SECDEF-Designate Testifies at Confirmation Hearing

February 9, 2015 Share this on:

Inside this issue

 • SECDEF-Designate Testifies at Confirmation Hearing
 • Budget Proposal Would Close "90 Percent Loophole"
 • Budget Proposes Increase for Some Military Family Programs
 • A Look at the Commission's Education Proposals
 • Lawmakers Skeptical about Commission's Call to Abolish TRICARE
 • Commissioners Polled Off-Base Stores as Possible Commissary/BX Alternative
 • SECVA Defends Request to Defund "Veterans Choice" Program
 • Legislation of Interest

SECDEF-Designate Testifies at Confirmation Hearing

An article in the New York Times tells us that when Defense Secretary-Designate Ashton Carter
testified before the Senate Armed Services Committee (SASC), he "implored Congress to get rid of the
mandatory across-the-board budget cuts known as sequestration . . ." The article indicated that
committee chairman Sen. John McCain, R-Ariz., "expected that Mr. Carter's confirmation would go
before the full Senate before the next recess, which is to take place the week of Feb. 16."

Read more here.

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Budget Proposal Would Close "90 Percent Loophole"

A report by MainStreet.com tells us "The Obama administration has included a provision in its 2016
Budget that would close the loophole in a law that bars for-profit colleges from getting more than 90%
of their revenue from the federal government and end what for-profit critics have called predatory
marketing and lending practices aimed at military veterans and their families. The loophole now
excludes the GI Bill and the Department of Defense tuition assistance benefits from the 90% limit.

"About 44% of all student loan defaults come from for-profit colleges even though they only enroll
10% of all college students. . ."

The article quoted Senator Dick Durbin, D-Ill., as saying, "Closing the 90/10 loophole will put an end
to the powerful incentive for-profit colleges currently have to aggressively recruit service members and
veterans."

Source article here.

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Budget Proposes Increase for Some Military Family
Programs

A Military Times article reports, "Defense officials have beefed up their budget request for family
programs and services next year by about $400 million. . . The budget request also seeks money to fund
one new child care center and 10 construction projects that would replace or expand schools in the
Department of Defense Education Activity. The proposal asks for $6.8 billion in combined funding for
child care and youth programs; morale, welfare and recreation; family services; Defense Department
schools; and military spouse employment."

You can find more on this here.

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A Look at the Commission's Education Proposals

The Military Compensation and Retirement Modernization Commission (MCRMC) recommended
ending the Montgomery GI Bill (MGIB) and the Reserve Educational Assistance Program (REAP) in
favor of the Post-9/11 GI Bill and refunding all or part of the $1,200 members have paid into the MGIB
("The refund should be proportional to the amount of the Post-9/11 GI Bill benefit used.") The
Commission also recommended increasing the time-served requirement before a member can transfer
education benefits to a family member from six years of service to 10 years served and a commitment
to serve at least two more years. The panel also said that the housing stipend of the Post-9/11 GI Bill
should be ended for dependents, as should unemployment compensation for anyone receiving a housing
stipend.

The Commission also called for mandatory military-civilian transition education programs and for
States to have more flexibility to administer the Jobs for Veterans State Grants program. On a family-
related note, the commission recommended assigning a national military student identifier to each
military child to be better able to analyze how the military lifestyle affects military children and their
schoolwork.

You can review the entire MCRMC Report, including those relative to education benefits
(Recommendations Numbers 11, 12, and 15) here.

Those interested can read more about the Commission's GI Bill proposals as reported by
Military.com here.

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Lawmakers Skeptical about Commission's Call to
Abolish TRICARE

An article in The Hill reported on the Congressional response to the MCRMC's healthcare
proposals. . One Representative asked "how doing away with the [TRICARE] network and replacing
it with an array of private provider options would be an improvement. . ." Commissioner Steve Buyer
responded that "Tricare has 'diminished in its value' because it has such a limited provider network. . .
In addition, many healthcare providers don't join Tricare because the reimbursement rate is so low,
Buyer said.

"Rep. Adam Smith (Wash.), the panel's top Democrat, pressed the panelists on how much out-of-pocket
costs might rise under a private network, a question the commissioners couldn't fully answer. . ."

Read more here.

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Commissioners Polled Off-Base Stores as Possible
Commissary/BX Alternative

An article in the Military Times reports that, in examining the military commissary and exchange
benefits, the MCRMC commissioners asked off-base grocers and merchants if they would be willing to
provide discounts to military members. They received no support. The article tells us, "'Several of the
big chains [have] talked about issuing cards to the military. But when we asked their representatives
point blank, 'Would you do it?'... we never got a straight answer,' said commission member Dov
Zakheim, a former Pentagon comptroller. . ."

Those interested can read more here.

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SECVA Defends Request to Defund "Veterans Choice"
Program

Several members of Congress have expressed consternation that the President's FY 2016 Budget
proposal calls for undoing the Veterans Choice Card Program which was signed into law by the
President just last year. This law allows veterans to seek care in civilian facilities if their nearest VA
healthcare facility is more than 40 miles away from their home, or if they have to wait more than 30
days for an appointment. The law was prompted by scandals, excessively long appointment wait times,
and significant inadequacies in the Administration's VA healthcare system. Despite this, since the
Veterans Choice program became law last year, Secretary of Veterans Affairs (SECVA) Robert
McDonald has decried the Agency's loss of control of that aspect of veterans' healthcare.

An article in the Washington Times reports that House Veterans Affairs Committee Chairman Rep. Jeff
Miller, R-Fla., has labeled the President's proposal a "non starter."

You can read more on this here.

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Legislation of Interest

 H.R. 742, by Rep. Jackie Speier, D-Calif.; and S. 358, by Sen. Jeanne Shaheen, D-N.H.,
would ensure that military women and family dependents would have the same contraceptive
benefit as is provided by the Affordable Care Act to civilians. You can read more on
this here.

 H.R. 802, by Rep. Mike D. Rogers, D-Ala., would require DoD to develop and implement a
plan to provide chiropractic health care services and benefits for certain new beneficiaries as
part of the TRICARE program.

 S. 398, by Sen. Jerry Moran, R-Kan., would require the provision of chiropractic care and
services to veterans at all VA medical centers.

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