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Gene's Corner

 

              

          

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        !! Collectively We Can and have been Making a Difference !!   

 

 Legislative Update for March 12th , 2010:

 

 

We have no Action Alerts this week. However, see an update on the  21% cut in Medicare/TRICARE doctor payments at Issue 3.
 
SUMMARIES:
At a. we see that on 11 March DoD officials announced that more than 136,000 active duty spouses already enrolled in the Military Spouse Career Advancement Account (MyCAA) program will be able to resume using their accounts as March 13. But any spouse not currently in the system remains shut out of the program at this time. MOAA will continue working to ensure all military spouses receive equal opportunity for this important career assistance.
 
At b.  we are provided a link to have questions about TRICARE For Life, the Survivor Benefit Plan, or other military benefits answered by one of MOAA's benefits assistance specialists.
 
At c.  we see that HBO’s Emmy Award winning miniseries "Band of Brothers" will be portrayed in an epic 10-part miniseries that will track the intertwined odysseys of three U.S. Marines across the vast canvas of the Pacific front in WWII. "The Pacific" is scheduled to premiere on March 14, 2010 (ten one hour parts) and will be HBO’s biggest on-air and off-air event in 2010.
 
ISSUES:
At Issue 1. we see that a March 10 Senate Armed Services Personnel Subcommittee hearing featured testimony by the Pentagon's top personnel leaders and several Military Coalition (TMC) representatives, including MOAA Government Relations Director (and Coalition Co-chair) Col. Steve Strobridge (USAF-Ret). On a subsequent panel, Strobridge and the Coalition witnesses testified on an array of initiatives to support the military community, including Military pay raise, TRICARE, Concurrent Receipt, Survivor Benefits, Guard and Reserve, and Wounded Warriors.
  
At Issue 2. we see that late last week, both House and Senate Armed Services leadership sent bipartisan letters to their respective Budget Committees, seeking needed budget allocations to meet FY2011 military needs. They highlighted several top MOAA priorities, including:
* An across-the-board pay raise increase of 1.9% for military members
* Retroactive credit for early retirement qualification for deployed guardsmen and reservists
* Improved education programs for the Selected Reserve
* Concurrent receipt for all medically retired servicemembers
* Elimination of the SBP-DIC offset
 
At Issue 3. we see that on Wednesday, the Senate passed H.R. 4213, the unemployment benefits extender bill that also would postpone the looming 21% cut in Medicare/TRICARE doctor payments until October 1However, we're not out of the woods yet. The House still has to pass the revised bill, and if the House changes anything in it (as they likely will), House and Senate leaders will then have to work out those differences.
 

Collectively We Can and are Making a Difference

FOR ALL, Please feel free to pass these Weekly Legislative Updates on to your group of Veteran Friends - don't be concerned with possible duplications - if your friends are as concerned as we are with Veteran issues, they probably won't mind getting this from two or more friendly sources.

                                        SUMMARIES

 

 

a.  Pentagon Restarts Spouse Accounts
Defense leaders announced Thursday that the wildly popular Military Spouse Career Advancement Accounts (MyCAA) will be reinstated as of March 13 for the more than 136,000 active duty spouses already enrolled in the program.  (Click on Pentagon Restarts Spouse Accounts here or above or on  What was MOAA's role in this success here or below to see the details.  GF)

What was MOAA's role in this success.....and what about the needs of spouses who weren't yet enrolled?

b.  Ask MOAA’s Benefits Counselors
Do you have a question about TRICARE For Life, the Survivor Benefit Plan, or other military benefits? Log in to MOAA's Web Base and ask one of MOAA's benefits assistance specialists.  
  (Click on  Ask MOAA’s Benefits Counselors here or above to access the link to ask your question(s). GF)

 

c. HBO's The Pacific Premiers Sunday
From the creative team behind HBO's Emmy Award winning miniseries Band of Brothers comes an epic 10-part miniseries that will track the intertwined odysseys of three U.S. Marines across the vast canvas of the Pacific front in World War II. Watch a trailer here. 
(Click on   HBO's The Pacific Premiers Sunday  here or above to see the details.   GF)

 

 

 

 

                 ISSUES

Issue 1.  Senate Hearing Highlights People Concerns
New Chairman Jim Webb (D-VA) exchanged views with defense, MOAA, and other association leaders at a March 10 Armed Services Personnel Subcommittee hearing. (See Issue 1 below for the details. GF)  

Issue 2.  Armed Services Leaders Seek Budget Help
House and Senate Armed Services Committee leaders have asked their respective Budget Committees for budget headroom to make needed benefit improvements. (See Issue 2 below for the details. GF)

Issue 3.  Even Short Delay Is A Big Deal
This week, the Senate passed legislation to delay the 21% Medicare/TRICARE payment cut until October 1 (vs. April 1). Now the ball is in the House’s court. (See Issue 3 below for the details. GF) 

 


 

Issue 1.  Senate Hearing Highlights People Concerns

A March 10 Senate Armed Services Personnel Subcommittee hearing featured testimony by the Pentagon's top personnel leaders and several Military Coalition representatives, including MOAA Government Relations Director (and Coalition Co-chair) Col. Steve Strobridge (USAF-Ret).

New Subcommittee Chairman Jim Webb (D-VA) underscored his empathy with the military community and his intent to be an active chairman.

He said his father was an Air Force officer, he attended 9 different schools between the fifth and tenth grade, and "I'm the father of a Marine NCO who did some hard time in Iraq, and the father-in-law of a Marine infantry sergeant who, at age 24, is being deployed for the fourth time this coming July."

Webb intends to "exercise continuous and active oversight of all our military personnel matters." He called particular attention to the stress of lengthy deployments, noting, "We're in uncharted territory in terms of the long-term consequences."

He also acknowledged concerns about rising defense personnel costs, especially for health care.

The panel's ranking Republican, Sen. Lindsey Graham (R-SC), cited Webb as the "most clearly qualified [senator] to lead this subcommittee right now...When it comes to the troops, we’ll be as bipartisan as possible."

"Sustainability of health care is the issue," Graham said. "There's been no TRICARE premium increase since 1995, and eventually we'll have to deal with that."

Under Secretary of Defense for Personnel & Readiness Clifford Stanley, testifying for the first time in his new position, reported that recruiting and retention programs continue to be successful, and the services continue to maintain an all-volunteer force of top quality even after eight years of combat operations. But he acknowledged that rising personnel costs could affect readiness.

On a subsequent panel, Strobridge and the Coalition witnesses testified on an array of initiatives to support the military community:

Military pay raise: The Coalition urged adding at least one-half percentage point to the 1.4% military pay raise proposed in the defense budget - which would be the lowest raise since 1962, even while the Nation is imposing unprecedented sacrifices on troops and families.

TRICARE: Strobridge expressed the Coalition's gratitude that the new defense budget didn't propose any TRICARE fee increases, and urged the panel to include language in this year's defense bill to acknowledge that career military people pay huge, in-kind and up-front premiums through decades of service and sacrifice over and above fees paid in cash. He also urged the subcommittee to stop a scheduled Oct. 1 increase of more than $110-per-day above the current $535-per-day TRICARE Standard in-patient copay.

Concurrent receipt: Coalition witnesses expressed support for the President's initiative to end the disability offset for all medically retired members, with the ultimate goal of ending the disability offset to retired pay.

Survivor Benefits: When the Coalition urged ending the deduction of VA survivor benefits from military SBP annuities, Webb noted that his mother was an SBP annuitant and said how much it meant to her when Congress ended the Social Security offset to SBP several years ago.

Guard and Reserve: Priorities included authorizing reduced-retirement-age credit for all active service since 9/11/01, extending 9-11 GI Bill benefits to full-time Title-32 guard personnel, and authorizing Public Health Service and NOAA officers to transfer benefits to family members.

Wounded warriors: Strobridge cited the need to provide three years of active-duty level TRICARE coverage for disability retirees and to further improve protections for wounded warrior caregivers.  

 


 

Issue 2.  Armed Services Leaders Seek Budget Help

Late last week, both House and Senate Armed Services leadership sent bipartisan letters to their respective Budget Committees, seeking needed budget allocations to meet FY2011 military needs.

House Armed Services Chairman Ike Skelton (D-MO) and Ranking Member "Buck" McKeon (R-CA) highlighted several top MOAA priorities, including:

  • An across-the-board pay raise increase of 1.9% (.5% above the Employment Cost Index) for military members
  • Retroactive credit for early retirement qualification for deployed guardsmen and reservists
  • Improved education programs for the Selected Reserve
  • Concurrent receipt for all medically retired servicemembers
  • Elimination of the offset for survivors entitled to both the Survivor Benefit Program and Dependency and Indemnity Compensation

Senate Armed Services Chairman Carl Levin (D-MI) and Ranking Member John McCain (R-AZ) asked the Senate Budget leadership to support the Administration's concurrent receipt proposal.

The Administration's FY2011 defense budget proposes a five-year phase-out of the disability offset for all medical (Chapter 61) retirees. Rep. Joe Wilson (R-SC) has introduced legislation (H.R. 4525) to implement that plan.

Last year, neither the White House nor Congress identified a funding source to offset the initiative's cost ($264M in FY 2011 and $5.3B over the next ten years). The Skelton/McKeon letter expressed frustration that the White House again did not identify specific offsets, and said the Armed Services Committee will need the Budget Committee's help to make it happen.

Under congressional rules, increases in so-called "mandatory spending" (which includes concurrent receipt, Reserve retired pay, and SBP fixes) must be offset by increased revenue or cuts in other mandatory spending programs. Since the Armed Services Committees can’t cut retired pay to fund SBP or vice versa, they need leadership help to identify other offsets.

 


 

Issue 3.  Even Short Delay Is A Big Deal

On Wednesday, the Senate passed H.R. 4213, the unemployment benefits extender bill that also would postpone the looming 21% cut in Medicare/TRICARE doctor payments until October 1.

Without this fix, that patently unacceptable cut would take effect as of April 1.

But we're not out of the woods yet. The House still has to pass it, and if the House changes anything in it (as they likely will), House and Senate leaders will then have to work out those differences.

Since the massive bill has a $140 billion price tag and some of the cost offsets the Senate proposed to pay for it are the same ones proposed to help offset the cost of national health reform legislation, clear sailing is far from assured.

Everyone is sick and tired of this extended drama, and wants to find a way to get the 21% payment cut stopped. But if it were simple, it would have been done long ago.

For now, legislators need to find a way to get the six-month delay through…so we can all move on to thinking about what happens Oct. 1.

Stay tuned.

 
 
 
 
 
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Arizona Legislative Issues 

 

 

 

 

 

 

The Payday Lending industry is at it again.

 
House Bill HB 2370 'theft; merchandise pallets (Nichols)" is currently scheduled to be heard by the Senate Committee on Appropriations on Tuesday 16  March 2010 with a  Strike Everything Amendment titled 'pay day loans' It will contain some version of the original text from House Bill HB 2161 'payday loans; regulation'. The version has not yet been released, and we don't know when or if it will be released in a timely manner  so we need to act now to nip this in the bud to hopefully kill this Strike Everything amendment, potentiall even before the scheduled meeting. 
 
It is currently scheduled to be heard in Senate Hearing Room SHR 109 at 1:30 PM on the 16th for those in the Phoenix area who might have the time and inclination to attend and speak out when and if given the opportunity, and/or to just be present to show your opposition to this action. Be there 45 minutes to an hour early as the industry is expected to pack the hearing room with proponents for this legislation. Click on: http://www.azleg.gov/FormatDocument.asp?inDoc=/agendas/0316010993%2Edoc%2Ehtm  if you would like to see the current committtee agenda for 16 March and/or use the link to check the  agenda before departing for the meeting.
 
 This is another attempt to push through a Payday Lending bill. It's being done this time by a Senate 'strike everything' maneuver that amends an existing bill (HB 2370) that has been previously passed by the House, with revised  text from the original HB 2161 'payday loans; regulation' Bill. I am advised that it will undoubtedly still reflect an unacceptable APR (probably still 390%) and/or eliminate or postpone the scheduled 1 July 2010 termination date for the current law that permits a 460% APR on payday loans.

 

Below is a draft Email and instructions for editing if desired and easy forwarding to all Senate Committee on Appropriations members urging them to oppose the Strike Everything amendment to HB 2370 in their deliberations because of the adverse affect it would have on medically retired/separated Wounded Warrior families, Guard & Reserve (while not on active duty), retirees and other veterans, seniors and all too many other Arizona citizens who are now and will continue to be victims of exorbitant payday loan fees under this legislation.

 

In conclusion, I recommend that we each send an Email to all nine Senate Committee on Appropriations members urging them to oppose the HB 2370  Strike Everything Amendment 'pay day loans' if permits an Annual Percentage Rate in excess of the current 36% APR Arizona Usury cap for small loans.

 

Below is a list of members of the Senate Committee on Appropriations for those who may know any of them personally and for others who would be willing to contact them in person on this issue before 16 March. 

 

Sen. Rebecca Rios , Pinal County — (602) 926-5685
Sen. Amanda Aguirre , Yuma — (602) 926-4139
Sen. Sylvia Allen , Snowflake — (602) 926-5219
Sen. David Braswell , Phoenix, Glendale, Cave Creek — (602) 926-5284
(newly appointed senator; replaced Pamela Gorman)
Sen. Ron Gould , Lake Havasu City — (602) 926-4138
Sen. Jack Harper , Surprise — (602) 926-4178
Sen. Al Melvin , Tucson — COMMITTEE VICE-CHAIRMAN (602) 926-4326
Sen. Paula Aboud , Tucson — (602) 926-5262
Sen. Russell Pearce , Mesa — COMMITTEE CHAIRMAN — (602) 926-5760

 

 
 
 

Gene Fenstermacher

Colonel, USAF (Retired)
Veterans Legislative Affairs
AFA Cochise Chapter, MOAA Coronado Chapter
and  MOAA AZ Council of Chapters


Recommended message

 
Subject:  Committee on Appropriations Deliberations on HB 2370 S/E Amendment: 'pay day loans'
 
I join Veterans and concerned citizens statewide in urging you to oppose HB 2370 Strike Everything Amendment 'pay day loans' or any other pay day lending legislation maneuver if it permits an annual percentage rate (APR) in excess of the current 36% APR Arizona Usury cap for small loans and/or if it rescinds or postpones the sunset provision of current law. As originally written, the payday lending bill permitted an exorbitant 390% APR on Deferred Presentments (payday loans).  Reference paragraph F of Section 6-1260, Arizona Revised Statutes which would likely be amended by HB 2370 to read as proposed in the original payday lending bill HB 2161: "A licensee shall not directly or indirectly charge any fee or other consideration for accepting a check for deferred presentment or deposit that is more than fifteen per cent of the principal amount borrowed by the customer."  No matter how this fee is portrayed by the payday lending industry and/or how it is compared to credit card late payment or insufficient funds fees in their desperation, a 15% fee over a typical two week payday loan period is 390% APR (15% for 2 weeks X 26 two week periods in a year equates to 390% APR).
 
Such rates have adverse affect on medically retired/separated Wounded Warrior families, Guard & Reserve (while not on active duty), military retirees and other veterans, seniors and all too many other Arizona citizens who are now victims of exorbitant payday loan interest rates of 460% APR that would likely only be reduced to 390% APR by  the HB 2370 S/E Amendment. 
 
In the Fall of 2008, by a nearly 60% to 40% margin, citizens statewide spoke out to soundly defeat Proposition 200, a similar proposal that would have also established a 390% APR on payday loans. Let's not circumvent the will of the people though the legislative process. Please let Arizona Revised Statute Title 6, Chapter 12.1, Article 1, Section 6-1260:  'Deferred presentment; amount; fees; loans to members of military services', re-titled 'Deferred presentment; amount; fees; loans to members of military service; repayment plans' by the text of the original bill HB 2161, and related sections 'sunset'  (terminate) as scheduled on July 1, 2010 per current Section 6-1263, if the fee permitted by the HB 2370 S/E Amendment 'pay day loans' is left to exceed the 36% APR Arizona Usury cap on all small dollar loans.
 
Respectfully,
 

 

Senate Committee on Appropriations members:

 

paboud@azleg.gov; aaguirre@azleg.govsallen@azleg.gov; dbraswell@azleg.gov; rgould@azleg.gov; jharper@azleg.govrrios@azleg.gov; amelvin@azleg.gov;  rpearce@azleg.gov

 


 
 
INSTRUCTIONS
To send this message to all Senate Committee on Appropriations members, copy  everything between the red lines above and paste it in the body of a new Email.
 
Copy the words after Subject: from the text that you pasted in your Email, and paste it on the Subject: line of your new Email.  Then delete the word  Subject: and the subject line from the text.  Edit if desired and insert your name below "Respectfully," and IF DESIRED(recommended) add any or all of the following: your retired rank (if retired) or merely insert something like "Concerned Veteran" or "Concerned Citizen" as you deem appropriate, your address or merely your city of residence, and your Email address and phone number if desired.
 
Then copy the list of nine Senate Committee on Appropriations member addresses from the text of your new Email and paste it on the Bcc: line of your new Email.  If the Bcc: option doesn't appear on your display, click on Cc: and insert any address on the Bcc: line that now appears. Then click on "close". At the next display you can delete the address that you placed on the Bcc: line and then paste the Senate Committee on Appropriations member addresses on the Bcc: line
 
Then delete the phrase Senate Committee on Appropriations  members: and all of the addresses at the end of the text of your message, and make sure that only the text and your closing appear as the text of your Email 
 
Then hit"Send" to send the Email.
 
If you should have any rejections or other problems with any addressees, legislator Email addresses and phone numbers can be found at  www.azleg.gov/  by sliding your cursor over  "Senate" at the left of the home page menu bar and then click on "Members" on the drop down menus.