Posted on: Monday, May 21, 2007
Lawmakers urged to cut costs
By Tom Philpott
As the House of Representatives prepared to pass its fiscal 2008 defense authorization bill, the White House urged lawmakers to reconsider a host of costly personnel initiatives added by the armed services committee.
Initiatives opposed by the White House included:
Bigger pay raises: The House was set to vote for a 3.5 percent basic pay increase for January 2008. That's .5 percent higher than proposed by the Bush administration. A 3 percent raise next January would be enough to keep military pay competitive, said the White House's Office of Management and Budget in a statement on the bill, HR 1585, released last week.
Higher TRICARE Fees: The White House is disappointed that the House bill does not allow Defense officials to raise TRICARE fees and co-payments for retired military beneficiaries under age 65 or allow implementation of some new set of cost containment actions expected to be recommended soon by the DOD-appointed Task Force on the Future of Military Health Care.
The administration says fee increases are needed to sustain a high-quality health- care benefit "by largely capturing the inflation increases that have occurred since cost sharing was first established in 1996."
TRICARE Retail Drugs "Fair Pricing": The administration "strongly opposes" a provision in the House bill to require drug manufacturers to give the Defense Department the same price discounts on drugs dispensed through the TRICARE retail network that they provide to base pharmacies, the TRICARE mail order pharmacy and VA clinics and hospitals.
The White House says "market competition," not government price control, "is the most effective way to promote discounts."
CRSC Expansion: The House bill would open the Combat-Related Special Compensation program to some disabled retirees forced from service short of normal retirement because of service-related injuries or ailments.
The administration "strongly opposes" this and other "piecemeal changes" to retiree disability compensation given that "several commissions and review groups are reconsidering the country's responsibilities to those medically separated prior to completing a full military career."
Survivor Indemnity Allowance: The House bill would establish a new survivor indemnity allowance of up to $40 a month for surviving spouses who see survivor benefits fall as a result of the SBP-DIC offset law. The offset, says the White House, "is consistent with private sector benefits" and should not be phased out.
Reserve GI Bill: The administration also opposes the proposed transfer oversight for the Reserve Montgomery GI Bill from the Department of Defense to the Department of Veterans Affairs. The White House says the change would mean DOD loses control of a critical incentive program for reserve recruiting and retention.
Send e-mail to milupdate@aol.com, write to Military Update, P.O. Box 231111, Centreville, VA, 20120-1111 or visit www.militaryupdate.com.
