Post Reports That Pentagon Fudged TRICARE Numbers

The Washington Post reported this week that the Department of Defense has requested nearly $3 billion over the last three years be moved from funds dedicated to TRICARE into weapons programs and other accounts unrelated to healthcare, despite assurances from Pentagon officials that healthcare costs were "eating the U.S. military alive."

According to a report on the FY2013 Defense Appropriations Act provided by the Senate Appropriations Subcommittee on Defense, the Pentagon reprogrammed $1.36 billion dollars from TRICARE in fiscal year 2011, $772 million in fiscal year 2010, and requested an additional $708 million to reprogram from this year's budget.

This reprogramming has been happening at a time that the VFW has worked tirelessly to prevent the Pentagon from arbitrarily raising TRICARE copayments, adding and expanding fees, and tying increases to medical inflation; while retiree health costs are rising at an average rate of 2.6 percent.

"The VFW is adamant that the Pentagon must not be allowed to pull this bait-and-switch on Congress and TRICARE beneficiaries," said VFW Executive Director Bob Wallace. "Instead, the Pentagon must improve its budget and management controls so Congress can have an accurate view of the fiscal situation within TRICARE and the entire Military Health System before shifting responsibility to those who choose to wear the uniform to pay for their own health care."

Your VFW has been one of the few veterans' organizations in Washington fighting to prevent any increases in military health care premiums, encouraging Washington bureaucrats to do the hard work of generating a more cost-effective military, without jeopardizing the welfare of military families and breaking faith with military retirees.

VFW advocacy efforts earlier this year successfully fought off TRICARE fee increases, and in light of this recent report, the VFW intends only to ratchet up the pressure.

To make your voice heard on TRICARE fees, click here, and check back regularly with this blog for updates.

To read the full Senate report, click here. Details on health care reprogramming can be found on p. 228. 

VFW Reacts to Survey on Military Compensation

Yesterday morning the VFW was on hand at the National Press Club where the Center for Strategic and Budgetary Assessments, or CSBA, unveiled its report from a recent survey of service members, veterans, military families and retirees on military compensation.

When CSBA announced the survey in January, the VFW was harshly critical of the content and potential outcomes. Yesterday, CSBA Senior Fellow Todd Harrison, the architect of the survey, sought to quash some of the criticism, making his case for why the Pentagon should conduct its own similar surveys before deciding how it plans to alter military pay and benefits programs, updating the surveys periodically in an effort to optimize its compensation packages.

In his remarks, Harrison was careful to point out that CSBA’s report only demonstrated how service members perceived the value of the benefits they currently receive, and that the report should not be misconstrued as recommending any specific policy changes. He went on to criticize the Pentagon for its current approach to changing the military benefits structure, warning that proposals to strictly cut certain benefits without planning to enhance others, would prove detrimental to the quality of the force.

In the wake of yesterday's announcement, VFW leaders said that they understand the purpose of this study, but the organization remains concerned about how the Pentagon will interpret the results. In its report, CSBA pointed out that decisions about optimization should not be made solely based on perceptions of the force, but that policy makers must consider factors like fairness, equity, feasibility, and operational impact before making any changes. The VFW reiterated this sentiment in its reaction.

“It’s our duty as veterans’ advocates to ensure that the Pentagon considers the broader implications of changing its benefits system for the sake of not only recruiting and retaining competent professional leaders, but also ensuring the overall physical and financial well-being of the those who volunteer to serve,” said VFW Deputy Legislative Director Ryan Gallucci, who was on hand for the announcement. “Saving defense dollars is secondary to looking out for our troops and their families, and to preserving the integrity of an all-volunteer, professionally-led force.”

CSBA aggregated the data it compiled from more than 2,600 participants according to time-in-service, rank, branch and marital status in an effort to better analyze the data for different cohorts, both career and non-career, demonstrating how each group valued benefits differently.

Through the survey, CSBA discovered that many immediate tangible benefits, like increased base pay, increased leave, choice of duty station or access to exchange services, were perceived as highly valuable to service members across the ranks relative to actual cost. However, long term or contingency benefits like health care or retirement, were undervalued by potential beneficiaries relative to actual cost.

The VFW was not surprised by these findings, as similar surveys in the private sector indicate that civilian employees consistently convey similar misconceptions about their benefits packages. When employees undervalue some of their most lucrative benefits, companies can then justify hollowing out benefit programs under the guise of optimization.

“The Pentagon may want to optimize military benefits packages to simultaneously save money and boost perceived value among the troops, but the VFW is not concerned about perceptions,” said Gallucci. “We’re concerned about protecting our troops and demonstrating the actual value of their earned benefits.”

To read the full CSBA report, click here.

Your VFW has been one of the most vocal opponents of changes to military benefits and quality-of-life programs, exposing ten proposed cuts designed to pay for ten years of war through last year’s “10 for 10” campaign.

VFW advocates from coast to coast have consistently banded together to stop these kinds of toxic proposals whenever they surface, and we will continue to hold defense officials accountable for their decisions on the welfare of the all-volunteer force. Check back regularly with this blog for updates.

(Image: CSBA Senior Fellow Todd Harrison explains how the military envisioned its all-volunteer force in the 1970s during yesterday's announcement of CSBA's report on military compensation. Photo by Ryan Gallucci.)

What Do You Think? Senate Seeks Commission on Retiree Benefits

As part of the VFW's ongoing work protecting the Department of Defense from sequestration and other budget cuts affecting those who volunteer to serve today or may volunteer to serve in the future, we watch and listen very closely for clues about changes to military pay, military quality-of-life programs, and the military retirement system.

As the full Senate prepares to debate the annual National Defense Authorization Act (NDAA), the VFW must highlight a controversial provision in the committee-passed version of the bill that we believe would jeopardize the military retirement benefit. Title XVI of the bill (S. 3254) would establish an advisory committee known as the Military Compensation and Retirement Modernization Commission. The stated purpose of the Commission is to achieve fiscal sustainability for the military compensation and retirement systems, and the Commission's recommendations would then be accepted by strictly an up or down vote, without the opportunity to debate or amend.

This stated purpose not only implies that the current system is unsustainable, but it also assumes that the cost is not worth the expense. As you have read before on this blog, the VFW vehemently disagrees. As we read the fine print of the language establishing this Commission, we were disturbed to find that the provisions would prevent anyone who works for a Veteran or Military Service Organization to sit on the Commission, and would further prevent anyone from serving on the Commission who had worked for a VSO or MSO within the last year. In other words, the VFW and other groups who advocate for you have no voice – meaning the voices of our more than two million members and advocates would be effectively silenced.

As if this wasn't bad enough, the Commission's final recommendations on changing the retirement system would then be put strictly to an up-or-down vote in Congress, meaning the VFW and other advocates would never have an opportunity to evaluate the Commission's report or make recommendations that represent the best interest of our veterans.

We believe that stacking the deck against service members and shutting veterans out of a discussion on the future of the military compensation and retirement system is totally unconscionable, and that this Commission must be stopped before it’s too late. The provisions establishing this Commission are not in the House-passed version of the NDAA, and there’s still time for you to contact your Senators to express your opposition to establishing this Commission before the bill comes to the floor.

Over the last few months, thousands of VFW members and advocates, like retired Petty Officer Hal Cleveland, mobilized to fight TRICARE premium increases, increases that Congress ultimately eliminated from the NDAA. Congress listened to our voice before; we can make them listen again. To learn how you can contact your representatives and tell them to oppose the Commission, click here.

Finally, let us know what you think about the potential establishment of this Commission by taking our short poll, and don't forget to leave your comments below.

Do you think this Commission would have the best interest of service members and retirees in mind?

Yes No

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If this Commission drastically changed military retirement benefits, would you continue to serve or encourage others to serve a full career?

Yes No

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Would your Senator's stance on this issue weigh into your decision on election day?

Yes No

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Thanks to Our Readers, VFW Blog Sets Traffic Record

In February -- the shortest month of the year -- the VFW Capitol Hill blog shattered its monthly traffic record with more than 11,000 visitors reading stories and posting comments. The staff of the VFW Washington office wants to thank our readers and supporters for joining the conversation.

We hope you have enjoyed receiving timely and accurate information directly from our office about our day-to-day work here in Washington, and we sincerely appreciate the kind of feedback we've received. Your feedback has helped to inform our decision-making on issues like proposed changes to military benefits and retirement compensation, veterans' health care, and unemployment.

Since Kansas City gave us our own blog, we've seen traffic continue to grow precipitously each month. We know the best is yet to come, which is why we hope you will continue to read and share our stories, and submit stories of your own. After all, members of Congress only listen to us because of the work the VFW does in their home districts.

This month, we received several submissions from advocates coming to Washington for the 2012 VFW Legislative Conference, which you can read on the blog now. We love receiving these kinds of personal stories, and we hope to host more content like this moving forward.

If you have stories or photos of your own veterans' advocacy work you would like us to consider, send them in an email to vfwac@vfw.org. If you want to know the kinds of information we're looking for, we will soon offer an easy "After Action Report" worksheet on the VFW in DC homepage where you simply have to fill in the blanks, and we'll take care of the rest. Once it's live, we'll also post it on this blog.

The voice of our 2 million members truly resonates in Washington. This is why veterans' employment legislation was the only American jobs bill signed into law last year. This is why Congressmen flood the hopper with bills on veterans' issues each election cycle. Let's show them what the VFW is capable of.

In the coming months, we plan to introduce some new interactive features on the blog, like interactive live webchats on veterans' issues and quick videos explaining bills critical to the VFW.

Thank you, again, for making our blog a success. Keep reading and we'll keep working to ensure veterans' issues are a top priority in Washington.

VFW Mobilizes to Fight Defense Budget Proposals

The Pentagon unveiled its budget proposal for fiscal year 2013 this week, drawing criticism from the VFW for several proposals potentially hurting military personnel and retirees.

In a statement this afternoon, the VFW balked at Pentagon recommendations to create tiered systems for retirees participating in TRICARE, as well as new pharmaceutical copayments for military dependents and retirees, calling the ideas “deal breakers.” These latest proposals come on the heels of new fee increases tied to annual cost-of-living adjustments approved by Congress just last year.

“We will not allow the nation’s economic problems drive a military downsizing strategy that breaks faith with every man and woman who has ever worn the uniform,” said VFW Commander-in-Chief Richard L. DeNoyer. “We will not allow the budget crisis to be more important that the men and women who serve and sacrifice to keep everything and everyone we hold dear safe.”

The VFW has been the most vocal opponent of proposed TRICARE and pharmaceutical increases since exposing the ideas as part of last summer’s “10 for 10” campaign, and DeNoyer said the VFW plans to vocally oppose these new proposals, mobilizing its grassroots Action Corps against these new increases.

VFW is calling on its members and advocates from coast to coast to reach out to their members of Congress, asking them to oppose increases in health care fees on military retirees and military families. VFW leaders have consistently said that such proposals break the nation’s promise to care for the men and women who defend our nation and their loved ones. To read the full Action Alert, or sign up to join the Action Corps, click here.

“So few Americans serve in the military, and far fewer serve a full career in the military, making these brave few an easy target for some in Washington now that the wars are no longer front-page news,” said VFW National Legislative Director Ray Kelley. “Our military retirees and our military families have earned these benefits through their sustained sacrifices, which is why it is our obligation as veterans’ advocates to stand shoulder-to-shoulder with them to maintain the integrity of the system.”

The VFW offers resources to help you contact your legislators by clicking here.

Earlier this week, DeNoyer and the VFW praised the proposed increases in the VA budget, but cautioned that Defense cuts and lack of proper investment across VA could hurt the agency’s ability to care for today’s veterans.

“The VFW appreciates the proposed increase because it recognizes that the proper care and treatment of wounded, ill and injured veterans are ongoing costs of war," said DeNoyer. “We remain concerned, however, that the amount is not enough for the VA to maintain much less improve all the programs and services on their watch, especially knowing the Defense Department plans to shrink the size of the military, which will directly increase the number of veterans seeking VA care and services.”

The VFW will testify alongside partners in the Independent Budget before the House Veterans Affairs Committee tomorrow, outlining how the veterans’ community believes the VA should be funded in FY 2013. The Independent Budget is a roadmap for funding veterans’ programs compiled by AMVETS, Disabled American Veterans, Paralyzed Veterans of America and the VFW that Congress has used for more than a quarter century to help guide the VA budget process. Details on the hearing can be found here, and check back with this blog tomorrow morning to watch live.

We want to hear your thoughts on this week’s budget proposals for both VA and DoD. Please leave your comments below and check back throughout this week for updates.

VFW Denounces Survey on Military Benefits; What do You Think?

This week Stars & Stripes reported that a defense think tank, the Center for Strategic and Budgetary Assessments, was looking to conduct a survey of current and former military service members to gather data on which benefits remain top priorities for those who volunteer to serve. The survey comes in the wake of announcements from Department of Defense officials that personnel benefits and programs – particularly retirement pensions and health care – could face potential cuts in the coming years. The VFW has vowed to fight these potential cuts at all costs.

After reading through the CSBA survey, VFW leaders balked at the tone of the questions, which asked participants to rate certain military benefits over others, and then determine the kinds of benefit packages that would be preferable to service members in the future. The survey also asked for pointed demographic information such as service branch, years active, overseas deployments, and age. The VFW is discouraging its members from participating in the survey, since the data will likely be used as an endorsement of certain benefit cuts by service members, themselves.

“Our military men and women have earned these benefits through their honorable wartime service over the last decade, and the VFW is insulted that these same men and women would now be asked to put their heads in a noose by tacitly admitting cuts to their earned benefits are somehow acceptable,” said VFW Legislative Director Ray Kelley. “The VFW does not accept the notion that cuts to personnel programs and benefits are the only viable solution. We have an obligation to provide for our war-fighters and their loved ones, and the VFW will not let Congress or the Pentagon shirk that obligation.”

Kelley went on to say that the survey’s pointed questions on specific cuts and proposed changes actually pit different demographic groups of service members and veterans against each other – enlisted versus officer, retiree versus separated service member, or even young versus old – by asking questions like whether a one-time pay raise would be worth deferring all retiree benefits until 65.

“These kinds of questions are loaded from the beginning,” said Kelley. “Since 92 percent of military men and women choose to leave before retirement, the likely answer will favor a pay raise, which would essentially endorse cutting benefits for those who choose career military service. We shouldn't be asked to choose one over the other.”

At first glance, the survey looks like it offers service members and veterans a voice in the debate on potential cuts to the DoD budget. However, the VFW believes that the CSBA has already made up its mind that quality-of-life cuts are on the way, and data compiled from the survey will offer a military endorsement to move forward with specific recommendations.

In testimony before the House Budget Committee in 2010, CSBA equated military personnel benefit costs to pension costs for companies like General Motors. Though the testimony did not recommend specifics, the tone implied that providing for the needs of war-fighters was a wasteful venture for the Pentagon.

The VFW was the first major veterans organization to see these kinds of cuts on the horizon as part of last summer’s “10 for 10” campaign. Since the program’s roll-out, VFW leaders have consistently sought input from VFW members and veterans around the country, calling to preserve earned military and veterans’ benefits.

"Service members and veterans already have a voice in this debate, and they've consistently used that voice to say 'no' to proposed benefit cuts through advocates like the VFW and through direct outreach to Congressional offices," said Kelley. "We’ll do everything in our power to make sure their voices continue to be heard over the voices of those looking for a quick fix."

VFW is in the process of assessing the military retirement system and plans to make recommendations that can start a conversation on cost savings while maintaining the integrity of the system. The VFW wants to demonstrate that the Pentagon may actually be able to offer improved benefits for military personnel and at the same time save money simply by implementing smarter business practices. Be on the look-out for these specific recommendations in the coming weeks.

In the meantime, we want to know what you think about proposed changes to military benefits and which courses of action would be the most responsible. Take our short poll and please leave your comments below.

What should Congress do about military retirement benefits?

Keep earned benefits the same. Find savings elsewhere.Keep benefits the same, but defer all pensions to 65Keep the 20-year system, but offer some benefits for non-career serviceChange over to a 401(k)-style system for allIncrease pay, but cut all benefitsOther (details in comments)

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