Joseph Violante, Legislative Director for the Disabled American
Veterans, testifying for the group of associations, said any savings to
the government would necessarily come at the expense of the disabled
veterans.  He highlighted potential inequities for veterans whose
disabilities worsened in the future and the difficulty and expense of building
administrative systems to consider such appeals.  After hearing the
testimony, the commissioners unanimously agreed to table consideration of
a lump-sum, buy-out plan. Commissioners intend to approve that decision
formally at a future meeting, said Ray Wilburn, spokesman for the
commission.

     The commission then turned to consider line-of-duty rules,
concurrent receipt, and characters of discharge.  Concurrent receipt generated
the most animated crosstalk.  The four preliminary options the
commission plans to address are:
*  Endorse the current tiered approach;
*  Endorse an offset of military retired pay by VA disability
compensation;
*  Endorse full concurrent receipt of both military retirement and VA
disability compensation; and
*  Endorse expansion of Concurrent Retirement and Disability Pay to
include 10-40%.

During the public comment period, MOAA's Col. Mike Hayden (USAF-Ret)
noted that there may be some uncertainty about what is considered "full"
concurrent receipt, and urged the commissioners to ensure they consider
an option that vests earned retired pay for "Chapter 61" retirees who
are forced into medical retirement before attaining 20 years of service.
The next scheduled meeting of the VDBC will be 16-17 NOV 06 at the
Embassy Suites Hotel Washington DC.  The commission, created by Congress in
2004, is conducting the first comprehensive review of veterans’
disability benefits in 50 years. Its recommendations are to be delivered to
lawmakers next fall. Information about the VDBC inclusive of minutes of
all previous meetings and future schedules can be found at
www.vetscommission.org. [Source:  MOAA Update 20 Oct 06 ++]


VA DISABILITY BUYOUT UPDATE 02:  The idea of lump-sum offers for
lower-rated disabled veterans was raised in 1956, the last time the VA
disability system was overhauled. It has been endorsed periodically since
then, by various studies. The Department of Defense uses lump sums under
its own disability retirement program. Service members rated 30%
disabled or more qualify for monthly disability retirement. But those rated 10
or 20% by DoD can only get a lump-sum disability severance. Most DoD
disabled retirees apply for a VA rating after leaving service. That can
result in a higher rating and better benefits. Those with DoD ratings of
10 or 20% typically see their monthly VA compensation delayed until an
amount equal to their lump sum from DoD is recouped.

     CNA Corp., formerly known as the Center for Naval Analyses, was
hired by the Veterans’ Disability Benefits Commission to study and report
on the advantages and disadvantages of a lump-sum option for VA. CNA
reviewed how an option might be designed, who should be eligible and what
savings might be gained.  In their completed report CNA said veterans
might view lump sums as more useful in transitioning to civilian life.
They also might enjoy having a choice. And because lump sum recipients
would have fewer interactions with VA, the timeliness of the VA claims
process might improve. VA compensation costs, over time, also would fall
because total dollars paid in lump sums would be a lot less than paid
over a lifetime as monthly compensation. Compensation savings, in time,
could be 10 to 20%.

     CNA concluded the VA also would save on administrative costs. That
would be especially true if veterans who accepted lump-sum payments
were prohibited from applying for a “re-rating” as their disabilities
worsened. But CNA acknowledged that lump-sum settlements raise new worries
about the welfare of veterans who accept such deals. Some would use
lump-sum payments foolishly, placing their financial futures in greater
jeopardy. Another issue is what these veterans can do if their
disabilities worsened. To better understand the implications, CNA tracked how VA
disabilities in the year 2000 changed over the next five years. CNA
found that by 2005 almost no veteran saw his or her disability rating drop
and only five percent of disabilities had a rating increase. The
average increase was between 20 and 30 percentage points. Skin, hearing,
sight, gynecological and lymphatic conditions showed the smallest rating
changes, an average of less than two percent. Ratings for post-traumatic
stress disorder rose sharply, with that average between 30 and 40
percentage points.

     To estimate both near-term costs and long-term potential savings
from use of lump-sum settlements, CNA assumed they would be offered only
to veterans rated 10 or 20 percent disabled and with conditions having
no more than a two-percent probability of a rating increase over the
next five years. Likely candidate conditions that fit the profile include
tinnitus, thumb amputations, hypertension and scars on the face, neck
or head. CNA calculated that offering lump sums to newly-rated veterans
with these ratings and types of conditions would raise VA compensation
costs by $545 million in the first year. More surprisingly, the VA
wouldn’t break even and begin to see net savings from this change for 25
years. The Veterans’ Disability Benefits Commission has examined and
rejected a proposal that the VA begin offering veterans with lower-rated
disabilities a lump-sum payment instead of lifetime monthly compensation
[Source: NavyTimes Tom Philpott article 26 Oct 06 ++]


HEALTH CARE QUALITY/PRICE UPDATE 01:  The Assistant Secretary of
Defense for Health Affairs, Dr. William Winkenwerder held a press conference
12 OCT to point out how DoD is supporting the President’s Executive
Order to “Promote Quality and Efficient Health Care in Federal Government
Administered or Sponsored Health Care Programs.” The Executive Order
called for creating transparency in health care, which means providing
more information to beneficiaries about issues such as health care costs.
Dr. Winkenwerder highlighted  the following examples of DoD’s
leadership on this mandate:

- DoD created an informational link on the TRICARE website at
http://tricare.osd.mil/tricarecost.cfm. to help educate beneficiaries
regarding what TRICARE will cover for certain medical visits and
procedures.
- Development of the Armed Forces Health Longitudinal Technology
Application (AHLTA). This is an electronic military medical record on a
secure database that is available worldwide 24/7. Currently, 8.6 million
medical records are stored in AHLTA, out of a possible 9.2 million
beneficiaries. This system allows the military to capture information in real
time, which can be stored permanently and also be retrieved from
another location. This method of capturing and transferring of medical data
is especially beneficial when dealing with injured service members on
the battlefield. Imagine
- Implementation of a wireless handheld device, known as Battlefield
Medical Information System Tactical (BMIST), which enables the medical
personnel to enter data that is recorded and immediately transmitted
electronically to the AHLTA system.  With this a medic or corpsman who
evaluates the service member’s condition at the site of injury can place
their medical assessment and the type of treatment received on-site into
the database, which allows the information to be readily available for
the healthcare provider when the injured service member arrives at the
medical triage center. There are approximately 30,000 BMIST’s currently
being used in OEF and OIF.
- Testing another medical collection device to be used when the BMIST
signals can not be sent. With this medical information can transferred
from the BMIST to a microchip placed into a type of dog tag, which is
than physically transferred with the injured service member. The chip is
then downloaded into the AHLTA system upon the injured service member’s
arrival to the triage center.
- These new systems allow for a quick seamless transfer of medical
information that significantly improve the method(s) in which military
medicine does business and how they are saving lives during time of war.
- Deployment of the Electronic Surveillance System for Early
Notification of Community-based Epidemics (ESSENCE) which is encrypted into AHLTA
systems.  ESSENCE allows 24/7 worldwide monitoring of DoD medical data
for patterns of medical conditions that present in an unusual manner.
For example, if a large number of DoD personnel are experiencing flu-
like symptoms at different hospitals and health clinics at one or
multiple geographical location(s), ESSENCE would allow for these cases to be
analyzed as a whole rather than as viewing them as non-related
individual cases. This program has the potential to determine whether there is
an outbreak, such as the flu or food poisoning, that warrants an alert
and increases the response time by the DoD and the Centers of Disease
Control (CDC).
- Deployment of the Military Health System Population Health Portal
MHSPHP which is encrypted into AHLTA systems.  This is a health management
system that prompts DoD health care providers of preventative clinical
services, such as immunizations, blood work, or radiological exams,
needed for their patient’s disease prevention and/or management.

The DoD is also working with the Department of Veterans’ Affairs (VA)
to share beneficiaries’ medical information. The goal is to provide a
seamless transition of medical data between the two agencies.
Transparency of medical information is important for many reasons. Most
importantly is when during a time of war wounded service members transfer from
their initial treatment at Walter Reed Army Hospital or the National
Naval Medical Center at Bethesda to one of the VA’s four Poli-trauma
centers for rehabilitation. Transfer of medical data is also important when
the service member retires from active duty and transitions to the VA
for some of their health care. For more information on the DoD’s
transparency initiatives, go to the TRICARE website at
http://www.ha.osd.mil/AHLTA. 

     Veteran groups have expressed concerns regarding delays by the DoD
in getting medical records of wounded and injured soldiers transferred
to DVA. The delays are preventing timely medical care and in some cases
threatening the lives of veterans returning from Iraq and Afghanistan.
At a hearing last month before the House Veterans Affairs Committee
witnesses gave several examples of wounded and disabled veterans from
across the country who did not receive their medical records in a timely
fashion and suffered as a result. Gary Kurpius, the VFW’s national
commander, said the rhetoric from both DOD and the VA about a "seamless"
transition from active-duty medical care to the VA just is not true. U.S.
Sen. Susan Collins, a member of the Senate Armed Services Committee,
said this week that the House hearings caught her and other committee
members by surprise. Collins said when Congress returns to work after the
elections she intends to ask the Armed Services Committee to look into
the issue.  At present the
Unfortunately, DoD’s AHLTA system is not compatible with the VA’s
electronic health record system VISTA.  The Senate appropriations committee
has urged DoD to switch to VA’s record system.  However, Defense
officials say VISTA would need significant modification to meet military
needs and the switch would be long and costly.  In the short term it
appears neither DoD nor VA intend to modify their systems to make them
compatible.  [Source:  NMFA Weekly News 25 Oct 06 ++]


MEDICARE REIMBURSEMENT RATES UPDATE 02:  On 11 SEP 06 in a bi-partisan
show of unity, some 265 Representatives petitioned House Speaker
Hastert and Leader Pelosi with a letter which stated,  “If the Congress does
not act soon, the Medicare sustainable growth rate (SGR) formula will
cut payments to physicians and health care professionals by almost 5%,
effective 1 JAN 07. When added to the additional cuts required under
current law through 2015, physician payments will be reduced by a total of
37% even as liability insurance, fuel, and other costs escalate more
rapidly than inflation and the need to invest in health information
technology to improve care quality is increasing important … To preserve
Medicare patients’ access to care, we must act immediately to avert these
cuts to Medicare physician payments. We ask that you work quickly with
the Committee on Ways and Means, the Committee on Energy and Commerce,
and the undersigned to address this critical issue. Thank you for your
attention to this urgent matter.”

     Although both chambers are well aware of the forthcoming Medicare
crisis, it is obvious that the leadership of the Senate and House have
failed to avert the situation in their haste to recess for the November
elections. They have one last chance when they return for their lame
duck session after the elections and before they return to district for
Thanksgiving and Christmas.  This rate decline will impact on ALL
eligible Tricare users since Tricare reimbursement rates to medical care
providers are tied to Medicare reimbursement rate. As rates go down fewer
and fewer physicians will continue to participate as authorized
Medicare/Tricare providers making it harder to locate one to meet your medical
needs. All members of the military community are encouraged to send a
message to their representatives before Congress reconvenes in
mid-November and ask that action be taken in the 109h Congress  to stop this
cut.  This can be accomplished by accessing the USDR Action Alert website
http://capwiz.com/usdr/index_frame.dbq?url=http://capwiz.com/usdr/issues/alert/?alertid=9133751&queueid=[capwiz:queue_id],
entering your zip code, and selecting the representative/s you want a
preformatted message/letter on this subject to be sent to.  [Source: 
USDR Action alert 25 Oct 07 ++]


NAVY ELECTRONIC SERVICE RECORD:  Navy officials announced 19 OCT the
implementation of the electronic service record (ESR) within the web
enabled version of the Navy Standard Integrated Personnel System (NSIPS). 
Now, everyone will be able to view their personnel, training and awards
data without visiting their personnel office. The ESR provides
individual sailors, personnel support activity Detachments (PSDs), personnel
offices that are service record holders (Pers Off), Navy Operational
Support Centers (NOSC), and Customer commands of PSD(s), with secure
worldwide internet access to personnel, training, and awards data.  The ESR
replaces the paper service record as the single field level data entry
point for service record maintenance.  The ESR quick reference guide
provides User guidance for service record maintenance and is available at
Navy Knowledge Online (NKO) under organizations (NSIPS LINK).

     Effective immediately all active duty and reserve sailors may
request an ESR self-service user account at https:nsips.nmci.navy.mil or
through the NMCI homeport portal by selecting the Enterprise Records
Management System link.  This access provides the ability to review all
personnel, training, and awards data by choosing the view option in the
ESR.  Anything impacting on pay or awards will still have to be done
through a sailor’s PSD. Individuals will have limited ESR self-service
administrative only update capability.  Task updates include:
(1) Emergency contact information and person assigned to direct
disposition of (PADD).
(2) Home and mailing address.
(3) Official email address.
(4) Personal information (religion, race, ethnic code).
(5) Civilian employment information (CEI) – reserve personnel only; and
(6) Competencies (reserved for future use).

      Afloat activities still on the client-server version of NSIPS
will continue to make entries in paper field service records until they
are converted to WEB NSIPS. There will be a 9-12 month transition period
to ensure current record information is available to activities without
ESR access.  During this time, all activities must continue to mail
printed documents to COMNAVPERSCOM (PERS-312) to update the official
record stored in the Electronic Military Personnel Records system (EMPRS). 
[Source: CNO Washington DC NAVADMIN msg 19 Oct 06 ++]


MOBILIZED RESERVE 25 OCT 06:  The Army, Navy, Air Force, Marine Corps
and Coast Guard announced the current number of reservists on active
duty as of 25 OCT 06 in support of the partial mobilization. The net
collective result is 362 fewer reservists mobilized than last reported for
11 OCT 06. Total number currently on active duty in support of the
partial mobilization for the Army National Guard and Army Reserve is 80,279;
Navy Reserve 5,797; Air National Guard and Air Force Reserve 6,,723;
Marine Corps Reserve,7,268; and the Coast Guard Reserve, 265.  This
brings the total National Guard and Reserve personnel, who have been
mobilized, to 100,694, including both units and individual augmentees. At any
given time, services may mobilize some units and individuals while
demobilizing others, making it possible for these figures to either
increase or decrease. A cumulative roster of all National Guard and Reserve
personnel, who are currently mobilized, can be found at
http://www.defenselink.mil/news/Oct2006/d20061025ngr.pdf [Source: DoD
News Release 25 Oct 06]


TRICARE UNIFORM FORMULARY UPDATE 15:  On 23 OCT 06 Dr. William
Winkenwerder Jr., Director, TRICARE Management Activity, decided to move
Crestor and Caduet, which lower so-called "bad cholesterol" (LDL), to
Tricare’s "third tier" of medications effective 1 FEB 07.  This means the
copay for these drugs will rise from $9 to $22 for a 30 day supply.
Third-tier drugs can still be obtained at the regular $9 copay if the doctor
specifies the drug is medically necessary for the patient (e.g., works
better or avoids side effects associated with other drugs) and the
medical necessity determination is approved by DoD.  The other cholesterol
lowering drugs previously on the formulary will maintain their former
tier 1 or 2 status. Previously approved Oral contraceptive medications
Seasonale, Ovcon-35, Ovcon-50, and Estrostep FE medications will attain
tier 3 staus effecvtive 24 JAN 06.    [Source:  TMA News Release 23 Oct
06]


VA "IU" GROWTH UPDATE 02:  IU now costs the VA more than $3.1 billion a
year for more than 220,000 veterans and continues to rise.  Addressing
this issue Congressional Leaders requested the GAO conduct a study
which has been completed.  The GAO originally issued their report in May
and reposted it on 26 Oct 06. The full report can be accessed at
www.gao.gov/new.items/d06309.pdf.  Highlights are:

1. Under VA’s disability compensation program, VA can award IU benefits
(that is, total disability compensation) to veterans of any age who
cannot work because of service-connected disabilities even though VA did
not rate their impairments at the total disability level. Over the last
decade, IU beneficiaries and benefit costs have more than tripled. In
2005, about 220,000 veterans received an estimated $3.1 billion in IU
benefits. The added value of IU benefits over a veteran’s lifetime
depends upon the veteran’s level of impairment at the time he or she begins
receiving IU benefits and the length of time these benefits are
received.  GAO estimated the lifetime present value of the added benefits in
disability compensation for veterans with different impairment levels who
began receipt of IU benefits in 2005 at different ages was  about
$300,000 to over $460,000 for veterans age 20 and about $89,000 to about
$142,000 for veterans age 75.  GAO also found that just under 46% of new
IU beneficiaries were awarded IU benefits at the age of 60 or older, and
19% were age 75 or older.
2. VA’s criteria, guidance, and procedures for awarding IU benefits do
not ensure that its IU decisions are well supported. VA regulations and
guidelines lack key criteria and guidance that are needed to determine
unemployability. VA guidelines also do not give rating specialists the
procedures to obtain the employment history and vocational assessments
needed to support IU decisions. As a result, some VA staff told us that
IU benefits have been granted to some veterans with employment
potential.
3. VA’s process for ensuring the ongoing eligibility of IU
beneficiaries is inefficient and ineffective. This enforcement process relies on
old data, outdated, time-consuming manual procedures, insufficient
guidance, and weak eligibility criteria. Moreover, the agency does not track
and review its enforcement activities to better ensure their
effectiveness.
4. VA is among the federal disability programs GAO has identified as
high risk and in need of modernization, in part, because it is poorly
positioned to provide meaningful and timely support to help veterans with
disabilities return to work. Specifically, VA’s compensation program
does not reflect the current state of science, technology, medicine, and
the labor market. VA’s management of IU benefits exemplifies these
problems because its practices lag behind those of other disability
programs. Approaches from other disability programs demonstrate the importance
of providing return-to-work services and using vocational expertise to
assess the claimant’s condition and provide the appropriate services.
Incorporating return-to-work practices in IU decision making could help
VA modernize its disability program to enable veterans to realize their
full potential without jeopardizing the availability of benefits for
veterans who cannot work.
5. GAO recommends that VA should clarify and strengthen its IU
eligibility criteria, guidance, and procedures for initial and ongoing
eligibility decisions; and develop a return-to-work strategy for IU claimants.

VA agreed with GAO’s conclusions, concurred with their recommendations,
and stated that it planned to implement program changes in areas that
were identified as needing attention.  As a result many IU vets are now
being called in by the VA for re-evaluation.  It is not known at this
juncture whether or not all IU vets will be re-valuated or if a target
date has been established to accomplish this.   [Source: Veterans
Advocate Carl Young msg 26 Oct 06 ++”


PTSD REEVALUATION UPDATE 07:  According to Anna Johnson, a doctoral
candidate at the University of North Carolina, Chapel Hill, veterans
exposed to combat have a higher long-term risk of heart attacks and strokes. 
Johnson found that, compared to non-veterans, combat veterans’ 10-year
risk of heart disease is more than 3 percentage points higher. She
presented the findings at the American Heart Association (AHA) annual
conference on Cardiovascular Disease, Epidemiology and Prevention, in
Phoenix. In the study, Johnson and her colleagues followed nearly 5,000 men,
including veterans who saw combat, veterans who didn't, and
non-veterans who served as controls. "They came in for visits every few years,"
she said, "with about four visits each since the 1980s." Researchers
looked at measures such as blood pressure, smoking, cholesterol levels and
other factors to predict their heart disease risk over the next decade.
The men started the study between 1987 and 1989, and the last follow-up
questionnaires were conducted in 2001 and 2002.

     Johnson's team found that the mean predicted 10-year risk of heart
disease risk was 10.2% for the non-veterans, 11.5% for the veterans not
exposed to combat and 13.3% for those exposed to combat. She said,
“While others have studied veterans and their risk of combat, nobody has
looked at predicted risk. Many previous studies did not separate subjects
who were in combat from those who were not and the follow-up time is
longer than in most studies. Other studies have looked at shorter-term
risk and found limited evidence for a higher risk of cardiovascular
events." Johnson said deciphering how combat boosts heart risk was beyond
the scope of her study. In a previous study, which Johnson presented last
year at another AHA conference, she found that veterans of World War
II, Korea and Vietnam who had seen combat were 60% more likely to be
heavy drinkers than those who had not, and four times as likely to be
problem drinkers than those who hadn't been in the armed forces at all. She
also found that combat vets were 20% more likely to be heavy smokers
than vets who hadn't seen combat and nearly two times as likely to smoke
heavily compared with non-vets.

     Joseph Boscarino, a Vietnam veteran and senior investigator for
the Giesinger Clinic in Danville PA has researched combat exposure and
post-traumatic stress disorder (PTSD) for 30 years. He said this new
study adds to the growing literature that combat is related to heart
disease. But he added that based on his research, it was determined combat by
itself is not significant when you control for PTSD in a study. PTSD is
a psychiatric condition triggered by a life-threatening event such as
military combat, disaster or serious accident. People with PTSD often
suffer from nightmares, flashbacks and other persistent reminders of a
past traumatic event. In other words, Boscarino said, "Combat by itself
doesn't make you more at risk for heart disease, it is whether you
develop PTSD. It appears that PTSD is a good predictor of heart disease
risk."

     Vets submitting claims for service contacted compensation should
keep in mind that heart attacks and strokes are not presumptive medical
conditionals associated by PTSD. A medical professional needs to make
that association for them.  When being evaluated they may want to
consider providing this information to that evaluator who may or may not take
this study in consideration.  The VA's Oakland Regional Office has
awarded compensation when medical professionals have made the association.
For more information on stress and heart disease refer to the American
Heart Association site at www.americanheart.org.  [Source: Veterans
Advocate Carl Young msg 27 Oct 06 ++]


TRICARE OVERSEAS PROGRAMS:  Active duty military families who live
overseas can choose how to get their health care under Tricare. They have
four Tricare Overseas options: Tricare Prime , Tricare Global Remote
Overseas (available in designated remote locations), Tricare Standard and
Tricare For Life Overseas. Military retirees and their families who
live overseas cannot enroll in Tricare Prime, but they can use Tricare
Standard. Point-of-service charges now apply to active duty family members
enrolled in the Tricare Global Remote Overseas and Tricare Puerto Rico
Prime programs.  Point-of-service was already in effect for those
enrolled in overseas military treatment facilities under Tricare Overseas
Program Prime. Point-of-service allows all Tricare Prime enrollees to get
non-referred, non-authorized care from providers of their choice. 
Point-of-service has an annual deductible, and enrollees pay more when they
use this option instead of getting a referral and/or authorization for
care.

     Active duty family members enrolled in an overseas military
treatment facility, Tricare Global Remote Overseas or Tricare Puerto Rico
Prime should ask their primary care manager or their enrolled program's
call center for authorization when seeking routine or specialty care from
a host nation provider.  If they don't, point-of-service charges may
apply.  Point-of-service doesn't apply when active duty family members
have other health insurance that covers the care they receive.
Point-of-service doesn't apply to active duty service members, but if they get
care without the proper authorization, Tricare may deny the claim. The
point-of-service deductible is $300 per individual or $600 per family,
and the cost-share is 50% of Tricare-covered services.  The deductible
applies only to outpatient services, and the cost-share applies to both
inpatient and outpatient services.  Point of service deductibles and
cost shares do not apply to the annual fiscal year catastrophic cap of
$1,000 for active duty family members. For more information, Tricare
Overseas Program Prime and Tricare Global Remote Overseas refer to
http://www.tricare.osd.mil/overseas/.  Tricare Puerto Rico Prime
enrollees should refer to http://www.tricare.osd.mil/puertoricohealthcare/. 
[Source: TMA Press Release Oct 06 ++]


GULF WAR SYNDROME UPDATE 01:  DoD has just released the fifth report in
a series called “Gulf War and Health: Volume 5, Infectious Diseases”
which focuses on infectious diseases by identifying nine diseases and 34
different long-term health effects that might appear weeks to years
after initial infection. A 1998 Congressional mandate required the VA to
contract with the National Academy of Sciences Institute of Medicine to
use a specific procedure to determine the illnesses that warrant a
presumption of connection to service in the 1991 Gulf War. The report can
be ordered or read online at the National Academies Press website
http://www.nap.edu/catalog/11765.html .  [Source:  NAUS Weekly Update
27 Oct 06]


PURPLE HEART MUSEUM:  The nation’s roughly 1.7 million Purple Heart
recipients will get a museum to call their own. Its mission is to collect
and preserve the stories of Purple Heart recipients from all branches
of the service and across the generations in an attempt to ensure that
all recipients are represented.  The National Purple Heart Hall of
Honor, to open 10 NOV in Vails Gate, N.Y., will be the first national museum
dedicated to those who have received the Purple Heart. Veterans Affairs
Secretary R. James Nicholson will present Purple Hearts (considered the
oldest U.S. combat award) to three soldiers and a Marine at an event 1
NOV in Washington to celebrate the opening of the museum nine days
later. The National Purple Heart Hall of Honor will be the first facility
to honor all recipients who have been wounded or killed in action. The
museum will remain “the sole repository dedicated to the preservation of
the stories of wounded patriots’ sacrifice,” according to the Military
Order of the Purple Heart, a nonprofit organization representing 39,000
Purple Heart recipients based in Springfield VA.

     The museum will have a series of exhibits, videotaped interviews
with veterans, historical photos, documentary film footage, period
objects and the Roll of Honor, an interactive computer program detailing the
stories of each recipient. The 7,500-square-foot facility will house a
reception area, gallery, exhibit hall, education center and
presentation room.  The $6.2 million facility was built on the grounds of the
Vails Gate New Windsor Cantonment State Historic site. This is the site of
the final encampment of Gen. George Washington’s Continental Army. In
1782, Washington created the purple-cloth Badge of Merit to honor the
service of his troops. That badge was the precursor of the Purple Heart,
presented to service members wounded in combat or to the next of kin of
troops killed in combat.  New Windsor Cantonment and Washington's
Headquarters are two of Virginia’s 35 state historic sites throughout the
state managed and operated by the State Office of Parks, Recreation and
Historic Preservation. The Brigade of the American Revolution, a
nation-wide organization founded 35 years ago to recreate the life and times
of the Revolutionary War soldier, has weekend encampments at the site as
does the recreated 3rd New York Regiment. To contact the hall call
(845) 561-1765, Fax (845) 561-6577 or mail National Purple Heart Hall of
Honor, New Windsor Cantonment State Historic Site, P.O. Box 207, Vails
Gate, NY 12584-0207 or refer to the Heritage section of
http://nysparks.state.ny.us/.  [Source: Various 30 Oct 06 ++]


MILITARY BANK SCAM: Stars and Stripes reports that e-mails addressed to
a “BOA Military Bank Customer” might appear to be from Community Bank,
the financial institution on many U.S. bases run by Bank of America
under a contract from the Department of Defense. It may be targeting those
who hold government travel cards through Bank of America or those who
choose to open accounts specifically geared toward servicemembers. The
e-mails are just another in a series of scams from someone trying to
steal money or personal information from unsuspecting computer users.
Legitimate companies and organizations will never ask for information in
e-mails such as user IDs, passwords, account numbers or Social Security
numbers.  [Source: Military.com 30 Oct 06]


VA DATA PRIVACY BREACH UPDATE 26:  As another instance of data loss at
the Department of Veterans Affairs comes to light, the VA’s Office of
the General Counsel (OGC) has awarded a contract to Identity Force for
identity theft protection services for more than 5,700 citizens, 660 of
whom were veterans.  The contract is the result of a 8 MAY 06 incident
in which a backup data tape was reported missing from the general
counsel’s regional office in Indianapolis IN.  VA spokeswoman Jo Schuda said
the missing data contained mostly legal records dating back to the
1970s. Along with the legal issues there were attorney work products.  The
data contained entries for any kind of legal cases that the attorneys
worked on, not necessarily veterans.  The office sent notification
letters this summer to as many of the individuals involved as possible, but
they couldn’t find complete addresses for some because of the age of
the cases. About 2,000 of the more than 7,000 individuals were deceased. 
There is no indication any of the affected individuals have suffered
problems as a result of this missing tape. 

     Schuda said she did not know if the tape was lost or stolen and
whether it has been recovered. The incident occurred the same month that
a VA laptop PC and disks containing personal information on 26.5
million veterans were stolen from an employee’s home. In August, a laptop
containing insurance claims data on about 20,000 veterans who were treated
at the Pittsburgh and Philadelphia VA medical centers was stolen from
the Unisys office in Reston VA. Unisys was under contract to track the
claims.  As a result of those incidents, VA Secretary Jim Nicholson
established the VA information security program, setting standards for
accessing information systems and requiring officials to report compliance
failures or policy violations immediately. He also ordered annual
cybersecurity and privacy awareness training for all VA employees.  Identity
Force said that under the terms of the contract, the company is
providing the following services:

•       Online and toll-free access for individuals to enroll in the
Credit Monitoring Services program.
•       Automatic daily monitoring of Equifax, Experian and TransUnion
credit bureau reports.
•       Alerts of any key changes to credit reports.
•       On-demand personal access to credit reports and scores.
•      Dedicated fraud resolution representatives available to counsel
and assist victims of identity theft.
•       A $20,000 identity theft insurance policy.
[Source: e-VETERANS NEWS 16 Oct 06 ++]


USMC PERSONAL DATA BREACH: The Marine Corps reported 6 OCT that Lincoln
B.P. Management, Inc., which manages base housing at Camp Pendleton,
Calif., has lost a laptop computer containing personal information on
2,400 Marines. Marines at risk are those living in Pendleton's housing
areas at San Onofre I and II, Stuart Mesa and Pacific View. Both the
company and the Naval Criminal Investigative Service are investigating. The
incident follows the loss of a thumb drive by a Marine major at the
Naval Postgraduate School in Monterey, Calif., which contained Social
Security numbers of more than 200,000 Marines. Subsequently, the Marines
reprogrammed its system to hide Social Security numbers except for
specific needs. Other recent data losses include a laptop stolen from the
Department of Veterans Affairs which contained the Social Security numbers
of 28.5 million active-duty service members and veterans.  Also, a
compromise of personal information on more than 100,000 aviation sailors
and Marines.  The military community continues to be at risk for identity
theft because the government and many large companies cannot get their
act together on this issue.  Those desiring complete protection can,
for a fee, seek personal protection services from companies like LifeLock
www.lifelock.com which guarantee protection from identity theft and
reimbursement if it occurs. [Source: Armed Forces News 27 Oct 06 ++]


VET BENEFITS – FL UPDATE 01:  State Sen. Mike Fresno announced that
Florida voters  on 7 NOV will have an opportunity to cast a vote on
proposed Constitutional Amendment 7.  This is an additive veteran’s benefit
which  would give the state's over 20,000 combat-wounded veterans over
age 65 a discount on their property tax that's equal to the percentage
of their service-connected disability. For example, a veteran with a 50%
disability would receive a 50% percent discount.  Prerequisites are the
veteran must have been a Florida resident at the time of entry into
service and who received an honorable discharge.  The new discount would
cost the state about $20.1 million annually.   Amendment 7 does not
remove any of the state’s existing vet tax benefits which are:
- Exemption from all homestead taxes for vets rated 100% service
connected permanent and total disability.
- Exemption of $5000 homestead property tax for vets of all ages with a
VA certified service connected disability of 10% or greater.
[Source:  eFlorida News 27 Oct 06]


CREDIT CARD OFFERS:  The Fair Credit Reporting Act requires that the
credit reporting agencies maintain a list of consumers who do not want to
receive pre-approved or pre-screened credit card offers or insurance
offers. This list is managed by the four largest reporting agencies:
Equifax, Experian, Innovis.  It is reasonably easy to add yourself to this
list. You simply visit: http://www.optoutprescreen.com.  This should
redirect you to a secure webpage that begins with https. You’ll be asked
to provide your name, address, Social Security number and date of
birth. You don’t have to include your Social Security number and date of
birth, but your request may not be properly processed without this
information. You might want to try without your Social Security number and see
if it works. If not, then you can always submit your request again with
the additional information. You can either ask to have yourself removed
for five years or permanently. If you request a permanent removal,
you’ll have to print and mail back the permanent election form. If you
move, you’ll need to register your new address. This certainly won’t stop
all snail mail solicitations, but it should significantly reduce the
number of credit card offers you receive. [Source: NCPOA Tips n' Topics,
28 Oct 06]



DAYLIGHT SAVINGS TIME:  Currently, daylight time begins in the United
States on the first Sunday in April and ends on the last Sunday in
October. On the first Sunday in April, clocks are set ahead one hour at 2:00
a.m. local standard time, which becomes 3:00 a.m. local daylight time.
On the last Sunday in October, clocks are set back one hour at 2:00
a.m. local daylight time, which becomes 1:00 a.m. local standard time.
These dates were recently modified with the passage of the Energy Policy
Act of 2005. Starting in March 2007, daylight time in the United States
will begin on the second Sunday in March and end on the first Sunday in
November. Not all places in the U.S. observe daylight time. In
particular, Hawaii and most of Arizona do not use it. Indiana just recently
adopted the use of it beginning in 2006. For the next three years:
-  In 2006, daylight time begins on April 2 and ends on October 29.
-  In 2007, daylight time begins on March 11 and ends on November 4.
[New law goes into effect.]
-  In 2008, daylight time begins on March 9 and ends on November 2.

Many other countries observe some form of "summer time", but they do
not necessarily change their clocks on the same dates as the U.S.
Daylight time and time zones in the U.S. are defined in the U.S. Code, Title
15, Chapter 6, Subchapter IX - Standard Time.

     Although standard time in time zones was instituted in the U.S.
and Canada by the railroads in 1883, it was not established in U.S. law
until the Act of 19 MAR 18, sometimes called the Standard Time Act. The
act also established daylight saving time, a contentious idea then.
Daylight saving time was repealed in 1919, but standard time in time zones
remained in law. Daylight time became a local matter. It was
re-established nationally early in World War II, and was continuously observed
from 9 FEC 42 to 20 SEP 45. After the war its use varied among states and
localities. The Uniform Time Act of 1966 provided standardization in
the dates of beginning and end of daylight time in the U.S. but allowed
for local exemptions from its observance. The act provided that daylight
time begin on the last Sunday in April and end on the last Sunday in
October, with the changeover to occur at 2 a.m. local time. During the
energy crisis years, Congress enacted earlier starting dates for daylight
time. In 1974, daylight time began on 6 January and in 1975 it began on
23 February. After those two years the starting date reverted back to
the last Sunday in April. In 1986, a law was passed permanently shifting
the starting date of daylight time to the first Sunday in April,
beginning in 1987. The ending date of daylight time has not been subject to
such changes, and has remained the last Sunday in October. With the
Energy Policy Act of 2005, the starting and ending dates have once again
been shifted. Beginning in 2007, daylight time will start on the second
Sunday in March and end on the first Sunday in November. [Source: U.S.
Naval Observatory Oct 06]


TSP UPDATE 07:  With less than a few weeks left before the midterm
elections, the board of the Thrift Savings Plan has started crafting a
legislative agenda for the next Congress that may include requests for new
rules for automatic enrollment and for default investments. At a
monthly meeting 16 OCT, TSP Executive Director Gary Amelio also laid out
three other areas in which the board could potentially ask members of the
110th Congress for legislation on post-tax investment options, loan
restrictions and fund choices. He said none of the options would be worked
out until after the holidays. The biggest of the possible changes would
be a switch to automatic enrollment . Right now, employees have to
actively opt into investing in the $194 billion federal employee
401(k)-style retirement savings plan when they join the civil service. Automatic
enrollment would require employees to actively opt out of the plan
instead. Congress gave fiduciaries of private 401(k) plans the authority to
use automatic enrollment in the Pension Protection Act it passed this
year, but separate legislation would be necessary before the TSP could
mirror that practice.

      Already, more than 85% of employees in the Federal Employees
Retirement System invest in the TSP and more than 67% of those in the Civil
Service Retirement System do. But TSP also is open to members of the
uniformed services, and only 23.6% of them participate. The uniformed
services generally do not match employee contributions to the TSP, which
could account for some of the lower participation numbers. But there is
a small pilot project under way to test TSP matching contributions as a
recruitment and retention tool for the military. The TSP board is eager
to bring more military members into the plan.
Switching to automatic enrollment would come at a price. Even if a
small percentage of employees opt out, with 3.6 million participants, the
change could mean 50,000 to 100,000 people would need new paperwork and
systems.      The second potential change is an idea Amelio and board
members raised several times during the past year. This is altering the
default TSP investment for participants who do not designate how they
want their savings allocated. With Congress’ approval, the default could
be changed from the G Fund, made up short-term Treasury securities
specially issued to provide a higher return than inflation, to the new
life-cycle (L) funds. The L funds are mixes of the five standard TSP funds
that automatically shift money from riskier to more conservative
allocations as participants age, and will likely provide a greater return
than the very conservative G Fund.  Still, the board would have to decide
which employees are placed in which L Fund. Another possible
legislative change, although less definite, is the addition of a Roth option to
the TSP. Roth options allow employees to pay taxes at the time of
investment instead of when they take their money out upon retirement. This
could mean some employees would pay less overall in taxes.      Amelio
said he is still looking for ways to continue belt-tightening on the loan
program, which allows participants to take out loans on their savings
and then pay themselves back. Since becoming executive director in JUN
03, Amelio added fees and restricted the number of general purpose loans
to one for each participant. This brought the number of borrowers down
to about 750,000 as of September, from about 800,000. As for the
possibility of new funds, the board is in a standoff with some members of
Congress who are pressuring it to add a Real Estate Investment Trust
option. Board members are waiting for consultants from Ennis Knupp &
Associates to complete a review of all possible fund additions.  The board
also is awaiting results of a TSP participant survey, the first of its
kind in 16 years. About 20,000 participants will be randomly selected to
complete a mail-in survey, which will ask for opinions on all of the TSP
board’s legislative ideas. Results are expected by the end of the year.
[Source: GOVEXEC.com Daily Briefing 16 Oct 06 ++]


MILITARY LEGISLATION STATUS UPDATE:  Following is current status on
some Congressional bills of interest to the military community.  Because
of the election recess of Congress there have been no changes in the
status shown as of 15 Oct. Support of these bills through cosponsorship by
other legislators is critical if they are ever going to move through
the legislative process for a floor vote. A cosponsor is a member of
Congress who has joined one or more members in his/her chamber (i.e., House
or Senate) to sponsor a bill or amendment. The first member to "sign
onto" a bill is considered the "sponsor," members subsequently signing on
are "cosponsors." Any number of members may cosponsor a bill in the
House or Senate. At http://thomas.loc.gov you can determine the current
status of each bill and if your legislator is a sponsor or cosponsor of
the bill you are concerned with. The key to increasing cosponsorship is
letting our representatives know of veterans feelings on issues.  At
the end of some of the below listed bills is a web link that can be used
to do that. Otherwise, you can locate who your representative is and
his/her phone number, mailing address, or email/website to communicate
with a message or letter of your own making:

H.R.303:  The ‘Retired Pay Restoration Act of 2005’ To amend title 10,
United States Code, to permit certain additional retired members of the
Armed Forces who have a service-connected disability to receive both
disability compensation from the Department of Veterans Affairs for their
disability and either retired pay by reason of their years of military
service or Combat-Related Special Compensation and to eliminate the
phase-in period under current law with respect to such concurrent receipt. 
Rep Alcee Hastings [FL-23] has signed on to support the bill giving it
a total of 240 sponsors. There are no related bills.  Last major action
was a motion to the Discharge Committee on 5/24/2005 to bring the bill
to the floor for a vote. A discharge petition requires 218 signatures
for further action.  To support this bill and/or contact your
Representative refer to http://capwiz.com/usdr/issues/bills/?bill=7728776. 

 H.R.602:  The ‘Keep Our Promise to America's Military Retirees Act’ to
restore health care coverage to retired members of the uniformed
services and their eligible dependents. House version of  S.407.  H.R.602
responds to the Federal Court ruling that only Congress, not military
recruiters, can authorize what kind of care will be provided to military
retirees, and that only Congress can - and should - make good on promised
and earned health care.  Referred to the Subcommittee on Health
2/25/05, for a period to be subsequently determined by the Chairman. No new
representatives have signed on to support the bill which presently has a
total of 260 sponsors.

H.R.808:  The ‘Military Surviving Spouses Equity Act’ to amend title
10, United States Code, to repeal the offset from surviving spouse
annuities under the military Survivor Benefit Plan for amounts paid by the
Secretary of Veterans Affairs as dependency and indemnity compensation
(DIC).  A motion was filed to discharge the Rules Committee from
consideration of H.RES 271 on 16 NOV 05.  This resolution provides for the
consideration of H.R.808 and requires 218 signatures for further action. No
new representatives have signed on to support the bill which presently
has a total of 212 sponsors. There are no related bills.  To support
this bill and/or contact your Representative refer to
http://capwiz.com/usdr/issues/bills/?bill=7683586
To support the discharge petition and/or contact your Representative
refer to
http://capwiz.com/moaa/issues/alert/?alertid=8248891&type=CO

H.R.916: The ‘Medicare Access to Rehabilitation Services Act of 2005’
To amend title XVIII of the Social Security Act to repeal the Medicare
outpatient rehabilitation therapy caps. Last major action was referral
to the House Subcommittee on Health 14 MAR 05. House version of  S.438.
No new representatives have signed on to support the bill which
presently has a total of sponsors. To support this bill and/or contact your
Representative refer to
http://capwiz.com/moaa/issues/bills/?bill=7103976 &
http://capwiz.com/moaa/issues/bills/?bill=7103896.

H.R.968: To amend title 10, United States Code, to change the effective
date for paid-up coverage under the military Survivor Benefit Plan from
October 1, 2008, to October 1, 2005. Last major action was referral to
the House Subcommittee on Military Personnel 17 MAR 05. No new
representatives have signed on to support the bill which presently has a total
of 146 sponsors. There are no related bills.  To support this bill
and/or contact your Representative refer to
http://capwiz.com/usdr/issues/bills/?bill=7683511

H.R.994:  To amend the Internal Revenue Code of 1986 to allow Federal
civilian and military retirees to pay health insurance premiums on a
pretax basis and to allow a deduction for TRICARE supplemental premiums. 
Last major action was it being ordered to be reported by Voice Vote 6
JUN 05. No new representatives have signed on to support the bill which
presently has a total of 340 sponsors. This is the House version of
S.484. To support this bill and/or send a message to your Representative
refer to http://capwiz.com/usdr/issues/bills/?bill=7761876

H.R.995: The ‘Combat Military Medically Retired Veteran's Fairness Act
of 2005’ to amend title 10, United States Code, to provide for the
payment of Combat-Related Special Compensation under that title to members
of the Armed Forces retired for disability with less than 20 years of
active military service who were awarded the Purple Heart. Last major
action was referral to the House Subcommittee on Military Personnel 17
MAR 05. No new representatives have signed on to support the bill which
presently has a total of 31 sponsors. There are no related bills.  To
support this bill and/or send a message to your Representative refer to
http://capwiz.com/usdr/issues/bills/?bill=7683281

H.R.1364:  The ‘Equal Justice for Our Military Act’ to amend title 28,
United States Code, to enable the Supreme Court to review decisions in
which the Court of Appeals for the Armed Forces denied relief. Last
major action was referral to the House Subcommittee on Courts, the
Internet, and Intellectual Property 4 APR 05. No new representatives have
signed on to support the bill which presently has a total of 5 sponsors.
There are no related bills.

H.R.1366:  The ‘Combat-Related Special Compensation Act of 2005’ to
amend title 10, United States Code, to expand eligibility for
Combat-Related Special Compensation paid by the uniformed services in order to
permit certain additional retired members who have a service-connected
disability to receive both disability compensation from the Department of
Veterans Affairs for that disability and Combat-Related Special
Compensation by reason of that disability.  Last major action was Referral to
the House Subcommittee on Military Personnel 6 APR 05. No new
representatives have signed on to support the bill which presently has a total of
of 52 sponsors.  S.2385 is a related bill.  To support this bill send a
message to your Representative refer to
http://capwiz.com/usdr/issues/bills/?bill=7718711
To support Sen. Reid’s amendment to the 2007 NDAA bill S.2766 send a
message to your Representative refer to
http://capwiz.com/usdr/issues/alert/?alertid=8371516&type=ML

H.R.2076: The ‘Retired Pay Restoration Act of 2005’ To amend title 10,
United States Code, to permit certain retired members of the uniformed
services who have a service-connected disability to receive both
disability compensation from the Department of Veterans Affairs for their
disability and either retired pay by reason of their years of military
service or Combat-Related Special Compensation.  Last major action was
referral to the House Subcommittee on Military Personnel 6/21/2005. No new
representatives have signed on to support the bill which presently has
a total of 29 sponsors. Related bills are H.R.303, S.558, S.845. To
support this bill and/or send a message to your Representative refer to
http://capwiz.com/usdr/issues/bills/?bill=7728776

H.R.2356:  The ‘Preserving Patient Access to Physicians Act of 2005’ to
amend title XVIII of the Social Security Act to reform the Medicare
physician payment update system through repeal of the sustainable growth
rate (SGR) payment update system. Last major action was referral to the
House Subcommittee on Health 23 MAY 05. No new representatives have
signed on to support the bill which presently has a total of 177 sponsors. 
S.1081is a related bill. To support this bill and/or send a message to
your Representative refer to
http://capwiz.com/usdr/issues/bills/?bill=7742321.
 

H.R.2962: The ‘Atomic Veterans Relief Act’ to amend title 38, United
States Code, to revise the eligibility criteria for presumption of
service-connection of certain diseases and disabilities for veterans exposed
to ionizing radiation during military service, and for other purposes. 
Last major action was referral to the House Subcommittee on Disability
Assistance and Memorial Affairs 28 JUN 05. No new representatives have
signed on to support the bill which presently has a total of 53
sponsors.  There are no other related bills. To support this bill and/or send
a message to your Representative refer to
http://capwiz.com/usdr/issues/bills/?bill=7784066

H.R.4259: The ‘Veterans right to Know Act’ to establish a Commission to
investigate chemical or biological warfare tests or projects,
especially such projects carried out between 1954 and 1973, placing particular
emphasis on actions or conditions associated with such projects that
could have contributed to health risks or been harmful to any United
States civilian personnel or member of the United States Armed Forces who
participated in such a project or who was otherwise potentially exposed
to any biological or chemical agent, simulant, tracer, decontaminant, or
herbicide as a result of such projects; and to submit a report to
Congress of its findings and recommendations. Last major action was referral
to the House Subcommittee on Military Personnel 30 NOV 05. No new
representatives have signed on to support the bill which presently has a
total of 43 sponsors. There are no other related bills.

H.R.4914: The ‘Veterans' Choice of Representation Act’ to amend title
38, United States Code, to remove certain limitations on attorney
representation of claimants for veterans benefits in administrative
proceedings before the Department of Veterans Affairs, and for other purposes. 
Last major action was referral to the House Committee on Veterans'
Affairs 9 MAR 06. No new representatives have signed on to support the bill
which presently has a total of 8 sponsors. There are no other related
bills.  To support this bill and/or send a message to your
Representative refer to http://capwiz.com/usdr/issues/bills/?bill=8835676

H.R.4949: The ‘Military Retirees Health Care Protection Act’ to amend
title 10, United States Code, to prohibit increases in fees for military
health care.  Last major action was referral to the House Committee on
Armed Services 14 MAR 06. No new representatives have signed on to
support the bill which presently has a total of 163 sponsors. There are no
other related bills.  To support this bill and/or send a message to
your Representative refer to
http://capwiz.com/usdr/issues/bills/?bill=8591231

H.R.4992: The ‘Veterans Medicare Assistance Act of 2006’ to provide for
Medicare reimbursement for health care services provided to
Medicare-eligible veterans in facilities of the Department of Veterans Affairs. 
Last major action was referral to the House Subcommittee on Health 27
MAR 06. No new representatives have signed on to support the bill which
presently has a total of 24 sponsors. There are no other related bills. 
To support this bill and/or send a message to your Representative refer
to
http://capwiz.com/usdr/index_frame.dbq?url=http://capwiz.com/usdr/issues/bills/?bill=8670886

H.R.5881: The ‘Disabled Veterans Tax Termination Act’ to amend title
10, United States Code, to eliminate the offset between military retired
pay and veterans service-connected disability compensation for certain
retired members of the Armed Forces who have a service-connected
disability, and for other purposes. Introduced 26 JUL 06 by Rep Marshall, Jim
(GA-03). There are no other related bills. Last major action was
referral to the House Subcommittee on Military Personnel 25 JUL 06. Rep Jo
Ann Davis [VA-1] , Rep Chet Edwards [TX-17]  & Rep Bob Filner [CA-51]
have signed on to support the bill which presently has a total of 3
sponsors To support this bill and/or send a message to your Representative
refer to
http://capwiz.com/usdr/index_frame.dbq?url=http://capwiz.com/usdr/issues/alert/?alertid=8969606&queueid=[capwiz:queue_id]

H.R.6100: introduced the ‘Military Education Enhancement Opportunities
Act of 2006’ to amend title 38, United States Code, to provide for
certain servicemembers to become eligible for educational assistance under
the Montgomery GI Bill. Introduced by Rep. Mike Bilirakis [R-FL-09] on
9/19/6. There are no other related bills. Last major action was
referral to the House Subcommittee on Economic Opportunity 9/26/2006. No new
representatives have signed on to support the bill which presently has
no sponsors.

S.185:  The ‘Military Retiree Survivor Benefit Equity Act of 2005’ to
amend title 10, United States Code, to repeal the requirement for the
reduction of certain Survivor Benefit Plan annuities by the amount of
dependency and indemnity compensation and to modify the effective date for
paid-up coverage under the Survivor Benefit Plan. There are no other
related bills.  Last major action was referral to the Senate Committee on
Armed Services. No new