HOUSE-SENATE CONFEREES TO NEGOTIATE KEY BENEFIT CHANGES
The House and Senate, in passing separate versions of the fiscal 2017 National Defense Authorization Act, haven’t yet agreed on the size of the next military pay raise, or how to reform health care or housing allowances, or whether to require all 18-year-old women to register with Selective Service to be part of a conscription pool in future major wars.
Ironing out these disparities, and many more consequential to military personnel, retirees and family members, will now fall to a House-Senate conference committee comprised of armed services committee members.
The committees’ professional staffs will negotiate many decisions in advance, on guidance from chairmen Sen. John McCain (R-Ariz.) and Rep. Max Thornberry (R-Texas), and senior Democrats Sen. Jack Reed (R.I.) and Rep. Adam Smith (Wash.). But the principals will need to engage behind closed doors on larger and more controversial topics to produce a single bill that either avoids or challenges a threatened veto from President Obama.
To achieve compromise, conferees will need to shed the political posturing routine in election years and make hard choices based on real budget ceilings. The House, for example, had refused to support another military pay raise cap in 2017 and deferred TRICARE fee increases to future generations of service members. Yet it only authorized funding for seven months of wartime operations next year in Iraq, Afghanistan and Syria.
Here are some of the tough decisions to be negotiated:
Pay Raise – The House bill supports a 2.1 percent January raise to match wage growth in the private sector. The Senate voted to cap the raise, for a fourth consecutive year, at 1.6 percent. A long-shot floor amendment from McCain to add $18 billion in defense spending authority, including several hundred million to support a larger pay raise, was defeated.
Basic Allowance for Housing – The Senate supports two substantial BAH “reforms.” It would dampen payments stateside to members, married or now, who share housing off base. It would cap payments to the lesser of what individuals actually pay to rent or the local BAH maximum for their rank and family status. House is silent on these. The White House opposes them.
TRICARE Reforms – The Senate embraces a portion of TRICARE fee increases that the administration proposed for working age retirees. It also incentivizes the fee system so patients pay less for services critical to maintaining their health and they pay more for incidental health services. Senate initiatives also emphasize improving access and quality of care.
The House rejects almost all higher fees and co-pays intended to drive patients, particularly retirees, back into managed care and military facilities. Both bills would narrow TRICARE options down to managed care and a preferred provider organization. But the House would require all current TRICARE Standard users to enroll annually to help better manage costs and resources. The House, however, would subject only new entrants to the military on or after Jan. 1, 2018, to higher TRICARE enrollment fees.
Female Draft Registration – Without debate on the topic, the Senate voted to require all women attaining the age of 18 on or after Jan. 1, 2018, to register with Selective Service. The House voted to strike similar language from its own defense authorization bill, leaving the issue to be fought behind closed doors of the conference committee.
The two defense policy bills, HR 4909 and S 2943, are aligned on some other important or even surprising benefit changes. These include:
Commissary Reform -- The Senate approved the same sweeping changes endorsed by the House to modernize commissary operations. They include a pilot program to replace the cost-plus-five-percent pricing formula with variable pricing across local markets. Both chambers also endorse allowing the Defense Commissary Agency to offer its own brand products to generate more profits and enhance patron savings, and to convert commissaries to non-appropriated fund activities like exchanges.
Click here to read more.