service is used as a recruiting incentive. This is clearly an inequity that must be corrected by this subcommittee. NCOA recommends this subcommittee authorize the S4 million needed to provide equity throughout the services and level the education opportunity "playing field” for all eligible members of the Coast Guard community. COAST GUARD RETIREE ISSUES NCOA has a number of retired force issues and concerns it wants to bring to the attention of this subcommittee. Some of the issues are directly related to Coast Guard funding requirements, however, others will be discussed as parity issues that will surface in other legislation but would be of benefit to the retired Coast Guard community. 0 Retired Pay Cost-Of-Living Adjustment (COLA): NCOA appreciates the efforts of this subcommittee to provide a 2.1 percent COLA to Coast Guard retirees effective January 1, 1998. Nonetheless, NCOA remains extremely concerned that last year's congressional activity included suggestions by some that the Consumer Price Index (CPI) overrates inflation. The Association believes this debate will continue into 1998. NCOA urges this subcommittee to continue to resist retirement or COLA proposals that would reduce the value or purchasing power of Coast Guard retired pay. 0 Concurrent Receipt: Despite the fact that cost is a major factor in changing the current offset between VA disability compensation and military retired pay, NCOA remains committed to correcting this equity. Retired pay and VA compensation are made for two distinctively different reasons. Yet, should a military retiree be adjudicated to be disabled by the VA, there continues to be a dollar for dollar offset in the payment of benefits. NCOA urges this subcommittee to work toward reducing or eliminating the current VA disability offset to military retired pay at least for the 100 percent or most severely disabled. MILITARY MEDICAL CARE Mr. Chairman, availability and access to military health care or alternative options that are needed to protect the medical care needs of military beneficiaries. Surveys of Coast Guard people and their families consistently show that medical care along with adequate pay, inflation protected retired pay and commissary availability are the top concerns of the Coast Guard community. In fact, with base and hospital closures and reductions in medical personnel, the increasing lack of no-cost health care is a major concern to active and retired personnel alike. Enlisted people, both active and retired, suffer the greatest impact because of their lower pay levels which cause them to place a greater value on the benefit. Currently more than 58 hospitals have been closed as part of the Base Realignment and Closure Commission (BRAC) or other actions. Services have been cut back at many of the hospitals remaining open and many of them have been and continue to be downgraded to clinic size. Hundreds of thousands of retirees (including Coast Guard) and their family members who received care in MTFs are now finding no care available. Retirees are being denied prescription drugs by MTF pharmacies in increasing numbers. They are told the prescribed drugs cost too much and are not stocked or are restricted for issue to active duty beneficiaries only. The TRICARE Program has been in development or implementation for nearly a decade, yet the TRICARE-Prime still does not cover certain parts of the United States. For example, in California where the military managed care system has been in place the longest, there are still areas without TRICARE Prime networks. However, despite the lack of established networks, the TRICARE-Standard/CHAMPUS option should be available. Unfortunately, the CHAMPUS Maximum Allowable Chare (CMAC) is so low many physicians will not accept it. The current system is broken, and must be fixed. NCOA fully supports keeping a strong, effective direct care system for the delivery of health care and in the best interests of medical readiness. The Association also supports making full use of the military treatment facilities and TRICARE networks as primary providers. However those retirees (Medicare-eligible) who are either "locked-out" of TRICARE-Prime or not guaranteed access to these primary sources of care should be offered a number of alternatives or options. In this regard, NCOA supports: 0 Medicare Subvention: NCOA is pleased that Congress passed legislation last year providing authority to provide a Medicare Subvention demonstration project at six sites across the United States. Although this action was a major step forward, the Association is greatly concerned by loss of military medical care access for the many Medicare eligible military retirees residing outside the confines of the demonstration test sites. Therefore, NCOA strongly supports the immediate implementation of the Medicare Subvention concept across the United States in order to provide immediate relief and to minimize the great injustice being done to all Medicare eligible military retirees who have lost earned health care benefits. 0 FEHBP as an Option: NCOA supports offering the Federal Employees Health Benefit Program (FEHBP) as an option to Medicare eligible military retirees, their families and survivors. Additionally, the Association also supports offering this option to TRICARE-Standard eligible beneficiaries residing outside of TRICARE-Prime catchment areas. Although not an issue that can be acted upon by this subcommittee, in the best interests of Coast Guard retirees, NCOA urges the subcommittee members to support any legislative effort to direct DoD to restore TRICARE-Standard or CHAMPUS as originally intended by Congress or authorize FEHBP as an option for all military retirees and their families. 0 Medicare Part B Enrollment Penalty Waiver: NCOA urges the subcommittee members to support the enactment of any legislation to waive the 10 percent per year Part B Medicare late enrollment penalty for military retirees whose access to the military health care system has been curtailed because of base closures or implementation of TRICAREPrime. 0 Mail-Order Pharmacy Program Expansion: Another legislative item that SURVIVOR BENEFIT PLAN Because of the efforts of Congress last year, military retirees who enroll in the Survivor Benefit Plan (SBP) can now withdraw from the program during the first year following the two-year anniversary date of their retirement. NCOA continues to recommend a legislative change to SBP which would permit 30-year paid-up coverage. CONCLUSION Mr. Chairman, perhaps the single most valuable effort this subcommittee could make to the well-being of the Coast Guard enlisted community and the armed forces in general is |