washingtonscene
pay (those who live longer than average deal. Unfortunately, the DoD Web site
TRICARE Therapy
sacrifi ce far more). That’s how much built to compare options does not offer
Relief Coming?
less REDUX is worth compared to the the same advice but rather presents this
normal system. as an investment choice.
a73 S. 46, introduced by
Sen. John Ensign (R-Nev.)
The deal is even worse for offi cer But it’s no choice at all. It’s guaranteed
would repeal the Medicare
REDUX-takers, who get the same size infl ation-protected income on one hand outpatient rehabilitation
bonus but sacrifi ce far more retired pay. versus a grossly low-balled lump-sum that
therapy caps for physical,
The harsh reality is that the REDUX law most takers end up spending on the other.
speech, or occupational
has put the military services in the position If those who take the “bonus” think
therapy. Congress has
authorized an exception
of “lifetime payday lenders” — unbounded they have a prayer of making up the loss
(until January 2010) to
by the consumer-protection rules required through investing, they’re sadly mistaken.
allow the payments to ex-
of other lenders, who must at least show the Who really expects to manage a 24-per- ceed the annual cap if such
borrower the annualized APR on any loan. cent-to-35-percent annual return on an
services are determined
And that’s what the REDUX “bonus” is investment? Nobody.
medically necessary.
— a loan against future retired pay, pure and And for those who did take the bonus
simple. The government gives you $23,000 and invest it in the stock market in the
after taxes now, and you pay the government past few years, one hesitates to ask,
back a big chunk of your retired pay every “How’s that working out for you?”
month for as long as you live. It’s time to end this scandal, get the mili-
According to MOAA’s calculations, for tary out of the sleazy “lifetime retired pay
an E-7 retiring with 20 years of service, loan” business, and repeal REDUX and its
it amounts to a 24-percent APR mort- grossly misnamed $30,000 “bonus.”
gage on retired pay. For an O-5 retiring
with 20 years of service, it’s a 35-percent
APR mortgage. TRICARE Bill
Rep. Chet
Edwards
(D-Texas)
Nobody in his or her right mind would
take out a mortgage like that on a home, Needs Support
car, or any other big-ticket item. Yet DoD
Edwards and Jones would bar
offers this lifetime retired pay loan to mili-
tary people as if it were a reasonable choice.
health care fee hikes.
While take rates are down from what
they were when the program fi rst started
at the beginning of this decade, 20 per-
cent to 40 percent of enlisted service- R
eps. Chet Edwards (D-Texas)
and Walter Jones (R-N.C.) have
reintroduced their Military Retir-
members still take the REDUX “bonus,” ees’ Health Care Protection Act (H.R. 816), Rep. Walter
depending on service, with offi cer take which would bar DoD from unilaterally
Jones
rates somewhat lower. increasing military TRICARE enrollment
(R-N.C.)
Many service leaders rationalize that fees, copayments, and other fees. Under
it’s the individual servicemember’s choice their legislation, only Congress would
and that it saves the military money. have that authority.
Excuse me? Let’s call it what it is: Edwards and Jones have championed
preying on the least-fi nancially minded this legislation for several years and
people — the very people who will need have been joined by hundreds of their
that money most in the future. colleagues who signed on as cospon-
MOAA prefers the approach taken by sors of their bill. Their effort, along with
the Navy and Marine Corps. Leaders of the resistance from top Armed Services
those services are blunt in telling their Committee leaders, is a big reason why
troops that taking the $30,000 is a bad Congress has [CONTINUES ON PAGE 34]
A P R I L 2 0 0 9 M I L I T A R Y O F F I C E R 3 1
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