Military Officer - August 2006 - (Page 30)

washingtonscene Are Your Legislators Paying Attention? ■ To urge your senators and representative to cosponsor these bills, please visit www.cap wiz.com/moaa/issues /bills. Scroll down to Health Care Issues and click on the links to S. 484 and H.R. 994. Enter your ZIP code in the box to send an MOAA-suggested message tailored to each legislator’s cosponsor status. Pretax Premium Push Bills lag despite broad support in House and Senate. I n early May, representatives from MOAA and the National Active and Retired Federal Employees Association (NARFE) met with Sen. John Warner’s (R-Va.) staff to discuss strategies to enact his legislation (S. 484) to let active and retired military and federal civilian personnel pay health and dental insurance premiums (including TRICARE supplements and Prime enrollment fees) on a pretax basis. An identical bill in the House, H.R. 994, has been offered by Rep. Tom Davis (R-Va.). We’re encouraged that a majority of legislators have signed up to cosponsor these bills — 63 out of 100 senators and 334 out of 435 representatives, as of late June. But Hill leaders have been reluctant to accept the cost. MOAA and NARFE are working with Warner’s ofﬁce to provide additional information as needed to address legislators’ concerns and offer implementation options. 2007 Brings Means-Testing Income-based Medicare Part B hikes aimed at cutting cost. I 30 MILITARY OFFICER n the 2003 Medicare modernization law that established the Medicare Part D drug program, Congress also implemented a plan to increase Part B charges for millions of higher-income seniors. Beginning Jan. 1, 2007, the government will begin means-testing for Medicare Part B premiums — which will mean substantially higher premiums for many. Currently, Part B premiums are onesize-ﬁts-all. They’re set at an amount that covers 25 percent of Medicare’s cost to the government. That translates to $88.50 monthly per beneﬁciary in 2006, with the government funding the other 75 percent ($265.50 per beneﬁciary per month). As reported previously, the new law change will keep the 25-percent cost-share for people with annual adjusted gross incomes of $80,000 or less ($160,000 for a married couple). But Medicare-eligibles whose incomes exceed that amount will be expected to pay a greater share of the overall Medicare premium. The increases will be phased in over three years, starting in 2007 (see chart, page 32). Taking into account annual increases in Medicare Part B caused by inﬂation, the chart details what premiums could look like over the three-year phase-in of the means-testing system. MOAA remains as concerned today as it was three years ago about this plan to means-test what was enacted to be a universal health insurance plan for all older Americans. But the combination of worries about Medicare’s future solvency, the cost of the new Medicare drug program, and the coming tsunami of baby boomer retirees has forced Congress to look at new options to balance the Medicare books. Congress also learned from past (failed) efforts to means-test Medicare. By enacting changes several years ago but not having them take effect until 2007 (and by adjusting the levels each year for inﬂation), Congress greatly reduced the populations likely to object. AARP (which is the only organization powerful enough to have a chance at taking it on) has not objected — thus effectively accepting the means-testing plan as the price of winning drug coverage AUGUST 2006 http://www.capwiz.com/moaa/issues/bills http://www.capwiz.com/moaa/issues/bills http://www.capwiz.com/moaa/issues/bills

Table of Contents Feed for the Digital Edition of Military Officer - August 2006

Military Officer - August 2006 Contents From the Editor President’s Page Your Views MOAA Directory Rapid Fire Washington Scene Chapter Activities Financial Forum Ask the Doctor Changing of the Guard Four-Star Rating Long Term Care Kryptogram Pages of History Information Exchange MOAA Scholarship Donors Member Books Advertising Index MOAA Calendar Sounding Taps MOAA Member Services Encore

Military Officer - August 2006

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