From: FRA NewsBytes [newsbytes@fra.org] Sent: Saturday, August 20, 2011 2:10 AM To: fra@fra367.org Subject: FRA NewsBytes -- 8-19-11
In this week's edition: President Signs GI Bill Improvement Bill
Legislative Update: Concurrent Receipt
Medicare and TRICARE for Military Retirees Who Turn 65
Retirees Must Report Marriages to DFAS
President Signs GI Bill Improvement Bill
President Obama recently signed legislation (H.R. 1383) that increases the tuition cap to $27,000 for some veterans currently attending private schools. In order to qualify for the increased benefit, the veteran must have been enrolled in a private school before last year's reform bill (The Post-9/11 Veterans Assistance Improvement Act) capped private school tuition at $17,500. The reform measure created a problem for veterans already enrolled in higher-priced, private programs and Rep. Jeff Miller (Fla.), chairman of the House Veterans' Affairs Committee, introduced the legislation to ensure these veterans will be able to complete their education using the benefits specified in the original Post-9/11 GI Bill, which was enacted in 2008. Additional information is available at http://www.gibill.va.gov/documents/factsheets/PL1383_Q&A.pdf.
Legislative Update: Concurrent Receipt
Budget challenges and Congress' August recess notwithstanding, FRA-supported concurrent receipt bills continue to gain co-sponsors. The Association advocates payment of full military retired pay and veterans' disability compensation for all disabled retirees. FRA's National Board of Directors discussed this issue with legislators and their staff when they stormed the Hill on April 14, 2011, and thousands of Shipmates have used the Action Center at www.fra.org to contact their elected officials on this important issue. Shipmates are urged to continue sending e-mails through the Action Center to encourage further support for these proposals:
H.R. 303 (Rep. Gus Bilirakis, Fla.) currently has 65 co-sponsors and proposes to eliminate the 10-year phase-in period for retirees with a disability rating of 50 to 90 percent and extends concurrent retirement and disability payments' (CRDP) eligibility to retirees rated less than 50 percent.
H.R. 333 (Rep. Bishop Sanford, Ga.) now has 139 co-sponsors, includes elements of H.R. 303 and would also open CRDP to medically retired personnel with less than 20 years of service (so-called Chapter 61 retirees).
H.R. 186 (Rep. Joe Wilson, S.C.) currently has 19 co-sponsors and would benefit all Chapter 61 retirees who would become eligible for CRDP over a five-year period starting in January 2012. Although the Administration has not proposed any changes for concurrent receipt in FY 2012, this legislation is identical to White House proposals put forward in 2009 and 2010, and would not impact regular retirees.
In 2008, Congress voted to expand eligibility for Combat Related Special Compensation (CRSC) coverage to Chapter 61 retirees. If enacted into law, this new initiative would similarly extend eligibility for CRDP to all Chapter 61 retirees by 2016. If enacted, the only disabled retirees not eligible for CRDP would be non-medical retirees with VA disability ratings of 40 percent or lower.
S. 344 (Senator Harry Reid, Nev.) "The Retired Pay Restoration Act" seeks to authorize comprehensive concurrent receipt for all disabled retirees, including those with less than 20 years of service who have been medically retired (Chapter 61s). This legislation currently has 27 co-sponsors and FRA is urging Senate Majority Leader Reid to sponsor this as an amendment to the Senate version of the FY 2012 Defense Authorization bill (S. 1253).
Medicare and TRICARE for Military Retirees Who Turn 65
What does a military retiree need to do when he/she turns 65? Does he/she need Medicare if the retiree already has TRICARE? Will he personally have to sign-up for Medicare or will TRICARE do this for him? Questions like these are normal for some beneficiaries not sure of their options when celebrating their 65th birthday.
TRICARE and Medicare are separate programs. Medicare is health insurance for people age 65 or older, as well as for people under age 65 who qualify for Social Security disability insurance. TRICARE for Life (TFL) is TRICARE's Medicare-wraparound coverage and is available to all Medicare-eligible TRICARE beneficiaries, regardless of age or place of residence. In order to be covered by TFL, beneficiaries must have Medicare Parts A (hospitalization) and Part B (medically-necessary services like doctors' services, outpatient care, home health services, and other medical services) coverage.
For TFL beneficiaries, Medicare is the primary insurance and TFL acts as the secondary insurance, minimizing out-of-pocket expenses. TRICARE covers Medicare's coinsurance and deductible charges. After Medicare pays its part of the claim, TFL pays the remaining amount for any TFL-covered services and the beneficiary pays nothing. As the primary payer, Medicare approves health care services for payment.
While there is no enrollment fee or paperwork associated with TFL, beneficiaries must sign up for Medicare. Shipmates are encouraged to enroll in Medicare as soon as they become eligible to avoid late-enrollment penalties. There is a standard monthly premium for Part B coverage, but some beneficiaries may pay more depending on their income. For more information regarding Medicare enrollment, beneficiaries can call at 800-633-4227 or visit www.medicare.gov
Beneficiaries, who have further questions about TRICARE and Medicare coverage, can go to www.tricare.mil or call Wisconsin Physicians Service at 866-773-0404.
Retirees Must Report Marriages to DFAS
Retirees who marry or re-marry must notify the Defense Finance and Accounting Service (DFAS) to properly establish Survivor Benefit Plan (SBP) coverage within one year of the marriage. Getting a military ID card and entering the new spouse in the Defense Enrollment Eligibility Reporting System (DEERS) does not update pay records at DFAS or trigger SBP coverage.
Retirees who originally elected SBP coverage for a previous spouse must send DFAS a copy of the marriage certificate together with a completed DD Form 2656-6 (SBP Election/Change), available online at http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2656-6.pdf). Retirees marrying for the first time may elect SBP coverage for their spouse with the same form, which must be received by DFAS within one year of the marriage. (A retiree who married during retirement and declined SBP spouse coverage, can not later enroll the spouse in the plan unless during a congressionally-approved open-enrollment period. Enrollments during open season normally result in penalties and extra charges for the retiree.) The above-mentioned form can also be obtained from DFAS by calling 1-800-321-1080.
Completed documents should be sent to:
DFAS
US Military Retirement Pay
P.O. Box 7130
London, KY 40742-7130
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