TREA Washington Update

It’s hard to believe it was only a week ago that General David Petraeus, Commander of U.S. forces in Iraq, and Ryan Crocker, U.S. Ambassador to Iraq, testified before Congress and dominated the news of the week. But the visit of Pope Benedict to Washington these past few days quickly made everything else disappear from the headlines. Nonetheless, there was other news and some of it actually goes back to last week.

Just as the Pope overshadowed all other news this week, the testimony of Petraeus and Crocker overshadowed other important events last week. One of those was the testimony of the Vice Chief of Staff of the Army, General Richard A. Cody, and the Assistant Commandant of the Marine Corps, General Robert Magnus, before the House Armed Services Committee.

Cody and Magnus were reporting on the readiness of the Army and Marines Corps in light of the conflicts in Iraq and Afghanistan and their reports were alarming. According to General Cody, unprecedented strains on the Army are threatening the health and readiness of the troops. Soldiers are committing suicide at record levels, young officers are abandoning their Army careers and neither the Army nor the Marines Corps are confident they could successfully fight a new war if one came along.

“That marathon [Iraq and Afghanistan] has become an enduring relay and our soldiers continue to run - and at the double time,” General Cody told the committee. “Does this exhaust the body and mind of those in the race, and those who are ever present on the sidelines, cheering their every step? Yes. Has it broken the will of the soldier? No.”

In its coverage of Cody’s and Magnus’ testimony, the Associated Press reported that “military depots have been working in high gear to repair or rebuild hundreds of thousands of pieces of equipment – from radios to vehicles to weapons – that are being overused and worn out in harsh battlefield conditions.”

They also said that “both the Army and Marines Corps have been forced to take equipment from the non-deployed units and from pre-positioned stocks to meet the needs of those in combat – meaning troops at home can’t train on the equipment.”

Re-enforcing that testimony was the release this week of a study by the Rand Corporation that says “about 300,000 troops returning from Iraq and Afghanistan suffer symptoms of post-traumatic stress disorder or depression, but about half receive no care.” The study also said that it’s possible another 320,000 troops have sustained a possible traumatic brain injury during deployment, but they weren’t able to determine how many of those were serious or required treatment.

According to a report by the Reuters News Service, “…only half of the troops suffering debilities receive care. And in half those cases, the care is only minimally adequate.”

TREA is very concerned that all of our troops be given the proper care and treatment for their injuries, whatever they are. The fact that only half of the men and women who have suffered a debilitating injury receive the care they need is very troubling to us. That’s why we are working hard to make sure that ALL veterans, no matter when or where they served, receive the kind of care they need and deserve.

And as the Iraq war continues, DoD announced on Monday that at least 4,034 members of the U.S. military have died since the beginning of the war five years ago.

2. WARNING: Be Careful Before You Have Any Scheduled Hospitalization

TREA has learned that some hospitals are playing games with Medicare and as a result, some Tricare insureds are ending up owing hospitals large amounts of money. Here are the details.

Recently, some Tricare insureds have gone into the hospital thinking that their medical procedure was covered by both Tricare and Medicare. However, after they go home they discovered that the hospital will not accept Medicare payments.

Since hospitals must accept Medicare if they accept Tricare, why is this happening?

It turns out that the hospitals still accept Tricare, and they still accept Medicare payments if the patient has previously been treated in that hospital. However, they are not accepting any new Medicare patients. Thus, if the Tricare insured has not previously been a patient at that hospital, the patient ends up having to pay the Medicare portion of the bill out of pocket.

Although this seems very unfair to us and is really “playing games” with Medicare and with patients, it is legal.

Therefore, we warn you to make sure anytime you are having scheduled hospitalization that the hospital will take both Tricare and Medicare if you are a new patient in that hospital.

3. HUD Deputy Secretary Bernardi, VA Secretary Peale And Mayor Bloomberg Announce HUD And VA To Provide Permanent Housing For An Estimated 10,000 Homeless Veterans

$75 Million Program To Reduce the Number Of Homeless Vets Nationwide

U.S. Department of Veterans Affairs Secretary James B. Peake and U.S. Housing and Urban Development Deputy Secretary Roy A. Bernardi have announced $75 million to provide permanent supportive housing for an estimated 10,000 homeless veterans nationwide. Bernardi and Peake made the announcement with Mayor Michael R. Bloomberg at a newly renovated housing program for homeless veterans in Queens, and emphasized the Federal and local government’s partnership to house and support America’s homeless veteran population.

“We are deeply grateful for the service and sacrifice by our nation’s veterans and we must make every effort to help them as they struggle to avoid a life on the streets,” said Bernardi. “This program is one opportunity to say, ‘Thank You’ and to make certain that we serve them as they once served us.”

HUD’s Veterans Affairs Supportive Housing Program (HUD-VASH) will provide local public housing agencies with approximately 10,000 rental assistance vouchers specifically targeted to assist homeless veterans in their area. In addition, the VA and HUD will link local public housing agencies with VA Medical Centers to provide supportive services and case management to eligible homeless veterans.

HUD will allocate the housing vouchers to local public housing agencies (PHAs) across the country that are specifically targeted to homeless veterans based on a variety of factors, including the number of reported homeless veterans and the proximity of a local VA Medical Center with the capacity to provide case management. New York City and the greater Los Angeles area received the greatest number of vouchers using this criterion.

HUD will provide housing assistance through its Section 8 Housing Choice Voucher (HCV) program which allows participants to rent privately owned housing. The VA will offer eligible homeless veterans clinical and supportive services through its medical centers across the U.S and Puerto Rico. Last year, the VA provided health care to more than 100,000 homeless veterans and other services to over 60,000 veterans in its specialized homeless programs. The Bush Administration’s proposed FY 2009 Budget seeks to double the amount of funding announced today to provide an additional $75 million to support the housing and service needs of an additional 10,000 homeless veterans across America.

Local communities or “Continuums of Care” that receive HUD homeless assistance will work with local VA Medical Centers to identify eligible participants. The VA will then screen homeless veterans to determine their eligibility. Those eligible vets will receive treatment and regular case management to retain the voucher. VA Medical Center case managers will also work closely with local housing agencies to help participants find suitable housing. Participating PHAs will also determine income eligibility in accordance to HUD regulations for the HCV program.

4. Subcommittee Considers Measures to Improve Veterans’ Occupational Opportunities

The Subcommittee on Economic Opportunity of the House Veterans Affairs Committee heard testimony this week on a number of bills to address issues affecting veterans’ socio-economic status.

Among those testifying was Rep. Steve Buyer (R-Ind.), Ranking Member of the Committee on Veterans’ Affairs, who voiced support for H.R. 5684, the Veterans’ Education Improvement Act of 2008. The bipartisan bill, introduced by Subcommittee Chair Stephanie Herseth-Sandlin (D-S.D.), would increase GI Bill benefits. Eligible veterans could receive more than $17 thousand per school year, not counting other federal aid for which they might qualify. The bill is co-sponsored by Subcommittee Ranking Member John Boozman (R-Ark.).

“This legislation presents an approach that is manageable and affordable,” Boozman said. “I am very pleased we will be taking action on improving education benefits for our veterans and I look forward to passing the bill next week.”

Also considered was H.R. 3681, the Veterans’ Benefits Awareness Act of 2007. The bill, introduced by Boozman, would authorize the Department of Veterans Affairs (VA) to use electronic media to inform veterans about their benefits.

“Over the years, Congress has authorized millions of dollars for VA to raise awareness of veteran’s benefits,” Boozman said. “VA has produced some good brochures and posters, but prime-time TV and radio advertisements have been lacking.”

The final bill, H.R. 3889, A Longitudinal Study of the Department of Veterans Affairs Vocational Rehabilitation Programs, also introduced by Boozman, would direct VA to develop a results database for the VA Vocational Rehabilitation and Employment program.

“Unfortunately, there is relatively little long-term data on how well Voc Rehab improves the lives of seriously injured veterans,” Boozman said. “Conducting a 20-year longitudinal study will allow better policy and management decisions for both VA and Congress.”

5. Pay in Vets’ Work Program Ruled Tax-Free
Ruling on Compensated Work Therapy Retroactive Three Years

Payments provided to veterans under two specific programs of the Department of Veterans Affairs (VA) -- the Compensated Work Therapy (CWT) and Incentive Therapy (IT) programs -- are no longer taxable, according to the Internal Revenue Service. Veterans who paid tax on these benefits in the past three years can claim refunds.

Recipients of CWT and IT payments no longer receive a Form 1099 (Miscellaneous Income) from VA. Veterans who paid tax on these benefits in tax years 2004, 2005 or 2006 can claim a refund by filing an amended tax return using IRS Form 1040X. Nearly 19,000 veterans received CWT benefits last year, while 8,500 received IT benefits.

The IRS agreed with a U.S. Tax Court decision earlier in 2007 that CWT payments are tax-free veterans benefits. In so doing, the agency reversed a 1965 ruling that these payments were taxable and required VA to report payments as taxable income.

The CWT and IT programs provide assistance to veterans unable to work and support themselves. Under the CWT program, VA contracts with private industry and the public sector for work by veterans, who learn new job skills, strengthen successful work habits and regain a sense of self-esteem and self-worth. Veterans are compensated by VA for their work and, in turn, improve their economic and social well-being.

Under the IT program, seriously disabled veterans receive payments for providing services at about 70 VA medical centers.

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