[Senate Hearing 111-701, Part 6] [From the U.S. Government Printing Office] S. Hrg. 111-701 Pt. 6 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2011 ======================================================================= HEARINGS before the COMMITTEE ON ARMED SERVICES UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION ON S. 3454 TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2011 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR, AND FOR OTHER PURPOSES __________ PART 6 PERSONNEL __________ MARCH 10, 24; APRIL 28; MAY 12, 2010 __________ Printed for the use of the Committee on Armed Services Available via the World Wide Web: http://www.fdsys.gov/ U.S. GOVERNMENT PRINTING OFFICE 62-159 WASHINGTON : 2011 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON ARMED SERVICES CARL LEVIN, Michigan, Chairman ROBERT C. BYRD, West Virginia JOHN McCAIN, Arizona JOSEPH I. LIEBERMAN, Connecticut JAMES M. INHOFE, Oklahoma JACK REED, Rhode Island JEFF SESSIONS, Alabama DANIEL K. AKAKA, Hawaii SAXBY CHAMBLISS, Georgia BILL NELSON, Florida LINDSEY GRAHAM, South Carolina E. BENJAMIN NELSON, Nebraska JOHN THUNE, South Dakota EVAN BAYH, Indiana ROGER F. WICKER, Mississippi JIM WEBB, Virginia GEORGE S. LeMIEUX, Florida CLAIRE McCASKILL, Missouri SCOTT P. BROWN, Massachusetts MARK UDALL, Colorado RICHARD BURR, North Carolina KAY R. HAGAN, North Carolina DAVID VITTER, Louisiana MARK BEGICH, Alaska SUSAN M. COLLINS, Maine ROLAND W. BURRIS, Illinois JEFF BINGAMAN, New Mexico EDWARD E. KAUFMAN, Delaware Richard D. DeBobes, Staff Director Joseph W. Bowab, Republican Staff Director ______ Subcommittee on Personnel JIM WEBB, Virginia, Chairman JOSEPH I. LIEBERMAN, Connecticut LINDSEY GRAHAM, South Carolina DANIEL K. AKAKA, Hawaii SAXBY CHAMBLISS, Georgia E. BENJAMIN NELSON, Nebraska JOHN THUNE, South Dakota CLAIRE McCASKILL, Missouri ROGER F. WICKER, Mississippi KAY R. HAGAN, North Carolina GEORGE S. LeMIEUX, Florida MARK BEGICH, Alaska DAVID VITTER, Louisiana ROLAND W. BURRIS, Illinois SUSAN M. COLLINS, Maine JEFF BINGAMAN, New Mexico (ii) C O N T E N T S ---------- CHRONOLOGICAL LIST OF WITNESSES Active, Guard, Reserve, and Civilian Personnel Programs march 10, 2010 Page Stanley, Hon. Clifford L., Under Secretary of Defense for Personnel and Readiness........................................ 6 Lamont, Hon. Thomas R., Assistant Secretary of the Army for Manpower and Reserve Affairs................................... 30 Garcia, Hon. Juan M., III, Assistant Secretary of the Navy for Manpower and Reserve Affairs................................... 38 Ginsberg, Hon. Daniel B., Assistant Secretary of the Air Force for Manpower and Reserve Affairs............................... 42 Barnes, Master Chief Joseph L., USN (Ret.), National Executive Director, Fleet Reservse Association........................... 71 Moakler, Kathleen B., Government Relations Director, National Military Family Association.................................... 77 Cline, Master Sergeant Michael, USA (Ret.), Executive Director, Enlisted Association of the National Guard of the United States 96 Holleman, Deirdre Parke, Executive Director, The Retired Enlisted Association.................................................... 98 Strobridge, Steven P., USAF (Ret.), Director of Government Relations, Military Officers Association of America............ 100 Military Health System Programs, Policies, and Initiatives march 24, 2010 Cardin, Hon. Benjamin L., U.S. Senator from the State of Maryland 181 Rice, Charles L., M.D., Performing the Duties of the Assistant Secretary of Defense for Health Affairs, and Acting Director, Tricare Management Activity.................................... 185 Hunter, RADM Christine S., USN, Deputy Director, Tricare Management Activity............................................ 192 Schoomaker, LTG Eric B., USA, Surgeon General of the U.S. Army, and Commander, U.S. Army Medical Command....................... 194 Robinson, VADM Adam M., Jr., USN, Surgeon General of the U.S. Navy, and Chief, Navy Bureau of Medicine and Surgery........... 218 Green, Lt. Gen. Charles B., USAF, Surgeon General of the U.S. Air Force.......................................................... 227 Jeffries, RADM Richard R., USN, Medical Officer of the U.S. Marine Corps................................................... 235 Military Compensation and Benefits, Including Special and Incentive Pays april 28, 2010 Carr, William J., Deputy Under Secretary of Defense for Military Personnel Policy............................................... 313 Farrell, Brenda S., Director, Defense Capabilities and Management, Government Accountability Office................... 317 (iii) Murray, Carla Tighe, Senior Analyst, National Security Division, Congressional Budget Office.................................... 323 Hosek, James R., Director, Forces and Resources Policy Center, RAND National Security Research Division....................... 330 Reserve Component Programs may 12, 2010 McCarthy, Hon. Dennis M., Assistant Secretary of Defense for Reserve Affairs................................................ 369 McKinley, Gen. Craig R., USAF, Chief, National Guard Bureau...... 378 Wyatt, Lt. Gen. Harry M., III, USAF, Director, Air National Guard 379 Carpenter, MG Raymond W., ARNG, Acting Director, Army National Guard.......................................................... 380 Stultz, LTG Jack C., USAR, Chief of Army Reserve; and Commanding General, U.S. Army Reserve Command............................. 396 Debbink, VADM Dirk J., USN, Chief of Navy Reserve; and Commander, Navy Reserve Force............................................. 401 Kelly, Lt. Gen. John F., USMC, Commander, Marine Forces Reserve; and Commander, Marine Forces North............................. 409 Stenner, Lt. Gen. Charles E., Jr., USAF, Chief of Air Force Reserve; and Commander, Air Force Reserve Command.............. 419 Stosz, RADM Sandra L., USCG, Acting Director of Reserve and Training, U.S. Coast Guard..................................... 428 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2011 ---------- WEDNESDAY, MARCH 10, 2010 U.S. Senate, Subcommittee on Personnel, Committee on Armed Services, Washington, DC. ACTIVE, GUARD, RESERVE, AND CIVILIAN PERSONNEL PROGRAMS The subcommittee met, pursuant to notice, at 10:33 a.m. in room SR-232A, Russell Senate Office Building, Senator Jim Webb (chairman of the subcommittee) presiding. Committee members present: Senators Webb, Hagan, Begich, Graham, and Chambliss. Majority staff members present: Jonathan D. Clark, counsel; Gabriella Eisen, counsel; and Gerald J. Leeling, counsel. Minority staff members present: Diana G. Tabler, professional staff member; and Richard F. Walsh, minority counsel. Staff assistants present: Jennifer R. Knowles and Brian F. Sebold. Committee members' assistants present: Juliet Beyler and Gordon Peterson, assistants to Senator Webb, Lindsay Kavanaugh, assistant to Senator Begich; Clyde Taylor IV, assistant to Senator Chambliss; and Adam Brake, assistant to Senator Graham. OPENING STATEMENT OF SENATOR JIM WEBB, CHAIRMAN Senator Webb. Good morning. The subcommittee will come to order. The subcommittee meets today to receive testimony on the Active, Guard, Reserve, and civilian personnel programs in review of the National Defense Authorization Request for Fiscal Year 2011 and the Future Years Defense Program. We will have two panels today. The first panel's witnesses are the senior civilian officials in the Department of Defense (DOD) and the military departments who are responsible for personnel matters. I welcome The Honorable Clifford Stanley, Under Secretary of Defense for Personnel and Readiness; The Honorable Thomas Lamont, Assistant Secretary of the Army for Manpower and Reserve Affairs; The Honorable Juan Garcia, Assistant Secretary of the Navy for Manpower and Reserve Affairs; and The Honorable Daniel Ginsberg, Assistant Secretary of the Air Force for Manpower and Reserve Affairs. Nobody wants to sit in this center seat, here? [Laughter.] Dr. Stanley, feel free to be the major focal point of the room. [Laughter.] Our second panel will include witnesses drawn from associations that represent and advance the interests of Active Duty, Reserve, and retired servicemembers and their families. I'll introduce our second panel when it convenes, but I wish to express my appreciation to all our witnesses for joining us this morning. This is my first hearing as chairman of this subcommittee. The subcommittee's jurisdiction extends to virtually all matters of personnel policy--compensation, military healthcare, military nominations, civilian personnel. I'd like to say, at this point, that I intend for this subcommittee to exercise continuous and active oversight of all our military personnel matters, through hearings, through consideration of the Department's budget and legislative proposals, and also through day-to-day interaction with you and people who work with you, and with our committee staff, as well. This hearing is one part, and one part only, of that process. There's no greater responsibility for Congress and military leaders, as our witnesses all know, than to care and provide for our servicemembers and for their families. This is a concept of stewardship that I, and I think all of my compatriots up here, feel about very strongly. I grew up in the military, as many of you know. I know what it's like to have a parent deployed. I also know what that means, in terms of the responsibilities and the challenges of family members. I can remember, at one point, when--my father was career Air Force--I went to a different school in the fifth grade, sixth grade, seventh grade, three different schools in the eighth grade, the ninth grade, two different schools in the tenth grade, from England to Missouri to Texas to Alabama to California to Nebraska, and I know how that stresses the families, and I know how important it is for us to always keep that in mind. I had the honor of serving with the Marine Corps infantry in Vietnam. I understand a lot of the stresses of what it means to be deployed in combat. I'm a father of a Marine NCO who had some hard time in Iraq, and also the father-in-law of a Marine infantry sergeant, who is now, at the age of 24, looking to be deployed for the fourth time, coming this July. That, coupled with the experience that I was able to gain through 5 years in the Pentagon--one as a Marine officer, three having responsibility for our Guard and Reserve programs, about which I feel very strongly, and the other as Secretary of the Navy--we got a very good look, in the 1980s, at the evolution of the total-force concept, where the manpower challenges came from, force-structure issues, and those sorts of things, and they will come to play here, in this subcommittee, as we move forward. We're very cognizant of the fact DOD, supported by this committee, has instituted many innovative programs over the past several years in order to deal with the challenges that have occurred since September 11, 2001. I would mention, briefly, since this is my first hearing as chairman of this subcommittee, that the Commonwealth of Virginia has a long history, in terms of taking care of, and being host to, one of the largest Active Duty and retired military populations in our country, and I'm honored to serve in the tradition of John Warner, who is no longer in the Senate, but gave tremendous service to this committee and also to the people of Virginia, in this area. Our military is now engaged in its 9th year of combat operations since September 11. Our Guard and Reserve components have played critical roles during this period, in ways that were not envisioned at the inception of the All-Volunteer Force and, quite frankly, were not envisioned when I was Assistant Secretary of Defense for Reserve Affairs. It's also important for us to remember that the All- Volunteer Force is not an all-career force. Sometimes we lose that focus when we have people from the Pentagon coming over here talking to us about programs. The Services do a very fine job of attending to the needs of its career force, but we should always keep in mind our stewardship to those who feel, in the citizen-soldier tradition of this country, that they should come in and obligate themselves for one enlistment, and return to their communities. The data that we received when we were formulating the GI Bill was that 75 percent of the Army enlisted folks, and 70 percent of the Marine Corps, and roughly half of the other two Services, leave the military on or before the end of their first enlistment. Those numbers may have varied a bit with the economic conditions right now, but those are the people that we should never forget when we come up--in talking about these other programs. I'm look forward, greatly, to serving with our subcommittee's ranking member, Senator Graham, in addressing these challenges, and to ensure the long-term viability of the All-Volunteer Force, not simply in numbers, but also in quality. Everyone in this room is very familiar with Senator Graham's service, not only on this committee, but also to our country, continuing to serve as a colonel in the Air Force Reserve. He brings valuable perspective, I think, as everyone has seen, as we've attempted to work through the issues of the Guantanamo Bay detainees and many other areas. He's served regularly on Active Duty, and his duties have allowed him to keep his finger on the pulse of the men and women in our military today. He and I have collaborated on a number of important issues over the past 3 years, and I welcome this opportunity to work with him even more closely during the months and years ahead. The All-Volunteer Force is stressed by the past 9 years of conflict. Having experienced multiple deployments, extended deployments to Afghanistan, Iraq, this is especially true of our ground forces. We're entering uncharted territory, in terms of the long-term consequences of past rotation cycles and an unsatisfactory deployment-to-dwell ratio that is only now beginning to be corrected. Despite authorizing more than 55,000 additional Active-Duty servicemembers in the last year, today's dwell times are still inadequate to ensuring the vital recuperation, revitalization, and reset of the force and their families. I'm concerned about that impact on the resilience of the force, and we'll have some questions, during your testimony, with respect to those issues. This subcommittee faces a very clear and immediate challenge, and that is in addressing the rising costs of personnel. The combination of rising end strengths and an increasing compensation package continues to send personnel- related costs soaring. As Secretary Gates recently said, ``The costs of healthcare are eating the Department alive.'' The total personnel-related budget in the Department's fiscal year 2011 request, including the cost of providing healthcare to servicemembers, their families, and retirees, amounts to $178 billion, or 32 percent of the overall DOD base budget. By contrast, when I was Secretary of the Navy in 1987, I think the entire Navy budget was right about $100 billion. Compare that with the fiscal year 2003 total personnel-related spending, including healthcare, amounted to $114 billion. That's an increase of 56 percent from fiscal year 2003 to fiscal year 2011. By all accounts, that growth is going to continue. Though these challenges are steep, we should also be thankful for the successes that the Department and our Services have enjoyed. The combination of patriotism, a stagnant economy, a robust compensation package, including retirement, healthcare, and education benefits, have allowed the Services to achieve historic highs in recruiting and retention. The quality of our people has also been sustained. Waivers are down across the Services, test scores are up, and the vast majority of new recruits are high school graduates, a higher percentage than just a couple of years ago. These are all strong indicators of the quality of character and service that our people in uniform exhibit, across the board, day after day. I look forward to hearing from both panels this morning. I would encourage you to express your views candidly and, in addition relating to what you see going well, to address your concerns in those issues that you believe this subcommittee needs to pay attention to. I, along with Senator Graham and our colleagues, are dedicated to the prospect of ensuring that our military remains the very best in the world. Senator Graham. STATEMENT OF SENATOR LINDSEY GRAHAM Senator Graham. Thank you, Mr. Chairman. As I listened to your opening statement, it really struck me that, of all of the people in the Senate, you're clearly, I think, the most qualified person to lead this subcommittee right now, in the sense of your understanding the personnel issues and just your personal history. I want to also acknowledge that Senator Nelson was a complete joy to work with, and he's gone to another subcommittee. But, Mr. Chairman, I promise, when it comes to the troops, we'll be as bipartisan as possible. I think we've proven, between the two of us, that we can disagree, but also find common ground on things that really do matter. I was on a plane not long ago, and on that one plane I had a young man come up to me who had just gotten out of the military, he's going to Harvard, and he mentioned the GI bill that you authored and we worked together to pass. It really is working. There's a lot of implementation problems, but the fact that this young man is able to get most of his college education paid for, if not all, for serving 4 years, going to Harvard, I think, is a testament to that bill. The guy sitting right by me was a 28-year service Air Force colonel who is going to transfer his benefits to his youngest daughter going to college, and he was just telling me how much that meant to his family. So, what we're able to accomplish there, with your leadership, is really helping people. The one thing I would suggest is, the President's budget-- I'm going to try to support as much as possible. The 1.4- percent pay raise is the least we can do. We all wish it would be more, but we do have budget problems up here. The sustainability of healthcare is the issue, I think, for us on this committee, and maybe the Congress as a whole, because, as you talked about your time with the Navy, the budgets have grown, the obligations are great, so few people are doing so much for so long. Here we are, 9 years almost into this war, and we're growing the military. I think that's a wise thing to do. Personnel costs are 30-something percent of the budget, but the healthcare component is 8 percent of the budget, growing, it's going to be hard to sustain that. We haven't had a premium increase in TRICARE since 1995. I want to do everything I can to help the families and retirees and military members, but eventually we're going to have to deal with that problem: How do you sustain the growth of TRICARE and other medical benefits within the budget before you start taking away from the warfighter? That means some hard decisions are to come. When it comes to ``Don't Ask, Don't Tell,'' I think we all are waiting to see what this survey shows, and try to make an intelligent decision based on input from the military, and I would just urge my colleagues to let that run its course. With that, Mr. Chairman, I will listen to the witnesses and look forward to working with you. Again, I think, between the two of us and the members of this committee, we can do some good things for our men and women in uniform. One last thought. Senator Chambliss has a bill that I've been working with to lower retirement age for Guard and Reserve members who have served on Active Duty since September 11, 2001. For every year they would serve, or 90 days they would serve, they could retire a bit earlier, all the way down to 55. That has a cost associated with it, but I think it's an idea whose time has come, and I look forward to working with you to see if we can make that possible. Mr. Chairman, I look forward to being your ally and colleague on this. Now is the time for me to shut up and let the people who are in charge talk. Senator Webb. Let me say that I can't think of a better person to be working with than Senator Graham on these issues, as well. Senator Graham. Thank you. Senator Webb. We've received statements for the record from the Fleet Reserve Association, the Reserve Officer Association, and, without objection they will be included in the record at this point. We've also received a statement for the record from Senator Bill Nelson, who could not be here, and, without objection, that will be included in the record after the principal statements of our witnesses. [The prepared statement of Senator Bill Nelson follows:] Prepared Statement by Senator Bill Nelson Mr. Chairman, thank you for allowing me to speak about one of the last injustices plaguing the veterans' benefits system. I am talking about the offset between the Department of Defense (DOD) Survivor Benefit Plan (SBP) annuity and the Department of Veterans Affairs (VA) Dependency and Indemnity Compensation (DIC) benefit. SBP is an annuity paid by the DOD to survivors when either a military retiree pays a premium as income insurance for their survivors or when a servicemember dies on active duty. DIC is a survivor benefit paid by the Veterans Administration. Survivors receive DIC when military service caused the servicemember's death. There is a longstanding problem in our military survivor benefits system, the requirement for a dollar-for-dollar reduction of survivor benefits from the SBP paid by DOD by the amount of DIC received from the VA. I have fought for 9 years to eliminate the offset for SBP beneficiaries whose loved ones purchased or earned this annuity. Following the bloodiest of America's wars, President Abraham Lincoln, in his second inaugural address, said that one of the greatest obligations in war is to ``finish the work we are in; to bind up the Nation's wounds; to care for him who shall have borne the battle, and for his widow, and his orphan.'' To truly honor our servicemembers, we all agree that the U.S. Government must take care of our veterans, their widows and orphans. In keeping with that moral principle, we must repeal the unjust offset that denies widows and orphans the annuity their deceased loved ones have earned on active duty or purchased for them. In the 2008 National Defense Authorization Act, we cracked the door to eliminating the offset. In conference negotiations with the House, we made some progress when we got a ``special payment'' of $50 per month, which will increase to $310 per month by 2017 because of money savings found in Tobacco Legislation passed last year. Our efforts have been important steps in the right direction, but they are not enough. We must meet our obligation to the widow and orphan with the same sense of honor as was the service their loved one had rendered. We must completely eliminate the SBP-DIC offset. I commend many of the organizations represented by the witnesses today for the support they have shown and hard work put in for full repeal of the offset. I ask DOD to work with Congress to honor the retirees, the fallen, and their families, and budget for full repeal of the SBP-DIC offset. Thank you, Mr. Chairman. Senator Webb. With that, we would begin with Dr. Stanley, and then move to Mr. Lamont, Mr. Garcia, and Mr. Ginsberg, in that order. Dr. Stanley, welcome. STATEMENT OF HON. CLIFFORD L. STANLEY, UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND READINESS Dr. Stanley. Good morning, Senator Webb and Senator Graham and other distinguished members of the subcommittee. First of all, let me just say I'm honored to be here, and particularly with colleagues and, in some cases, just meeting today. As I speak to you concerning DOD's personnel programs and readiness, for the past 3 weeks, as the Under Secretary of Defense, I've had the honor of working and interacting with some of the greatest men and women in uniform, DOD civilians, contractors, and their great families. It is truly a privilege to serve them in this position. I first want to thank you for your support of these men and women over the years. They have fought our wars, protected our interests and our allies around the globe. I look forward to working closely with this committee to improve support for those in uniform, the civilian employees of the Department, and their families. Just a few short months ago, I appeared before you as President Obama's nominee to be the Under Secretary of Defense for Personnel and Readiness. At that time, I emphasized several top priorities: the All-Volunteer Force, support to wounded warriors, personnel readiness, family programs, and the stress that is affecting our military today. In terms of military personnel, the Services are experiencing historic success in recruiting and retention. It is a tribute to both the dedication of our military personnel and to the patriotism of our Nation's citizens that we continue to maintain an All-Volunteer Force of unprecedented quality after more than 8 years in active combat operations. I am happy to report that in fiscal year 2009, the Services have had the most successful recruiting year of all the All- Volunteer Force era. All four Active Services and all six elements of the Reserve component achieved both numerical and recruit quality targets for the first time, which is a banner year. To continue to secure sufficient personnel for the Armed Forces, the Department must provide a compensation package comparable and competitive to the private sector at the same time we balance the demands of an All-Volunteer Force in the context of growing equipment and operational costs. The Department continues this commitment through the President's request for a 1.4-percent increase in military pay for all servicemembers in the fiscal year 2011 budget, an amount that equals earning increases in the private sector, as measured by the Employment Cost Index. Of note, from the January 1, 2002, through the January 1, 2010, pay raises, military pay rose about 42 percent, and the housing allowance rose by 83 percent. During the same period, private-sector wages and salaries rose only 32 percent. While there is little question that those increases were necessary in the past, rising personnel costs could dramatically affect the readiness of the Department. We are at a point where discretionary spending offers the best ability to target specific skills, and the quality and quantity of those filling such positions. I believe the Services still require the use of special pay and bonuses to ensure sufficient operational readiness and our mission. Our military forces maintain an exceptionally high level of readiness, but multiple deployments to Iraq and Afghanistan have certainly increased the stress on our servicemembers and their families. We have a number of initiatives underway to address this stress, and have set clear limits and goals for the deployment lengths and the amount of time, or ``dwell,'' between deployments. To that end, we have limited our unit deployments to 1 year in theater, a minimum of 1 year between deployments for our Active component. Our goal is to increase the time between deployments to 2 years for every year deployed, commonly called a 1-to-2 dwell ratio. For the Reserve component, we have limited the mobilization period to 1 year, and we strive to have a minimum 3-year break between mobilizations. The goal of the Reserve component dwell ratio is 1 year mobilized, with a 5-year break between mobilizations, or a 1-to-5 dwell ratio. Although we are not there yet, we are making progress toward those goals. The Department is focused on care for our wounded, ill, and injured military members. As Secretary Gates stated last month, aside from winning the wars themselves, this is the Department's highest priority. Initiatives are currently underway to achieve a seamless transition from Active Duty to veteran status, and to increase cooperation between DOD and the Department of Veterans Affairs (VA). In addition, efforts to create a Disability Evaluation System that is simpler, faster, fairer, and more consistent are underway. Finally, in support of President Obama's commitment, the Department is partnering with the VA to establish Virtual Lifetime Electronic Records that will improve veteran care and services through increased availability and administrative and health information. We are also committed to further improving support to our military families. For fiscal year 2011, we have requested for a 41-percent increase in family assistance baseline funding across the Department to ensure that we are on target, in the sense of investing in programs that are needed by servicemembers and their families. We have initiated an extensive strategic planning process to address the current issues facing family readiness programs. This begins with a thorough assessment of existing needs, programs, and related issues. Unfortunately, we have had stumbles in this area. As I'm sure you're aware, we announced a temporary pause to the My Career Advancement Account (MyCAA) program on February 16, 2010. Due to unforeseen, unprecedented, but welcome, demand in enrollments that overwhelmed the infrastructure, we nearly reached the budget threshold. While it was necessary to pause the program immediately, we failed to communicate properly the reasons for the pause. Over the past few weeks, DOD has worked tirelessly on mapping out solutions, for both the short and long term, that honors our commitment to our military spouses while accounting for fiscal realities. Our proposals are in the final stage of approval and we hope to restart the program very soon. We know we must make a concerted effort to restore our credibility and confidence with our military spouses, servicemembers, and the American public. Our military has proven its resilience during the most challenging of times, but the stress on the force is obvious. The Department's civilian and military leadership remain focused on employing numerous strategies to reduce the incidence of suicide in the Armed Forces. In calendar year 2009, there were a total of 312 suicides, 285 Active component and 26 in the Reserve component, marking an increase, up from 268 in 2008. I know this committee shares our belief that even one suicide is too many. There are many other critical issues facing the Department and this Nation, and I am exceedingly grateful to this Congress and this committee for their continuous commitment to supporting our men and women in DOD. I look forward to your questions and thank you for your time. [The prepared statement of Dr. Stanley follows:] Prepared Statement by Hon. Clifford L. Stanley Mr. Chairman and members of this distinguished subcommittee, thank you for inviting us to testify before you. As I humbly assume my role as the new Under Secretary of Defense for Personnel and Readiness, I am resolute in my determination to honor, protect and improve the lives of U.S. airmen, soldiers, sailors, and marines. I am here today to describe our mission as I see it and share my thoughts on how compassion, excellence and heightened sense of urgency will help me and my organization fulfill our duty. I am mindful we are at war and we must prevail. We win when we help our troops succeed in combat, and be healthy and happy with their families when at ease. We win when our troops can be confident their families have easy access to the resources and support they need while their loved ones are deployed. Maintaining our incredible All-Volunteer Force is our highest priority as we strive to recruit, attract, retain, and reward American's best and brightest, and their families. active duty Recruiting After more than 5 years of the most challenging recruiting environment since the inception of the All-Volunteer Force (AVF) in 1973, the Services emerged in fiscal year 2009 with the most successful recruiting year of the AVF era--all four Active Services and all six Reserve components achieved both numerical and recruit quality targets for the first time, a banner year. Previous years were marked by a growing economy, low unemployment, reluctance of influencers of youth to recommend military service, propensity among youth themselves at an all-time low, and recruiting goals of the Army and Marine Corps increasing. Yet since 2005, the Services met or exceeded recruiting goals--the AVF concept has proven itself amidst some of the greatest stressors it could face. The recruiting environment has now changed. Unemployment has risen considerably. Generally, times like this make recruiting less challenging, and a regrettable trend in national unemployment operates to the advantage of those who are hiring, including the U.S. military. In addition, interest in the military among young people has increased. On the other hand, challenges remain--the lower likelihood of influencers of youth (e.g., parents and teachers) to recommend service, a large and growing proportion of youth population who are ineligible to serve in the military principally as a consequence of rising obesity, high numbers of youth going to college directly from high school, and the continuing concerns about overseas contingency operations with its concomitant high operations tempo, particularly the announced increases in force levels in Afghanistan. Therefore, we are in uncharted waters--with significant factors, both negative and positive, directly affecting military recruiting efforts. As a result, we continually review our recruiting programs to align funding and policies with current realities, recognizing that stable and adequate investments in recruiting resources are necessary to maintain success, especially in the long term. These reviews have allowed the Services to reduce recruiting resources in fiscal year 2010 and 2011. While this results in a decreasing reliance on bonus incentives to meet recruiting goals, each Service knows it must be judicious in its cuts--reducing budgets gradually, and in the right places--using those targeted incentives to ensure we attract high quality youth into our most critical skills. We are mindful of the past, when fluctuating resources--up in tough recruiting environments, down in favorable ones--jeopardized recruiting missions, often resulting in sporadic failures. The recruiting environment is less challenging today, but we know that a tough recruiting environment will return. If we enter those difficult recruiting periods with insufficient resources and inexperienced recruiters, it will only exacerbate the problem and contribute to the ``boom and bust'' recruiting cycle which has characterized the past. Such a cyclical resourcing strategy also ignores the ongoing and significant role recruiting resources-- particularly advertising--have on both youth and influencer awareness, attitudes, and propensity. Therefore, it is imperative that we stabilize necessary recruiting resources. We appreciate this committee's untiring support of our recruiting programs and look forward to working together to ensure future success. As previously stated, fiscal year 2009 was a banner year for active duty recruiting. Altogether, the Services exceeded their goal of 163,880 accessions by 5,088, accessing 159,374 first-term enlistees and an additional 9,594 individuals with previous military service. Fiscal year 2010 active duty recruiting efforts, to date, are even better. Through December, all Services met or exceeded both quantity and recruit quality objectives for the active force, with the Army achieving 13,977 of its 13,716 recruiting goal, for a 102 percent year- to-date accomplishment (Table 1). Especially notable is the fact that for the second year in a row, after 4 years of falling below the 90 percent DOD Benchmark for High School Diploma Graduates, the Army is now exceeding that measure, with an impressive 99.9 percent of new recruits holding that credential. [GRAPHIC(S)] [NOT AVAILABLE IN TIFF FORMAT] We should not lose sight of the fact that, although the overall youth population is large, only a relatively small proportion of American youth is qualified to enlist. It is an unfortunate fact that much of the contemporary youth population is currently ineligible to serve. Medical disqualification, with obesity a large contributing factor, removes 35 percent, drug or alcohol abuse removes 18 percent, and another 23 percent do not meet our standards for reasons such as criminal misbehavior, have more dependents than can reliably be accommodated in the early career, or low aptitude scores. Another estimated 10 percent are qualified, but are attending college. To expand the recruiting pool and assist the Services in meeting a special category of critical readiness needs, the Department initiated a 1-year pilot program, Military Accessions Vital to National Interest (MAVNI), allowing the enlistment of up to 1,000 of a select group of non-U.S. citizens who had been in the United States for at least 2 years. Enlistments under this pilot are open only to health care professionals in critically short specialties and individuals with language skills and cultural backgrounds in a limited list of languages. We are currently reviewing results of this pilot program. But, given the overall limited pool of eligible youth, our continuing recruiting success does not come easily. It remains the result of long hours and hard work by the 15,100 dedicated and professional, active-duty military recruiters. These recruiters often are the sole representative of our military forces in local communities, and they have both my and the Department's most sincere respect and gratitude. This past August, we implemented the post-September 11 GI Bill--the most extensive restructuring of post-service education benefits since the introduction of the original World War II GI Bill. As I am sure you are aware, the Montgomery GI Bill (MGIB) has been a cornerstone of our active-duty military recruiting efforts since 1985. There is little doubt that the MGIB has met or even exceeded the expectations of its sponsors when it was enacted, and has been a major contributor to the success of the All-Volunteer Force. This new post-September 11 GI Bill should enhance our recruiting efforts even more. However, we remain cautious about the impact of such a major, new benefit on retention, particularly first-term retention. We hope that the provision in the new program that allows career servicemembers to share or transfer their GI Bill with immediate family members, long requested by both members and their families, will mitigate negative retention impacts. Early results look favorable, with over 100,000 career servicemembers already requesting authority to share their earned educational benefits with their family members. We are monitoring the effects of this implementation very closely. Military Decorations and Awards The Department continues to work in concert with the Services to appropriately recognize and laud the accomplishments, both valorous and non-valorous, of our soldiers, sailors, marines, and airmen. In the AVF, appropriately recognizing the accomplishments of our servicemembers is fundamental to maintaining esprit-de-corps and a motivated force. It is most important that the Services recognize the significant acts and achievements of our servicemembers while simultaneously maintaining the time-honored prestige of our most revered military decorations such as the Medal of Honor, Distinguished Service Cross, Navy Cross, Air Force Cross, and Silver Star. I am aware of the concern from some Members of Congress in regard to the award of valor decorations and will closely examine the results of the ongoing review and report on the Medal of Honor awards process as requested in the House Armed Services Committee report language that accompanied the National Defense Authorization Act of Fiscal Year 2010. Leave and Liberty Enhancements Given the ongoing operations tempo associated with Operations Iraqi Freedom and Enduring Freedom, the Department is acutely aware of the need to provide all soldiers, sailors, marines, and airmen with adequate leave and liberty opportunities, especially during and after deployments, for respite and reintegration, respectively. servicemembers serving in Iraq and Afghanistan are provided a much needed break from combat through the Rest and Recuperation (R&R) leave program. This vital program provides servicemembers, who are on long deployments, government funded transportation to the airport closest to their leave destination, and allows them to take 15 days of respite leave in an area of their choosing. For those servicemembers serving in the most dangerous and arduous areas of the combat zone, the R&R leave is not chargeable which not only recognizes their stressful duty but also provides more accrued leave to utilize upon redeployment for reintegration into their family and community. Additionally, the Post Deployment/Mobilization Respite Absence (PDMRA) program provides Active and Reserve component members who are deployed or mobilized above and beyond the Secretary of Defense's established deployment--dwell time ratios with respite nonchargeable administrative absence upon return from deployment or mobilization. I thank Congress for passing legislation, through the NDAA for Fiscal Year 2010, which allows our servicemembers to temporarily increase, from 60 to 75, the number of leave days authorized for carry over from 1 fiscal year to the next. This provision will reduce the frequency of lost leave for those servicemembers who have fewer opportunities to take longer leaves due to the persistent operational demands. The Department continues to monitor leave balances and lost leave to preclude avoidable loss of the benefit. Retention For fiscal year 2009, the Department was very successful in attaining enlisted retention goals. All Active components met or exceeded their respective retention goals in every measurable category. The Services and the Department anticipate continued success in the upcoming year and are already meeting or exceeding the monthly goals for early fiscal year 2010. Despite the overall strength of enlisted retention over the last few years, there remain critical shortages in many low density/high demand skills and other ``hard-to-retain'' skills, such as explosive ordnance disposal specialists, linguists, intelligence and counterintelligence analysts, and pararescue operators, that justify the continuation and application of the statutory bonus authorities. The Selective Reenlistment Bonus (SRB) and the Critical Skills Retention Bonus (CSRB) are among the most effective and are authorized by 37 U.S.C. 308 and 37 U.S.C. 355, respectively, as incentives to attract/retain qualified personnel in critical military specialties. The Department's process to manage bonuses is very well defined. A skill is critical if it meets one or more of the following: (a) technical skills requiring high training and/or replacement costs; (b) skills in high demand in the civilian sector; (c) challenging to recruit into; (d) crucial to combat readiness or capabilities; and (e) low density/high demand (those skills that are in high demand for current operations yet are low density due to less requirements during peacetime). All requests from the Services must have a rigorous business case that clearly outlines the need for the bonus for that skill, payment amount and method, and expected retention results. Designations do not exceed 3 years, subject to congressional extension of the statutory bonus authority. The complementary authority of the CSRB is the Selective Reenlistment Bonus (SRB). The SRB is under the authority of the Service Secretaries and is not centrally managed by the Department. However, applications of the bonus authorities are reviewed at the Department and sent as an annual report to Congress. Stop Loss The Army is the only Service with members currently extended under the Stop Loss authority. From a peak of 15,758 in 2005, the Army reduced the number of soldiers affected by Stop Loss to approximately 8,000 at the end of December 2009. The Department is progressing as planned to completely end the use of the Stop Loss authority. Army units deploying after January 1, 2010, are no longer using the Stop Loss authority. The Department further expects to reduce the number of servicemembers on Stop Loss to less than 6,600 by June 2010. This is a 50 percent reduction from February 2009 (date that the Secretary of Defense announced the milestones to end Stop Loss). All use of the Stop Loss authority will end by March 2011. Two Stop Loss Special Pays have been enacted which allow a payment of up to $500 per month for members whose active duty (retroactive to September 11, 2001) is or was extended by use of the Stop Loss authority. These pays were appropriated and authorized by the Congress, with the Department's support, to mitigate the impact and disruption that extensive use of Stop Loss had and has on the lives of servicemembers and their families. The Department implemented both pays, active and retroactive, and appreciates the support of Congress to compensate members for the unique circumstances presented by the use of this policy, while still preserving our ability to react with discretionary authority as dictated by future circumstances. Separation Policy The Department continues to improve military discharge policies in response to conditions of the current war and its effects on those who serve. As we reported to Congress earlier, one such improvement is the addition of increased rigor when using a personality disorder as the basis for administratively separating servicemembers who had deployed to imminent danger areas. This more rigorous process now includes a review by the Surgeon General of the Military Department concerned, yielding greater confidence that servicemembers who should be separated due to post-traumatic stress disorder (PTSD) or traumatic brain injury (TBI) are appropriately processed for disability separation as opposed to personality disorder. The immediate evidence of the positive effect of the increased rigor is that the number of personality discharges has decreased from 81 at the policy's promulgation in September 2008 to an average of 16 per month in 2009. Also, in response to section 512 of the NDAA for Fiscal Year 2010, the Department is prescribing policy regarding a more in-depth medical examination to assess whether the effects of PTSD or TBI relate to the basis for an administrative separation for those servicemembers who are pending discharge or who were discharged under conditions other than honorable. End Strength Management Meeting end strength is a priority of the Department. The table below depicts the fiscal year 2009 Active Duty authorizations (prescribed and actual) and fiscal year 2010 authorized levels which the Department intends to achieve. The Secretary of Defense has authority granted under the terms of the President's national emergency declaration to increase statutory strength levels prescribed by the National Defense Authorization Act if needed. The Services have implemented recruiting, retention, and force shaping policies and programs to achieve end strengths for fiscal year 2010. The Department appreciates the congressional support of the fiscal year 2010 end strength levels. These end strengths will provide the ground forces to meet strategic demands, eliminate the need for the use of Stop Loss, and mitigate persistent capability shortfalls which will reduce stress and demands on servicemembers and families by increasing dwell time. [GRAPHIC(S)] [NOT AVAILABLE IN TIFF FORMAT] Force Development The Department continues to emphasize joint officer development and has made great strides in implementing the extraordinary authorities authorized in the 2007 NDAA. Active and Reserve component participation continues to grow, and the adjudication of over 3,200 joint experiences from nontraditional joint duty assignments attests to the Department's ability to recognize joint experiences whenever and wherever they occur. Joint officer management is not the only area of significant improvement for the officer corps. We appreciate the authorities provided by Congress in the fiscal year 2009 and 2010 NDAAs that allow the development of general and flag officers with the joint knowledge and skills necessary to lead and counter emerging threats. This landmark general and flag officer management legislation apportioned general and flag officer authorizations between internal and external Military Service requirements, ensuring the statutory responsibilities of the military departments and the joint warfighter can be met. The enactment of conforming legislation from the Department's 2010 legislative package is also serving to dramatically accelerate the development of joint experience in the Reserve components. The legislation expanded on the previously enacted statutory framework affording the Military Departments the opportunities to purposefully develop officers from the Reserve components for senior posts in joint warfighting organizations. This delivered on the promise of the charter Goldwater-Nichols legislation by institutionalizing joint officer development through the senior officer grades regardless of component. Compensation The Department and Congress continue their strong commitment to provide a secure standard of living and quality of life to those who serve in uniform. Today, we find ourselves empowered with a never before seen set of flexible and targetable pay authorities which enable the Department to dynamically address recruiting and retention and achieve specific and desirable effects. We also find ourselves with large fixed costs encompassed in our entitlements, and the prospect of continued growth in that area. To secure sufficient personnel for the Armed Forces, the Department must provide a compensation package comparable and competitive in the private sector while at the same time balancing the demands of an All-Volunteer Force in the context of growing equipment and operations costs. The Department continues this commitment through the President's request for a 1.4 percent increase in military pay for all servicemembers in the fiscal year 2011 budget--an amount that equals earnings increases in the private sector as measured by the Employment Cost Index. Of note, since January 1, 2002 through the January 1, 2010 pay raise, military pay has risen by 42 percent, the housing allowance has risen by 83 percent, and the subsistence allowance has risen by 40 percent. During this same period, private sector wages and salaries have only risen by 32 percent. Government Accountability Office (GAO) is currently auditing the overall adequacy of military pay, as well as the appropriateness of the benchmarks used to measure any gaps relative to the private sector and its report is due April 2010. We are confident regular military compensation will compare favorably with pay in the private sector. While there is little question that those levels of increase were necessary in the past, the Department now finds itself at a point where discretionary spending offers the best ability to target specific skills, and the quantity and quality of those filling such positions. Collateral to the GAO review, the President recently commissioned the eleventh Quadrennial Review of Military Compensation. The four themes he has asked the panel to focus on continue the thesis of tailoring pays beyond entitlements to target groups and behaviors. This review, in general terms, will be looking at the compensation package for service performed in combat of hostile areas; compensation for our Reserve components in light of current and planned utilization; compensation benefits available to our wounded, those who care for them and the survivors of those fallen; and the pay and incentives for some of our most critical fields, including mental health professionals, special operators, operators of remote systems and those with specialized linguistic skills. With the recently consolidated pay authorities, I am confident in saying Congress has given us the tools we need to address each of these areas; what remains is identifying the best combination of the pays to achieve the ideal combination of outlay to impact. The Department, as always, welcomes the continuance of these authorities, but would be generally opposed to continued entitlement growth beyond indexed levels in the absence of specific goals and outcomes supported by studies such as those just discussed. Similar to our efforts to target and define the impacts of each pay with our active personnel, we must continue to ensure we support those who have already served, but again, we must do so in an equitable manner and one that is consistent with the overall demands of the Department. As an example, the Department continues to oppose efforts to eliminate the offset between the Survivor Benefit Plan (SBP) and Dependency Indemnity Compensation (DIC) programs. Allowing concurrent receipt of SBP and DIC without offset would create an inequity with one select group receiving two survivor annuities, while survivors of most military retirees and survivors of veterans who died of service connected cause, but were not retired, would receive only one or the other. At the same time, in seeking that broader equity and Department- wide impact, we see a win-win opportunity in expanding the concurrent receipt program to include military disability retirees with less than 20 years of service regardless of disability rating. This expansion would cover our most challenged retirees by allowing them to receive retired pay for their years of service performed and VA disability compensation for their future reduced earning capability. Overall, the state of military compensation is healthy. We have improved our overall entitlements to the point that all of our personnel are paid at or above the 70th percentile of their civilian counterparts. We have eliminated out-of-pocket expenses for housing to fully cover, on average, the costs of comparable civilian housing.. We have gained a new and dynamic set of authorities which we are in the midst of implementing. For the first time, we truly have the ability to target pay with pinpoint accuracy to achieve desired aims and maximize effects of dollars spent. Our challenge today is to maintain this position without imposing greater long term bills, while using our targetable tools to shape and manage our force. Legislative Fellowship Program: The Legislative fellowship program is a unique and excellent opportunity for members with great potential to serve to learn the day- to-day functions of the Legislative Branch of Government and is a valuable experience in the professional development of career military members or civilian employees in the Department. The Services and Components assign their Legislative Fellows to appropriate follow-on tours, which the Department monitors for each Fellowship cycle. Typical of the follow-on assignments are positions in: the House and Senate Liaison Divisions of the Services; the Office of the Secretary of Defense (Legislative Affairs); the Combatant Command Headquarters with duties associated with interacting with Congress; Service primary staffs responsible for legislation development and interaction with Congress; and the Staffs of senior leaders. The Secretary of Defense established the maximum number of Legislative Fellows at 100. The 100 Legislative Fellowships are broken out in calendar year 2011 as follows: [GRAPHIC(S)] [NOT AVAILABLE IN TIFF FORMAT] Legislative Fellows serve no more than 12 months in the House or Senate. The Legislative Fellowship Program is the only program that authorizes Department of Defense personnel to work in Congress on a more than temporary basis and the program and policies are clearly promulgated in a DOD Instruction. Legislative Fellows are selected under Service competitive selection process and approved by the OUSD (P&R). reserve component Achieving the defense strategy articulated in the Quadrennial Defense Review (QDR) requires a vibrant National Guard and Reserve seamlessly integrated into the Total Force. National Guard and Reserve units and individual members are heavily utilized across the full spectrum of current military operations, ranging from combat missions in support of the global war on terror to homeland emergencies. The Guard and Reserve have demonstrated their readiness and ability to make sustained contributions, and to prevail in today's wars, the Reserve components must serve in an operational capacity--available, trained, and equipped for predictable routine deployment--as well as a strategic capacity. Preventing and deterring conflict will likely necessitate the continued use of some elements of the Reserve Component (RC) in an operational capacity well into the future, especially in high-demand skill sets. Accordingly, the Department will use the Guard and Reserve where needed as an operational Reserve, rather than the ``force of last resort,'' to fulfill requirements for which they are well suited in the United States and overseas. Today's Citizen Warriors have made a conscious decision to serve, with full knowledge that their decision means periodic recalls to active duty under arduous and hazardous conditions. Consistently averaging about 140,000 National Guard and Reserve members mobilized to support ongoing operations on a daily basis, the Reserve components continue to make significant contributions to the national defense. The fiscal year 2011 budget provides about $50 billion for pay, training, equipping, and facilities to support the Reserve components of the Army, Navy, and Air Force in their respective Reserve components as operational Reserve Forces. The budget includes an across-the-board pay raise of 1.4 percent, along with pay and allowances for over 1 million personnel. Operating funds support necessary training requirements to ensure deploying personnel are fully mission-ready. The fiscal year 2011 budget request supports the Department's Ready Reserve totaling about 1.1 million members contributing about 43 percent of the total military end strength at a cost of about 9 percent of the total base budget. The Ready Reserve consists of the Selected Reserve (about 838,300), the Individual Ready Reserve (IRR) about (250,000), and the Inactive National Guard (ING) (about 2,000). This budget request includes about $53.3 billion to fund pay and allowances and costs of Reserve component training, incentives, equipment operation and maintenance costs, and readiness training costs for eligible military personnel. This amount includes $5.5 billion for Reserve component equipment procurement, which is funded by the military departments as a subset of their Active component procurement budget. Managed as strategic and operational forces, the total Reserve component structure operates across the continuum of military missions performing both strategic and operational roles in peacetime, wartime, contingency, domestic emergencies and homeland defense operations. As such, the Services organize, resource, equip, train, and utilize their Guard and Reserve components to support mission requirements to the same standards as their Active components. The budget supports preparation of both units and individuals to participate in missions, across the full spectrum of military operations, in a cyclic or periodic manner that provides predictability for the combatant commands, the Services, servicemembers, their families, and civilian employers, while potentially increasing the Department's overall capacity and reducing costs. To help reduce Active component ``dwell to deployment'' ratio, all Reserve components are moving towards a more rotational process, characterized by a period of active service thereby relieving active force burden, and then followed by an extended period at home. The current mobilization policy issued in January 2007 by the Secretary of Defense mandated involuntary mobilizations be limited to no more than 12 months, which does not include individual skill training days required for mobilization or deployment or terminal leave. The Secretary of Defense also set a goal of not more than 1 year mobilized in any 6 year period for the Reserve components. The Services are moving toward this goal as quickly as possible given current operational requirements. Unlike before, when the RCs were usually funded at less than full readiness because they were not first to fight, specific units now must be fully resourced in any given year. This new train-mobilize-deploy construct means that the RCs must be ready, manned, trained, medically and dentally prepared, and equipped when their scheduled availability comes up, and they must be funded accordingly. Resourcing Operational Reserve Forces Managing the Reserve components as operational forces affects training schedules and funding requirements, including medical readiness. In the past, normal training profiles meant training about 2 days per month plus 14 to 15 days of active duty for training annually, during which time Reserve component personnel were required to train to the same standards as their Active counterparts. While that training profile remains for some units, current Department policy states that for those with planned deployments, training days prior to mobilization must increase. This training profile, with more training pre-deployment and less post-deployment, minimizes mobilized time away from families and civilian jobs and will require a different resourcing approach. In general, the land based (Army and Marine Corps) Reserve components train according to this new profile, meaning that funds which had been consumed after mobilization from the active accounts are now required and expended prior to mobilization from the Reserve accounts. This change in training profiles means a simple comparison to prior year execution funding models can be misleading. For fiscal year 2011, Congress has authorized Reserve component military personnel budgets to be consolidated into a single budget activity, allowing much improved management of Reserve component assets and more agile fund allocation. This flexibility is especially crucial for managing funds for the new operational Reserve, and the Department greatly appreciates this Congressional approval. Equipping and Basing Operational Reserve Forces The fiscal year 2011 budget requests $5.5 billion for Reserve component equipment, and provides greater transparency and more robust funding for vital equipment needs as the Department continues to ensure that deployed and next-to-deploy units, whether in the active or Reserve component, receive the highest equipping priority. Effective and realistic readiness training at home requires that the National Guard and Reserve have access to equipment compatible with the active components and used in the assigned operational environment. Modernization, mission transformation, equipment replacement due to the war losses, and homeland defense are all catalysts for a new approach to equip the Reserve components. In the past, the Reserve components often relied on cascaded or ``hand-me-down'' equipment from the Active components and they often were short in their equipment inventories. The fiscal year 2011 budget contains funds needed for Reserve component equipment procurement to continue that transition, repair and replace war-damaged equipment, and to correct longstanding deficiencies. The budget request includes funds for equipment that will not only improve combat readiness but will also allow the National Guard to further improve its ability to respond to local domestic emergencies. Additionally, the Guard and Reserves previously have been a low priority for receiving new equipment. But today that standard has changed and these Forces receive the same equipment as their Active counterparts. We have achieved major progress in programming funds and equipping our Reserve components for an operational role. With this operational role comes the requirement for equipment transparency in form of increased visibility and accountability for the National Guard and Reserve in the programming and budgeting process. Institutionalizing this process will ensure an adequate mission capability for foreign and domestics responses and we are proceeding in that direction. The Reserve components request $1.4 billion for military construction (MILCON) projects. These projects will meet both current and new mission requirements for RC operations, readiness, and training facilities. readiness and training Deployment and Dwell Multiple deployments to Iraq and Afghanistan have certainly increased the stress on our servicemembers and their families. We have a number of initiatives underway to address this stress, and have set clear limits and goals for deployment lengths and the amount of time or ``dwell'' between deployments. To that end, we have limited unit deployments to 1 year in theater, with a minimum of 1 year between deployments for our Active component. Our goal is to increase the time between deployments to 2 years for every year deployed, commonly called a 1:2 ``dwell'' ratio. For the Reserve component, we have limited the mobilization period to 1 year, and strive to have a minimum 3 year break between mobilizations. The goal for Reserve component dwell ratio is 1 year mobilized with a 5 year break between mobilizations, or a 1:5 dwell ratio. Dwell time is driven by the number of forces deployed for missions around the world against the supply of available forces. We have increased the supply of forces by increasing the end strength for the Army, the Marine Corps, and Special Operations Forces. We also expect to make progress toward meeting the dwell goals as we drawdown forces in Iraq. Defense Mishap Reduction Initiative. As Chair of the Defense Safety Oversight Council (DSOC), I have been chartered to ensure that the Department is making steady progress toward the Secretary's goal of a 75 percent reduction in all accidents. The Department has made considerable progress to date due to the tremendous effort of our military and civilian leaders. From our 2002 baseline, we have reduced our civilian lost workday rate 41 percent, are down 31 percent in our private motor vehicle fatality rate, and dropped our Class A aviation accident rate 56 percent. The DSOC is supporting the Military Departments' pursuit of the Occupational Safety and Health Administration's (OSHA) Voluntary Protection Program (VPP) at more than 200 DOD installations and sites. We have 30 sites that have already attained OSHA's Star recognition and we expect 17 more sites by the end of 2010. Their OSHA Star status designates them as exemplary worksites with comprehensive, successful safety and health management systems, and improved labor/management relations. We recently completed a comprehensive, data driven assessment to further prevent aircraft crashes, save military lives, and reduce the need for replacement aircraft. The task force, consisting of a variety of experts from across the Department, recommended that the military aviation communities acquire technologies for collision awareness, crash survivability, and risk management. As a result of this important work, the military departments are making further investments in hardware and software that will avert aircraft crashes. With your continued support, we can make further progress in preventing injuries, fatalities, and aircraft crashes; and be well on our way towards attaining the Secretary's accident reduction goal. military health system Health Budgets and Financial Policy The fiscal year 2011 budget reflects several areas of continued emphasis, including the modernization of our medical infrastructure and full funding and support of our Wounded, Ill and Injured programs. The Unified Medical Budget, the Department's total request for health care in fiscal year 2011, is $50.7 billion. This includes the Defense Health Program, Military Personnel, Military Construction, and Medicare- Eligible Retiree Healthcare. Major increases in the budget request include $0.8 billion for medical and general inflation; $1.2 billion for private sector care costs due to an increase in users of TRICARE and an increase in utilization of the TRICARE benefit; $0.6 billion for enhancements for the Direct Care system; and $0.3 billion for modernizing the Department's electronic health record to enable data compatibility for the Virtual Lifetime Electronic Record, and correcting critical system problems, increasing user satisfaction, and improving system reliability and availability. Our primary and enduring responsibility is to provide the highest quality care to our beneficiaries, using the most current medical evidence to drive our clinical decisionmaking; and one of our fundamental tenets is that quality of care is also cost-effective. In addition, there are a number of actions we have undertaken and will continue in fiscal year 2011 to continue to provide value to the Department and the taxpayer. The ways we are addressing cost effectiveness in fiscal year 2011 include:continued implementation of Federal Ceiling Pricing of retail pharmaceuticals ($842 million savings); continued implementation of the Outpatient Prospective Payment System, which reduces the reimbursement paid for outpatient care at inpatient private sector care facilities ($366 million savings) standardization of medical supply chain management across the full range of military health care operations ($27 million savings); increasing efforts to identify and detect fraud, waste, abuse, and overpayments to civilian medical providers ($68 million savings); and additional VA and DOD facilities sharing--most notably the first fully integrated Joint DOD/DVA healthcare collaboration consisting of the North Chicago Veterans Affairs Medical Center and the Navy Ambulatory Care Center, Great Lakes, IL. Health Affairs/TRICARE Management Activity Strategic Direction In 2002, the assistant Secretary of Defense for Health Affairs (ASD/HA) aligned policy and program execution strategies under Health Affairs/TRICARE Management Activity (HA/TMA). In HA/TMA, as in most organizations, the bridge from strategy to execution was challenging, and the organizational alignment, still in effect today, was intended to streamline processes for faster and more effective execution of policies and programs. Under this arrangement, HA is setting clear strategic direction for the Military Health System (MHS) in partnership with the Services. For the past 12 months, HA/TMA has worked closely with the Service Surgeons General on initiatives that have coalesced around a strategic initiative known as the ``Quadruple Aim.'' Borrowing liberally (and with permission) from the nonprofit Institute for Healthcare Improvement's (IHI) ``Triple Aim,'' the Department is focusing on four strategic imperatives: Readiness - Ensuring that the total military force is medically ready to deploy and that the medical force is ready to deliver health care anytime, anywhere in support of the full range of military operations, including humanitarian missions. Population Health - Improving the health of a population by encouraging healthy behaviors and reducing the likelihood of illness through focused prevention and the development of increased resilience. Experience of Care - Providing a care experience that is patient and family centered, compassionate, convenient, equitable, safe, and always of the highest quality. Responsibly managing the total health care costs - Creating value by focusing on measuring and enhancing quality healthcare; eliminating inefficiencies; reducing unwarranted variation; and emphasizing investments in health that reduce the burden and associated cost of preventable disease in the long term. There are many important initiatives that will emerge from this strategic direction. One of the most vital, because it will have effects across all four components of the Quadruple Aim, is the ``medical home'' concept being piloted by all three Services. This approach takes the existing construct of a primary care manager and enhances it through improved access to care. Features will include 24/7 access to a provider through multiple avenues--that will include leveraging technology to avoid unnecessary visits or emergency room visits. More importantly, it will enhance continuity of care and greatly improve satisfaction with service. The early results from pilot sites are very encouraging, and we are applying lessons learned from these sites to improve the program as we proliferate it across the Department. With the shared vision of the Quadruple Aim and a revised decision- making process, the MHS is laying the groundwork for a smooth transition under the BRAC-directed co-located medical headquarters in the National Capital Area (affecting HA/TMA and the Services' Surgeons General staffs). The co-location initiative offers significant opportunities to achieve even greater unity of effort. Mental Health Professionals Significant effort has been made to recruit additional mental health personnel in order to meet the growing demand for behavioral health services in the Department. Since 2007, the number of active- duty mental health providers has remained relatively constant, yet we expect the Consolidation of Special Pay language (10 U.S.C. Sec. 335) recently implemented will have a significant effect on retention of psychologists and social workers. Our work to recruit civilian mental health providers has been very effective. Table 3 shows the Services total mental health needs/ requirements as compared to the number of providers on-hand as of the third quarter of fiscal year 2009. The Navy and the Air Force compare assigned personnel versus requirements. The Army's growing needs are not completely reflected by official requirement documents yet, and thus they are identified as ``needs.'' Table 4 shows the significant improvements in total Mental Health personnel that have been made since 2007, including in the TRICARE Network. [GRAPHIC(S)] [NOT AVAILABLE IN TIFF FORMAT] Suicide Prevention The Department's civilian and military leadership remain focused on employing numerous strategies to reduce the incidence of suicide in the Armed Forces. In calendar year 2009, there were a total of 312 suicides--285 in regular components and 26 in Reserve Components-- marking an increase from 268 in calendar year 2008. Suicides within the Regular Components increased from 235 in calendar year 2008 to 285 in calendar year 2009. Demographic risk factors are: male, Caucasian, E-1 to E-2, younger than 25 years old, GED/less than high school education, divorced, and in the Active Duty component. Other factors associated with suicide, which are consistent with data from the civilian population, are: substance abuse, relationship problems, legal, administrative (article 15), and financial problems. Although the impact of role of deployment on suicide risk is still under investigation, a majority of suicides do not occur in the theaters of operation. [GRAPHIC(S)] [NOT AVAILABLE IN TIFF FORMAT] When a servicemember has a problem, he or she can, in most cases, receive confidential help from military and other mental health providers. However, if the individual is unable to perform his/her duties, is homicidal or suicidal, or is in a sensitive duty, the commander will be notified for safety reasons. Resources available to servicemembers and their families include: confidential problemsolving counseling through Military OneSource, online information and tools at militarymentalhealth.org and afterdeployment.org, confidential pastoral counseling with chaplains, Military Family Life Consultants (active duty and families), military mental health providers, Service-level counseling centers, and access to information and referral to mental health professionals through the Defense Centers of Excellence for Psychological Health and Traumatic Brain Injury (DCoE) Outreach Center. The Department and Services recognize suicide prevention begins long before an individual exhibits suicidal ideation. Comprehensive programs focus on enhancing resilience and early identification designed to reduce psychological health issues or disorders that may contribute to suicide risk. Leadership at every level receives training on warning signs, resources, healthy lifestyle choices, and actions to take if an intervention is deemed necessary. The Suicide Prevention and Risk Reduction Committee (SPARRC) is a forum for developing/expanding partnerships among the Services, VA, Federal and civilian partners. The SPARRC's goal is to improve policies, programs and systems across the Department while providing support for medical, line, and community leaders. Chaired by DCoE, the SPARRC includes representatives from all Services, VA, SAMHSA, Center for Disease Control, Medical Examiners, Chaplains, Telehealth/Technology and National Guard/Reserves. The Department also collaborates with VA and the Substance Abuse and Mental Health Services Administration (SAMHSA) on suicide prevention efforts. This includes an annual joint DOD/VA conference on reducing the rate of suicides in the Active Duty components, Reserve components, and veteran populations. The January 2010 DOD/VA Suicide Prevention Conference, ``Building Strong and Resilient Communities,'' brought together over 900 servicemembers, family members, and mental health professionals throughout DOD, VA, and other Federal agencies. The conference highlighted practical tools, personal stories, and ongoing efforts in supporting the community. The Department's mental health initiatives dovetail with both the Readiness and Population Health components of the Quadruple Aim. We have developed metrics that we closely monitor to determine if our programs are effective and if our policies are being effectively implemented. We are also broadening our view of readiness, to include perspective on the ``readiness'' of an entire family for a servicemember's deployment. In 2010, we will expand our measures to include this more expansive view of readiness--and consequently, better manage pre-deployment, deployment, and post-deployment activities for the Total Force. We recognize the number of suicides continues to increase and suicide has a multitude of causes, and no simple solution. There are many potential areas for intervention, and it is difficult to pinpoint the best approach because each suicide is unique. Recognizing this, DOD is tackling the challenge using a multi-pronged strategy involving comprehensive prevention education, research, and outreach. We believe in fostering a holistic approach to treatment, leveraging primary care for early recognition and intervention, and when needed, providing innovative specialty care. The areas of focus to reduce risk include: (1) conducting data collection and analysis to detect contributing risk factors; (2) facilitating partnerships across DOD, Federal, and civilian organizations to increase collaboration and communication; (3) reducing stigma and increasing access to resources to provide needed care; and (4) using research to close gaps and identify best practices. Health Informatics The DOD's Electronic Health Record (EHR) continues to be a key enabler of military medical readiness; giving healthcare providers secure, 24/7, worldwide access to medical records of our highly mobile patient population. Across the enterprise, the EHR supports uniform, high-quality health promotion and healthcare to more than 9.5 million MHS beneficiaries. Using the EHR, our healthcare providers access the electronic medical records of MHS beneficiaries from any point of care throughout the direct care system. The MHS Information Management/Information Technology Strategic Plan for 2010--2015 provides the roadmap for improving the EHR, and lists EHR improvement as a top IM/IT priority. Using this roadmap, MHS will effectively execute its action plan to stabilize the current system while transitioning to a suite of EHR applications and supporting infrastructure that will improve reliability, speed, user interface and data integrity, and achieve higher satisfaction from all users. These improvements will enhance IT interoperability within the MHS and support planned improvements in electronic health data sharing with VA and our private sector care partners. For future years, ICIB will prioritize additional health related sharing capabilities or usability enhancements to continue the advancement of DOD/VA interoperability in a manner that supports clinicians in healthcare delivery. The Departments will continue to work together to improve and expand upon the interoperability of appropriate healthcare data as appropriate and necessary. Virtual Lifetime Electronic Record (VLER) On April 9, 2009, President Obama announced that DOD and VA would work together to create of a ``virtual lifetime electronic record'' (VLER) for servicemembers and veterans. While the Department and VA already share an unprecedented amount of health care information between the two systems, a very large portion of health care to our beneficiaries comes from private sector contract providers. The DOD, VA, and the Department of Health and Human Services are working together to promote access of electronic health care information for care provided in DOD, VA, and private sector facilities while DOD and VA continue to leverage work already done to improve our capabilities for sharing information. VLER will rely on the Nationwide Health Information Network (NHIN) as the mechanism to share standards-based health data between DOD, VA, and private sector partners. Well-defined standards are the essential foundation for interoperability among systems. These standards will be guided by the Department of Health and Human Services (HHS) and will be consistent with the NHIN model based on the Federal Health Architecture. DOD and VA have been active participants and among the leaders in the development of the NHIN working with the HHS Office of the National Coordinator for Health Information Technology. The NHIN will tie together health information exchanges, integrated delivery networks, pharmacies, government health facilities and payers, diagnostic laboratories, providers, private payers, and other stakeholders into a ``network of networks.'' The NHIN provides a national standards-based mechanism for previously unconnected electronic health records and other sources of healthcare information to share information securely while respecting and enforcing mandates for guarding patient privacy. Working together with HHS and private health care providers, DOD and VA are creating a capability that will take a huge step towards modernizing the way health care is delivered and services are administered for our Nation. VLER will allow health care providers access to servicemembers' and veterans' military medical records, providing the information needed to deliver high-quality care. VLER will do all of this with the strictest and most rigorous standards of privacy and security, so that our servicemembers and veterans can have confidence that their medical records can only be shared at their direction. VLER is not a large acquisition program nor will VLER result in one single DOD/VA Information Technology (IT) system. Rather, VLER builds on the electronic health care systems already in place in DOD, VA and the private sector. Even if DOD and VA were to embark on a huge acquisition program to implement a single system, they would still not be able to access the critical information captured by the private sector. The VLER solution is viable for the entire health care community and enables each individual entity to develop and maintain their own internal systems. It creates an opportunity for competition since it uses well-documented standards that can be implemented through a variety of electronic health initiatives that can be linked to the NHIN. military family support and wounded warrior care This past year, due to the high level interest in supporting military families, resources were increased to institutionalize servicemember and family support programs across the Department. A 41 percent increase in the Defense-wide family assistance baseline funding in fiscal year 2011 from fiscal year 2010 will provide lifelines of support for servicemembers and their families through outreach to Guard and Reserve members and families, Military OneSource 24/7 accessible family support assistance, referrals for counseling, financial education and training, and access to education, training certification opportunities leading to a portable career for spouses. To ensure we are on-target in investing in programs needed by servicemembers and their families, we initiated an extensive strategic planning process to address the current issues facing family readiness programs, beginning with a thorough assessment of existing needs, programs, and related issues. A variety of methods were used to gain input from key players across the system, including family members, support professionals, non-governmental organizations, land-grant universities, and senior DOD leadership. Child Care Access to child care remains a top priority for the Department. Efforts are ongoing to meet the needs of our deployed families, including National Guard and Reserve families. We have expanded respite child care options through the YMCA program, offering opportunities for geographically isolated families to help mitigate the stress experienced by the parent at home. These efforts augment the respite child care provided by the Military Services. We continue to reduce the unmet need for child care, yet are cognizant of the ongoing need to recapitalize our aging child and youth facilities. We need to eliminate barriers to hiring practices key to expanding our partnerships with community child care providers. The temporary program to use minor military construction authority for the construction of child development centers provided a means to increase the availability of quality, affordable child care for servicemembers and their families. This authority expired at the end of fiscal year 2009, and we have proposed legislation to reinstate the authority. The legislation would also expand age limit requirements from 5 years old to 12 years old to include children in school age care programs, broaden the authority to include other family support initiatives (e.g., family center, fitness facilities, etc.), and increase the funding authority to $15 million for all projects. Youth Programs We are also deeply committed to addressing the needs of our military youth. More than 350 dynamic, innovative and successful youth programs serve more than 500,000 military connected children and youth between the age of 6-18 worldwide. Programs promote positive youth development and prepare pre-teens and teenagers to meet the challenges of military life, adolescence, and adulthood. Partnerships with other youth-serving organizations enable the Department to offer resources in a variety of domains, including physical fitness and sports; arts and recreation; training in leadership; life skills; career/volunteer opportunities; mentoring; intervention; and support services. Programming supports character and leadership development, sound education choices, healthy life skills, the arts, and sports and recreation. Many programs offer summer day camp and youth employment opportunities. Twenty-two youth facilities were funded in 2008 and 2009, totaling $145.6 million in non-appropriated funds; this support constitutes a critical aspect of family support. Six youth facilities are funded for fiscal year 2010 and fiscal year 2011, totaling $49.7 million. Family Advocacy Programs The DOD Family Advocacy Program (FAP) plays a key role in addressing familial physical, sexual, and emotional abuse and neglect involving military personnel in the active component as victims and abusers. On each military installation with command-sponsored families, there is a FAP that provides services in prevention, identification, intervention and treatment of child abuse and neglect and domestic abuse. Two key programs, the New Parent Support Program and treatment programs for substantiated spouse abusers have been tied to outcomes for prevention. Casualty and Mortuary Affairs Programs The Department remains committed to providing the highest quality of compassionate and caring assistance to families of fallen servicemembers for as long as they determine assistance is needed. After which, additional assistance can be obtained by a simple phone call or letter written to the appropriate Service Casualty Office. Since early 2006, the Department has worked extensively with the Military Services; the Department of Veterans Affairs; the Social Security Administration; family support organizations; nonprofits groups, and more importantly, survivors, to ensure our policies and procedures are standardized to the maximum extent possible, more customer focused, and flexible enough to address unique situations. While the Department has made many enhancements to the Casualty Assistance Program, we recognize there is always room for improvement and therefore we strive every day to make it better, simpler, more respectful, and more compassionate. As the Secretary stated, ``When young Americans step forward of their own free will to serve, they do so with the expectation that they and their families will be properly taken care of should anything happen to them.'' We listen to those we serve and to those organizations who have dedicated their existence to providing valuable support and services to survivors of the fallen. Together, our collaborative efforts will ensure our program will continue to be enhanced and our families provided the very best assistance possible. Military OneSource Military OneSource (MOS) continues to have a positive impact on servicemembers and their families. OneSource offers a 24-hour/365-day centralized assistance program to provide diverse information and referral services by credentialed counselors to Active Duty, Guard, Reserves and their family members, regardless of physical location or activation status. Assistance can be provided in many languages. Since inception, Military OneSource has experienced exponential expansion. Over 739,000 telephone calls were received in fiscal year 2009, more than doubling the number of calls received in fiscal year 2008. The website received over 4 million visits, almost doubling the number of visits received during the prior year. Nearly one in three servicemembers uses Military OneSource. In general, the most common reasons for which a person sought MOS counseling were marital and intimate relationships, stress management, family relationships, and anger management. In addition, MOS financial counseling support is offered in-person and telephonically. In fiscal year 2009, MOS conducted 4,501 financial counseling sessions. The most common reasons for which a person sought financial counseling support from MOS were budgeting and money management, overextension with bills, credit management, loans and consolidating loans, and mortgages and refinancing. In fiscal year 2009, OneSource assisted members and families with almost 600,000 tax filings at no cost to the family. The Wounded Warrior Resource Center (WWRC), accessed via Military OneSource, provides immediate assistance to the wounded and their families with issues related to health care, facilities, or benefits. The WWRC works collaboratively with the Military Services' wounded warrior programs and the Department of Veterans Affairs to ensure callers are promptly connected to the resources that can help address their needs. In fiscal year 2009, 1,200 cases for wounded warriors were handled. Dependents' Education Programs A key quality of life issue is the education of military children. Servicemembers often make decisions about assignments based on the availability of quality educational opportunities for their children. The Department of Defense Education Activity (DODEA) provides quality pre-kindergarten through 12th grade educational opportunities and services to eligible military dependents around the globe where DODEA schools are located. Of the approximately 1.2 million military dependent children, DODEA educates nearly 85,000 in 192 schools in 12 foreign countries, 7 States, Guam, and Puerto Rico with 8,700 educators. DODEA also assists eligible military dependent students through a tuition reimbursement program for military assigned to overseas locations without a DODEA school. The ongoing relocation of military dependent students through force structure changes created a need to enrich and expand partnerships with military-connected communities to ensure the best possible educational opportunities for military dependent children. Through its Educational Partnership Initiative, DODEA was given expanded authority to assist local education agencies (LEA's) who educate military dependent students through efforts focused on highest student achievement. DODEA works collaboratively with the Department of Education to ease the transition of military students by sharing experience and expertise with LEAs who educate larger populations of military dependent students. Data from the Department of Education reports that there are 300 LEAs with a military child enrollment of 5 percent or more. Of the 300 LEAs with 5 percent military child enrollment, 153 of the LEAs are not meeting the State academic standards in reading/language arts and/or math using annual tests aligned to academic indicators. In addition, there is significant research surrounding the psychosocial effects of multiple deployments on school performance and student behavior. In fiscal year 2009, DODEA extended support through grants focusing on enhancing student learning opportunities to 44 school districts serving approximately 77,000 military children in over 284 schools. Through new technologies, DODEA is developing additional academic opportunities for its students. The focused efforts are to expand access to education and provide curricular options to eligible students within DODEA through the expanded use of distance learning. DODEA plans to transition its distance learning program into a virtual school program beginning with the implementation of fully accredited virtual high school in School Year in 2010-2011. These tools include real-time audio and video, document sharing, screen sharing and web collaboration to stimulate active teacher-student, student-student and student- content interaction. A ``virtual hub'' model has been put into place that puts the teachers in locations closer to the students to facilitate interaction that simulate traditional classroom discussion and one-on-one tutoring. Beginning in 2008, DODEA implemented a new process for advising decision-making that focuses on highest student achievement and a thorough review of data, implementation, and effectiveness of programs. Part of the advisory process includes educator-led task groups which review and analyze data. DODEA task groups are convened for various reasons such as instructional and curricular topics, issues of interest from the field, or management needs. All task groups spend considerable time reviewing and analyzing information and data on a specific issue and then, through consensus, developing systemic recommendations sent to the Director to guide future educational actions. Currently, DODEA has seven on-going task groups. Korea Tour Normalization United States Forces Korea (USFK), through the Tour Normalization Program, is aggressively increasing command-sponsored military families on the Korean peninsula for the primary purpose of establishing a higher quality of life for military families. In addition to the housing needs, this impacts educational needs. DODEA anticipates adding 25 schools in Korea over the next 10 years, providing an end state program by 2020 of 31 DODEA schools in Korea. Student growth is expected to grow from 4,422 DODEA students currently in the Republic of Korea to 21,758 at the end state. This is approximately a 500 percent increase in the student population. DODEA is actively working programmatic details with USFK and local Military Service communities to support this effort. MWR Support to Troops in Combat The ability to communicate with family and friends is the number one factor in being able to cope with longer and more frequent deployments. We continue to balance the most effective use of available bandwidth between mission and personal requirements, including wireless access. Currently, servicemembers have free access to the non-secure military Internet by using their military e-mail address, including aboard ships. They also have free Internet access at over 1,008 MWR Internet Cafes in Iraq and Afghanistan with 9,241 computers and 4,101 Voice Over IP phones (with call rates of less than 4 cents a minute). Another 197 cafes, 2,191 computers and 1,154 phones have been funded for fiscal year 2010 for use in Afghanistan. To enhance MWR provided services, the Exchanges provide personal information services for a usage fee for this customer convenience. Back home, computers and Internet service located in our family support centers, recreation centers, libraries, and youth centers help ensure families can connect. DOD-State Initiatives The Department continues to work with State governments to educate their policymakers on the life-challenges faced by servicemembers and their families and to ensure that state-level policies do not disadvantage military families' transient life style. States have addressed several key quality of life issues, to include the impact of frequent school transitions experienced by military children, the loss income by military spouses as a result of military moves, and the enforcement of the congressionally-mandated DOD predatory lending regulation. The response from states has affirmed their commitment to supporting the well-being of the Nation's fighting force. For example, 27 States have joined the Interstate Compact on Educational Opportunity for Military Children, 36 States now provide eligibility for unemployment compensation to military spouses, and 30 States enforce the DOD predatory lending regulation. The Department is continuing this effort in the 2010 session and has added child custody to the slate of issues. In this regard, the Department is asking States to appropriately balance the interests of servicemembers who are absent due to military service with the best interests of the child by ensuring absences caused by military deployments are not the sole basis for permanent custody decisions and addressing delegation of visitation rights while the servicemember is deployed. Special Needs The establishment of the Office of Community Support for Military Families with Special Needs was mandated by NDAA 2010. The purpose of the Office is to enhance and support Department of Defense support for military families with special needs to ensure parity across the Services. The Office will be headed by a member of the Senior Executive Services. It will be staffed with personnel in the fields of medicine, education, early intervention, social work, personnel and information technology, as well as members of the armed services to ensure appropriate representation by the military departments. Currently, plans are underway to identify the specific mix of staff and to create an umbrella Office of Community and Family Support with an emphasis on special needs, which will synchronize all family support needs with those of families with special needs. Disability Evaluation System The Disability Evaluation System (DES) Pilot simplifies and restructures how servicemembers are evaluated for continued service and compensation as a result of a wound, injury, or illness. Based on the recommendations of several commissions and task forces, DOD and VA implemented the DES Pilot on November 26, 2007, at three National Capital Region (NCR) locations (Walter Reed, Bethesda, and Malcolm Grow). Since November 2007, this program has been administered jointly by the DOD and VA. The Pilot eliminates duplicate disability examinations and disability ratings by the Departments. The DOD determines fitness for duty; the VA examines and rates for disability. The rating is used by DOD for unfitting conditions and by VA for all service-connected or aggravated conditions. After March 2010, the DES Pilot will operate at 27 locations across the continental United States and Alaska and encompass 47 percent of all potential servicemembers' cases. Compared to the legacy system, case processing time has been nearly cut in half (46 percent decrease) for Active and Reserve component servicemembers. The Pilot will be expanded to encompass 100 percent of the DES by December 2012. The DES Pilot Final Report which includes the results and recommendations for the DES Pilot-model worldwide implementation will be forwarded to Congress by May 31, 2010. Transition Initiatives The Department has several initiatives relating to the Department of Defense (DOD) Transition Assistance Program (TAP). We began this fiscal year by convening the first Joint Interagency Strategic Working Group on the Transition Assistance Program in November 2009. We are also working on several employment initiatives with our partners at the Department of Labor. As an ex-officio member of the Secretary of Labor's Advisory Committee on Veterans Employment, Training and Employer Outreach (ACVETEO), the Department is looking at more efficient ways to connect employers with transitioning Services members, veterans and their spouses. We are also looking at revamping the Department of Labor (DOL) TAP Employer Workshop to make it more dynamic and ensure it is meeting the needs of our warriors. Finally, we continue to collaborate with DOL on how to ensure our wounded, ill and injured are being prepared for and get meaningful jobs. In addition to our work with DOL, this office assisted with the Office of Personnel Management (OPM) strategic plan as well as an executive order signed by the President in November 2009, which directed all Executive Branch Federal Agencies to increase the hiring of veterans. We are pursuing other initiatives like our work with the U.S. Interagency Council on Homelessness. The Department is assisting the council in developing a Federal Strategic Plan on Homeless. The plan will address ideas and ways to end homeless for our veterans, families, and youth. One of our most exciting initiatives was joining the social network community with the launching of the DOD TAP Facebook. We are taking advantage of the popularity of social media as another communication resource to promote transition services and benefits to military personnel and their families. Finally, we are working to improve outreach and education to all servicemembers to increase their participation in the Benefits Delivery at Discharge and Quick Start Programs. These programs allow eligible servicemembers to submit their application for disability compensation prior to separation or retirement. civilian personnel National Security Personnel System Transition The National Defense Authorization Act for Fiscal Year 2010 (NDAA 2010) repealed the authority for the National Security Personnel System (NSPS) and requires the Department to transition out all employees and positions from NSPS to the appropriate non-NSPS personnel and pay system no later than January 1, 2012. The law provides no employee will suffer any loss of or decrease in pay upon conversion from NSPS. Planning for terminating NSPS is well under way with the goal of transitioning employees and organizations from NSPS back into their pre-NSPS personnel and pay system during fiscal year 2010. The rules of the gaining pay and personnel system will be followed in determining placement of NSPS employees. Since the majority of the 226,000 employees covered by NSPS will transition to the General Schedule system, government-wide rules issued by the Office of Personnel Management (consistent with title 5, U.S.C.) are applicable. Until the transition takes place, organizations and employees currently covered by NSPS will continue to follow NSPS regulations, policies, and procedures. While the Department did not transition any bargaining unit employees into NSPS, approximately 900 employees organized after their organizations moved into the system. The Department plans to meet with representatives of national unions representing these NSPS bargaining unit employees to discuss transition issues and will ensure that local collective bargaining obligations are fully satisfied as these employees transition from NSPS back to the General Schedule. Transition timelines are being determined based on organizational readiness as evidenced by avoidance of undue interruption to mission and hardship to employees; established processes to classify NSPS positions into the appropriate non-NSPS personnel system; existence of an appropriate performance management system; and information technology capability. Prior to their transition out of NSPS, employees will be informed of their position classification under the non-NSPS personnel system. With limited, approved exceptions, no new appointments to NSPS will be made after March 1, 2010. The Department is tracking transition costs as it did with NSPS implementation costs. The organization that is guiding and directing transition planning and execution is the National Security Personnel System Transition Office (NSPSTO). The Director, NSPSTO is responsible for the development, coordination, and dissemination of supporting procedures, policies, and tools; and for developing training products and services for use by the Components in training employees and supervisors on all aspects of the transition. In addition, the Department is committed to providing open and frequent communications during the transition. The NSPSTO has redesigned its Web site to publicize up-to-date information on the transition, including transition toolkits that contain a variety of products such as conversion guides, fact sheets, brochures, articles, frequently asked questions, performance management guidance, timelines, and town hall briefings on the transition. The website and communications will be updated periodically as new information becomes available and new products are developed. In addition, the Department will deliver a report to Congress at the end of April 2010, as required by NDAA 2010, that covers the steps taken for the reclassification of NSPS positions and the initial plan for transitioning employees and organizations from NSPS; semiannual reports that cover transition progress will also be provided until all organizations and employees are out of NSPS. Civilian Strategic Human Capital Planning and Forecasting With over 760,000 civilian employees, in over 600 occupations, supporting a myriad of critical missions, it is essential the Department have a structured plan to ensure civilian talent is in place to meet current and future mission requirements. To meet this demand, the Department is leading an enterprise-wide effort to establish a more structured, standard approach to Strategic Human Capital Management (SHCM), based on a combined effort of competency assessment and workforce analysis trending. The Department recognizes the need for a civilian workforce with the attributes and capabilities to perform seamlessly in an environment of uncertainty and surprise, execute with a wartime sense of urgency, and create tailored solutions to multiple complex challenges. We are institutionalizing an updated, integrated human capital strategy for the development of talent, that is consistent with 21st century workforce demands and a new generation of workers, and that is competency-focused, performance-based, agile, responsive to mission impacts, and focused on employee engagement and respect. Civilian Expeditionary Workforce The Department is working to better employ the talents of our civilian workforce to meet expeditionary mission challenges, especially those not directly related to warfighting. Global security challenges require adequate civilian capacity to conduct complex operations, including those missions that require close military-civilian planning and cooperation in theater. Since 2001, more than 43,000 Department civilians have been involved in contingency operations around the globe. Currently, approximately 5,100 civilian employees are serving in theater. In response to these imperatives, the Department institutionalized the Civilian Expeditionary Workforce (CEW) to provide deployable civilian experts to support military operations, contingencies, emergency operations, humanitarian missions, disaster relief, and stabilization and reconstruction operations. The CEW is designed to enhance the Department's ability to work alongside and help build the capacity of partner defense ministries and provide surge support where needed. The CEW encompasses a pre-identified subset of the Department's emergency essential and volunteer civilian workforce by skill sets and capabilities, who are trained, ready, cleared, and equipped for rapid response and quick assimilation into new environments. Civilians deployed under the CEW receive general and theatre- specific, urban training, and are eligible for the same health care benefits as deployed military personnel, including medical evacuation and access to hospital services in-theatre. With the support of Congress, the Department has obtained important incentives and benefits to help compensate for the inherent risks of deployment. The Department continues to identify pertinent issues and propose fully integrated solutions to ensure force health protection, surveillance, deployment benefits, and medical care for civilians who have been injured, wounded, or have contracted diseases while deployed in support of contingency operations. We have worked in partnership with the Office of Personnel Management, the Department of State, and the Department of Labor to ensure all similarly-situated Federal civilians receive consistent and equitable benefits commensurate with the risks of deployment. Civilian Leadership Development The Department is currently working on the recruitment and development of entry-level leaders in conjunction with Section 1112 of the NDAA for Fiscal Year 2010, which requires the establishment of a DOD Civilian Leadership Program. The Department recognizes the need for an improved model to attract, retain, and deliberately develop civilian leaders to support pipeline readiness and enhance bench strength. In fiscal year 2010, the Department will fully develop the entry-level program to grow emerging leaders. We will launch an initial program pilot in fiscal year 2011 and expand the pilot and implementation in fiscal year 2012. Our communities of initial focus for this effort include acquisition and finance specialists to meet the Department's needs. Recruitment for Critical Positions and Competencies The Department has an aggressive approach for identifying mission critical recruitment requirements, to include health, acquisition, linguists and emerging mission-essentials such as IT specialists in cyber warfare. We have a plan in place and a robust forecasting model that indicates those areas where recruitment surges may be needed. Where such surges are indentified, we craft staffing strategies, such as expedited hiring authority and scholarship programs, to meet those needs. Our integrated approach to Strategic Human Capital Management (SHCM) will prove to enhance our ability to analyze demographic trends, forecast requirements, assess gaps, and further define recruitment and hiring strategies. Increasing Veterans Opportunities The Department values the experience and commitment of our servicemembers and places special emphasis on supporting transitioning servicemembers, wounded warriors, and veterans in their search for employment. We continue our efforts to actively reach out to our veterans to assist them in their civilian employment search with aggressive outreach programs, transition assistance programs, career and job fairs, and benefits counseling and assistance. The Department continues this tradition in support of Executive Order 13518, the Veterans Employment Initiative. In January 2010, the Department stood up the DOD Veterans Employment Program Office to promote veterans recruitment, training and development throughout the Department. We are promoting the Veterans Initiative through DOD's Hiring Heroes Program, through which we conduct eight to ten Hiring Heroes Career Fairs throughout the U.S. for wounded, ill and injured servicemembers, transitioning military, veterans, and their families. In-sourcing The Department is on track to reduce the level of contracted support service from the current 39 percent of our workforce to the pre-2001 level of 26 percent, and perform those services with full-time government employees. Over the next 5 years, DOD expects to hire up to 33,400 new civil servants to fill positions established as a result of insourcing contracted services. This includes 5,000 acquisition personnel over fiscal year 2010/2011 and 10,000 through fiscal year 2014. On January 4, 2010, the Department submitted to Congress a report on ``fiscal year 2010 Insourcing Initiative and Plans.'' DOD Components estimated they would establish nearly 17,000 new civilian authorizations in fiscal year 2010 to perform currently contracted work. There are no artificial limits placed on DOD Components' identification of in-sourcing candidates (i.e., contracted services that would more appropriately be performed by government employees). The Department considers insourcing as a well-reasoned part of Total Force management that: Rebalances the workforce and rebuilds organic capabilities. Ensures that inherently governmental functions that support the readiness/management needs of the Department are performed by government employees. Implements Congressional direction on in-sourcing (NDAA for Fiscal Year 2008). Contractors remain a vital part of the Department's Total Force. The Department is not ``replacing'' or ``converting'' contractors but rather in-sourcing contracted services--contractors remain a vital source of expertise to the Department and are an integral part of our Total Force. other personnel concerns Foreign Language, Regional, and Cultural Capabilities The Department is continuing its work to ensure our commissioned and noncommissioned officers are prepared for a full range of varying and complex missions that our current and future security environment requires which includes building expertise in foreign languages, regional and cultural skills. The fiscal year 2011 budget focuses on sustaining gains achieved in previous years and continuing to build a solid infrastructure in which to meet future demands. Baseline funding of $793 million in fiscal year 2011 supports redirected language and culture instruction to achieve higher proficiencies for the Total Force in these skills. During the most recent programming cycle, the Department committed an additional $29 million in fiscal year 2011 to establish Language Training Detachments to provide and sustain commanders' needs, support the Afghanistan/Pakistan Hands program, and expand the role of English language training for partner nation personnel. The Department's continuing efforts feature the following significant initiatives and accomplishments. Military Leadership Diversity Commission As mandated by NDAA 2009, the Department established the Military Leadership Diversity Commission (MLDC) to conduct an independent review and comprehensive evaluation and assessment of policies that provide opportunities for the promotion and advancement of minority members of the Armed Forces, including minority members who are senior officers. Led by General Lester Lyles (ret.), the Commission consists of 26 appointed members to include retired and active duty officers, enlisted, and civilian representation from all the Service components and the Coast Guard. The Commission will expand to 32 members. The Commission conducted its first meeting in Washington, DC in September 2009. Several monthly meetings are planned throughout the country during the independent review, culminating with a written report to the President and Congress no later than September 2010. The report shall include the Commission's findings and conclusions, recommendations for improving diversity within the Armed Forces, and other relevant information and proposals considered appropriate. Sexual Assault Prevention and Response The Department's position on sexual assault is a simple one: Sexual assault is a crime that is incompatible with service in the U.S. Armed Forces. It undermines core values, degrades military readiness, subverts strategic goodwill, and forever changes the lives of victims and their families. To address this crime, the Department has put numerous broad-based programs in place to achieve our vision of enhancing military readiness by establishing a culture free from sexual violence. The Department's goal is to prevent sexual assault through institutionalized prevention efforts that influence the knowledge, skills, and behaviors of servicemembers to stop a sexual assault before it occurs. We have developed a comprehensive prevention strategy built around the concept of bystander intervention. Throughout the Department--from the newest recruits to the most senior leaders-- servicemembers are getting educated on the role they can play as individuals in preventing this crime. In conjunction with prevention, we are working to increase awareness so when a crime does occur, it is reported. We want any victims within the military to come forward, first and foremost, to get treatment, and if so desired, provide details of the crime so the perpetrator can be held accountable. The Department is committed to ensuring the sexual assault prevention and response program works as intended. This ``system accountability'' is achieved through data collection, analysis, and reporting of case outcomes. In order to improve data collection, analysis, and case management, the Department initiated the development of the Defense Sexual Assault Incident Database (DSAID). In January 2010, a Request for Proposal was issued to identify a vendor for the database, with selection expected by the fall. The Department has participated in several external reviews in recent years, most recently by the Government Accountability Office (GAO) and the Defense Task Force on Sexual Assault in the Military Services (DTF-SAMS). DTF-SAMS released their report in December 2009 and GAO released their report in February 2010. We are currently reviewing and responding to their recommendations. Child Custody The Department believes the States are in the best position to balance the competing interests within the context of their own domestic relations laws. Approximately 30 States have passed legislation that addresses the special circumstances facing military parents who have custody of children but who are not married to the other parent. The American Bar Association, National Military Family Association, and the Senate support the Department's position. Although the Senate has continued to reject Federal child custody legislation, it did include language in the NDAA for Fiscal Year 2010 that requires a report to Congress on military child custody issues by March 31, 2010. Senate Armed Services Committee staff indicate this report will form the basis for hearings anticipated in April 2010. The Department has committed to several efforts to address the unique challenges facing military members who have custody of a child but are not married to the other parent. The Department is working with its State liaisons to encourage those 20 States who have not addressed military child custody issues in their domestic relations laws to do so. The Department is also looking for opportunities to increase participation in and support of the American Bar Association's Military Pro Bono project, which provides free in-court representation to military members for domestic relations cases (and other cases). Finally, the Department is updating and reissuing its Family Care Plan instruction, which can, if used properly, significantly reduce custody problems without the detrimental effects of the proposed Federal law. Federal Voting The Department vigorously assists our men and women in uniform, their voting-age dependents and U.S. citizens residing overseas to successfully participate in the 2010 primary and general elections. Initial indications are that the Department's programs are having a significant impact: for the 2008 general election, the active duty military voter registration rate exceeded that of the general population's: 77 percent for the military as compared to 71 percent for the general population. Unfortunately, while more than 91 percent of absentee ballots were successfully returned by general electorate voters in the 2008 general election, only 67 percent of uniformed services and overseas voter absentee ballots were successfully returned. Unsuccessful return of ballots represents the single greatest point of failure for military and overseas voters, and is largely due to absentee ballots being sent out too close to the election, with insufficient time for the voter to successfully receive, vote and return the ballot by the States' mandated deadlines. In fact, more than 81 percent of all the voting failure suffered by military and overseas voters was because of ballots transmitted to them, but never returned. The Department is focusing its voting assistance programs to address the overwhelming point of failure by focusing on those programs that will expedite both the delivery and return of ballots from military and overseas voters. First, the Federal Voting Assistance Program is developing an online wizard that will allow military and overseas voters to receive and mark their complete Federal, State, and local ballot online, and then print it out for voter verification, signature of the voter's oath, and postal mail return of the paper ballot. Second, the Military Postal System is also preparing an expedited ballot return system which will return ballots by Express Mail, as well as provide the voter with an online tracking system all the way to delivery to the local election official. The Military Postal System's desired delivery time is no more than 7 days from receipt of the ballot from the voter to delivery to the local election official. The Department is also taking full advantage of the authority granted it under the Military and Overseas Voter Empowerment (MOVE) Act of 2009 to designate all military installation voting assistance offices as National Voter Registration Act voter registration agencies. This will allow the Department to also collect from and mail in for those voters (who desire the assistance), the FPCAs or other registration forms completed by those voters. The Department has been working closely with States to identify those changes in State law necessary to achieve the requirements of the MOVE Act, and to provide sufficient opportunity for military and overseas voters to successfully complete the absentee voting process. conclusion We face two fundamental, and related, challenges. First, we must continue to attract and retain high quality, motivated individuals for Active and Reserve military service and we must maintain an enthusiastic and skilled civilian workforce. Second, we must weigh sufficiency against the risks of an uncertain future. As we invest in our human capital, we must do so judiciously. While our future challenges may often seem without bounds, our resources are not. We must make hard choices, as a Department and as a Nation, of allocating our resources the best we can to win the war at hand while taking care of our most valuable asset--our men and women in uniform. I look forward to working with this Congress in this effort. Senator Webb. Thank you very much, Secretary Stanley. Secretary Lamont. STATEMENT OF HON. THOMAS R. LAMONT, ASSISTANT SECRETARY OF THE ARMY FOR MANPOWER AND RESERVE AFFAIRS Mr. Lamont. Chairman Webb, Senator Graham, distinguished members of the committee, thank you for the opportunity to appear before you today. I appear before you on behalf of 1.1 million men and women serving here and abroad in peaceful, as well as hostile, environments. This combat-seasoned force is resilient and professional, yet strained and out of balance. More than 1 million of this Nation's finest citizens have deployed, over the past 8 years, into harm's way. We realize, very well, that there are costs associated with this conflict, both visible and invisible. Our current programs to relieve stress on the force are critical to maintaining a healthy, balanced, and prepared force. These programs help us defend our country against some of the most persistent and wide-ranging threats in our Nation's history. The success of these programs is due, in large part, to the support Congress has given us since this Army went to war in 2001. First and foremost, you have enabled us, through appropriate resources, to meet a temporary end-strength increase for our agile Army. As a result, this will, in part, alleviate the stress and strain on the total Army. This is a step in the right direction to get our personnel structure back in balance. Congress has also given us the means to improve the quality of life for our soldiers and their families. Soldiers remain in the Army based on the established incentive programs, such as an excellent healthcare system, educational opportunities, financial stability with sufficient bonuses, general vacation time, soldier and family services, and frankly, out of a true sense of duty to our country. This Congress has embraced our needs, and for that, we are very grateful. The Army continues to face challenges, which we will encounter today and well into the future. Armed with lessons learned, it is our intent to stay in front of those challenges, anticipate them, develop strategies and programs to address them, and hopefully, keep them from becoming problems in the future. Specifically, one of the challenges that we are addressing is the concept of the Operational Reserve. The Army's Reserve component continues to transition from a strategic Reserve to an operational force. The Army will require recurrent, assured, and predictable access to the Reserve component to meet operational requirements. This transformation of the Reserve component into an operational force will provide an opportunity for the Army to provide the most cost-effective total force by investing resources in the most cost-efficient portion of the Army's total force. Our focus this year centers on restoring the balance, resilience, and sustainment of the force, growth in talent, and our ability to meet the Nation's needs with the highest-quality force available. The Army will continue to work hard to attract and retain the best, but we need your help in taking on this larger problem. The challenging environments that our soldier's serve in demand that we maintain the standards as set, and we must remain ever-vigilant that our force is manned with both physically and mentally qualified soldiers, as it is today. As you are well aware, we have some tough challenges ahead of us. I'm confident, however, that with the operational and institutional agility this Army has developed over the past 9 years, we will meet all the challenges that will come our way. It is always easy to commit to a plan of action when we know that Congress supports us. Your leadership and your support have been unwavering. I appreciate this opportunity to come before the committee, both now and in the future, and I look forward to your questions. Senator Webb. Thank you very much, Secretary Lamont. [The prepared statement of Mr. Lamont follows:] Prepared Statement by Hon. Thomas R. Lamont introduction Chairman Webb, Senator Graham, distinguished members of this subcommittee, thank you for the opportunity to appear before you on behalf of America's Army. Our greatest heroes are America's most precious resource--our soldiers. These soldiers and their families, backed by our civilian workforce, represent the very best of America's values and ideals and faithfully shoulder the load that our Nation asks of them. This fighting force of 1.1 million soldiers is continually tested at home and abroad. Repeatedly our Nation's men and women step forward and pledge to serve. They recognize the challenges facing our Nation, answer the call, and become part of something larger than themselves. Their dedicated service and sacrifice are deserving of the very best services, programs, equipment, training, benefits, lifestyle, and leadership available. Our focus this year centers on restoring the balance, resilience, and sustainment of the force, growth in talent, our ability to meet the national challenges, and the importance of maintaining this strength to meet the demands now and for the future. Thank you for your steadfast commitment to ensuring our soldiers, their families, and our civilian workforce by supporting our personnel initiatives to ensure growth, sustainment and well being of our All- Volunteer Force. strategic overview America's Army, strained by over 8 years of persistent conflict, remains a resilient force. Our Army, however, is also stretched and out of balance while demand has continued to grow. The Army has added nearly 100,000 more soldiers since 2004. More than one million of our country's finest men and women have deployed to combat, with over 5,000 lives sacrificed in the line of duty. The Army appreciates your recent support in providing the Army with temporary end strength increase of 22,000 to provide some relief to our stressed force. We will complete the initial ramp of 15,000 by the end of fiscal year 2010 and will evaluate the need to complete the remaining amount later this year. Even with this temporary increase, we face many challenges ahead, but must remain vigilant and supportive to the needs of our people. We must continue to address these needs and find a way to get our Army back to a balanced force. end strength To alleviate the stress and strain on the force, the Department of Defense authorized the Army a Temporary End Strength Increase (TESI) of up to 22,000 Active Duty soldiers. Currently the plan is to use 15,000 of the 22,000 with a decision on the remaining 7,000 expected at the end of the second quarter, fiscal year 2010. This temporary increase provides additional, primarily skill level one, soldiers within highly deployed Military Occupational Specialties (MOSs) to combatant commanders. TESI has already increased unit readiness and will provide increased manning and readiness until fiscal year 2013 when the Army returns to its base end strength level of 547,400 in the Active component. While the majority of these additional soldiers are enlisted, the officer ranks will also experience a slight increase. Another advantage of TESI is a reduction in the use of Stop Loss. The Army expects to achieve a 50 percent reduction in the number of soldiers affected by Stop Loss by June 2010. As of January 2010, 7,861 soldiers were affected by Stop Loss, a 41 percent reduction from the January 2009 baseline of 13,217. By January 2011, the Army will have no soldiers deployed under Stop Loss. However, soldiers in post-deployment reintegration or demobilization may still be in Stop Loss until early spring 2011. TESI and the implementation of voluntary stabilization programs for each component have made significant contributions to the Army's ability to eliminate Stop Loss, while minimizing the potentially detrimental impact to unit readiness. We continue to make significant progress in our efforts to restore balance. Increasing time between deployments for our soldiers and building greater predictability for soldiers and families continues to be one of our key concerns. Despite the short term impact of the recent surge of troops to Afghanistan, we expect the ratio of Boots on Ground (BOG) time to dwell time at 1:2 for the Active Force and 1:4 for the Reserve component to improve as demand decreases. Eventually, increased dwell time will be achieved by lowering the demand on our forces while increasing the size of the active Army. This will ease the constant pressures on our forces as we move into the rotational cycle of the Army Forces Generation (ARFORGEN) model. The Army Senior Leadership remains committed to meet these deployment goals while eliminating Stop Loss, and without any increase in tour length for our soldiers. recruiting and retention (officer and enlisted) Our soldiers are the Army's most important resources, and our ability to meet the challenges of the current and future operational environments depends on our ability to sustain the All-Volunteer Force. The pace and demand of the operational environment over the last several years has caused us to dedicate our focus to reaching a high volume of recruits. The shift in the economy, however, has allowed us to demand even higher quality recruits. Despite the challenges of an Army engaged in two protracted conflicts, the Army exceeded its enlisted recruiting and retention missions for fiscal year 2009 and is confident it will meet its goals for fiscal year 2010. The Army met 104 percent of its recruiting goals for fiscal year 2009, while at the same time, meeting its quality benchmarks for new recruits. Successfully meeting these critical benchmarks moves us closer to restoring balance. As we dedicate ourselves to the fiscal year 2010 recruiting mission, we will continue to monitor trends and make adjustments as required. In fiscal year 2009, with congressional support, the total Army spent $4.9 billion on recruiting and retention. In fiscal year 2010, these programs received $4.4 billion due to a more favorable recruiting and retention environment. Our $4.6 billion, fiscal year 2011 request is based on the need to continue funding for contracts written between fiscal year 2006 and fiscal year 2009 and to ensure the success of the total Army's recruiting and retention missions. The amount budgeted for contractual payments is anticipated to decrease in fiscal year 2012 and subsequent years. Because of this funding, the Army is now a higher quality All- Volunteer Force. For example, the Army's percentage of ``high quality'' enlisted soldiers with a high school diploma have increased by 2.1 percent since the end of fiscal year 2009. Additionally, recruits scoring in the upper range (50-99 percent) on the Armed Forces Qualification Test (AFQT) increased 2.0 percent; and recruits who scored poorly (30 percent and below) on the AFQT decreased 0.4 percent. The Army was able to decrease the amount of ineligibility waivers previously provided for enlistments and appointments. Also, the Army was able to repair mid-grade officer shortages in the Regular Army, which provided the opportunity to aggressively target mid-grade shortages in the Reserve components. Overall, the Army's programs are effective in recruiting and retaining both officers and enlisted soldiers with critical skills. For enlisted soldiers, the Enlistment Bonus (EB), the Selective Reenlistment Bonus (SRB), Critical Skills Retention Bonus (CSRB), Army College Fund (ACF), and the Student Loan Repayment Program (SLRP) remain as proven and effective tools for filling critical skills. The ACF and SLRP are especially effective in attracting quality recruits who have some college experience or plan to attend college after the Army. To assist in recruiting critical skills, the Army launched the ``Military Accessions Vital to the National Interest'' (MAVNI) Pilot Program which the Secretary of Defense authorized on November 25, 2008 and Army launched on February 23, 2009. The purpose was to attract high quality individuals with exceptional skills in health care professions or native speaking skills in at least 1 of 35 critical foreign languages. MAVNI recruits are non-U.S. citizens who have been legally present in the United States for 2 or more years and speak a critically needed foreign language or are U.S. licensed health care professionals who meet or exceed all requirements for military service but for U.S. citizenship. They do not have permanent residency (i.e. Green Cards). We recruited 788 MAVNI with language skills and 143 health care professionals during the 12 months since the program launched. Without spending a single dollar on marketing or advertising, Army received over 12,000 leads for the MAVNI program and positive media coverage. Of the foreign language speakers recruited, 66 percent have a bachelor's degree or higher, and 30 percent have at least a master's degree. Half the MAVNI recruits speak and comprehend the foreign language for which they were recruited at the 3/3 level or higher which is akin to a college graduate. Their loss from the Delayed Entry Program (DEP) is one-third that of non-MAVNI recruits and their attrition rate once in the Service is virtually nil. We reached the cap for this program established by the Secretary of Defense so until the program is extended we are unable to recruit the many applicants waiting to be processed. Through a separate program, the Army has recruited more than 1,600 soldiers as military interpreters and translators under the MOS O9L Program. This MOS enlists native speakers of Arabic, Pashtu, Dari, Farsi, and Kurdish into all components of the Army to serve as interpreters in uniform. Combatant Commanders have found them to be force multipliers as they bring high levels of proficiency in these languages as well as firsthand cultural knowledge. In fiscal year 2009, all components exceeded the annual retention goal. The Active Army achieved 124 percent of the annual goal, the Army Reserve achieved 105 percent, of the annual goal, and the Army National Guard achieved 106 percent of the annual goal. During fiscal year 2009, retention bonuses were carefully monitored and adjusted to achieve the maximum result, ensuring the Army met its retention goals while remaining fiscally responsible. The economic environment allowed the Army to reduce incentive levels as well as the number of occupations offering bonuses, while focusing on our most critical skills. In addition, use of the Army's Critical Skills Retention Bonus greatly assisted in retaining very experienced senior enlisted soldiers with invaluable leadership and combat experience. Retention of combat experienced veterans remains critical to current and future readiness. In fact, 39 percent of all reenlistments occurred while soldiers were deployed. The Active Army also continued to support and encourage Active Duty soldiers who elected not to reenlist to transfer to the Reserve component upon completion of their Active Duty tour. The Army retention mission is also on track to meet the goals set for fiscal year 2010. The Active Army has reenlisted 41,262 soldiers for 68 percent of the annual goal, the Army Reserve has reenlisted 4,291 for 42 percent of the annual goal, and the Army National Guard has reenlisted 10,771 soldiers for 35 percent of the annual goal. In all components, the Army expects to finish successfully in every category. The Post-September 11 GI Bill, which took effect August 1, 2009, provides a significantly enhanced level of educational benefits for Active Duty servicemembers. Additionally, it serves as a valuable incentive to attract and retain quality soldiers of all ranks. The Army expects the Post-September 11 GI Bill to serve as an inducement for college oriented teens to join the Army, while transferability should increase retention within our mid-career (6-10 years of service), category of soldiers. Although it is too early to fully determine the impact of the Post-September 11 GI Bill on both recruiting and retention, initial signs are positive. In particular, we've kept a watchful eye on the retention of our initial term soldiers who some feared might separate under expiration of their term of service in order to use their educational benefits. However, the Army exceeded its retention goals for first-term soldiers in fiscal year 2009 and continues to do so in fiscal year 2010. Shortages remain within our officer corps due to overall structural growth of the Army. To correct this, the Army initiated the Captains' Retention Incentive Menu in September 2007. The Army spent $443.6 million from fiscal year 2007 to present on this incentive program. The goal of the program was to recruit, retain, and manage critical skills to increase the retention of lieutenants and captains for 3 years. The Captains' Retention Incentives Menu program included a cash option based on the officer's branch, resident graduate school attendance for up to 18 months, or attendance at the Defense Language Institute for 1 year. As a result, the Army's retention rate for Captains increased in fiscal year 2008 to 89.1 percent and again in fiscal year 2009 to 89.9 percent over the 10-year average of 88 percent. The program guaranteed retention through fiscal year 2011 for over 16,000 of the 23,000 captains who were eligible to participate. The timing of our Captains' Retention Incentives Menu program, concurrent with the dramatic downturn of the economy and job market, helped support our retention goals. The cash and Defense Language Institute options ended in November 2008. The remaining retention incentive, the Expanded Graduate School Program, has been funded at $7.5 million in fiscal year 2010. Overall, the single most effective retention incentive for junior officers was the cash bonus. Over 94 percent of the more than 16,000 officers who took incentives in fiscal year 2008 elected to take the cash bonus. Department of Defense survey data analysis showed that most officers who intended to separate or were undecided, took the incentive and committed to further obligated Army service. The U.S. Military Academy (USMA) and ROTC both continue to offer pre-commissioning incentives. These consist of offering new officers their Post or Branch of Choice or Graduate Schooling. In fiscal year 2006 through fiscal year 2009 there were approximately 6,000 participants. These incentives have increased longevity by 40 percent for newly-commissioned, high-performing USMA and ROTC officers. In spite of a dramatically changed recruiting climate, based on the economy, our message to our soldiers and their families must resound with assurance that they will be cared for in a manner commensurate with their service and sacrifice. Incentives, bonuses, and pay are only part of the equation in creating balance in our soldiers and families lives. In the event of a life changing injury or the loss of life, our soldiers are assured that their families will receive financial and programmatic support for their loss and sacrifice. This support includes full-earned benefits and disability compensation. The Army is working closely and aggressively with soldiers and their families to streamline access to assistance from other Federal agencies, such as the Social Security Administration, Department of Labor, and Department of Veterans Affairs. In direct support of President Obama's Veteran's Day Executive Order on employment of veterans in the Federal Government, we have begun a Veterans Employment Transition Initiative to streamline, synchronize, and integrate existing policies, programs, and initiatives to assist soldiers and their families as they transition out of the military. The intent is to ensure that they have timely visibility of every opportunity available to them as they transition to civilian life, whether as Federal workers or as contributing members of the private sector. The Army carefully manages its resources, reviewing and adjusting incentives at least quarterly to ensure we attract and retain quality individuals in needed occupations, while remaining fiscally responsible to avoid excessive payments. The economic environment has allowed us to reduce incentive amounts and the number of occupations offered bonuses or education incentives. Enlistment Bonuses are at the lowest levels since the 1990s drawdown. However, we must retain the flexibility to apply incentives as necessary to retain soldiers with critical or specialized skills. The continued authorities and funding of these programs by Congress remain critical to the sustainment of the Army. individual ready reserve mobilization The Individual Ready Reserve (IRR) is a category of the Ready Reserve, and is composed of those members of the Ready Reserve who are not serving in Selected Reserve units or assignments, or in the Inactive National Guard. The availability of IRR soldiers is critical to the Army's mission of providing properly trained and equipped units of sufficient strength to meet contingency operation or mobilization requirements. As of February 28, 2010, there are 59,413 soldiers in the IRR. Since September 11, 2001, a total of 29,997 soldiers received mobilization orders and a total of 12,018 soldiers deployed to the CENTCOM Area of Responsibility. The Army applies specific screening criteria and a tiered systemic approach regarding involuntary mobilization of the IRR. These actions align with the January 2007 DOD policy on Utilization of the Total Force and take into account a soldier's dwell time, Military Service Obligation (MSO), and previous deployments in support of OCONUS Contingency Operations (OCO). An effective IRR program is based on several factors, including the soldiers' understanding of their obligations, access to benefits and support, and time to adjust personal affairs prior to mobilizations. In an ongoing effort to validate the readiness of the IRR, the Army continues to implement the IRR Muster program. Approximately 5 months after entering the IRR program, soldiers will be ordered to muster duty. Afterward, soldiers are required to muster each year they remain in the IRR. Through the muster program, the Army established a partnership with the Department of Veterans Affairs to use VA medical centers as muster sites for the added opportunity of connecting soldiers to VA services. During fiscal year 2009, the Army spent approximately $3.6 million to muster 13,500 soldiers, contributing to 3,300 soldiers returning to Army Reserve formations. The Army plans to muster 14,000 IRR soldiers at an estimated cost of $4.2 million in fiscal year 2010 and expect to impact 3,500 soldiers returning to Army Reserve Formations. operational reserve As the Army continues to institutionalize the Operational Reserve, our first and greatest challenge is to effectively and efficiently deliver ready and trained soldiers. Transforming the Reserve components (RC) into an operational force in the near-term (fiscal year 2012-2014) will provide a means for RC forces to provide proportional support to the Army's Force Supply model of a Corps Headquarters, 5 division headquarters (4 Active component (AC), 1 RC), 20 Brigade Combat Teams (15 AC, 5 RC), and 90,000 enablers (41,000 AC, 49,000 RC) to support combatant command requirements through 2014 time period. It is important to note that programming decisions are required in the near term to ensure RC forces are sufficiently ready to support the Army's force generation plans. Without sufficient resources in unit management, collective training and medical/dental readiness, the RC will not be ready to support the planned 1/5/20/90 force supply construct. The Army will require recurrent, assured and predictable access to the RC to meet operational requirements as requirements increase for Army forces to conduct overseas engagement activities over the remaining years of the program period (fiscal year 2015-2017). During this period, RC forces will be mobilized and employed in full spectrum operations at rates proportional to AC forces within force utilization goals of 1:3 (AC) and 1:5 (RC). Continued investments in RC unit management, collective training and medical/dental readiness are required to achieve required readiness levels in accordance with these ARFORGEN goals. Moreover, these investments are required within the base funding to ensure the RC achieves a level of institutional transformation that cannot be achieved through the year-by-year allocation of resources from overseas contingency operations funds. Finally, transforming the RC into an operational force provides an opportunity for the Army to provide the most cost-effective Total Force and mitigate any decline in resources by investing now in the most cost-efficient portion of the Army's Total Force. The Army National Guard (ARNG) and the U.S. Army Reserve account for 51 percent of the Army's military end strength for 16 percent of the base budget. When comparing the cost per soldier, the relative value of the RC is even greater. A 2008 comparison of AC/RC manpower by HQDA G-8 identified the approximate total costs per Regular Army soldier in manpower, training, equipping, organization costs and operating costs as $135,000, compared to $36,000 for ARNG soldiers and $35,000 for Army Reserve soldiers. Given the relative value is a reasoned investment for the Army's Total Force, this will make targeted investments improve RC readiness. Moreover, such investments in the near-term (POM 2012-2017) will position the Army to better manage the risks of declining resources for the Army, should such a reduction be required in the next 2 to 5 years. However, delays in these investment decisions reduce the Army's flexibility to consider strategic alternatives to a larger Active Force structure model in the long-term. quality of life Recognizing that the strength of our Army comes from the strength of our Army families, the Secretary of the Army and Chief of Staff of the Army initiated the Army Family Covenant in October 2007 and reaffirmed this commitment by resigning the Covenant this past October. The Covenant institutionalizes the Army's commitment to provide soldiers and families a quality of life commensurate with the quality of service they provide our Nation. The Army Family Covenant incorporates programs designed to build strength and resilience in our families. These improved services and programs help to mitigate the stress from mutiple deployments and frequent military moves. The Covenant focuses on the following: standardizing soldier and family programs; increasing access and quality of health care; improving soldier and family housing; ensuring excellence in our schools, youth and child care services; expanding the education and employment opportunities for family members; improving soldier quality of life in recreation, travel, and the Better Opportunities for Single Soldiers program; and improving relationships with local communities and marketplaces. From fiscal year 2007 to fiscal year 2010, the Army more than doubled its investment in family programs. To ensure they remain enduring, these increases have been included in the fiscal year 2010 base budget. Furthermore, this funding will increase from $1.7 billion in fiscal year 2010 to $1.9 billion in fiscal year 2015. We must never forget that we are one Army made up of Active Duty, National Guard, and Army Reserve components and must often reach ``beyond the gates of the garrison'' to ensure we support our geographically dispersed families. We are thankful for all the citizens and community based organizations that have stepped up to support our soldiers and their families, regardless of their location. civilian personnel and workforce development Department of the Army civilian employees provide vital support to soldiers and families in this era of persistent conflict. They share responsibility for mission accomplishment by delivering combat support and combat service support--at home and abroad. More than ever, Army civilians are an absolutely essential component of readiness and a key element in restoring balance. Today, the Army Civilian Corps has nearly 300,000 employees with 3,832 currently serving in harm's way in the U.S. Central Command area of operations. Since September 11, 2001, we increased the civilian workforce from 222,000 to 263,169 (plus 24,357 Civil Works) due to overseas contingency operations, Defense Health Program increases, Family and Soldier Support initiatives, acquisition workforce growth, in-sourcing contracts associated with inherently governmental functions, military technician increases, and military-to-civilian conversions. Future Civilian employee growth is critical to supporting current plans to rebalance the Army to 73 brigade combat teams and associated combat support/combat service support units by fiscal year 2011. In fiscal year 2009, the Army saved significant resources by in- souring more than 900 core governmental functions to Army civilians. We plan to in-source 7,162 positions in fiscal year 2010, and are programmed to in-source 11,084 positions during fiscal year 2011-2015, of which 3,988 are acquisition positions. These positions were identified in the Army's on-going contractor inventory review process. Current workforce development programs, such as the Army Intern Program; the Army Fellows Program; the Presidential Management Fellows Program; the Senior Fellows Program, and the Army Senior Leader Development Program, to name a few, are helping the Army to ``build a bench'', of future Army leaders. In an era of persistent conflict, however, the operational and budgetary realities of fighting terrorism on multiple fronts have simultaneously increased the requirements for development and decreased the available funding. Simply put, the Army's resources to develop our Civilians have not kept pace with the need. While current training and development programs provide highly competitive growth opportunities, better incentives for self- development and professional development are needed to ensure the Civilian cohort is as prepared to meet future missions as their military counterparts. The Department of the Army also has several initiatives to focus and invigorate development of the civilian workforce, which complement the strategic workforce plan requirements outlined in the National Defense Authorization Act for Fiscal Year 2010. The Army is developing a Civilian Human Capital Strategy to better focus on the full life-cycle needs of Civilian Workforce, from recruitment to replacement. Because of the increasing complexity of today's operational environment, the Army must invest more resources into recruiting, sustaining, and developing its Civilian workforce. The Initial emphasis of our Civilian Human Capital Strategy will be on identification of the competencies needed by employees in mission critical occupations, assessment of the current competency levels of the workforce, and strategies for closing the gaps. This focus will enable the Army to develop competency-based civilian recruiting and hiring strategies as well. This approach will help ease the transition from one generation to the next as we implement Base Realignment and Closure and begin to experience the next wave of baby boomer retirements. army equal opportunity policy The Army leads the Nation in Equal Opportunity (EO) policy and practice. Commanders at all levels are responsible for sustaining positive EO climates within their organizations to enhance Army Readiness. Remaining applicable and relevant within the ever-changing environment in which we operate, the Army is transforming EO policy/ program by integrating and institutionalizing equal opportunity and diversity goals, objectives and training practices. This effort will strengthen the foundation of the Army's Human Capital Strategy. Since fiscal year 2008, the Army has invested $3.4 million and expects to invest another $0.9 million in fiscal year 2010 for EO personnel and services support, database and survey systems, outreach support, and training contracts. sexual assault and harassment prevention The Army's goal is to eliminate sexual assault and harassment by creating a climate that respects the dignity of every member of the esteemed band of brothers and sisters. The Secretary of the Army (SECARMY) and the Chief of Staff (CSA) remain personally involved in reinforcing to all soldiers and leaders the importance of preventing sexual assault and harassment. Under their guidance and leadership, the Army launched a comprehensive sexual assault prevention strategy that requires leaders to establish a positive command climate where sexual assault is clearly not acceptable. The strategy further encourages soldiers to execute peer-to-peer intervention personally, and to not tolerate behavior that could lead to sexual assault. The cornerstone of the Army's prevention strategy is the ``I. A.M. Strong'' campaign, where the letters I, A, and M stand for Intervene-- Act--Motivate. The ``I. A.M. Strong'' campaign features soldiers as influential role models and provides peer-to-peer messages outlining the Army's intent for all its members to personally take action in the effort to protect our communities. Leaders have embraced ``I. A.M. Strong'' initiatives and are motivating soldiers to engage proactively and prevent sexual assault. The Army's sexual assault prevention strategy consists of four integrated phases and extends through calendar year 2014 as we work to be the Nation's leader in sexual harassment and sexual assault prevention. The SECARMY introduced the ``I. A.M. Strong'' campaign at the Sexual Assault Prevention Summit in September 2008. The Summit served as a platform to launch Phase I (Committed Army Leadership) by providing training on best practices and allowing commands the opportunity to develop prevention plans to support the Army strategy. Phase II of the prevention strategy (Army-wide Conviction) includes educating soldiers to understand their moral responsibility to intervene and stop sexual assault and harassment. Phase II began at the 2009 Sexual Assault Prevention Summit (6-10 Apr 09) during which the SECARMY, CSA, and Sergeant Major of the Army addressed attendees, which included over 100 sergeants major and 50 general officers. Phase III culminates the dedicated effort of leaders and soldiers under Phase I and Phase II by ``Achieving Cultural Change'' that truly reflects Army values and fosters an environment free from sexual harassment and sexual assault. The final phase is ``Sustainment, Refinement, and Sharing,'' during which the prevention program continues to grow while motivating national partners to support our efforts to change generally accepted negative social behaviors; thus eliminating the crime of sexual assault. With the implementation of the strategy, a likely near-term consequence will be an increase in the number of reported cases as soldiers' and other victims' propensity to report increases. This increase in cases will require more sexual assault responder support, specifically: victim advocates, healthcare personnel, investigators, and prosecutors. suicide prevention program The loss of any soldier is a tragedy, particularly when it could have been prevented. There were 160 suicides by active-duty soldiers during 2009, continuing the 5-year trend of increased suicides within the Army. As a result, we have instituted a multi-level, holistic approach to health promotion, risk reduction and suicide prevention. Although the total number and rate of suicides in the Army remains of deep concern, we should remember each of these suicides represents an individual and a family that has suffered an irreparable loss---and, as a result, our suicide prevention efforts are focused on directly assisting soldiers, their families, and our Army civilians. On 16 April 2009, the Vice Chief of Staff of the Army (VCSA) signed the Army Campaign Plan for Health Promotion, Risk Reduction, and Suicide Prevention, a comprehensive plan setting in motion unprecedented changes in Army doctrine, policy, and resource allocation, as well as immediate guidance to commanders, in order to address the problem of suicides in the overall context of risk reduction and health promotion. The Army Suicide Prevention Task Force has addressed more than 240 different tasks related to suicide prevention doctrine, organization, training, materiel, leadership, personnel, and facilities. Over 90 percent of these tasks have been implemented. To build on the Army Campaign Plan's accomplishments during calendar year 2009, the Army Suicide Prevention Task Force is leading an effort to review and assess the effectiveness of Army Health Promotion, Risk Reduction and Suicide Prevention programs at all levels. Army has partnered with National Institute of Mental Health to conduct a long-term study (Army Study to Assess Risk and Resilience on Servicemembers) of risk and protective factors to inform health promotion and suicide prevention efforts. The VCSA Task Force is also reviewing all Army programs at all levels that are related to health promotion, risk reduction, suicide prevention, or were implemented to address soldier, family, or DA civilian stressors to ensure that the programs provide appropriate levels of support and address current problems, risk factors, and are relevant to today's soldiers' families' and DA civilians needs. comprehensive soldier fitness program The Army's Comprehensive Soldier Fitness (CSF) program is a structured, long-term assessment and development program designed to build the resilience and enhance the performance of the Army's soldiers, families, and civilian personnel. The CSF program uses individual assessments, tailored virtual training, classroom training and embedded resilience experts to provide soldiers with the critical skills needed to take care of themselves, their families and their teammates in this era of persistent conflict. By developing the five dimensions of strength--physical, emotional, social, spiritual, and family--CSF equips soldiers with the skills to become more self-aware, fit, balanced, confident, and competent, and ultimately better prepared to face the physical and psychological challenges of sustained operations. army substance abuse program The Nation's persistent conflict has created symptoms of stress for our soldiers, including an increase in alcohol and drug abuse. This commander's program uses prevention, education, deterrence, detection, and rehabilitation, to reduce and eliminate alcohol and drug abuse. It is based on the expectations of readiness and personal responsibility. A team recently returned from deployment to U.S. Army Forces, U.S. Central Command. To support our commanders, clear and effective procedures for random drug testing in theater are under development, such as the implementation of online tools to train unit prevention leaders and to quickly inform commanders of test results. Another area under development is the review of portable prevention education packages for deployed soldiers, soldiers at home, and soldiers in the RC. Additionally, the Army is conducting a pilot program that provides confidential education and treatment to soldiers who self-refer to the Army substance abuse program for assistance with alcohol issues. In addition to the pilot program, we are conducting a broader, more detailed study to determine the exact nature and extent of any stigma in the Army associated with substance abuse treatment. This study will run concurrently with the pilot program. The pilot program and detailed study were concluded on March 1, 2010 and we expect to report to Congress in April 2010. We want to ensure that all soldiers who may need assistance can get assistance without the barrier of stigma. congressional assistance Recruiting, retention, and providing for the well-being of the best Army in the world requires a significant commitment by the American people. The Army is grateful for the continued support of Congress for competitive military benefits and compensation, along with incentives and bonuses for soldiers and their families and for the civilian workforce. These are critical in helping the Army be the employer of choice. conclusion We must maintain an appropriate level of investment to ensure a robust and high-quality force. The well-being and balance of our force are absolutely dependent upon your tremendous support. The Army is growing and transforming in a period of persistent conflict. We will do so with men and women of the highest caliber whose willingness to serve, is a credit to this great Nation. Senator Webb. Secretary Garcia. STATEMENT OF HON. JUAN M. GARCIA III, ASSISTANT SECRETARY OF THE NAVY FOR MANPOWER AND RESERVE AFFAIRS Mr. Garcia. Chairman Webb, Senator Graham, distinguished members of the committee, it's my pleasure to be here today to testify on behalf of our Navy and Marine Corps personnel. For the past 5 months as an Assistant Secretary of the Navy, I've had the honor of representing and advocating for the nearly 650,000 sailors and marines, both Active Duty and Reserve, and 180,000 civilian employees who, together, are globally engaged across a spectrum of operations ranging from major combat to humanitarian assistance. Across the Department of the Navy, we are asking our sailors, marines, and civilians to take on extraordinary tasks ranging from combat operations in Afghanistan to unplanned disaster relief in Haiti. The men and women who comprise the Navy and Marine Corps have invariably risen to meet the challenge presented. Our leadership team--Secretary Mabus, Under Secretary Work, Admiral Roughead, and General Conway--have set a course for the Department of the Navy that drives our human capital strategy, focusing on our greatest asset: our people. In order to achieve our best, we promote an environment in which every person can excel, where each person is treated with dignity and respect, and where all are recognized for the contributions they make. Both the Navy and Marine Corps are experiencing historic success in recruiting and retention of Active Duty servicemembers. I assess that both Services will continue meeting their recruiting and end-strength goals for the foreseeable future. It's a tribute to both the dedication of our military personnel communities and to the patriotism of our Nation's young men and women that we are able to maintain an All-Volunteer Force of unprecedented quality through more than 8 years of active combat operations. Recruiting and retention in certain fields--healthcare, Special Forces, nuclear power--continue to pose challenges and will require the use of special pays and bonuses to ensure adequate numbers of qualified personnel are available in those critical specialties. Despite its high operational tempo, the Marine Corps was able to grow to 202,000 Active Duty end strength 2 years ahead of schedule. This focus on Active Duty recruiting and retention resulted in a slight shortfall of the Marine Reserve component end strength for 2009. For this same reason, 2010 Reserve strength may also be slightly below target. The health of the Reserve components is of particular concern because of our dependence on them to meet our global obligations. Since September 11, more than 142,000 mobilization requirements have been met by members of the Navy and Marine Corps Reserve. A high tempo, high stress environment appears to be the new normal for the Department of the Navy. One of the lessons to be learned from recent years is that our people step up and perform superbly in times of greatest need. But, the reality of continuing operations in Afghanistan, combined with our other deployment commitments, undeniably places great stress on our forces. The Department of the Navy is employing every measure available to help identify consequent risks, and we continue to assess and reevaluate these programs daily. As Secretary Gates has said, apart from the war itself, we have no higher priority than taking care of the wounded, ill, and injured. Through the Marine Corps Wounded Warrior Regiment and the Navy Safe Harbor Program, the sea Services strive to provide the best possible support for our personnel struck down, to include reintegration into society and a new emphasis on post-service employment. I'd like to thank the committee members for their continuous commitment to the support of our expeditionary fighting men and women, especially to those who have returned from the front line of battle with broken bodies but unbroken spirits, our wounded warriors. I look forward to your questions. [The prepared statement of Mr. Garcia follows:] Prepared Statement by Hon. Juan M. Garcia Chairman Webb, Senator Graham, and distinguished members of the subcommittee, it is my pleasure to be here today to testify on behalf of our Navy and Marine Corps personnel. For the past 5 months as an Assistant Secretary of the Navy, I have had the honor of representing and advocating for the nearly 650,000 sailors and marines, both Active Duty and Reserve, and 180,000 civilian employees who, together, are globally engaged across a spectrum of operations ranging from major combat to humanitarian assistance. Across the Department of the Navy, we are asking our sailors, marines, and civilians to take on extraordinary tasks ranging from combat operations in Afghanistan to unplanned disaster relief in Haiti. The men and women who comprise the Navy and Marine Corps have invariably risen to meet the challenges presented. Our leadership team, Secretary Mabus, Under Secretary Work, Admiral Roughead, and General Conway, have set a course for the Department of the Navy that drives our Human Capital Strategy--focusing on our greatest asset--our people. In order to achieve our best, we promote an environment in which every person can excel, where each person is treated with dignity and respect, and where all are recognized for the contributions they make. Let me address some particular areas of interest and concern related to the Department's manpower and personnel. In terms of military personnel, both the Navy and Marine Corps are experiencing historic success in recruiting and retention of active duty servicemembers. I assess that both Services will continue meeting their recruiting and end-strength goals for the foreseeable future. It is a tribute to both the dedication of our military personnel communities and to the patriotism of our Nation's young men and women that we are able to maintain an All-Volunteer Force, of unprecedented quality, through more than 8 years of active combat operations. Recruiting and retention in certain fields--including health care, Special Forces, and nuclear power--continue to pose challenges, and we still require the use of special pays and bonuses to ensure adequate numbers of qualified personnel are available in critical specialties such as these. The Navy expects to continue to need an additional 4,400 end- strength for Overseas Contingency Operations. In considering that requirement, it is important to remember that the number of active duty sailors has been in gradual decline since the Vietnam war. As recently as 1993 the Navy had half-again as many sailors on active duty, and available for assignments, as it does today. Despite its high operational tempo, the Marine Corps was able to grow to 202,000 active duty end strength 2 years ahead of schedule. This focus on active duty recruiting and retention resulted in a slight shortfall of the Marine Reserve component end strength for 2009. For this same reason, 2010 Reserve strength may also be slightly below target. The health of the Reserve components is of particular concern because of our dependence on them to meet our global obligations. Since September 11, more than 142,000 mobilization requirements have been met by members of the Navy and Marine Corps Reserve. Another topic of particular interest is the introduction of female personnel on submarines. On February 19, 2010, the Secretary of Defense notified Congress of our intent to change the policy prohibiting the service of women in submarines. After the requisite notification period has expired, it is the Navy's intent to have the first cadre of female officers commence training on nuclear prototypes and begin a pipeline that will ultimately lead them to qualification as Naval Submariners, removing one of the last gender barriers in the U.S. Navy, and helping to insulate us from the anticipated surge in hiring by the civilian nuclear power industry in the decades to come. Because of the critical mission and demanding environment of the submarine force, we envision a gradual, and measured approach to this integration. Our initial efforts will focus on officers only and will concentrate on our large boats (SSGNs and SSBNs), where the existing infrastructure will accommodate these changes without material alteration. As a measure of extra caution, the Navy will not reduce the number of male officers trained and qualified for submarine duty until we have experience with successfully placing female officers in those roles. Some might argue that such initiatives should not be undertaken during a period of high operating tempo and stress on the force. But a high tempo, high stress environment appears to be the new normal for the Department of the Navy. One of the lessons to be learned from recent years is that our people step up and perform superbly in times of greatest need. Yet the reality of continuing operations in Afghanistan combined with our other deployment commitments undeniably places great stress on our forces. Stress on the force has many causes and manifests in many forms. The Secretary of Defense asked former Secretary West and Retired Admiral Clark to lead an independent review of the tragic events at Fort Hood. Their review produced 86 recommendations for changes in, or reviews of, procedures and policies. Currently, the Department of the Navy is working with the other Services and the Office of the Secretary of Defense to evaluate those recommendations and implement those that seem appropriate. Well before the shootings at Fort Hood, the Department of the Navy had in place its Caregiver Occupational Stress Control Program, which is designed to enhance the resilience of caregivers, including mental health professionals, chaplains, corpsmen, and other counselors and advisers. Additionally, for reservists and individual augmentees returning from mobilization, the Department created the Returning Warrior Workshops (which are a part of the Yellow Ribbon Reintegration Program) to help with the adjustment to life back home. Stress on our personnel has likely played a role in the heartbreaking increase in suicide rates among the active duty in recent years. The Department of the Navy has employed every measure available to help identify those at risk, encourage them to seek help, and prevent these tragedies. We continue to assess and re-evaluate our programs daily, and will not stop, believing that even a single suicide by those wearing our Nation's cloth is one too many. As Secretary Gates has said, apart from the war itself, we have no higher priority than taking care of the wounded, ill, and injured. Through the Marine Corps's Wounded Warrior Regiment and the Navy's Safe Harbor Program, the sea services strive to provide the best possible support for our personnel struck down, to include reintegration into society, and a new emphasis on post-Service employment. Thanks to advances in military medicine, many of our most seriously wounded, who even a few years of ago would have died of injuries, are recovering and, in many cases, able to resume their military jobs. Others will require special accommodations and support for the rest of their lives. We are working in close partnership with the Department of Veterans' Affairs to ensure the best and most dignified treatment possible for those sailors and marines. Members of our civilian workforce continue their crucial contributions to our mission while coping with two significant transitions of their own. Consistent with your direction in the National Defense Authorization Act for Fiscal Year 2010, we are currently in the process of moving all of our civilian employees out of the National Security Personnel System. Those who are returning to the General Schedule will be converted no later than the end of the fiscal year. Those who will move to one of the various alternative pay systems will be transitioned during 2011. While this is occurring, the DOD is also engaged in a significant in-sourcing initiative, expected to add more than 33,000 civilian positions over the next 5 years to perform currently contracted services--the Department of Navy expects to establish 10,000 new civilian positions as part of this effort. This initiative will rebalance our workforce; rebuild organic capabilities; reduce operational risk by ensuring that inherently governmental and functions that support the readiness/management needs of the Department are performed by government employees; and that services are delivered in the most cost effective manner. Nearly a third of these new positions are expected to be part of the crucial acquisition workforce. These insourcing initiatives are consistent with DOD's High Priority Performance Goals in the President's fiscal year 2011 Budget's Analytic Perspectives volume. Finally, I would like to thank the committee members for their continuous commitment to the support of our expeditionary fighting men and women, especially to those who have returned from the front line of battle with broken bodies but unbroken spirits--Our Wounded Warriors. I look forward to your questions. Senator Webb. Thank you, Secretary Garcia. Secretary Ginsberg. STATEMENT OF HON. DANIEL B. GINSBERG, ASSISTANT SECRETARY OF THE AIR FORCE FOR MANPOWER AND RESERVE AFFAIRS Mr. Ginsberg. Thank you, Chairman Webb, Ranking Member Graham, and members of the subcommittee. It is my honor to testify before you today about our airmen. They are doing incredible work every day to serve our Nation and accomplish the missions that our Nation has asked of them. Our Air Force has been engaged in continuous operations for over 19 years. We have never been more engaged than today. We have over 38,000 airmen deployed around the world, and thousands more airmen providing direct support to the warfighter through our space systems, global mobility operations, and remotely-piloted operations, to name just a few of the critical capabilities that we provide. Overall, our force structure is healthy. We are working internal challenges to ensure we meet the increased demand for new and emerging missions, such as our remotely piloted aircraft, cyberoperations, and irregular warfare. We are meeting our total-force recruiting goals, except for a few hard-to-fill specialties in our officer medical specialties. To address this, we are aggressively pursuing a three- pronged approach to, first, grow our own through expanded scholarship opportunities and commissioning opportunities for our enlisted force; second, increase compensation through special and incentive pays; and third, to improve quality of life. Although the Air National Guard will meet end strength, we are having challenges recruiting enough officers. That may be related to our high retention rates we are currently experiencing with our Active component. Historically, the Guard and Reserve rely heavily on recruiting prior-service trained airmen who separate from the Active side. An efficient and smooth transfer between each component and Civil Service allows the Air Force to access and retain important skill sets and balance our mission needs over time. To make this process work even better, we are focusing on our Continuum of Service Program. Through Continuum of Service, we are reviewing all Air Force, Office of the Secretary of Defense (OSD), and statutory requirements to identify areas where we can streamline the transfer between components. When statutory issues are identified, we will work with OSD and our counterparts in other Services to identify and support legislative proposals to you. Taking care of our airmen and their families is a top Air Force priority. In the spring of 2009, the Air Force renewed its longstanding commitment to our airmen and families by designating July 2009 through July 2010 as ``The Year of the Air Force Family.'' The observance serves two primary purposes. First, we examined our family support services and policies across the Air Force in order to expand or refine them as required to meet the emerging needs and expectations of our airmen, their families, and the larger Air Force family. Second, we set aside specific time to recognize the sacrifices and contributions of the members of our entire Air Force family--our Active, Guard, Reserve, civilian, spouses, and family members. We have focused our efforts to ensure we provide robust programs to meet the unique needs of our Guard and Reserve members and their families. In conjunction with the Year of the Air Force Family, we are also focused on reducing the stressors and mission detractors that impact our airmen and their families. We have taken a holistic approach to addressing airmen resiliency. We are strengthening our Exceptional Family Member Program to ensure we better meet their unique needs. We are dedicated to reducing incidence of sexual assault and suicide among our force. One is too many. Diversity is an integral part of our mission accomplishment and success in today's Air Force, and will remain in the forefront of that area, as we continue to exclusively attract, develop, and retain highly qualified professionals for the betterment of the total force. Across all of our programs, we continually strive to improve as we accomplish the Air Force's and the Nation's priorities. I am committed to ensuring we provide the best possible programs that increase our combat capability and take care of our most important asset: our airmen. I look forward to working with this committee, which has helped shape DOD into the world's premier defense organization. I thank you for the opportunity to appear before you today. [The prepared statement of Mr. Ginsberg follows:] Prepared Statement by Hon, Daniel B. Ginsberg introduction Mr. Chairman, members of the subcommittee, thank you for this opportunity to discuss the Air Force's most important resource--our airmen. This diverse group of highly-skilled and dedicated men and women ensure our Air Force remains the most powerful in the world. Our airmen have been continuously deployed and globally engaged in combat missions for over 19 straight years. Approximately 38,800 airmen are currently deployed in support of joint operations across the globe. Of these, over 4,000 airmen are filling Joint Expeditionary Taskings in non-traditional roles in Iraq, Afghanistan and elsewhere. Thousands more are providing critical direct support to our combatant commanders from their home station. These critical capabilities include space systems such as GPS, rapid global mobility of people and supplies, as well as intelligence, surveillance, and reconnaissance from space and remotely piloted aircraft. Our airmen are committed to winning today's fight and prepared for tomorrow's challenges. As the Air Force's assistant Secretary for Manpower and Reserve Affairs, I am focused on accomplishing the Air Force's priorities by developing and implementing programs and policies to best leverage our total force--Active, Guard, Reserve, and civilians--to maximize our combat capability for the joint commanders. To that end, I have made Continuum of Service (CoS), which will allow for smooth transfer of skilled airmen between components, and increasing the diversity of our force high priorities. I am also attuned to the overall health of our force. We are working essential programs that support our wounded warriors, help airmen reintegrate after deployments, provide families with the support they need and minimize the incidents of sexual assault and suicide to name just a few. end strength and force management With the National Defense Authorization Act for Fiscal Year 2010, our current approved total force end strength is 686,944. This includes 331,700 Active component; 179,044 civilians; 69,500 Reserve; and 106,700 Air National Guard. In the fiscal year 2011 budget request, our programmed total force end strength is 702,669. This includes 332,200 Active component, 192,569 civilians, 71,200 Reserve, and Air National Guard end strength remaining at 106,700. The Air Force's fiscal year 2011 budget request preserved end strength in the face of fiscal constraints, realigned Active component and Reserve manpower within existing resources, and grew civilian end strength to meet Air Force priorities. Major manpower drivers include initial investment toward remotely piloted aircraft fleet operational capability to 65 combat air patrols; enhancing cyberspace/irregular warfare/command and control capabilities; and resourcing required Air Force priorities to include Acquisition Excellence, further enhancements to Nuclear Enterprise, and developing and caring for our airmen and their families while rebalancing our total force mix for agile combat support. Maintaining the optimum overall force size as well as balancing critical skill-sets is a routine part of the Air Force's force management efforts. The current downturn in the economy has had a direct impact on the Air Force's lower attrition rates projected in fiscal year 2010. As a result, the Air Force is expected to exceed end strength by about 3,700 airmen (2,100 officers and 1,600 enlisted) in fiscal year 2010. Although this increase would fall under the Secretary of the Air Force's purview of 2 percent over authorized end strength, the Air Force implemented a force management plan to bring this back in alignment. In fiscal year 2010, we made small adjustments in several areas including limited reductions of officer and enlisted accessions, increased service commitment waivers, waived enlisted time-in-grade requirements for retirement, and we are implementing an additional enlisted date-of-separation rollback. We are continually monitoring results from these actions and to date we have achieved about 50 percent of our fiscal year 2010 force management goal. Even with these efforts, we do not expect these actions to fully achieve the reductions targeted for fiscal year 2010. As a result, we will likely continue many of these actions and consider other force management options for the remainder of fiscal year 2010 and in fiscal year 2011 as needed. Utilizing force management tools is a necessary and routine leadership obligation to ensure the Air Force remains within authorized strength levels and get the right balance of grades and skills to meet our evolving mission requirements. However, we strive to use these force management tools in a deliberate manner with the least disruption to the cohesion of the force. recruiting Even in a time of higher retention and a struggling economy, recruiting the highest quality airmen is as important as ever. Our recruiting force continues to achieve the enlisted accession mission with integrity and excellence. In fiscal year 2009, we met mission requirements for enlisted recruiting in all components (Active, Guard, and Reserve). To date in fiscal year 2010 we have achieved 100 percent of our active-duty accession goals and 100 percent and 112 percent of our Reserve and Guard accession goals, respectively. Although we have achieved mission goals in our line officer accession programs, we continue to struggle with health professions officer recruitment and retention. In fiscal year 2009, we recruited approximately 70 percent of officer health professions requirements exceeding the fiscal year 2008 production of 62 percent. The ongoing high-demand for medical professionals in the lucrative civilian market makes it difficult for the Air Force to attract and retain fully qualified individuals. As a result, in 2006 the Air Force implemented a long-term ``grow our own'' strategy by offering more medical school scholarships in student-based markets. In fiscal year 2008, we filled 431 of 437 available scholarships (98.6 percent) and for fiscal year 2009, we accessed 376 of 371 scholarships (101 percent). In fiscal year 2010, we are on track to achieve a 100 percent scholarship fill rate. Our main shortfall in recruiting is attracting fully-qualified medical professionals to come straight into the service particularly in the Biomedical Science Corps. Psychology, Pharmacy, Optometry and Public Health Officers continue to be challenging to recruit. Our continued challenges in the health professions are why we have submitted $85.7 million in this year's budget request for officer bonuses to attract and retain more medical professionals on active duty. We are appreciative of and ask for your continued support in this area. Although recruitment is also strong in the Reserve and Air National Guard, they face challenges with fewer prior-servicemembers due to lower Active component attrition rates and increased requirements for new and emerging mission specialties. As a result, both the Air National Guard and the Air Force Reserve have had to increase their non-prior service recruitment efforts. In fact, the Reserve non-prior service recruiting requirement has nearly doubled since the end of fiscal year 2007. Increased recruitment of non-prior servicemembers for both Air National Guard and the Air Force Reserve has directly resulted in increased recruitment costs as well as increased training costs over that of already trained prior-servicemembers. The continued support of the Air Force, Department of Defense and Congress will undoubtedly shape the foundation of their success. retention Although overall officer retention has remained strong, we have had challenges with retention of rated officers, some critical skills and some health profession specialties. To address our rated officer shortages, we implemented a rated recall program to bring back 500 trained pilots to help fill our rated staff positions allowing more current pilots to return to the cockpit. The Air Force prudently employs Special and Incentive (S&I) pays to compensate for and incentivize the performance of hazardous and arduous duties, the acceptance of duty in hostile or remote and isolated locations, and the recruiting and retention of personnel with specific skills or in specific career fields. Fiscal year 2010 Active component recruiting and retention S&I pays total $465.9 million. For fiscal year 2011, we have requested this be increased to $480.1 million. This increase is due to changing eligible populations, anniversary payments, and the addition of retention bonuses for five stressed officer career fields. Our S&I pays are critical as we shape the force to meet new and emerging missions and support the combatant commanders in today's fight. The quality of Air National Guard recruits has not declined and their retention rate remains strong at 96.9 percent. The Air National Guard saves on average $62,000 in training costs for every qualified member retained or recruited. Our focus in this area allows us to retain critical skills lost from the Active component and save valuable training dollars. In 2009, through the use of our 14 In-Service Air National Guard recruiters strategically placed at active duty bases, the Air National Guard garnered approximately 896 confirmed accessions of a total of 5,309 accessions. The bonuses and incentive programs are a key component to that success. Retention for the Air Force Reserve remains solid with first-term airmen retention being the highest in recent history. Likewise, second- term and career airmen retention has rebounded following a drop in recent years due in-part to force structure changes. Although we have not formally studied the causes, we attribute this increase in retention rates primarily to the recent legislative authorizations congress has approved that enhance incentives to remain in the service like inactive duty training (IDT) travel pay, streamlining of TRICARE Reserve Select premiums, enhanced bonuses and the Post-September 11 GI Bill. We anticipate this positive trend in retention will continue for the foreseeable future. civilian personnel Management of the civilian workforce will continue to be a priority for the Air Force. We are working collaboratively with the Deputy Under Secretary of Defense for Civilian Personnel Policy on Strategic Human Capital Planning efforts, in particular, to address the provisions in NDAA for Fiscal Year 2010 which require reporting by the Military Departments. We support this effort that will result in the Air Force and the Department of Defense (DOD) having the skills and competencies necessary to meet our current and future mission requirements. In October, 2009, the President signed into law the NDAA 2010 that repeals the authority for NSPS and requires DOD to transition civilian employees from NSPS to the appropriate statutory non-NSPS personnel and pay system not later than January 1, 2012. The Air Force has approximately 44,000 employees in NSPS. We are aggressively planning and preparing to transition these Air Force employees in an orderly and timely manner. We have begun the process of reclassification of positions, where necessary. We will soon issue a conversion plan that will inform and assist our human resource practitioners, supervisors, managers and employees to understand the transition process and to facilitate the transition. The NDAA also provided additional personnel flexibilities which we will be pursuing in conjunction with DOD and the Office of Personnel Management. diversity Diversity is an integral part of mission accomplishment and success in today's Air Force and will remain in the forefront as we continue to inclusively attract, develop, and retain highly qualified professionals for the betterment of the Total Force. The capacity to educate, manage, lead, and train a diverse force is a core competency of Air Force leadership. Currently, we are pursuing collaborative diversity outreach initiatives with Air University, Civil Air Patrol, Junior and Senior Reserve Officer Training Corps, Officer Training School and the United States Air Force Academy. Additionally, strategic plans are being formalized to utilize the Air Force Diversity Champions to promulgate the aims of diversity within the Air Force and the community. Areas of interests and emphasis to cultivate and develop future leaders of the Total Force will include reaching out to students enrolled in science, technology, engineering and mathematics programs in high schools, colleges and universities across the Nation. As the demographics of the Nation continue to change, the Air Force must position itself to optimize the true benefits of a diverse force and respectfully request appropriate Congressional funding for the sustainment of the aforementioned outreach initiatives. By incorporating diversity management leadership principles and strategies to leverage the unique qualities and talents of all citizens, the Air Force will achieve mission excellence and sustain dominance in air, space, and cyberspace. continuum of service An important aspect of retention is our ability as a Service to allow skilled airmen to easily transfer from one component to another providing the Air Force flexibility while retaining valuable skills. CoS transforms the operating culture and paradigms to shape the future of personnel and manpower delivery throughout the Air Force to meet global mission requirements. CoS efforts have already positively impacted our Air Force members through a number of initiatives. Through our on-line CoS Tracking Tool (CoSTT), any airman can submit a proposal for a CoS initiative. Our tool was modified for use by the Army and is now being adapted for use throughout the Department of Defense. CoS initiatives have already improved our joint-spouse PCS process, interservice transfer of rated officers and helped facilitate the establishment of the Religious Professional Scholarship Program (RPSP) allowing members to attend seminary and later return to active duty. The RPSP is designed to help fill manning shortfalls within the chaplaincy for underrepresented faiths within the Air Force. This program is now being considered for utilization by my Navy and Army counterparts. In addition, CoS helped modify the chaplain accession age ceiling from 42 to 47. Some current Air Force CoS initiatives include: (1) aligning the Air Reserve Component pregnancy policy with that of the Army and Marine Corps to allow pregnant women to work until her orders expire; (2) changing Air Force policy on ``Lawful Permanent Resident'' accessions for critical specialties by utilizing current laws permitting the appointment of a Reserve Component officer who has been lawfully admitted to the United States; (3) evaluating the authority provided in the NDAA for Fiscal Year 2009 by considering a ``Career Intermission Pilot Program'' to determine whether a more flexible career path will prove to be an effective retention tool; and (4) examining the effects of changes to Air Force policy that would bring fully qualified personnel into stressed career fields faster than traditional methods by recognizing the value of nongovernmental experience. The Air Force CoS program is an important force multiplier as it not only helps our airmen transition between components, but also balances people and mission to ensure the right airman is in the fight. We greatly appreciate the outstanding support of the Senate Armed Services Committee Personnel Subcommittee on many of our CoS initiatives. suicide prevention Preventing suicide among our airmen is extremely important to the well-being of our force. The Air Force developed the basis for its suicide prevention program in 1993 and it is one of ten suicide prevention programs listed on the Substance Abuse and Mental Health Services Administration's National Registry of Evidence-Based Programs and Practices. Although this program resulted in a reduction in the number of suicides among airmen, within the Air Force we have recognized the importance of a multi-faceted approach to meet the varied needs of our people. Since the initial program began, we have placed a strong emphasis on leadership involvement in preventing suicides. Training has been implemented in various professional military education curricula to create awareness among Air Force leaders and frontline supervisors of behaviors that may lead to suicide and to inform leadership of actions they can take to prevent suicide. We have identified specific career fields in which the requirements of the job place enormous stress on airmen and we are developing targeted programs to improve resiliency and encourage airmen to seek help early. To facilitate the seeking of mental health services, we have placed behavioral health specialists in our primary care clinics. Additionally, we emphasize community involvement in suicide prevention, combining the efforts of chaplains, family counselors, and other non-medical counselors to meet the psychological health needs of airmen. Finally, we collaborate with our sister Services, with the Defense Center of Excellence for Traumatic Brain Injury and Psychological Health, and with the Department of Veterans Affairs to identify best practices and continuously improve our existing suicide prevention program. Recently, the Air Force Surgeon General took the lead in implementing a two-tiered program to create and enhance psychological resiliency in deploying and returning airmen. This program includes a 2-day decompression program when the airmen return from theater. We believe one suicide is one too many and are strongly committed to preventing suicides and caring for our airmen. sexual assault prevention and response Preventing sexual assault is also a top Air Force priority. Since program implementation in 2005, the Air Force has maintained a multi- disciplinary approach to addressing sexual assault that supports home- stationed and deployed airmen. A robust Air Force response to victims includes dedicated full-time civilian and military Sexual Assault Response Coordinators (SARCs) and more than 2,600 volunteer victim advocates who provide 24/7/365 support. Our robust Air Force Sexual Assault Prevention and Response program budget funds 80 civilian and 29 military officer SARCs at the installation level, who work directly for the Vice Wing Commander. Our military SARCs provide a full-time deployed capability at seven primary deployment locations. The Secretary of the Air Force recently approved the addition of 24 Air Force Office of Special Investigations agents trained and dedicated to investigate sexual assault. Caring and professional response to victims has been a focus of the Air Force program but equally important is our focus to prevent the crime before it occurs. The primary challenge of addressing sexual assault in the military and society at large is to confront a culture where sexual assault is allowed to exist. It requires a positive, ongoing effort to educate our airmen and others, about the realities of sexual assault, debunking myths that continue to be propagated by media and entertainment, and maintained by peer pressure or other societal convention. The Air Force has developed a prevention-based approach that directly focuses on fostering positive behavior that is in concert with our core values. The approach includes leadership focus from the top down, risk reduction, and bystander intervention training. The later is a strategy that motivates and mobilizes people who may see, hear, or recognize signs of an inappropriate or unsafe situation, to act. We will be working with Dr. Stanley, OSD (P&R), and our sister Services, to address the recommendations in the report of the Defense Task Force on Sexual Assault in the Military Services. Sexual assault is a crime. The Air Force is dedicated to the elimination of this crime and we recognize the challenges dealing with this very complex issue. year of the air force family In the spring of 2009, the Air Force renewed its longstanding commitment to taking care of our airmen and families by designating July 2009 through July 2010 as ``Year of the Air Force Family.'' The observance serves two primary purposes. Across the Air Force, we examined our support services and policies in order to expand or refine them as required to meet the emerging needs and expectations of our airmen, their families, and the larger Air Force Family. Second, we set aside specific time to recognize the sacrifices and contributions of all of the members of our Air Force family--our Active, Reserve, and Guard--civilians, spouses, and family members. We have focused our efforts to ensure we provide robust programs to meet the unique needs of our Guard and Reserve members and their families. The Yellow Ribbon Reintegration Program is one important way we are accomplishing this. The Air Force is working alongside other services in this DOD-wide effort to ensure the Air National Guard and Air Force Reserve airmen and their families are connected with all of the appropriate resources before, during and after deployments. We continue to focus on the reintegration phase after returning home and ensure that commanders are involved and aware throughout. We continue to improve our effectiveness and relationships with other associations such as the Department of Veterans Affairs and the Department of Labor in providing current and relevant information to members. The Air Force remains focused on airmen and their families and will ensure the oversight and success of the Yellow Ribbon Reintegration Program. Additionally, we are ensuring the Year of the Air Force Family does not overlook our ``extended Family'' our retirees, parents and the nongovernmental and community partners that support Air Force people every day across the Nation. We are using this year long period to launch our sharper focus on improving support to airmen and families. Under Secretary Donley's leadership, our concerted attention on providing the support that results in stronger, more resilient airmen and families will remain a priority in the years to come. In April 2010, we will hold a Caring for People Forum that will bring together helping professionals, airmen, and family members to develop an action plan to address the pressing and longer term concerns of airmen and families which will be briefed to senior leadership at the end of the forum. We are working to strengthen all of the partnerships that contribute to the quality of life for our members. These will include close rapport with local school districts (to enhance quality education and garner on-site support for children impacted by repeated deployments), housing privatization projects and agreements between our bases and city or county services. wounded warrior and survivor care The Air Force Wounded Warrior program focuses on the needs of recovering airmen and their families, as well as families of the fallen. We now have 17 Recovery Care Coordinators (RCC) in 15 locations, with an additional 10 RCCs being hired this year. Our RCCs are the primary point of contact for our wounded, ill, and injured airmen and ensure the health care, financial, informational, and personal needs of airmen and their families are available in a timely manner. Because of the range of questions airmen and families have after an injury or illness has incurred, it is critical to the healing process to have relevant and accurate information available to our airmen. Recovery Care Coordinators are in place to ensure those knowledgeable in medical and other areas of expertise are available to provide the requested information. This assistance is provided for as long as the airmen and families want assistance during recovery, rehabilitation, and reintegration. The Air Force also continues to work closely with the Office of Wounded Warrior Care and Transition Policy in the Office of the Secretary of Defense to ensure our programs continue to support all wounded, ill, and injured servicemembers. It is our solemn duty that these airmen receive the utmost support and care. conclusion I am continually impressed, but not surprised, by the tremendous hard work and focus our airmen display daily as they accomplish their missions. I am dedicated to providing them the best programs and support, removing any policy barriers and pursuing innovative ways to streamline our processes to allow them to be even more effective. Our Air Force is a critical component to our Nation's defense as we are faced with uncertain and ever changing threats. We appreciate your unfailing support to the men and women of our Air Force, and I look forward to your questions. Senator Webb. Thank you very much. I thank all of you for your testimony. I think what I would like to do is--since I took a good bit of time in my opening statement, I think I would like to just start with an 8-minute round, and Senator Graham could begin, and then we could go to Senator Hagan and Senator Begich, and then I'll follow on after you. Senator Graham. Well, thank you, Mr. Chairman. Secretary Stanley, when it comes to the personnel part of the budget, we're going to grow the Army and Marine Corps. I think we need to. The healthcare component--how do we get a grip on this? What are some ideas that you all are talking about there? Dr. Stanley. Well, Senator, in my 3 weeks, we haven't really talked a lot about details on---- Senator Graham. You mean, you haven't fixed this in 3 weeks? [Laughter.] Dr. Stanley. What we have done--in fact, the very first thing I did--and I think we would--working with Congress even then--was to bring someone over with the skills and qualities to at least fill the position temporarily while we wait on the person, who is to be confirmed at some point in the future, to work with. And so, this has been an actual priority from day one, actually, because we recognize the healthcare costs. Senator Graham. Okay, well, that's fair--and congratulations, to all of you, by the way, for having your job. This time last year we were looking for people like you, and now we have them. The idea of the Guard and Reserve recruitment and retention--with the economy like it is, it's a good time for the military, but I think the economy's going to get better--I hope it will, and I'm sure it will eventually--TRICARE benefits for the Guard and Reserve--I'd just like to get your impression about how that program has worked, from each of the Services. Secretary Stanley, how is it being received by our Guard and Reserve Force, that they are now eligible for TRICARE? They have to pay a premium. The second issue, what effect do you believe it would have if we allowed people to retire at 55 if they would do more Active Duty service--earn their way from 60 to 55? Starting with Secretary Stanley. Dr. Stanley. Well, Senator, I know that, the TRICARE programs, all of those programs are under review right now because it's all a part of the gestalt of looking at all of healthcare. I don't have answers for you today. Senator Graham. Okay. Dr. Stanley. But, we look forward to working with Congress on that. Senator Graham. From the Services' point of view, what are you hearing from the Army, the Marines, and the Air Force? Mr. Lamont. From the Army's perspective, TRICARE Reserve has gone over very well. But, we're finding, among particularly our Reserve component, they don't fully appreciate or are educated enough to understand its availability to them. We think it's incumbent upon this to broaden that perspective so they avail themselves of what's out there. It's an excellent program, and it's a wonderful incentive. On the Reserve side, we may also, at some point in time, need to look at some potential other incentives, from the healthcare side, as we continue operationalizing the Reserve. But, it's a resource issue, of course, as well, for all of us. Senator Graham. Okay. Secretary Garcia? Mr. Garcia. Senator, I have the opportunity and the honor to continue to serve in the Reserves, and had a Reserve squadron, until coming to take this appointment. I will tell you the--among those circles, the program is--there's a lot of awareness of it, and it's very popular. The piece that many members have read about, and are very interested in, is what's been called the ``gray area'' piece; that is, for retired reservists, not yet 60, being able to access TRICARE Select and some of those programs before their retirement. As Secretary Lamont said, there's a price tag that comes with that. I look forward to wrestling with that, with you. But, I can tell you that, among my circles, on the Navy and Marine side, it's very popular and well thought of. Mr. Ginsberg. Senator, TRICARE Reserve Select is a very well-liked program. We have good participation rates, as I understand it, within the Air Guard and Air Reserve. It's not just a benefit, it provides a tool to our airmen to make sure that they're medically ready for deployment. One of the challenges we need to look at this systematically--is whether--the health of the provider network, and whether maybe a stand-alone Air Guard base, whether we have a sufficient network in place, or we're taking imbursements. It's something we want to look at to ensure that this program is moving along helpfully. Senator Graham. Well, one last question. The sexual harassment, sexual assault problem is being better identified, and the number of reported cases is growing, which I think is probably an indication, not that there are more activity, it's just getting easier to report it, and people feel more confident about reporting it. But, we're not nearly where we need to be. Just very quickly, from each Service's perspective, what are you doing in that regard to enhance the ability of a servicemember to report sexual harassment or assaults in a way they feel will not be detrimental to their career? Mr. Lamont. From the Army perspective, we're looking at it from a couple of different directions. First, we want to make it easier for them to report. We have initiated programs that allow for the confidentiality of the report. Plus, we're also, as I think we---- Senator Graham. In that regard, do we need to look at changing our laws? Because there's a lot of privileges available maybe in the civilian side, not available to military members. I know you have a priest-penitent privilege and limited medical privilege, but just look at that and see if there are some changes we need to make on the Personnel Subcommittee to expand privileges to healthcare providers. I'd just---- Mr. Lamont. All right. Senator Graham. Okay. Mr. Lamont. Otherwise, as we try to build resilience within the force, particularly on our Sexual Harassment/Assault Response Prevention situation, we have initiated a program called ``I. A.M. Strong''--``I'' being ``Intervene,'' ``A'' being ``Act,'' ``M'' being ``Motivate.'' Though it's a command- oriented climate that we're trying to address, that would respect the dignity of all of our soldiers, we've looked for this ``I. A.M. Strong'' program to educate and train our soldiers, on a peer-to-peer basis, to remove any stigma of going forward to make those reports. We believe it's working, at least as we've seen the number of reports increase. We still believe, unfortunately, that only roughly a third of sexual assaults are being reported. Senator Graham. Thank you. Mr. Garcia. Senator, Secretary Mabus has stood up the Sexual Assault Prevention Response Office. The dedicated officer--civilian SES--reports directly to him for the first time and a network of Sexual Assault Response Coordinators (SARCs) implemented in each unit across the fleet. As you indicated, we are seeing a rise in reported incidents. The challenge is to discern whether that's availability to reporting or whether it's a true spike in incidents. It's something we wrestle with every day. Mr. Ginsberg. Senator, I think from the Air Force perspective, this is an issue of leadership, it's an issue of investment, and it's just a leader--an issue of communication. Leadershipwise, it's about showing from the highest levels on down, that sexual assault absolutely won't be tolerated and that from our perspective, goes against everything--all of those core values that we hold dear. It's about putting in money for a strong, baseline program, a good, strong, healthy organization, along with funding for investigations, and very active and aggressive investigations. It's also a matter of just making sure that those who are victims know that their resources and reporting channels are available to them. We have an ability for somebody who is a victim to come forward and provide limited information about what happened so they'll come forward. It's called restricted reporting, and that's provided a useful channel for victims. Senator Graham. Thank you, all, for your service. I'm going to have to run to another hearing, but I shall return. Senator Webb. Thank you very much, Senator Graham. Senator Hagan. Senator Hagan. Thank you very much, Mr. Chairman. I do, too, want to thank all of you for your service to our country. I really do appreciate it. Secretary Stanley, you mentioned, in your opening remarks, about the Military Spouse Career Advancement Account--as it's being referred to MyCAA--and about the stop in the implementation of it. I have a serious concern with that, because, one, neither Congress nor the people who were beneficiaries of this program were given any sort of upfront notification about any of the problems that were being seen in the program. This pause has certainly caused a lot of concern to many people in my State, in North Carolina, because it's an excellent program and a lot of people are taking advantage of it. I think the uncertainty that's been put forth right now has resulted in the Department's decision--has certainly negatively impacted and affected the morale of our servicemembers and their families. It certainly has had, I think, an adverse impact on family readiness. But, one of the questions I have in the President's fiscal year 2011 budget, which reflects increased funding for this enhanced career and educational opportunities, does it address the longer-term needs of the program? Dr. Stanley. First of all, we are addressing the concerns, short-term and long-term. The Secretary is now, at this time, making a decision, looking at options that have been presented to him. But I will say that there are still some unanswered questions on long-term, but I feel confident that they're going to be addressed. I certainly share your concern about what's happened, in terms of the program being stopped. I understand that. Senator Hagan. Well, the lack of notification was certainly alarming too, I think, Members of Congress and the people who were the beneficiaries. As far as improving the implementation of the program, do you need more specialists on staff to help with that? Or is that some of the things you're looking into? Dr. Stanley. Actually, in my arrival--just to be very blunt. Senator Hagan. Okay. Dr. Stanley. I was sworn in on the 16th, and I learned about it on the 16th. Senator Hagan. Wow. Dr. Stanley. So---- Voice. Welcome aboard. [Laughter.] Dr. Stanley.--I'm going to---- Senator Hagan. Wow. Dr. Stanley. So, we're addressing the issues dealing with MyCAA---- Senator Hagan. Okay. Dr. Stanley.--as we move forward. I'm very optimistic about it working out okay. Senator Hagan. Okay. Another question, concerning the Census. I'm concerned that servicemembers that are deployed during the conduct of the 2010 Census will be counted in a negative way that impacts the communities that host military installations. For the 1990 and 2000 Census, the decision was made to count deployed servicemembers as overseas. North Carolina currently has approximately 41,200 servicemembers deployed as a part of the overseas contingencies, and in the event that they are counted as prescribed by the Census Bureau, areas with large concentrations of military personnel, I believe, will be significantly undercounted and underfunded for the next 10 years. What's preventing the Defense Manpower Data Center from providing the Census Bureau with information regarding the base of last assignment or permanent U.S. duty station as the primary response for our deployed servicemembers that are currently engaged in overseas contingencies? Dr. Stanley. Senator, I'm going to ask to take that question for the record. Senator Hagan. Okay. That's fair. Dr. Stanley. Because I'd like to get back to you with a very specific---- Senator Hagan. Okay. Dr. Stanley.--and correct answer. [The information referred to follows:] This issue falls under the purview of the Census Bureau, and we must follow its guidance on how to count our personnel. The Census Bureau, in turn, is following what it perceives to be existing Congressional guidance. We are aware of no law specifying how to count military members deployed overseas. The Census Bureau is using a bill passed in the House in 1990, H.R. 4903, as the methodology for counting overseas servicemembers and their accompanying dependents. This current methodology, used in 1990 and 2000, counts overseas military personnel in this order (where the data is available): State home of record, State of legal residence, and State of last duty station (i.e., base of last assignment). The Department recognizes the decision to use the current methodology will result in overseas military personnel being assigned to a home State without counting them toward the populations of towns or counties. We also understand counting ``last duty station'' first would have a beneficial effect on States with a large military population. We have discussed with the Census Bureau methodologies other than using ``home of record'' first, and these methodologies might provide a more accurate snapshot of the current residence of the military personnel and also the desired town and county specificity. However, the current methodology does have the benefit of consistency over time. The Department stands ready to discuss all possible methodologies with the Census Bureau. We also look forward to continuing to work with Congress on this important matter. Senator Hagan. Well, let me go to one other one. We were talking about suicide. One of you referred to that. So, Secretaries Lamont, Garcia, and Ginsberg, I think we have witnessed an unacceptable number of suicides within our military population, and some of these losses, hopefully, could have been prevented if servicemembers had the ability to access professional care during the early stages of emotional distress. I'm sure we all agree that we have to reduce those numbers. What measures are being taken within the Services to ensure that our military men and women receive and gain easier access to mental healthcare without being stigmatized--that's, obviously, sometimes associated with that--and with going through the chain of command? Secretary Lamont? Mr. Lamont. First, you're absolutely right, we take the loss of any soldier, through any means, very, very seriously. It truly is one of the very highest priorities that we have. We look at it from early identification of risk factors, as well as early intervention when we recognize those risk factors, to move in and encourage, as best we can, to have those individuals who may exhibit those risk factors to seek out help. We have instituted a program designed to reduce the stigma of reaching out for mental health care. Actually, what we're finding out with some of our younger soldiers, who, for whatever reasons, do not wish to meet personally with a healthcare provider, for instance--we have a software program, that they go online and they self-address---- Senator Hagan. Right. Mr. Lamont.--their issues. It's become a very valuable tool for us. But, it's going to take a lot of effort. Also, we clearly have to address the resiliency side, and we're making our effort to do that through a program called Comprehensive Soldier Fitness, where we explore, not only just the physical health, but the mental, the emotional and the spiritual well-being of the soldier, as well, to build that mental health resiliency as best we can to address the issues going on in his or her life. Senator Hagan. Thank you. Mr. Garcia. Senator, I appreciate your question. For the first time, last year, our Marine rate approached that of the national rate; we normed for age and gender. It's an issue we brief daily and constantly look for a correlation that we can zero in on. We focused much of our training at the NCO level. We feel that they have the most insight and perspective to what our young sailors and marines are wrestling with, those issues. But every marine, every sailor receives training and is made aware that they have access to master's-level counseling. It is confidential unless, in the aftermath of that training, the counselor feels that the individual is suicidal, homicidal, or is unfit for duty. But, everyone is aware of it from boot-camp level on. Senator Hagan. Do you think these things are making a difference in the attitude and the health of our men and women? Mr. Garcia. I think there is a---- Senator Hagan. Great. Mr. Garcia.--undeniably, a new level of awareness from E-1 to O-10. I've seen the training that takes place at Marine Boot Camp, at Marine Corps Recruit Depot. It's the first time where a Marine drill instructor to--a new boot camp marine sees that drill instructor take his cover off and address him personally, in a way that he has not, yet. It speaks to the importance and the significance, I think, that the Corps and the Department are placing on this. Senator Hagan. Okay. Mr. Ginsberg. Well, Senator, obviously it's a tremendous tragedy even when one servicemember takes their life. We pride ourselves, in the Air Force, being a family, and when one feels so alienated that it becomes a major problem at the highest reaches. This is a matter--this goes to our staffing--our capacity levels, in terms of having enough psychiatrists and trained psychologists. We, in the Air Force, are doing well, but obviously there's tremendous competition with the private sector for trained psychiatrists and trained psychologists. The bonuses that you provide us are absolutely essential for us to grow our force and to bring in psychiatrists and trained psychologists. I'd also say that this is--and to address the stigma, one of the things that we're doing in the Air Force is to locate our mental health clinics within military treatment facilities, within regular divisions within the hospital, basically, where somebody who's going in to get treatment is not seen as going to some special clinic, but is just part of--accessing regular care. We want to normalize care. Senator Hagan. That's good. All right, thank you, Mr. Chairman. Senator Webb. Thank you, Senator Hagan. Just to follow on for a moment on that line of questioning, I believe you could show--and, in fact, the Chief of Staff of the Army recently brought me a chart to this effect--that there is a direct correlation between dwell time--the amount of time that people have between deployments--and the percentage of emotional difficulties that are in these units. That's why I introduced this dwell-time amendment in 2007. When the Chief of Staff of the Army called me and said they were going to 15- month deployments, with only 12 months dwell time back in the United States before they redeployed--having spent 4 years as a committee counsel over in the House Veterans' Affairs Committee, when we first started examining the difficulties of people who had served in Vietnam, first of all, I said, ``I can't believe you're going to do that. I don't think there's any operational requirement that should cause you, at this point in our history, to put that kind of pressure on our people. You're going to have challenges on the other end of doing this.'' Quite frankly, we're seeing that. All of your responses basically go to the means--and I salute these means--of addressing the situation once it occurs, but I don't think there's anything more valuable than putting the right kind of dwell time on our units. Particularly, when you look at the young age of the people who are doing these multiple deployments, and where they are in terms of addressing issues of adulthood. Mr. Lamont. If I may---- Senator Webb. Mr. Lamont, do you want to---- Mr. Lamont.--just add a comment to that. We have any number of programs that are well intentioned, well resourced, it doesn't matter. There is nothing more important than exactly what you say--is the dwell time of our soldiers, with their families and others, that will help them decompress and serve them so much better in this kind of situation. It is dwell time. Senator Webb. I totally agree. Thank you for saying that. Senator Begich. Senator Begich. Thank you very much, Mr. Chairman. I want to talk about TRICARE for a second, but then I actually want to get back to the SARC. In Anchorage, in municipal government, we call it SART, a very similar program, I think, but I want--that's what I want to ask you. But, Secretary Stanley, let me--I represent Alaska. It's very unique when it comes to TRICARE. It's the one that is not managed by a contractor, out of the whole system. We have some very unique situations. Alaska's population, in total, is-- about two-thirds has Federal healthcare in some form or another: Medicaid, Medicare, Indian Health Services, VA, Federal employed. So, it's probably the highest percentage, I would bet, or per capita, in the country. So, it has some unique challenges. Then, geographically, the geography of Alaska is very vast, and so we have some great challenges. I have introduced a piece of legislation to set up a task force for Alaska to bring all the different agencies that deal with healthcare and TRICARE as part of that--and DOD would be at that table--to try to figure out what's the best way to deliver services. I don't know if you've had any chance to see that legislation, have any comment on it. If you haven't seen it yet, I'd be anxious to get your comment for the record, at some point, if you think the task force will be of help for something very unique, I think, in Alaska. I don't know if you have any comment on that. Dr. Stanley. Yes, Senator. I haven't seen the legislation, but I've seen what I can best describe now are anecdotal pieces of information that tell me, in Alaska, we have some unique issues that deal with healthcare, as you've already described. So, I look forward to not only looking at the legislation, but working very closely with you to address some very significant issues. Senator Begich. Great, I would love to get your response for the record, I appreciate that. [The information referred to follows:] Since two-thirds of Alaskans use a Federal health care program, creating an interagency task force \1\ would be helpful in working together to assess and plan improvements to health care access for our Alaskan beneficiaries in a coordinated manner. TRICARE has tested alternate means of reimbursement and other Alaska-unique initiatives to improve access to care, and we are happy to discuss our findings with the task force and learn the successes other Federal agencies have experienced as they face the unique challenges Alaska presents. --------------------------------------------------------------------------- \1\ Note: The creation of the Interagency Access to Health Care in Alaska Task Force was mandated by section 5104 of H.R. 3590, the Patient Protection and Affordable Care Act (P.L. 111-148 (124 Stat. 119)). --------------------------------------------------------------------------- Our TRICARE Regional Office-West team has already begun engaging other Federal partners in Alaska in anticipation of establishment of the interagency task force. We look forward to discussing a potential rate schedule that recognizes the uniqueness of the health care system in Alaska. Senator Begich. The other thing I want to say--and the folks from the Federal Government that have been working on the TRICARE, that have been managing it for us, have done a great job. But, I'm also very pleased to see that there is kind of a reexamination. How would a contractor work? Would there be a benefit? Is there some advantage, or maybe not advantage, depending on how it's all looked at? So, I am pleased with that, and that perspective, and I want you to know that. But, do you have, from your view, working with TRICARE contractors, what would you consider some of the advantages that you have seen in the value of delivering that healthcare? From a contractor delivering it, versus the way it's done in Alaska? Dr. Stanley. I'm afraid my answer would probably be personal, only because---- Senator Begich. Personal is sometimes better. Dr. Stanley.--I'm a recipient---- Senator Begich. Very good. Dr. Stanley.--of TRICARE benefits and the contractor, and from what I've benefited from. It's been pretty transparent to me, in being able to use a system that works very well. But, I don't think that's going to address some of the macro issues we're talking about. I'm also aware of the fact that there are some, already, challenges that exist with the TRICARE system as it's presently presented, with our contractors as we address contracting issues. So, I'm looking into those issues now, but I will tell you that there are some pluses--some significant pluses--but, there are also some--probably some negatives that--as we look at that. But, I don't know what all of those are right now. Senator Begich. As you develop that, will you share it with the committee? Dr. Stanley. Absolutely. [The information referred to follows:] TRICARE-eligible beneficiaries make up almost 14 percent of the overall population in Alaska. In recognition of the challenges placed on military treatment facilities, we are working with TriWest, the TRICARE West Regional Contractor, to develop a preferred provider listing which would aid in providing more access to civilian providers. Our regional contractors are experienced in the identification and credentialing of qualified providers who are willing to provide care to our beneficiaries. In the future, we plan to identify primary care managers in the civilian community in the Fairbanks area to support beneficiaries assigned to Fort Wainwright and Eielson Air Force Base. Senator Begich. At least my side would be very interested in that. Dr. Stanley. I'll look forward to it. Senator Begich. Then, again, as we examine the role of TRICARE, the contractor who delivers TRICARE, as a potential option or augmentation to what we do in Alaska, I'm going to be very interested as we move through this over the next several months. Two other things. One more on TRICARE, and that is, one of the situations--and I use Alaska, obviously, because I represent Alaska--one of the things we do, if you take Medicare, Medicaid, TRICARE, Indian Health Services, VA, we're always chasing the highest rate, the reimbursement rate. Now, the problem we have in Alaska is, we have very high rates, no matter what. I mean, it's just delivery of care, that cost of care. We don't have a teaching hospital, for example. We lack a lot of things that other communities can tap into and, therefore, keep their costs more competitive. Ours, we've been very high-cost in. But, we've also been very fortunate, because, under the rules, you've been able to--DOD and--or, the Federal Government has been able to utilize, under a demonstration ability, to have a higher-rate reimbursement in Alaska. It's only been in a demonstration capacity they've been able to do it. Obviously, we're very interested. I know there's a study going on, or at least a potential study, that will talk about how those rates are different; and if they are, how do we make them more permanent? Because, obviously, doctors--and I think some of the comments made here is getting those doctors to perform those services under TRICARE. The reimbursement rate is critical. In Anchorage, for example, which is the largest provider, or largest city--about 43 percent of the State's population--I think we're down to--on Medicare, for new Medicare patients, I think we're down to less than three or four docs that will accept them. That's it. So, we are the tip of the iceberg of what's going to happen in this country, very rapidly, because our cost differential is now getting to a point where primary- care doctors can't afford to do it; and second, there are less and less of them being produced, in the sense of the system. So, I would like, if you have any comment on, one, the demonstration project. Again, if you're not familiar, I'd be very interested. Then, how we go about getting some permanency to this, because when docs see a pointer that's not permanent, then they just say, ``We're just done waiting, we have to move on to others,'' honestly, business has to continue for what they do. So, do you have any comment on that? The demonstration project, how do we move it to permanency, and is that a realistic viewpoint? Dr. Stanley. Well, thank you, Senator. Let me just say that I've been briefed on the project, in general. Senator Begich. Good. Dr. Stanley. My commitment is to work closely with you, not to study the problem to death---- Senator Begich. Now you're talking. [Laughter.] Dr. Stanley.--but to move forward with a solution. Senator Begich. Good. Dr. Stanley. So, I'm aware of it. Now the issue is, okay, addressing this on the degree of permanency, which is why I put in place someone to help--with expertise, immediately--that's a physician--until we get somebody confirmed. I can't wait that long. Senator Begich. Right. Dr. Stanley. Which is the reason we're moving, kind of, like at flank speed, for lack of a better word---- Senator Begich. Good. Dr. Stanley.--to put things in place and address these issues. There are other issues, too. Senator Begich. Absolutely. We would love to see confirmations happen very rapidly, but don't wait for that. Move forward on progress, and I appreciate your comments. I will end, Mr. Chairman, just on one--and this is more of a comment to the--as a former mayor, we worked on a project called SART, which is Sexual Assault Response Team, which is a combination public service, police--and they all are centralized into one location. They work with the community hospitals. It's good for investigation purposes. It has a kids' unit. It has a variety of things that--one of the pieces to this equation--and I haven't asked the--and I'm not asking for a response, at this point. I just want you to become aware, if you can, with what we're doing in Anchorage, which is the SART team. Why I say that, there's a very important component of how the person who has been the victim works through the process, and how that's handled, which is critical to your investigations, conviction rates, as well as to the care that's necessary. Then, if there are family members engaged in this, in the sense of a child who's also been assaulted, there's a whole process that is much different than the adult process. The SART program has been recognized around the Nation as a very cohesive and--like you, we saw rates go up, in the sense of reporting, but we also saw conviction rates go up, education capacity increasing--and young people, children especially, which is probably the hardest to deal with, with sexual assault or violence in a household or in a home. I'd just ask you--and we'd be happy to supply you some information--it's very unique and has been very, very successful. In Anchorage, we have two large military bases, literally as far as that door is from our facilities and our population. We have a great relationship with the military that--we know this program has had some impact. So, I'd just encourage you, as you work through this very troubling issue, to be very frank with you, but one we have to deal with, not only from a sexual assault on the officer, but also so many families are now part of the military family that, 30 years ago, was not the case, but today, it's 70 or 75 percent of the families. So the kids of this population, also, we need to make sure they're getting the services they need, and education they need. So, I would just encourage you to---- Dr. Stanley. Will do, sir. Senator Begich. Okay, and we'll get you some information from staff. Dr. Stanley. Great. Thank you. Senator Webb. Thank you very much, Senator Begich. Senator Chambliss. Senator Chambliss. Thank you very much, Mr. Chairman. Gentlemen, first of all, let me just say that I want to thank all of you for what you do. You're charged with managing the most important aspect of our military, and that's the people and the programs that support them. I know much of what you do deals with numbers, but I also know you have an appreciation for what those numbers represent, in terms of the individual and his or her family, and what it means to our Nation. You all, along with our second panel, will help give us a sense of how we're doing, and how we can best continue to support the men and women of the Armed Forces and their families. So, I thank you for being here. Secretary Ginsberg, it's always great to see a Georgian on a panel like this-- Mr. Ginsberg. It's my honor to be here. Thank you, Senator. Senator Chambliss.--so thanks for your service. Secretary Stanley, let me just ask you if you are familiar with the situation of the commissary at Dobbins and the one that we're transferring from Gillem to Dobbins. Does that ring a bell at all with you? Dr. Stanley. Vaguely. If you keep talking, Senator, I think I might pull something up, here. [Laughter.] Senator Chambliss. I'm not surprised that you don't, but-- Dr. Stanley. Okay. Senator Chambliss.--basically, a BRAC decision was made to close Fort Gillem, in Atlanta, and that's the commissary that has served our retired population for decades. A decision was made, by your predecessor, to construct a new commissary at Dobbins that obviously will continue to operate, and it's going to serve our retired population. And it's in the hands of DeCA right now. That's why I'm not surprised you're not familiar with it. But, I wish you would familiarize yourself with it. At some point, you're going to have some significant input into it, and it may just be an issue of DeCA trying to find the funding for it. But, in any event, it is obviously a critical issue for the retired population, as well as for our active duty folks in the area. Dr. Stanley. Yes, sir. Senator Chambliss. Secretary Lamont, in light of the Fort Hood incident last November, can you elaborate on specific steps that the Army is taking to better recognize the presence of soldiers who may have become radicalized, as Major Hasan was? Mr. Lamont. I can tell you this. We are going through a very extensive internal review to look at all components of extremism that may have crept into society and, of course, may touch more and more into our Military Services, and what we can do to address those. We're aware of some apparent shortcomings in our officer evaluation forms and in our enlisted evaluations, and how some of the right questions may just not get asked. Some of the identifying risk factors may not just be exposed, as well. There is a Defense-wide Fort Hood review in progress right now. As I understand it--and perhaps Dr. Stanley knows more than I--that perhaps sometime this summer there will be a full report, as all of the Services, I believe, are involved in that report. But, certainly the Army is drilling down very deeply to see, what in the world did we miss here? Senator Chambliss. Let me just mention to all of you--I think Senator Graham may have mentioned this in his opening comments--the Guard and Reserve retirement initiative, early retirement initiative, that we have been successful at having put in place, that we're now looking to extend the retirement date back to service beginning on September 11, 2001. If there are any stumbling blocks out there, I would appreciate hearing from you now, if you're aware of anything. Obviously, funding is an issue. We're going to continue to work that until we, ultimately, have that retirement date, or that service date to qualify for retirement, go back to September 11, 2001, when so many of our men and women began being called up. Any comments any of you have, relative to any issues that are outstanding, that might be in our way on that issue? Dr. Stanley. Senator, I hadn't heard anything, I'm not sure if my colleagues have. Mr. Lamont. I've heard very little. Senator Chambliss. Okay. Mr. Lamont. But, as you say, the number one thing that we always look on something like that, of course, is the resource concerns---- Senator Chambliss. Yes. Mr. Lamont.--as you are well aware. Senator Chambliss. Yes. Well, we'll continue to work that from our end. One other question. Secretary Lamont, I understand that the Vice Chief of Staff of the Army is currently hosting an online virtual conference regarding the future of the U.S. Army Officer Corps. The central premise behind this virtual conference is the recruitment and employment of talent within the Army. This sounds like a great idea, and a great way to look at the caliber of the young men and women who are--who make up our officer corps, from flag officers on down--could you give us any comment on that? Are any of the other Services doing something similar to this, or have plans for it? Mr. Lamont. Well, I understand the goal of what the Vice Chief is after, here. Our officer structure is not where we need it to be, given some of the demands that we've had over the past 8 or 9 years, and as we've moved to our modular rotational model in ARFORGEN, it has caused some fairly serious changes in how our officer structure is handled. I think there is an effort out there, particularly in the grades of major, for instance, or that--there are serious shortcomings there, in the numbers that we have available. I think these--through--what he is trying to do is look for any acceptable options and alternatives to how we identify our officer corps, and where we can move them within the structure that's available now, our other grade challenges, grade-plate challenges, that we have. Mr. Ginsberg. I'm not familiar with the program, but we work very closely with the Army. I'd love to reach out with my colleague, here, and learn more about it. Certainly provide some formal views to you. Senator Chambliss. Okay. Secretary Garcia, Secretary Stanley, anything going on in your branch, similar to this? Dr. Stanley. I'm not familiar with the program. I'm, in fact, learning about it as he's talking, Senator. Senator Chambliss. Yeah. Well, it does sound like a good idea, because everybody has the same issues, relative to the makeup of our officer corps. The Army and the Marine Corps, I guess, have a little bit different situation, just because you've been taxed more than anybody else, but it is an issue that sounds to me like it has a lot of merit to it, and I would encourage every branch to follow suit, there. Thank you, Mr. Chairman. Senator Webb. Thank you, Senator Chambliss. I'm going to ask a couple of service-specific questions, and then, Secretary Stanley, I'd like to ask you a series of questions. Let me say, I was a boxer for 8 years. You've been bobbing and weaving for an hour and 15 minutes, here. [Laughter.] So, I'm going to ask you a series of questions to sort of get us all looking forward, since you just came to this job and I just assumed the chairmanship. But, first, I want to put something in front of the Service Assistant Secretaries. There was an article in Military Times last week on prescription drug use in the military. I don't know if you all saw that article, or not. But, it pointed out that one in six servicemembers is on some form of psychiatric drug; 17 percent of the Active-Duty Force, and as much as 6 percent of the deployed troops are on antidepressants; and the use of psychiatric medications has increased about 76 percent since the start of these current wars. First, I would like to express my appreciation to Senator Cardin for having brought this issue to the attention of people here in the Senate. But, these statistics, quite frankly, are astounding to me. I'd like to know if--how familiar the three Assistant Secretaries are with this issue inside your departments, and what your thoughts are. Is this an indication of the overall fatigue of the force, with these constant deployments, or is it an indication of a different approach to medical treatment? Are we on top of this? I know that last year there was a provision in the Defense bill to require the Department to report on the administration and prescription of these drugs. But, Secretary Lamont, let me start with you. What are your thoughts on this? Mr. Lamont. Well, I'm not specifically aware of the article you're speaking about. I was TDY last week. However, I am well aware of the concerns we have with our pain management program. Those are the prescription drugs that we have found to have really crept into our system in much wider usage than we were ever aware of before. I'll also suggest to you, drugs like Oxycontin, I understand is used both in pain management and as an antidepressant. That's caused a number of concerns, because-- the fear that they may be prescribed by separate healthcare providers. What we have done to try to address the pain management side, what we found was, depending on where you went for treatment, there could be an entirely different model, if you would, of how pain is treated and how pain drugs are prescribed. There was no consistency there. So, with the various Services, we began a joint task force, this last fall, which is due to report, at any date now, on how we can come together with some kind of consistency in how we handle our pain management problem--pain management equals the drugs--and how we administer the proliferation of drugs in our military system. Our soldiers are coming back wounded, sore, injured, in need of rehab, and that's--perhaps the easy answer, early on, was pain-managed prescription. But, there are other means. We hope this joint task force report will come to grips with how we can provide some consistency, not just throughout the Army-- I mean, we found that every Army Medical Center was dealing with pain in altogether different ways, all individual to their situation. But, not an Army-wide program at all. I think, with this task force, we'll have the Services all together, and hopefully all in sync, of how we can address this growing problem. [Additional information supplied by Secretary Lamont follows:] Pain management has a significant behavioral health component, and drugs like Oxycontin and antidepressants may be simultaneously prescribed by different health care providers for better symptom management. While drugs like Oxycontin are used for pain management, what we have found is that pain has a strong behavioral health component requiring the addition of drugs like antidepressants for better symptom management. These prescription combinations are often managed by different health care providers. The issue of multiple- prescribers exists in our health system and others. It concerns me that patients can receive different agents like narcotics and psychiatric drugs from different sources. Senator Webb. Secretary Garcia? Mr. Garcia. Senator, I'm familiar with the piece, and, as I understood it, it also posited, or suggested, that there were-- elicit drug use, to include in theater. We continue to drug test randomly across the fleet, forward-deployed and at home. On the prescription side, our Special Assistant for Health Affairs has initiated a working group, generated by the piece, to research this apparent spike, especially on the Marine side. That's where we are. All I can do is continue to keep you posted on the results. Senator Webb. Secretary Ginsberg. Mr. Ginsberg. Senator, I'm not familiar with the article, but I think you raise, obviously, a very important question about the extent of prescription drug use and whether this is an indicator of stress, or is this a new push to medicine? I'd very much like to get some concrete data from our surgeon- general community, and would be more than happy to provide that to you. [The information referred to follows:] Thank you for the opportunity to address this concern regarding the health and well-being of our Air Force members and their use of psychotropic medications. Based upon this inquiry we made two distinct efforts to review psychopharmacology utilization data for our active duty servicemembers. The first data set we reviewed was provided by LCDR Joseph B. Lawrence, USN, MSC as the Deputy Director, Department of Defense (DOD) Pharmacoeconomic Center COR, DOD Pharmacy Operation Center. LCDR Lawrence's data pull from the Military Health System (MHS) Pharmacy Data Transaction Service (PDTS) demonstrated that in the U.S. Air Force active duty psychotropic drug prescriptions increased from 58,102 annually in 2005 to 113,010 annually in 2009. The most notable increases related to use of stimulant and sleep medications. Stimulants prescriptions increased from 6,886 in 2005 to 11,522 in 2009. The number of prescriptions for sleep medication went from 33,175 in 2005 to 64,166 in 2009. These two classes of psychotropic medications accounted for approximately 65 percent of the total prescription increase over this time period. While prescription sleep medications do carry a low risk of abuse, they are also highly effective and beneficial when used appropriately for short-term use to address the maintenance of health sleep patterns with international travel and fluctuating operational work schedules. The second data pull was provided by Air Force Medical Operations Agency, Michael Squires. Mr. Squires extracted data from the PDTS table in the M2 which resulted in all Air Force active duty servicemembers who had received a psychotropic prescription (including antidepressants) between October 2009 and March 2010. The number of unique Air Force servicemembers who had one or more prescriptions for any psychotropic medication, including controlled prescription pain medications during this 6 month period was 81,253 or 22 percent of the Active Force. When controlled prescription pain medications are removed, the number of unique servicemembers on a psychotropic medication changes to 48, 233. This reflects a calculated user prevalence rate during a 6 month period of 1 in 8, or 13 percent , of the Active-Duty Force for psychotropic medications. This figure is a 6- month period prevalence; point prevalence on a specific day would be lower. Additionally, this data pull illustrated a utilization rate over a 6 month period of controlled pain medications as 51 for every 400 servicemembers (12.75 percent), an antidepressant utilization rate of 23 for every 500 servicemembers (4.6 percent), a sleep medication utilization rate of approximately 19 of every 421 servicemembers (4.4 percent), a stimulant utilization rate of approximately 4 out of every 425 servicemembers (0.94 percent), and an antipsychotic utilization rate of approximately 2 for every 1,000 servicemembers (0.2 percent). Senator Webb. I'd just say as an observation, one, we do have a really stressed, young force, because of these deployments. This is an indicator I think we really should be tracking very closely, with repeated deployments and these sorts of things. The other is, just purely as an observation, from looking at where they are deployed and the restriction of the use of alcohol, I would say it's--having been a journalist in Afghanistan before I started doing this, it is always rather ironic to me that, for reasons of comity with these other countries, we didn't allow our troops to use alcohol, but, I'll tell you, I was in a lot of villages in Afghanistan where everybody had their marijuana patch and their opium patch. The relief of stress on individuals is handled differently in different cultures, and that may be something you want to look into. It's a very troubling statistic, to me. I hope we can look at it, not simply medically, but in these other ways, as well. Secretary Ginsberg, can you give this subcommittee, some insight on this decision to provide aviation pay to nonrated pilots in the Remotely-Piloted Aircraft Program, what the justification is and--how does that fit into traditional definitions of flight pay, and those sorts of things? Mr. Ginsberg. Absolutely. Senator, the Air Force is meeting a very high demand to provide remotely-piloted aircraft--combat air patrols (CAPs) to our combatant command commander in Afghanistan and Iraq. We are currently providing 41 CAPs to the theater. We're working, by the end of fiscal year 2013, to provide 65 CAPs. What we're trying to do is develop a career field, where our airmen, who are providing this critical support to our forces on the ground, our brothers in the Marine Corps and the Army, as well as many are Air Force officers and enlisted on the ground, providing them this direct support. We want to make sure they can grow and develop. The incentive pays are a critical part of maintaining a robust pipeline of airmen who are operating these systems. Senator Webb. Under what category are they paid now? Mr. Ginsberg. I'm sorry? Senator Webb. Under what category are they being paid? Mr. Ginsberg. Well, this is an OSD-approved--under a--of course, the broad authority that Congress provides, under the-- it's the--it's aviation continuation-paylike pay, and it---- Senator Webb. It's not called ``flight pay''? Mr. Ginsberg. It's not called ``flight pay,'' but it's a-- it's a different authority that we're providing under. This about just making--this--these officers and enlisted members are providing absolutely critical direct support to our forces on the ground, and we are putting tremendous stresses on them. Our crew ratios are not sufficient, at this point. They have a hard time getting leave, regular leave. We need to provide them--we're not giving them the opportunity to move to new assignments as flexibly as other career areas. We need to provide them pay and bonuses that will help make sure that this career field remains attractive. I went to Creech early in my tenure, to Creech Airfield, where we have a lot of our operators. It is absolutely astounding, what those airmen are doing to provide day-in and day-out support, truly lifesaving work. Senator Webb. Okay, thank you. Mr. Ginsberg. So, again, it's about making sure that they get the right pay-- Senator Webb. I think that---- Mr. Ginsberg.--and benefits that they deserve. Senator Webb. Secretary Stanley, I believe that this is a good time, with your coming in, to get a strong analytical look at how all of the special incentive pays, bonus pays, reenlistment pays, enlistment--how all of these fit together in a way that is beneficial to the people who are serving, and also to the efficiency of our programs. What I would like to do in a--rather than taking a great deal of time this morning, what I would like to do is to work with you and your staff to develop a matrix, so that we can fully understand what we're doing in these programs. I believe that the best way to address issues is, first, to assemble, clearly, the facts. So we are going to come to you with some questions about the incentive pays, the special pays, the reenlistment bonuses, the whole panorama, to get an understanding of how they are used, how many people are used, what the criteria are, how many of these are directed by Congress, how many of them are subject to the discretion of the implementers--your staff and the other---- Dr. Stanley. Yes. Senator Webb.--Service departments--so that we can have a clear picture, as we move forward in these programs. I'm not sure of the last time that that's been done. I don't want to go through every one of these and ask for your justifications, but we're going to be having some questions. I don't want these to be considered questions for the record that are going to be answered---- Dr. Stanley. Yes, sir. Senator Webb.--a month or 2 months. I really want to work on this so we can aggressively address it. There's a couple of other areas that I would like to get some feedback from you on. One of them, I'm sure you're familiar with, this mentor program that there were numerous articles, particularly USA Today, about where retired flag officers are getting up to $2,600 a day to come in and basically give advice. You know the situation, you're a retired flag. A retired four-star can be making in excess of $200,000 a year and then be working for a defense company, and then come in and be getting this sort of pay to give advice that, quite frankly, traditionally, has been a part of having worn the uniform, a sort of a continuing stewardship. So, there's a lot of questions, here in Congress, about how that reflects upon the dignity of Service, quite frankly. We want to get to the bottom of how that program is run. Then there's another area which relates to military fellowships, to think tanks. I would like to get some data on this with respect to the numbers of people who are involved in this and how taxpayer dollars are being spent, beyond regular military compensation, on areas that are called ``tuition'' for Active Duty military officers to go over and work on a think tank and not only be paid by the taxpayers for their regular military compensation, but actually being paid tens of thousands of dollars into these think tanks for this office space, et cetera. I don't think I have a full understanding of how this works, and we'd like to get specific data from you. Each Service may be doing it differently, but we'd like to assemble that data. With that, I thank all of you for your testimony, and look forward to working with you on a very close basis. Our door is open for any issues that you want to bring to the subcommittee, or to my office, personally. Thank you very much. Dr. Stanley. I appreciate that. Mr. Lamont. Thank you. Mr. Garcia. Thank you very much. [Pause.] Senator Webb. Our second panel will have members of the military coalition, a consortium of nationally prominent uniformed service and veteran organizations: Master Chief (Retired) Joseph Barnes, National Executive Director of the Fleet Reserve Association; Ms. Kathleen Moakler is the Government Relations Director of the National Military Family Association; Master Sergeant Michael Cline (Retired) is the Executive Director of the Enlisted Association of the National Guard of the United States; Ms. Deirdre Parke Holleman is the Executive Director of The Retired Enlisted Association; and Colonel Steven Strobridge (Retired) is the Director of Government Relations for the Military Officers Association of America. I mentioned earlier that we had two statements that would be put in the record. Probably more appropriate, they would be put in at this point rather than at the beginning of the hearing. [The joint prepared statement of the Reserve Officers Association and Reserve Enlisted Association follows:] Joint Prepared Statement by the Reserve Officers Association of the United States Reserve Enlisted Association introduction On behalf of our members, the Reserve Officers Association (ROA) and the Reserve Enlisted Association (REA) thank the committee for the opportunity to submit testimony on military personnel issues. ROA and REA applaud the ongoing efforts by Congress to address readiness, recruiting and retention as evidenced by incentives in several provisions included in the National Defense Authorization Act (NDAA) for Fiscal Year 2010. executive summary The Reserve Officers Association Calendar Year 2010 Legislative Priorities are: Reset the whole force to include fully funding equipment and training for the National Guard and Reserves. Assure that the Reserve and National Guard continue in a key national defense role, both at home and abroad. Support citizen warriors, families and survivors. Provide adequate resources and authorities to support the current recruiting and retention requirements of the Reserves and National Guard. Support warriors, families, and survivors. Issues supported by the Reserve Officers and Reserve Enlisted Associations are to: Changes to retention policies: Permit service beyond the current Reserve Officers Personnel Management Act (ROPMA) limitations. Support incentives for affiliation, reenlistment retention and continuation in the Reserve component. Education: Increase MGIB-Selected Reserve (MGIB-SR) to 47 percent of MGIB-Active. Include 4-year reenlistment contracts to qualify for MGIB-SR. Mobilization: Provide differential pay for deployed Federal employees permanently. Permit reservists the option of accumulating leave between active duty orders, as well as selling it back. Pay and Compensation: Reimburse a Reserve component member for expenses incurred in connection with round-trip travel in excess of 100 miles to an inactive training location, including mileage traveled, lodging and subsistence. Obtain professional pay for Reserve component medical professionals, consistent with the Active component. Eliminate the 1l/30th rule for Aviation Career Incentive Pay. Career Enlisted Flyers Incentive Pay. Diving Special Duty Pay. and Hazardous Duty Incentive Pay. Simplify the Reserve duty order system without compromising drill compensation. Spouse Support: Expand eligibility of surviving spouses to receive Survivor Benefit Plan (SBP)-Dependency Indemnity Clause (DIC) payments with no offset. Health Care: Improve continuity of health care for all drilling reservists and their families by: Monitoring the implementation of the Department of Defense (DOD) paying a stipend toward employers health care for dependents. Allowing gray-area retirees to buy-in to TRICARE by mid-2010. Providing Continuing Health Benefit Plan to traditional drilling reservists who are beneficiaries of TRICARE Reserve Select but are separated from the Selected Reserve to provide COBRA protections, Permitting active members in the Individual Ready Reserve (IRR) who qualify for a 20-year retirement to buy-into TRICARE. Allowing demobilized retirees and reservists involuntarily returning to IRR to qualify for subsidized TRS coverage, Providing TRS coverage to mobilization ready IRR members; levels of subsidy would vary for different levels of readiness. Improve post-deployment medical and mental health evaluations of returning Reserve component members. Fund restorative dental care prior to mobilization. Extend military coverage for restorative dental care following deployment to 90 days. Evaluate the Post-Deployment Medical Evaluation process. Encourage a discussion on health care costs between Congress, DOD, and nonprofits. Protect military and veteran's health care from inclusion in national health legislation. Voting: Ensure that every deployed servicemember has an opportunity to vote by: Working with the Federal Voting Assistance Program Supporting electronic voting Ensure that every military absentee ballot is counted. Only issues needing additional explanation are included below. Self-explanatory or issues covered by other testimony will not be elaborated upon, but ROA and REA can provide further information if requested. readiness discussion Operational versus strategic missions for the Reserve component: The Reserve Forces are no longer just a part-time strategic force but are an integral contributor to our Nation's operational ability to defend our soil, assist other countries in maintaining global peace, and fight in overseas contingency operations. National security demands both a Strategic and an Operational Reserve. The Operational Reserve requires a more significant investment of training and equipment resources, and places greater demands on its personnel as compared to the Strategic Reserve. Those serving in Operational Reserve units must be fully aware of the commitment required to maintain the expected level of readiness. A similar awareness and commitment is necessary for those responsible for providing resources to the Operational Reserve. Planners also must recognize that few individuals can remain in the operational Reserve for an entire career. There will be times when family, education, civilian career, and the other demands competing for their time and talents take priority. Such an approach requires the ability to move freely and without penalty between the operational and strategic elements of the Reserve component as a continuum of service. Each Service has its own force generation models and the Services organize, train, and equip their Reserve components to a prescribed level of readiness prior to mobilization to limit post-mobilization training and to maximize operational deployment time. ROA and REA urge Congress to continue to support and fund each Service's authority to manage the readiness of its own Reserve Forces as one model does not fit all. Congress can play an important role by requiring reports from Service leaders to ensure they have a plan for systematic augmentation, that the plan is adequately resourced, and that Reserve training and equipment will permit interoperability with the units they augment and reinforce. In an era of constrained budgets, a capable and sustainable Reserve and National Guard is a cost-effective element of national security. Junior Officer and Enlisted Drain: As an initial obligated period draws to the end, many junior officers and enlisted choose to leave, creating a critical shortage of young people in the leadership conduit. This challenge has yet to be solved. ROA and the National Guard Education Foundation published a report suggesting solutions to the problem. Copies can be provided to the committee, or be found at http://www.roa.org/JO-shortage. End Strength and Preparedness: It is noted that the only active service component to suffer cuts in the fiscal year 2011 proposed budget was the Coast Guard which will have a reduction of 1,100 personnel. The other Active components appear to maintain their end strengths with inclusion of temporary increases for the Army and the Navy. It should be remembered that individuals cannot be brought quickly on to active duly on a temporary basis, but it is an accumulation of experience and training that is acquired over years that becomes an asset for the military. Before cuts to the U.S. Coast Guard are made, ROA and REA hope that Congress requests a report from the U.S. Coast Guard, Department of Homeland Security, on the effect in the short and long term. Traditionally, it has been the Reserve component that has provided the temporary surge to fill-in the active duty numbers. The end strengths included in the President's budget appear to maintain current numbers. ROA and REA are concerned that the ongoing cuts to the Navy's Reserve will continue and this is a trend that needs to be reversed. A new manpower study needs to be done and published by the Navy Reserve to calculate the actual manning level: this study should be driven by readiness and not budgetary requirements. With pending withdrawals from Iraq and Afghanistan, there is already talk within the beltway about future cuts to military end strength to help offset rising deficits. Many blame the global war on terrorism for our current national debt, but part of high cost of the military is unpreparedness, and the bills borne by trying to create a force to match the need. Following World War I, Lieutenant General James Guthrie Harbord, USA, General John J. Pershing's chief of staff, was quoted in a 1922 New York Times as saying. ``The size of our debt, incurred through unpreparedness, brings a demand for economy, and we continue unprepared. Thus unpreparedness brings the debt, and the debt continues unpreparedness.'' Without external threats, the USA has traditionally reduced the size of its Armed Forces. But since the 1990s the Pentagon has recommended proportional cuts be taken in the Reserve component when taken in the Active Force. This reasoning fails in many ways. It results in a hollowing out of the force and preparedness, undermines morale, and undercuts retention. national security is put at risk. There is a need to maintain a national position of readiness, and the Reserve component is a cost-effective solution of being prepared. Should cuts be taken in the Active component, the Reserve component should grow in size to allow a place for readiness capability. proposed legislation Retirement ROA and REA again thank the committee for passing the early retirement benefit in the National Defense Authorization Act for Fiscal Year 2008, as a good first step toward changing the retirement compensation for serving Guard and Reserve members, but. . . Guard and Reserve members feel that with the change in the roles and missions of the Reserve component, their contracts have changed. Informal surveys keep indicating that earlier retirement remains a top issue asked for by guardsmen and reservists. They ask why so many Guard and Reserve members who have served in the global war on terrorism were excluded from the new benefit; they also ask why even earlier duty is not included: and if faced with the same risks as active duty, why there is a 20 year difference in access to retirement pay? 1. ``ROA and REA'' endorse S.831. National Guard and Reserve Retired Pay Equity Act of 2009, which is a corrective measure to the National Defense Authorization Act for Fiscal Year 2008 including those Guard and Reserve members who have been mobilized since September 11, 2001. Over 600,000 were unfairly excluded. We realize the expense of this corrective measure scored by CBO is $2.1 billion over 10 years, but hope that offset dollars can be found. 2. ROA and REA don't view this congressional solution as the final retirement plan. The Commission on the National Guard and Reserve recommends that Congress should amend laws to place the Active and Reserve components into the same retirement system. Secretary of Defense Robert Gates refers to the Tenth Quadrennial Review of Military Compensation's comprehensive review of the military retirement systems for suggested reform. The latter report suggests a retirement pay equal to 2.5 percent of basic pay multiplied by the number of years of service. ROA and REA agree that a retirement plan, at least for the Reserve component, should be based on accruement of active and inactive duty. Early retirement should not be based on the type of service, but on the aggregate of duty. It shouldn't matter if a member's contributions were paid or non-paid; inactive duty, active duty for training, special works or for mobilization. Under a continuum of service, this approach would provide both the Active or Reserve component members with an element of personal control to determine when they retire and will encourage increased frequency of service beyond 20 years within the Reserve. 3. An additional problem arises for O-4 officers who, after a break in service, have returned to the Reserve component. After being encouraged to return a number of officers find they are not eligible for nonregular retirement. When reaching 20 years of commissioned service they find they may have only 15 good Federal years. Current policy allows these individuals to have only 24 years of commissioned time to earn 20 good Federal years. 4. With an ongoing shortage of mid-grade officers (O-2 to O-3), Congress should reexamine the DOPMA and ROPMA laws to permit O-3s without prior enlisted service to be able to retire at 20 years of service. Many of badly needed skills that the Services would like to retain, yet must be discharged if passed over for promotion to often. ROA urges Congress to make changes in U.S. Code to allow O-3s and O-4s with 14 to 15 good Federal years to remain on Active Duty or in the Reserve until they qualify for regular or non-regular retirement. Education 1. Montgomery ``GI'' Bill-Selected Reserve (MGJB-SR): To assist in recruiting efforts for the Marine Corps Reserve and the other uniformed services, ROA and REA urge Congress to reduce the obligation period to qualify for MGJB-SR (Section 1606) from 6 years in the Selected Reserve to 4 years in the Selected Reserve plus 4 years in the Individual Ready Reserve, thereby remaining a mobilization asset for 8 years. 2. Extending MGIB-SR eligibility beyond Selected Reserve Status: Because of funding constraints, no Reserve component member will be guaranteed a full career without some period in a non-pay status. BRAC realignments are also restructuring the RC force and reducing available paid billets. Whether attached to a volunteer unit or as an individual mobilization augmentee, this status represents periods of drilling without pay. MGIB-SR eligibility should extend for 10 years beyond separation or transfer from a paid billet. Leadership Both the Army and Air Force Reserve Chiefs may only be selected from general officers from that component's reserve, yet the Navy and the Marine Corps can select its Reserve leadership from either Active or Reserve flag officers. (U.S.C., title 10. section 3038 states that ``The President, by and with the advice and consent of the Senate, shall appoint the Chief of Army Reserve from general officers of the Army Reserve . . .'' and section 8038 uses similar language for the appointment of the Chief of the Air Force Reserve, while U.S.C., title 10, section 5143, only requires the President to appoint the Chief of Navy Reserve from flag officers of the Navy, and section 5144 only requires the President to appoint the Commander. Marine Forces Reserve, from general officers of the Marine Corps.) The Reserve Chief of a Service's Reserve should have an understanding of both the citizen warriors who are reporting to him or her, and the system through which the report. ROA urges Congress to change sections 5143 and 5144 of U.S.C., title 10 to only permit appointments from the Service's Reserve component. Military Voting ROA thanks Congress for the improvements made to absentee voting in the fiscal year 2010 Defense Authorization. Military personnel, overseas citizens, and their families residing outside their election districts deserve every reasonable opportunity to participate in the electoral process. Yet, studies by Congressional Research Service show that 25 percent of military member and family votes were not counted in the 2008 election. ROA and REA urge Congress to direct the Government Accountability Office to report further on the effectiveness of absentee voting assistance to Military and Overseas Citizens for the 2010 General Election and determine how Federal Voting Assistance Program's efforts to facilitate absentee voting by military personnel and overseas citizens differed between the 2008 and 2010 national elections. ROA and REA also hopes Congress encourages the Secretary of Defense, in conjunction with States and local jurisdictions, to gather and publish national data about the 2010 election by voting jurisdiction on disqualified military and overseas absentee ballots and reasons for disqualification. health care discussion 1. ROA and REA hold concerns over the implementation of TRICARE for gray area retirees. Rear Admiral Christine S. Hunter has shared that enrollment could be as early as July or as late as November 2010, and that it might be regionally rolled out. DOD wants to treat Reserve gray area retirees as a separate health care risk group which will likely drive up the cost of health care premiums as well. ROA and REA hope that the committee will ask hard questions at a future hearing about the process, as individuals in the health care industry question the length of time and the approach being taken. 2. Sustaining Reserve Health care. ROA and REA was disappointed to learn that Continued Health Care Benefit Plan is only allowed to members of the Selected Reserve if they have had a tour of active duty within the previous 18 months by DOD. This is denying COBRA protections for traditional reservists who haven't been activated, and even overlooks the Secretary of Defense's directive to mobilize National Guard and Reserve members 1 year out of 6, which would be a dwell time of 60 months between call-ups. There is little cost as the beneficiary pays a premium of 102 percent of TRICARE Cost. A continuity of health care is needed if a continuum of service is to be seriously considered. Just as an Active Force needs to be provided military health, the Reserve component needs to have a seamless health protection during different duty statuses. As even discharged active servicemembers have the benefit of the Continuing Health Care Benefit Plan, those Guard and Reserve members who have signed up for TRICARE Reserve Select need to have protections when they leave the Selected Reserve. ROA and REA encourage Congress to work with the Pentagon to open up Reserve component member access to the Continued Health Care Benefit Plan to any TRICARE Reserve Select beneficiary separating from the Selected Reserve under conditions that are not punitive in nature. 3. Employer health care option: The ROA and REA continues to support an option for individual reservists where DOD pays a stipend to employers of deployed Guard and Reserve members to continue employer health care during deployment. Because TRICARE Prime or Standard is not available in all regions that are some distance from military bases it is an advantage to provide a continuity of health care by continuing an employer's health plan for the family members. This stipend would be equal to DOD's contribution to Active Duty TRICARE. 4. Dental Readiness. Currently, dental readiness has one of the largest impacts on mobilization. The action by Congress in the NDAA for Fiscal Year 2010 was a good step forward, but still more needs to be done. In the first quarter of fiscal year 2009, the Army Reserve was 48.8 percent dental class 1 or 2 Navy Reserve was 92.8 percent, Air Force Reserve 86.6 percent, Marine Corps Reserve 77 percent. Air Guard 91 percent Army Guard 48.2 percent, and Coast Guard Reserve 83.2 percent. While there has been slight improvement since fiscal year 2007, the Army Reserve and Marine Corps Reserve have actually decreased their dental readiness which is due to large numbers of Class 4 servicemembers. Regardless none of the Services have met the 95 percent dental readiness goal. The Services require a minimum of Class 2 (where treatment is needed, however no dental emergency is likely within 6 months) for deployment. Current policy relies on voluntary dental care by the Guard or Reserve member. Once alerted, dental treatment can be done by the military, but often times there isn't adequate time for proper restorative remedy. ROA and REA continues to suggest that the Services are responsible to restore a demobilized Guard or Reserve member to a Class 2 status to ensure the member maintains deployment eligibility. Because there are inadequate dental assets at Military Treatment Facilities for active members, active families, and reservists, ROA and REA further recommend that dental restoration be included as part of the 6 months Transitional Assistance Management Program (TAMP) period following demobilization. DOD should cover full costs for restoration, but it could be tied into the TRICARE Dental program for cost and quality assurance. 5. TRICARE Health costs: ROA and REA applaud the efforts by Congress to address the issue of increasing Department of Defense health care costs and its interest to initiate dialogue and work with both the Pentagon and the beneficiary associations to find the best solution. The time has come to examine the cost of TRICARE and the level of beneficiary contribution. ROA and REA are committed to our membership to sustain this health care benefit. We fear that we will be unable to continue to sustain prohibitions on health care fees into the future. We need to work together to find a fair and equitable solution that protects our beneficiaries and ensures the financial viability of the military health care system for the future. Some associations seek to continue to a freeze on premium fees permanently; others are joining ROA and REA by admitting that some increases are necessary. ROA and REA endorse a tiered enrollment fee and congratulate the Task Force for developing one based on annual income. As most Guard and Reserve members retire at 25 to 30 percent of active duty retirement pay, it makes sense that G-R enrollment fees should be lower. ROA and REA do suggest that if enrollment fees are based on income that it be based just on military retirement income of Active and Reserve retirees. The ROA and REA do not endorse annual enrollment fees for individuals who don't use the TRICARE Standard plan. Eligibility should remain universal; a one-time administrative enrollment fee might be implemented with first use of the program. If TRICARE Standard enrollment fees are increased, Congress needs to review the recommended deductibles and current copayment levels. While TRICARE Prime is in the top 90 percent for cost generosity. TRICARE Standard is at a lower level of the spectrum of plan generosity. 6. National Health Care Plan. ROA and REA are concerned that the national health care legislation does not include specific language that preserves military and veteran health care programs under separate authorities. While there have been verbal guarantees from congressional members and the President, getting the pledge in writing would curtail concerns. conclusion ROA and REA reiterate our profound gratitude for the progress achieved by this committee by providing parity on pay and compensation between the Active and Reserve components, with the subcommittee also understanding the difference in service between the two components. ROA and REA look forward to working with the personnel subcommittee where we can present solutions to these and other issues, and offers our support in anyway. Senator Webb. Welcome, to all of you. I suppose we can start with Mr. Barnes and move to Mr. Strobridge. Welcome, sir. STATEMENT OF MASTER CHIEF JOSEPH L. BARNES, USN (RET.), NATIONAL EXECUTIVE DIRECTOR, FLEET RESERVSE ASSOCIATION Mr. Barnes. Good morning, Mr. Chairman, Senator Graham, distinguished members of the subcommittee. Thank you for the opportunity to appear before you today. The Military Coalition's statement reflects the consensus of coalition organizations on a broad range of important personnel issues and extensive work by eight legislative committees, each comprised of representatives from the coalition's 34 military and veterans organizations. The five of us will address key issues important to the Active, Guard, and Reserve, retiree, and survivor communities, and military families, and will conclude healthcare concerns which impact everyone within these groups, including our magnificent wounded warriors. Before proceeding, I wish to thank you and the entire subcommittee and your outstanding staff for effective leadership and strong support of essential pay and benefit program enhancements, and particularly for programs to adequately care for our wounded warriors and their families. Adequate service end strengths are absolutely essential to success in Iraq and Afghanistan, and to sustaining other operations vital to our national security. The coalition strongly supports proposed Army and Navy end strength levels in 2011. A recent Navy Times story titled ``Sailor Shortage'' cites too much work to do in the Navy and not enough people to do it, and lists the associated effects, which include little time for rest, fewer people to maintain and repair shipboard equipment, crew members with valuable skills being pulled for other jobs and not replaced, and lower material ship readiness. As referenced by the first panel, the strain of repeated deployments continues, and is also related to the adequacy of end strengths. Now we're tracking disturbing indicators of the effects, which include increasing drug and alcohol use, more mental healthcare appointments, alarming suicide rates, plus more military divorces. The unrelenting stress on servicemembers and their families is a serious and continuing concern that can lead to very serious morale, readiness, and retention challenges. Pay comparability remains a top priority, and the Coalition strongly supports the authorization of a 1.9-percent 2011 Active Duty pay hike. We appreciate your past support for higher-than-ECI pay increases, which have collectively reduced the pay gap to 2.4 percent. Adequate funding for military recruiting efforts is important. During high retention periods, it's natural to look at reducing these accounts. However, sufficient resources are essential to ensuring continuing recruiting success. It's noteworthy that nearly three-quarters of the optimum recruiting-aged young people do not qualify for Military Service, and the Services must maximize efforts through our military recruiters to recruit optimum-quality personnel across the Armed Services. The coalition strongly supports the authorization to ship two personal vehicles in conjunction with PCS moves, along with long overdue increases in PCS mileage rates. We appreciate the distinguished Chairman's leadership on the enactment and implementation of the post-September 11 GI Bill and DOD policies on transferability options for personnel nearing retirement. However, technical corrections are still needed to ensure eligibility for members of the U.S. Public Health Service and NOAA Corps. Adequate programs, facilities, and support services for personnel impacted by BRAC actions, rebasing, and global repositioning is very important, particularly during wartime, which alone, results in significant stress on servicemembers and their families. The coalition notes with concern the 19- plus-percent reductions in military construction and family housing accounts in the proposed 2011 budget request. Finally, the coalition remains committed to adequate funding to ensure access to the commissary benefit for all beneficiaries. This is an essential benefit, and the Defense Commissary Agency is to be commended for highly cost-effective management of 255 stores in 13 countries. Thank you again for the opportunity to present our recommendations. [The prepared statement of Mr. Barnes follows:] Prepared Statement by Master Chief Joseph L. Barnes, USN (Ret.) the fleet reserve association The Fleet Reserve Association (FRA) is the oldest and largest enlisted organization serving active duty, Reserves, retired and veterans of the Navy, Marine Corps, and Coast Guard. It is Congressionally Chartered, recognized by the Department of Veterans Affairs (VA) as an accrediting Veteran Service Organization for claim representation and entrusted to serve all veterans who seek its help. In 2007, FRA was selected for full membership on the National Veterans' Day Committee. FRA was established in 1924 and its name is derived from the Navy's program for personnel transferring to the Fleet Reserve or Fleet Marine Corps Reserve after 20 or more years of active duty, but less than 30 years for retirement purposes. During the required period of service in the Fleet Reserve, assigned personnel earn retainer pay and are subject to recall by the Secretary of the Navy. FRA's mission is to act as the premier ``watch dog'' organization in maintaining and improving the quality of life for Sea Service personnel and their families. FRA is a leading advocate on Capitol Hill for enlisted Active Duty, Reserve, retired and veterans of the Sea Services. The Association also sponsors a National Americanism Essay Program and other recognition and relief programs. In addition, the newly established FRA Education Foundation oversees the Association's scholarship program that presents awards totaling nearly $100,000 to deserving students each year. The Association is also a founding member of The Military Coalition (TMC), a 34-member consortium of military and veteran's organizations. FRA hosts most TMC meetings and members of its staff serve in a number of TMC leadership roles. FRA celebrated 85 years of service in November 2009. For over eight decades, dedication to its members has resulted in legislation enhancing quality of life programs for Sea Services personnel, other members of the uniformed services plus their families and survivors, while protecting their rights and privileges. CHAMPUS, now TRICARE, was an initiative of FRA, as was the Uniformed Services Survivor Benefit Plan. More recently, FRA led the way in reforming the REDUX Retirement Plan, obtaining targeted pay increases for mid-level enlisted personnel, and sea pay for junior enlisted sailors. FRA also played a leading role in advocating recently enacted predatory lending protections and absentee voting reform for servicemembers and their dependents. FRA's motto is: ``Loyalty, Protection, and Service.'' certification of non-receipt of federal funds Pursuant to the requirements of House Rule XI, the FRA has not received any Federal grant or contract during the current fiscal year or either of the 2 previous fiscal years. synopsis The FRA is an active participant and leading organization in The Military Coalition (TMC) and strongly supports the recommendations addressed in the more extensive TMC testimony prepared for this hearing. The intent of this statement is to address other issues of particular importance to FRA's membership and the Sea Services enlisted communities. introduction Mr. Chairman, the FRA salutes you, members of the subcommittee, and your staff for the strong and unwavering support of programs essential to Active Duty, Reserve component, and retired members of the uniformed services, their families, and survivors. The subcommittee's work has greatly enhanced care and support for our wounded warriors and significantly improved military pay, and other benefits and enhanced other personnel, retirement and survivor programs. This support is critical in maintaining readiness and is invaluable to our uniformed services engaged throughout the world fighting the global war on terror, sustaining other operational commitments and fulfilling commitments to those who've served in the past. health care Health care is exceptionally significant to all FRA shipmates regardless of their status and protecting and/or enhancing this benefit is the Association's top legislative priority. A recently released FRA survey indicates that nearly 90 percent of all Active Duty, Reserve, retired, and veteran respondents cited health care access as a critically important quality-of-life benefit associated with their military service. From 2006-2008 retirees under age 65 were targeted by DOD to pay significantly higher health care fees. Many of these retirees served before the recent pay and benefit enhancements were enacted and receive significantly less retired pay than those serving and retiring in the same pay grade with the same years of service today. Promises were made to them about health care for life in return for a career in the military with low pay and challenging duty assignments and many believe they are entitled to free health care for life. Efforts to enact a national health care reform coupled with inaccurate and widespread information on the associated impact on retiree health care benefits has created unease and a sense of uncertainty for our members. FRA opposes any effort to integrate TRICARE and VA health care into any national health care program and appreciates the exclusion of TRICARE and VA health care in the House version of the national health care proposal. Military and VA health care services are fundamental to military readiness and serve the unique needs of current and former servicemembers, their families and survivors. Merging these programs into a colossal bureaucracy designed to provide health care to all Americans would broaden their focus and reduce their effectiveness. That said, the Association is concerned about proposed Medicare spending cuts associated with reform initiatives which may negatively impact physician reimbursement rates and access to care for Medicare and TRICARE beneficiaries. FRA strongly supports Representatives Chet Edwards (TX) and Walter Jones (NC) legislation, ``The Military Retirees' Health Care Protection Act'' (H.R. 816) that would prohibit DOD from increasing TRICARE fees, specifying that the authority to increase TRICARE fees exists only in Congress. FRA thanks this subcommittee for resisting past efforts to shift increasing health care cost to beneficiaries and ensuring adequate funding for the Defense Health Program in order to meet readiness needs, fully fund TRICARE, and improve access for all beneficiaries regardless of age, status or location. Adequately funding health care benefits for all beneficiaries is part of the cost of defending our Nation. concurrent receipt The Association appreciates President Obama's support for authorizing Chapter 61 retirees to receive their full military retired pay and veterans disability compensation and continues to seek timely and comprehensive implementation of legislation that authorizes the full concurrent receipt for all disabled retirees. The above referenced FRA survey indicates that more than 70 percent of military retirees cite concurrent receipt among their top priorities. The Association strongly supports the fiscal year 2011 budget request of $408 million to cover the first phase of the 5-year cost for concurrent receipt for Chapter 61 beneficiaries that are 90 percent or more disabled. wounded warriors FRA appreciates the substantial Wounded Warriors legislation in the National Defense Authorization Act (NDAA) for Fiscal Year 2008. Despite jurisdictional challenges, considerable progress has been made in this area. However, the enactment of legislation is only the first step in helping wounded warriors. Effective oversight and sustained funding are also critical for successful implementation and FRA supports the following substantive changes: Establish a permanent and independent office for the DOD/VA Interagency program and expand it's authority to include oversight of all components of achieving a true seamless transition; Authorizing full active duty TRICARE benefits, regardless of accessibility of VA care, for 3 years after medical retirement to help ease transition from DOD to VA; Extend and make permanent the charter of the ``Special Oversight Committee'' to ensure improved coordination with DOD and VA initiatives to help wounded warriors; Exempt severely wounded medically retired Medicare part B premiums until age 65; Providing up to 1 year of continuous habitation in onbase housing facilities for medically retired, severely wounded and their families; Eliminate the servicemember's premium for the Traumatic Servicemember Group Life Insurance; Ensure the creation and full implementation of a joint electronic health record that will help ensure a seamless transition from DOD to VA for wounded warriors; and Establishment of the Wounded Warriors Resource Center as a single point of contact for servicemembers, their family members, and primary care givers. Achieving an effective delivery system between DOD and VA to guarantee seamless transition and quality services for wounded personnel, particularly those suffering from Post Traumatic Stress Disorder and Traumatic Brain Injuries is very important to our membership. DOD should also make every effort to destigmatize mental health conditions that should include outreach, counseling, and mental health assessment for all servicemembers returning from the combat zone. Family support is also critical for success, and should include compensation, training, and certification, and respite care for family members functioning as full-time caregivers for wounded warriors. FRA supports ``The Caregivers and Veterans Omnibus Health Services Act''(S. 1963), and parallel legislation to improve compensation, training and assistance for caregivers of severally disabled active-duty servicemembers. suicide rates FRA is deeply concerned that more servicemembers have taken their own lives by November 2009 than have been killed in either the Afghanistan or Iraq wars. Congressional Quarterly reports that as of November 24, 334 servicemembers have committed suicide in 2009, compared with 297 killed in Afghanistan and 144 who died in Iraq. In response to this, Congress has significantly increased funding for mental health in the DOD and VA budgets that established a suicide hotline. DOD and VA also sponsor annual conferences on this issue. Jurisdictional challenges notwithstanding, it is critically important that Congress further respond and enhanced coordination between the Veterans Affairs and Armed Services Committees is key to addressing this. As of the above date the Army has had 211 of the 334 suicides, while the Navy had 47, the Air Force had 34 and the Marine Corps (active duty only) had 42. Increases in the number of suicides are not limited to active duty members only, the Department of Veterans Affairs (VA) has indicated that veterans suicides have also been increasing at an alarming rate. uniform services former spouses protection act reform The Association believes that the increasing divorce rates among active duty personnel and reservists is related to stress caused by repeated deployments in conjunction with 8 years of fighting a two- front war. According to the Los Angeles Times, ``The 3.6 percent rate is a full percentage point above the 2.6 percent reported in late 2001, when the U.S. began sending troops to Afghanistan in response to the terrorist attacks. As in previous years, women in uniform suffered much higher divorce rates than their male counterparts--7.7 percent in 2009. An Army 2009 battlefield survey indicated that 22 percent of married soldiers were considering divorce, compared to 12.4 percent in 2003.'' \1\ The divorce rate for women in uniform is especially troubling, and these numbers do not take into account divorce rates for veterans. The FRA has long advocated introduction of legislation addressing the inequities of the Uniform Services Former Spouses Protection Act (USFSPA) and associated hearings on this issue. The Association believes that this law should be more balanced in its protection for both the servicemember and the former spouse. --------------------------------------------------------------------------- \1\ Associated Press, November 28, 2009, Divorce Rate Rises in Military, Los Angeles Times. --------------------------------------------------------------------------- The recommendations in the Department of Defense's (DOD) September 2001 report, which assessed USFSPA inequities and offered recommendations for improvement is a good starting point for considering badly needed reform of this onerous law. Few provisions of the USFSPA protect the rights of the servicemember and none are enforceable by the Department of Justice or DOD. If a State court violates the right of the servicemember under the provisions of USFSPA, the Solicitor General will make no move to reverse the error. Why? Because the act fails to have the enforceable language required for Justice or the Defense Department to react. The only recourse is for the servicemember to appeal to the court, which in many cases gives that court jurisdiction over the member. Another infraction is committed by some State courts awarding a percentage of veterans' compensation to ex-spouses, a clear violation of U.S. law; yet, the Federal Government does nothing to stop this transgression. FRA believes Congress needs to take a hard look at the USFSPA with the intent to amend it so that the Federal Government is required to protect its servicemembers against State courts that ignore provisions of the act. Other provisions also weigh heavily in favor of former spouses. For example, when a divorce is granted and the former spouse is awarded a percentage of the servicemember's retired pay, this should be based on the member's pay grade at the time of the divorce and not at a higher grade that may be held upon retirement. The former spouse has done nothing to assist or enhance the member's advancements subsequent to the divorce; therefore, the former spouse should not be entitled to a percentage of the retirement pay earned as a result of service after the decree is awarded. Additionally, Congress should review other provisions considered inequitable or inconsistent. adequate personnel end strength Insufficient end strength levels and the rigors of supporting Operations Iraqi Freedom and Enduring Freedom are having a negative impact on the quality of life of servicemembers which will ultimately lead to retention and recruitment challenges. FRA urges this distinguished subcommittee to ensure funding for adequate end strengths and people programs consistent with the Association's DOD funding goal of at least 5 percent of the gross domestic product for fiscal year 2011. active duty pay improvements Our Nation is at war and there is no more critical morale issue for active duty warriors than adequate pay. This is reflected in the more than 96 percent of active duty respondents to FRA's recent survey indicating that pay is ``very important.'' The Employment Cost Index (ECI) for fiscal year 2011 is 1.4 percent and based on statistics from 15 months before the effective date of the proposed active duty pay increase. The Association appreciates the strong support from this distinguished subcommittee in reducing the 13.5 percent pay gap to the current level during the past decade. In addition, FRA notes that even with a fiscal year 2011 pay increase that is 0.5 percent above the ECI, the result will be the smallest pay hike since 1958. FRA urges the subcommittee to continue the increases at least 0.5 percent above the ECI until the remaining 2.4 percent pay gap is eliminated. reserve early retirement The effective date of a key provision in the NDAA for Fiscal Year 2008, the Reserve retirement age provision that reduces the age requirement by 3 months for each cumulative 90-days ordered to active duty is effective upon the enactment of the legislation and NOT retroactive to October 7, 2001. Accordingly the Association supports ``The National Guardsmen and Reservists Parity for Patriots Act'' (H.R. 208) sponsored by the subcommittee's ranking member Representative Joe Wilson (SC), to authorize reservists mobilized since October 7, 2001, to receive credit in determining eligibility for receipt of early retired pay. Since September 11, 2001 the Reserve component has changed from a Strategic Reserve to an Operational Reserve that now plays a vital role in prosecuting the war efforts and other operational commitments. This has resulted in more frequent and longer deployments impacting individual reservist's careers. Changing the effective date of the Reserve early retirement would help partially offset lost salary increases, lost promotions, lost 401K and other benefit contributions. The Association urges the subcommittee to support this important legislation. paid-up survivor benefit annuities Under current law, retirees are no longer required to pay survivor benefit annuities (SBP) premiums after they have paid for 30 years and reach age 70. This is an inequity for those who may have entered the service at age 17 or 18 and will be required to pay for 33 or 32 years respectively until attaining paid-up SBP status. Therefore, FRA supports changing the minimum age for paid-up SBP from age 70 to age 67 to ensure that those who joined the military at age 17, 18, or 19 and serve 20 years will only have to pay SBP premiums for 30 years. retention of final full month's retired pay FRA urges the subcommittee to authorize the retention of the full final month's retired pay by the surviving spouse (or other designated survivor) of a military retiree for the month in which the member was alive for at least 24 hours. FRA strongly supports ``The Military Retiree Survivor Comfort Act'' (H.R. 613), introduced by Rep. Walter Jones (NC) which addresses this issue. Current regulations require survivors of deceased military retirees to return any retirement payment received in the month the retiree passes away or any subsequent month thereafter if there is a processing delay. Upon the demise of a retiree, the surviving spouse is required to notify the Defense Finance and Accounting Service (DFAS) of the death. DFAS then stops payment on the retirement account, recalculates the final payment to cover only the days in the month the retiree was alive, forwards a check for those days to the surviving spouse or beneficiary. If not reported in a timely manner, DFAS recoups any payment(s) made covering periods subsequent to the retiree's death. The measure is related to a similar Department of Veterans Affairs policy. Congress passed a law in 1996 that allows a surviving spouse to retain the veteran's disability and VA pension payments issued for the month of the veteran's death. FRA believes military retired pay should be no different. This proposal is also in response to complaints from surviving spouses who were unaware of the notification requirement and those with joint bank accounts, in which retirement payments were made electronically, who gave little if any thought that DFAS could access the joint account and recoup overpayments of retirement pay. This action could easily clear the account of any funds remaining whether they were retirement payments or money from other sources. To offset some of the costs, if the spouse is entitled to SBP on the retiree's death, there will be no payment of the annuity for the month the retirement payment is provided the surviving spouse. mandate travel cost reimbursement FRA appreciates the NDAA for Fiscal Year 2008 provision (section 631) that permits travel reimbursement for reservist's weekend drills, not to exceed $300, if the commute is outside the normal commuting distance. The Association urges the subcommittee to make this a mandatory provision. This is a priority issue with many enlisted reservists who are forced to travel lengthy distances to participate in weekend drills without reimbursement for travel costs. Providing this travel reimbursement would assist with retention and recruitment for the Reserves--something particularly important to increased reliance on these personnel in order to sustain our war and other operational commitments. family readiness Military deployments create unique stresses on families due to separation, uncertainties of each assignment and associated dangers of injury or death for the deployed servicemember. Further, adapting to new living arrangements and routines adds to the stress, particularly for children. Fortunately men and women in uniform continue to answer the calls to support repeated deployments--but only at a cost of ever-greater sacrifices for them and their families. Now more than ever before the support of their families is essential to enduring the mounting stresses of the war effort and other operational commitments. This stress has resulted in doubling the number of outpatient mental health visits (1 million in 2003 to 2 million in 2008) for children with an active duty parent.\2\ It's most important that DOD and the military services concentrate on providing programs for the families of our servicemembers. DOD should improve programs to assist military families with deployment readiness, responsiveness, and reintegration. There are a number of existing spousal and family programs that have been fine tuned and are successfully contributing to the well-being of this community. The Navy's Fleet and Family Centers and the Marines' Marine Corps Community Services and Family Services programs are providing comprehensive, 24/7 information and referral services to the servicemember and family through its OneSource links. OneSource is particularly beneficial to mobilized reservists and families who are unfamiliar with varied benefits and services available to them. --------------------------------------------------------------------------- \2\ Military.Com More Troops' Kids Seeking Counseling Associated Press, July 8, 2009 --------------------------------------------------------------------------- It's true that ``the servicemember enlists in the military service--but it's the family that reenlists.'' To ensure the family opts for a uniformed career, the family must be satisfied with life in the military. conclusion FRA is grateful for the opportunity to present these recommendations to this distinguished subcommittee. The Association reiterates its profound gratitude for the extraordinary progress this subcommittee has made in advancing a wide range of military personnel and retiree benefits and quality-of-life programs for all uniformed services personnel and their families and survivors. Thank you again for the opportunity to present the FRA's views on these critically important topics. Senator Webb. Thank you very much, Mr. Barnes. Ms. Moakler, welcome. STATEMENT OF KATHLEEN B. MOAKLER, GOVERNMENT RELATIONS DIRECTOR, NATIONAL MILITARY FAMILY ASSOCIATION Ms. Moakler. Thank you. Chairman Webb, Senator Graham, thank you for the opportunity to speak today on behalf of military families, our Nation's military families. Many families are facing their ninth year of deployment, many have dealt with multiple deployments. We have second- graders who have only known a lifestyle with a parent absent from their lives for months at a time, over and over again. We appreciate the many initiatives and programs supported by this subcommittee in the past. Military OneSource, increased benefits and support for surviving families, and the Yellow Ribbon Program are just a few. We have expanded access to mental health counseling across components, although the need continues to grow. Now military families expect these programs. They have become part of the overall fabric of family readiness. The challenge that now faces us is making sure that our family readiness programs receive sustained funding and continue to be included in the annual budget process. As the war has progressed, family readiness requirements have evolved. Some new programs have been initiated without evaluating already existing programs to see how they might have been adapted. The congressionally-mandated Military Family Readiness Council has begun an evaluation process. We endorse this process and hope that it will result in the elimination of repetitive or redundant programs. Existing programs can be improved, such as adding provisions for travel for family members participating in the Reserve-component Yellow Ribbon Program. With budget cuts and shortfalls looming, we should not randomly reduce funding to family programs, across the board. As redundant programs are identified, their elimination can add to efficiencies. Servicemembers and their families cite MWR programs, like gyms, libraries, and other installation-provided services, as important to their well-being during deployments. Substantial cuts to these programs make them wonder why Services talk about support, yet often cut or reduce the same programs that are identified as the most important by our families. One of the ways to evaluate the efficacy of programs is research. Our Association has spoken, for several years, concerning research into the effects of continuing deployments on our most vulnerable population: our military children. We appreciate the inclusion of a provision calling for a study in last year's NDAA. In May 2008, we commissioned the RAND Corporation to do a longitudinal study on the experience of 1,500 families. Over the course of a year, RAND interviewed both the nondeployed caregiver parent and one child per family between the ages of 11 and 17. We addressed two key questions: How are school-aged children faring? What types of issues do military children face, related to deployment? The baseline findings were published in the January issue of the Journal of Pediatrics. The study found, as the months of parental deployment increased, so did the child's challenges. The total number of months away mattered more than the number of deployments. Older children experienced more difficulties during deployment, and there is a direct correlation between the mental health of the caregiver and the well-being of the child. It was interesting to note that in the initial findings, there were no differences in results between Service or components. What are the implications? Families facing longer deployments need targeted support, especially for older teens and girls. Supports need to be in place across the entire deployment cycle, including reintegration, and some nondeployed parents may need targeted mental health support. We still hear about needs for childcare. While most traditional childcare needs are being met, innovative strategies for after-hours care and respite care should be explored. These strategies need to be implemented across the Services, as well. Drop-in care for medical appointments, either at the Center for Disease Control or at the military treatment facility itself, can go a long way in improving access to care and eliminating missed appointments. I, too, must bring up the MyCAA Program, with an underline and an exclamation point. Several years ago, Congress mandated DOD create a program to promote portable careers for military spouses. The result was a very popular MyCAA program. Recent numbers indicate that 98,000 spouses already are enrolled in the program, an additional 38,000 have applied but have not yet completed the process. Unfortunately, DOD, as we have heard today, has recently had to suspend the program. We have heard, from many concerned military spouses using the MyCAA program, about the loss of funding for courses in which they were enrolled, and how they are scrambling to come up with the funds to continue, be it for an individual course that they are taking online or a semester. But, I think what bothered them the most was the way the notification was handled. There was no advance notification, information was sent via a press release. This, when the program was in possession of everyone's email address. Many view this as one more frustration in 8 long years of frustrations. The program may be a victim of its own success. We are unsure as to whether it was the lack of funds or an application overload, or both, that caused the suspension. We ask that the program be resumed as soon as possible, and that it be properly funded. We thank you for your support of our servicemembers and their families. We urge you to remember their service as you work to resolve the many issues facing our country. Working together, we can improve the quality of life for all these families. Thank you, and I await your questions. [The prepared statement of Ms. Moakler follows:] Prepared Statement by Kathleen B. Moakler Chairman Webb and distinguished members of the subcommittee, the National Military Family Association would like to thank you for the opportunity to present testimony on the quality of life of military families--the Nation's families. As the war has continued, the quality of life of our servicemembers and their families has been severely impacted. Your recognition of the sacrifices of these families and your response through legislation to the increased need for support have resulted in programs and policies that have helped sustain our families through these difficult times. We endorse the recommendations contained in the statement submitted by The Military Coalition. In this statement, our Association will expand on several issues of importance to military families: I. Family Readiness II. Family Health III. Family Transitions i. family readiness The National Military Family Association believes policies and programs should provide a firm foundation for families buffeted by the uncertainties of deployment and transformation. It is imperative full funding for these programs be included in the regular budget process and not merely added on as part of supplemental funding. We promote programs that expand and grow to adapt to the changing needs of servicemembers and families as they cope with multiple deployments and react to separations, reintegration, and the situation of those returning with both visible and invisible wounds. Standardization in delivery, accessibility, and funding are essential. Programs should provide for families in all stages of deployment and reach out to them in all geographic locations. Families should be given the tools to take greater responsibility for their own readiness. We appreciate provisions in the National Defense Authorization Acts and Appropriations legislation in the past several years that recognized many of these important issues. Excellent programs exist across the Department of Defense (DOD) and the Services to support our military families. There are redundancies in some areas, and times when a new program was initiated before looking to see if an existing program could be adapted to answer an evolving need. Servicemembers and their families are continuously in the deployment cycle, anticipating the next separation, in the throes of deployment, or trying to reintegrate after the servicemember returns. Dwell times seem shorter and shorter as training, schools, and relocation impede on time that is spent in the family setting. ``My husband will have 3 months at home with us between deployment and being sent to school in January for 2 months and we will be PCSing soon afterwards. . . . This does not leave much time for reintegration and reconnection.''--Army Spouse We feel that now is the time to look at best practices and at those programs that are truly meeting the needs of families. In this section we will talk about existing programs, highlight best practices, and identify needs. Child Care At every military family conference we attended last year, child care was in the top five issues affecting families--drop-in care being the most requested need. Some installations are responding to these needs in innovative ways. For instance, in a recent visit to Kodiak, Alaska, we noted the gym facility provided watch care for its patrons. Mom worked out on the treadmill or elliptical while her child played in a safe carpeted and fenced-in area right across from her. Another area of the gym, previously an aerobics room, had been transformed into a large play area for ``Mom and me'' groups to play in the frequently inclement weather. These solutions aren't expensive but do require thinking outside the box. Innovative strategies are needed to address the non-availability of after-hours child care (before 6 a.m. and after 6 p.m.) and respite care. We applaud the partnership between the Services and the National Association of Child Care Resource and Referral Agencies that provides subsidized child care to families who cannot access installation based child development centers. We also appreciate the new SitterCity.com contract that will help military families find caregivers and military subsidized child care providers. Still, families often find it difficult to obtain affordable, quality care especially during hard-to-fill hours and on weekends. Both the Navy and the Air Force have programs that provide 24/7 care. These innovative programs must be expanded to provide care to more families at the same high standard as the Services' traditional child development programs. The Army, as part of the funding attached to its Army Family Covenant, has rolled out more space for respite care for families of deployed soldiers. Respite care is needed across the board for the families of the deployed and the wounded, ill, and injured. We are pleased the Services have rolled out more respite care for special needs families, but since the programs are new we are unsure of the impact it will have on families. We are concerned, however, when we hear of some installations already experiencing shortfalls of funding for respite care early in the year. At our Operation Purple* Healing Adventures camp for families of the wounded, ill, and injured, families told us there is a tremendous need for access to adequate child care on or near military treatment facilities. Families need the availability of child care in order to attend medical appointments, especially mental health appointments. Our Association encourages the creation of drop-in child care for medical appointments on the DOD or VA premises or partnerships with other organizations to provide this valuable service. We appreciate the requirement in the National Defense Authorization Act for Fiscal Year 2010 calling for a report on financial assistance provided for child care costs across the Services and components to support the families of those servicemembers deployed in support of a contingency operation and we look forward to the results. Our Association urges Congress to ensure resources are available to meet the child care needs of military families to include hourly, drop- in, and increased respite care across all Services for families of deployed servicemembers and the wounded, ill, and injured, as well as those with special needs family members. Working with Youth Older children and teens must not be overlooked. School personnel need to be educated on issues affecting military students and must be sensitive to their needs. To achieve this goal, schools need tools. Parents need tools, too. Military parents constantly seek more resources to assist their children in coping with military life, especially the challenges and stress of frequent deployments. Parents tell us repeatedly they want resources to ``help them help their children.'' Support for parents in their efforts to help children of all ages is increasing, but continues to be fragmented. New Federal, public-private initiatives, increased awareness, and support by DOD and civilian schools educating military children have been developed. However, many military parents are either not aware such programs exist or find the programs do not always meet their needs. Our Association is working to meet this pressing need through our Operation Purple* Summer Camps. Unique in its ability to reach out and gather military children of different age groups, Services, and components, our Operation Purple program provides a safe and fun environment in which military children feel immediately supported and understood. Now in our seventh year, we have sent more than 30,000 children to camp for free with the support of private donors. This year, we expect to send another 10,000 children to camp at 67 locations in 34 States and Guam, and Germany. We also provided the camp experience to families of the wounded. In 2009, we introduced a new program under our Operation Purple umbrella, offering family reintegration retreats in the national parks. They have been well received by our families and more apply than can attend. We are offering 10 retreats this year. Through our Operation Purple camps, our Association has begun to identify the cumulative effects multiple deployments are having on the emotional growth and well being of military children and the challenges posed to the relationship between deployed parent, caregiver, and children in this stressful environment. Understanding a need for qualitative analysis of this information, we commissioned the RAND Corporation to conduct a pilot study in 2007 aimed at the current functioning and wellness of military children attending Operation Purple camps and assessing the potential benefits of the Operation Purple program in this environment of multiple and extended deployments. In May 2008, we embarked on phase two of the project--a longitudinal study on the experience of 1,507 families, which is a much larger and more diverse sample than included in our pilot study. RAND followed these families for 1 year, and interviewed the nondeployed caregiver/parent and one child per family between 11 and 17 years of age at three time points over the year. Recruitment of participants was extremely successful because families were eager to share their experiences. The research addressed two key questions: How are school-age military children faring? What types of issues do military children face related to deployment? In December, the baseline findings of the research were published in the journal Pediatrics. Findings showed: As the months of parental deployment increased, so did the child's challenges. The total number of months away mattered more than the number of deployments. Older children experienced more difficulties during deployment. There is a direct correlation between the mental health of the caregiver and the well-being of the child. Girls experienced more difficulty during reintegration, the period of months readjusting after the servicemember's homecoming. About one-third of the children reported symptoms of anxiety, which is somewhat higher than the percentage reported in other national studies of children. In these initial findings, there were no differences in results between Services or components. What are the implications? Families facing longer deployments need targeted support--especially for older teens and girls. Supports need to be in place across the entire deployment cycle, including reintegration, and some nondeployed parents may need targeted mental health support. One way to address these needs would be to create a safe, supportive environment for older youth and teens. Dedicated Youth Centers with activities for our older youth would go a long way to help with this. Our Association, as an outgrowth of the study results, will be holding a summit in early May, where we will be engaging with experts to isolate action items that address the issues surfaced in the study. We will be happy to share these action items with you. Our Association feels that more dedicated resources, such as youth or teen centers, would be a first step toward addressing the needs of our older youth and teens during deployment. Families Overseas Families stationed overseas face increased challenges when their servicemember is deployed into theater. One such challenge we have heard from families stationed in EUCOM concerns care for a family member, usually the spouse, who may be injured or confined to bed for an extended illness during deployment. Instead of pulling the servicemember back from theater, why not provide transportation for an extended family member or friend to come from the States to care for the injured or ill family member? This was a recommendation from the EUCOM Quality of Life conference for several years. Our Association asks that transportation be provided for a designated caregiver to an overseas duty station to care for an incapacitated spouse when a servicemember is deployed. Military Housing In the recent RAND study of military children on the home front commissioned by our Association, researchers found that living in military housing was related to fewer caregiver reported deployment- related challenges. For instance, fewer caregivers who lived in military housing reported that their children had difficulties adjusting to parent absence (e.g., missing school activities, feeling sad, not having peers who understand what their life is like) as compared to caregivers who needed to rent their homes. In a subsequent survey, the study team explored the factors that determine a military family's housing situation in more detail. Among the list of potential reasons provided for the question, ``Why did you choose to rent?'' researchers found that the top three reasons parents/caregivers cited for renting included: military housing was not available (31 percent); renting was most affordable (28 percent), and preference to not invest in the purchase of a home (26 percent). Privatized housing expands the opportunity for families to live on the installation and is a welcome change for military families. We are pleased with the annual report that addresses the best practices for executing privatized housing contracts. As privatized housing evolves the Services are responsible for executing contracts and overseeing the contractors on their installations. With more joint basing, more than one Service often occupies an installation. The Services must work together to create consistent policies not only within their Service but across the Services as well. Pet policies, deposit requirements, and utility polices are some examples of differences across installations and across Services. How will Commanders address these variances as we move to joint basing? Our families face many transitions when they move, and navigating the various policies and requirements of each contractor is frustrating and confusing. It's time for the Services to increase their oversight and work on creating seamless transitions by creating consistent policies across the Services. We are pleased the NDAA for Fiscal Year 2010 calls for a report on housing standards and housing surveys used to determine the Basic Allowance for Housing (BAH) and hope Congress will work to address BAH inequities. Privatized housing is working! We ask Congress to consider the importance of family well-being as a reason for expanding the amount of privatized housing for our military families. Commissaries and Exchanges The commissary is a vital part of the compensation package for servicemembers and retirees, and is valued by them, their families, and survivors. Our surveys indicate that military families consider the commissary one of their most important benefits. In addition to providing average savings of more than 30 percent over local supermarkets, commissaries provide a sense of community. Commissary shoppers gain an opportunity to connect with other military families, and are provided with information on installation programs and activities through bulletin boards and publications. Commissary shoppers also receive nutritional information through commissary promotions and campaigns, as well as the opportunity for educational scholarships. Our Reserve component families have benefited greatly from the addition of case lot sales. We thank Congress again for the provision allowing the use of proceeds from surcharges collected at these sales to help defray their costs. Not only have these case lot sales been extremely well received and attended by family members not located near an installation, they have extended this important benefit to our entire military community. Our Association continues to be concerned that there will not be enough commissaries to serve areas experiencing substantial growth, including those locations with servicemembers and families relocated by BRAC. The surcharge was never intended to pay for DOD and Service transformation. Additional funding is needed to ensure commissaries are built or expanded in areas that are gaining personnel as a result of these programs. Our Association believes that additional funding is needed to ensure commissaries are built or expanded in areas that are gaining personnel due to BRAC and transformation. The military exchange system, like the commissary, provides valuable cost savings to members of the military community, while reinvesting their profits in essential Morale, Welfare and Recreation (MWR) programs. Our Association strongly believes that every effort must be made to ensure that this important benefit and the MWR revenue is preserved, especially as facilities are down-sized or closed overseas. In addition, exchanges must continue to be responsive to the needs of deployed servicemembers in combat zones and have the right mix of goods at the right prices for the full range of beneficiaries. As a member of the Defense Commissary Patron Council and a strong proponent of the military exchange system, our Association remains committed to protecting commissary and exchange benefits which are essential to the quality of life of our servicemembers, retirees, families and survivors. Flexible Spending Accounts We would like to thank Members of Congress for the Sense of Congress on the establishment of Flexible Spending Accounts for uniformed servicemembers. We hope this subcommittee will press each of the seven Service Secretaries to establish these important pre-tax savings accounts in a consistent manner. Flexible Spending Accounts would be especially helpful for families with out-of-pocket dependent care and health care expenses. We ask that the flexibility of a rollover or transfer of funds to the next year be considered. Financial Readiness Financial readiness is a critical component of family readiness. Our Association applauds DOD for tackling financial literacy head-on with their Financial Readiness Campaign. Financial literacy and education must continue to be on the forefront. We are strong supporters of the Military Lending Act (MLA) and hope Congress will press States to enforce MLA regulations within their State borders. With the depressed economy, many families may turn to payday lenders. DOD must continue to monitor the MLA and its effectiveness of derailing payday lenders. Military families are not immune from the housing crisis. We applaud Congress for expanding the Homeowners' Assistance Program to wounded, ill, and injured servicemembers, survivors, and servicemembers with Permanent Change of Station orders meeting certain parameters. We have heard countless stories from families across the Nation who have orders to move and cannot sell their home. Due to the mobility of military life, military homeowners must be prepared to be a landlord. We encourage DOD to continue to provide financial education to military servicemembers and their families to help families make sound financial decisions. We also encourage DOD to continue to track the impact of the housing crisis on our military families. We appreciate the increase to the Family Separation Allowance (FSA) that was made at the beginning of the war. In more than 8 years, however, there has not been another increase. We ask that the FSA be indexed to the Cost of Living Allowance (COLA) to better reflect rising costs for services. Increase the Family Separation Allowance by indexing it to COLA. ii. family health Family readiness calls for access to quality health care and mental health services. Families need to know the various elements of their military health system are coordinated and working as a synergistic system. Our Association is concerned the DOD military health care system may not have all the resources it needs to meet both the military medical readiness mission and provide access to health care for all beneficiaries. It must be funded sufficiently, so the direct care system of Military Treatment Facilities (MTFs) and the purchased care segment of civilian providers can work in tandem to meet the responsibilities given under the TRICARE contracts, meet readiness needs, and ensure access for all military beneficiaries. Military Health System Improving Access to Care In the question and answer period during a hearing of this subcommittee on June 3, 2009, Senator Lindsey Graham (R-SC) asked panel members to ``give a grade to TRICARE.'' Panel members rated TRICARE a ``B'' or a ``C minus.'' Our Association's Director of Government Relations stated it was a two-part question and assigned a grade of ``B'' for quality of care and ``C-'' for access to care. We welcomed this discussion focused on access issues in the direct care system--our military hospitals and clinics--reinforcing what our Association has observed for years. We have consistently heard from families that their greatest health care challenge has been getting timely care from their local military hospital or clinic. Our Association continues to examine military families' experiences with accessing the Military Health System (MHS). Families' main issues are: access to their Primary Care Managers (PCM); getting someone to answer the phone at central appointments; having appointments available when they finally got through to central appointments; after hours care; getting a referral for specialty care; being able to see the same provider or PCM; and having appointments available 60, 90, and 120 days out in our MTFs for follow-ups recommended by their providers. Families familiar with how the MHS referral system works seem better able to navigate the system. Those families who are unfamiliar report delays in receiving treatment or sometimes decide to give up on the referral process and never obtain a specialty appointment. Continuity of care is important to maintain quality of care. The MTFs are stressed from 8 years of provider deployments, directly affecting the quality of care and contributing to increased costs. Our Association thanks Congress for requiring, in the NDAA for Fiscal Year 2009, a report on access to care and we look forward to the findings. This report must distinguish between access issues in the MTFs, as opposed to access in the civilian TRICARE networks. Our most seriously wounded, ill, and injured servicemembers, veterans, and their families are assigned case managers. In fact, there are many different case managers: Federal Recovery Coordinators (FRC), Recovery Care Coordinators, coordinators from each branch of Service, TBI care coordinators, VA liaisons, et cetera. The goal is for a seamless transition of care between and within the two governmental agencies, DOD and the VA. However, with so many coordinators to choose from, families often wonder which one is the ``right'' case manager. We often hear from families, some whose servicemember has long been medically retired with a 100 percent disability rating or others with less than 1 year from date-of-injury, who have not yet been assigned a FRC. We need to look at whether the multiple, layered case managers have streamlined the process, or have only aggravated it. Our Association still finds families trying to navigate alone a variety of complex health care systems, trying to find the right combination of care. Individual Service wounded, ill, and injured program directors and case managers are often reluctant to inform families that FRCs exist or that the family qualifies for one. Many qualify for and use Medicare, VA, DOD's TRICARE direct and purchased care, private health insurance, and State agencies. Why can't the process be streamlined? Support for Special Needs Families Case management for military beneficiaries with special needs is not consistent because the coordination of the military family's care is being done by a non-synergistic health care system. Beneficiaries try to obtain an appointment and then find themselves getting partial health care within the MTF, while other health care is referred out into the purchased care network. Thus, military families end up managing their own care. Incongruence in the case management process becomes more apparent when military family members transfer from one TRICARE region to another and is further exacerbated when a special needs family member is involved. Families need a seamless transition and a warm handoff between TRICARE regions and a universal case management process across the MHS. Each TRICARE Managed Care Contractor has created different case management processes. The current case management system is under review by DOD and the TRICARE Management Activity. We applaud Congress and DOD's desire to create robust health care, educational, and family support services for special needs children. But, these robust services do not follow them when they retire. We encourage the Services to allow these military families the opportunity to have their final duty station be in an area of their choice. We suggest the Extended Care Health Option (ECHO) be extended for 1 year after retirement for those already enrolled in ECHO prior to retirement. If the ECHO program is extended, it must be for all who are eligible for the program. We should not create a different benefit simply based on diagnosis. There has been discussion over the past years by Congress and military families regarding the ECHO program. The NDAA for Fiscal Year 2009 included a provision to increase the cap on certain benefits under the ECHO program and the NDAA for Fiscal Year 201O established the Office of Community Support for Military Families with Special Needs. The ECHO program was originally designed to allow military families with special needs to receive additional services to offset their lack of eligibility for State or federally provided services impacted by frequent moves. We suggest that before making any more adjustments to the ECHO program, Congress should direct DOD to certify if the ECHO program is working as it was originally designed and if it has been effective in addressing the needs of this population. We need to make the right fixes so we can be assured we apply the correct solutions. This new office will go a long way in identifying and addressing special needs. However, we must remember that our special needs families often require medical, educational and family support resources. This new office must address all these various needs in order to effectively implement change. National Guard and Reserve Member Family Health Care National Guard and Reserve families need increased education about their health care benefits. We also believe that paying a stipend to a mobilized National Guard or Reserve member for their family's coverage under their employer-sponsored insurance plan while the servicemember is deployed may work out better for many families in areas where the TRICARE network may not be robust. Grey Area Reservists Our Association would like to thank Congress for the new TRICARE benefit for Grey Area Reservists. We want to make sure this benefit is quickly implemented and they have access to a robust network. TRICARE Reimbursement Our Association is concerned that continuing pressure to lower Medicare reimbursement rates will create a hollow benefit for TRICARE beneficiaries. As the 111th Congress takes up Medicare legislation, we request consideration of how this legislation will impact military families' health care, especially our most vulnerable service, access to mental health. National provider shortages in the mental health field, especially in child and adolescent psychology, are exacerbated in many cases by low TRICARE reimbursement rates, TRICARE rules, or military-unique geographic challenges--for example large populations in rural or traditionally underserved areas. Many mental health providers are willing to see military beneficiaries on a voluntary status. However, these providers often tell us they will not participate in TRICARE because of what they believe are time-consuming requirements and low reimbursement rates. More must be done to persuade these providers to participate in TRICARE and become a resource for the entire system, even if that means DOD must raise reimbursement rates. Pharmacy We caution DOD about generalizing findings of certain beneficiary pharmacy behaviors and automatically applying them to our Nation's unique military population. We encourage Congress to require DOD to utilize peer-reviewed research involving beneficiaries and prescription drug benefit options, along with performing additional research involving military beneficiaries, before making any recommendations on prescription drug benefit changes, such as co-payment and tier structure changes for military servicemembers, retirees, their families, and survivors. We appreciate the inclusion of Federal pricing for the TRICARE retail pharmacies in the NDAA for Fiscal Year 2008. However, we still need to examine its effect on the cost of medications for both beneficiaries and DOD. Also, we will need to see how this potentially impacts Medicare, civilian private insurance, and the National Health Care Reform affecting drug pricing negotiations. We believe it is imperative that all medications available through TRICARE Retail Pharmacy (TRRx) should also be available through TRICARE Mail Order Pharmacy (TMOP). Medications treating chronic conditions, such as asthma, diabetes, and hypertension should be made available at the lowest level of co-payment regardless of brand or generic status. We agree with the recommendations of the Task Force on the Future of Military Health Care that over-the-counter (OTC) drugs be a covered pharmacy benefit and there be a zero co-pay for TMOP Tier 1 medications. The new T3 TRICARE contract will provide TRICARE Managed Care Contractors and Express-Scripts, Inc. the ability to link pharmacy data with disease management. This will allow for better case management, increase compliance, and decrease cost, especially for our chronically ill beneficiaries. However, this valuable tool is currently unavailable because the T3 contract is still under protest and has not yet been awarded. National Health Care Proposal Our Association is cautious about current rhetoric by the administration and Congress regarding National Health Care Reform. We request consideration of how this legislation will also impact TRICARE. The perfect storm is brewing. TMA will hopefully be instituting the new T3 contract in 2011. Currently, there is the possibility that two out of three TRICARE Managed Care Contractors could change. This means that the contracts of 66 percent of our TRICARE providers would need to be renegotiated. Add the demands and uncertainties to providers in regards to health care reform and Medicare reimbursement rate changes. This leads to our concern regarding the impact on providers' willingness to remain in the TRICARE network and the recruitment of new providers. The unintended consequences maybe a decrease in access to care due the lack of available health care providers. DOD Must Look for Savings We ask Congress to establish better oversight for DOD's accountability in becoming more cost-efficient. We recommend: Requiring the Comptroller General to audit MTFs on a random basis until all have been examined for their ability to provide quality health care in a cost-effective manner; Creating an oversight committee, similar in nature to the Medicare Payment Advisor Commission, which provides oversight to the Medicare program and makes annual recommendations to Congress. The Task Force on the Future of Military Health Care often stated it was unable to address certain issues not within their charter or the timeframe in which they were commissioned to examine the issues. This Commission would have the time to examine every issue in an unbiased manner. Establishing a Unified ``Joint'' Medical Command structure, which was recommended by the Defense Health Board in 2006 and 2009. Our Association believes optimizing the capabilities of the facilities of the direct care system through timely replacement of facilities, increased funding allocations, and innovative staffing would allow more beneficiaries to be cared for in the MTFs, which DOD asserts is the most cost effective. The Task Force made recommendations to make the DOD MHS more cost-efficient which we support. They conclude the MHS must be appropriately sized, resourced, and stabilized; and make changes in its business and health care practices. We suggest additional funding and flexibility in hiring practices to address MTF provider deployments. Our Association recommends a 1 year transitional active duty ECHO benefit for all eligible family members of servicemembers who retire. We believe that Reserve component families should be given the choice of a stipend to continue their employer provided care during deployment. Behavioral Health Care Our Nation must help returning servicemembers and their families cope with the aftermath of war. DOD, VA, and State agencies must partner in order to address behavioral health issues early in the process and provide transitional mental health programs. Partnering will also capture the National Guard and Reserve member population, who often straddle these agencies' health care systems. Full Spectrum of Care As the war continues, families' need for a full spectrum of behavioral health services--from preventative care and stress reduction techniques, to counseling and medical mental health services--continues to grow. The military offers a variety of psychological health services, both preventative and treatment, across many agencies and programs. However, as servicemembers and families experience numerous lengthy and dangerous deployments, we believe the need for confidential, preventative psychological health services will continue to rise. It will remain high, even after military operations scale down. Our study on the impact of the war on caregivers and children found the mental health of the caregiver directly affects the overall well-being of the children. Therefore, we need to treat the family as a unit rather than as individuals because the caregiver's health determines the quality of life for the children. Access to Behavioral Health Care Our Association is concerned about the overall shortage of mental health providers in TRICARE's direct and purchased care network. DOD's Task Force on Mental Health stated timely access to the proper psychological health provider remains one of the greatest barriers to quality mental health services for servicemembers and their families. The Army Family Action Plan (AFAP) identified mental health issues as their number three issue for 2010. While families are pleased more mental health providers are available in theater to assist their servicemembers, they are disappointed with the resulting limited access to providers at home. Families are reporting increased difficulty in obtaining appointments with social workers, psychologists, and psychiatrists at their MTFs and clinics. The military fuels the shortage by deploying some of its child and adolescent psychology providers to combat zones. Providers remaining at home report they are overwhelmed by treating active duty members and are unable to fit family members into their schedules. This can lead to provider compassion fatigue, creating burnout and exacerbating the provider shortage problem. We have seen an increase in the number of mental health providers joining the purchased care side of the TRICARE network. However, the access standard is 7 days. We hear from military families after accessing the mental health provider lists on the contractors' web sites that the provider is full and no longer taking TRICARE patients. The list must be up-to-date in order to handle real time demands by families. We need to continue to recruit more mental health providers to join the TRICARE network and we need to make sure we specifically add those in specialty behavioral health care areas, such as child and adolescence psychology and psychiatrists. Families must be included in mental health counseling and treatment programs for servicemembers. Family members are a key component to a servicemember's psychological well-being. Families want to be able to access care with a mental health provider who understands or is sympathetic to the issues they face. We recommend an extended outreach program to servicemembers, veterans, and their families of available mental health resources, such as DOD, VA, and State agencies. We appreciate the VA piloting programs that incorporate active duty servicemembers and their families into their newly established OIF/OEF health care clinics. The family is accessed as a ``unit'' and educated about the VA's benefits and services. These initiatives need to be expanded throughout the VA and fully funded. Frequent and lengthy deployments create a sharp need in mental health services by family members and servicemembers as they get ready to deploy and after their return. There is also an increase in demand in the wake of natural disasters, such as hurricanes and fires. We need to maintain a flexible pool of mental health providers who can increase or decrease rapidly in numbers depending on demand on the MHS side. Currently, Military Family Life Consultants and Military OneSource counseling are providing this type of service for military families on the family support side. The recently introduced web-based TRICARE Assistance Program (TRIAP) offers another vehicle for nonmedical counseling, especially for those who live far from counselors. We need to make the Services, along with military family members, more aware of resources along the continuum. We need the flexibility of support in both the MHS and family support arenas, as well as coordination of support between these two entities. We must educate civilian network providers about our culture. Communities along with nongovernment organizations are beginning to fulfill this role, but more needs to be done. Availability of Treatment Do DOD, VA, and State agencies have adequate mental health providers, programs, outreach, and funding? Better yet, where will the veteran's spouse and children go for help? Many will be left alone to care for their loved one's invisible wounds resulting from frequent and long combat deployments. Who will care for them when they are no longer part of the DOD health care system? The Army's Mental Health Advisory Team (MHAT) IV report links reducing family issues to reducing stress on deployed servicemembers. The team found the top noncombat stressors were deployment length and family separation. They noted soldiers serving a repeat deployment reported higher acute stress than those on their first deployment and the level of combat was the major contribution for their psychological health status upon return. Our study on the impact of deployment on caregivers and children found it was the cumulative time deployed that caused increased stress. These reports demonstrate the amount of stress being placed on our troops and their families. Our Association is especially concerned with the scarcity of services available to the families as they leave the military following the end of their activation or enlistment. Due to the servicemember's separation, the families find themselves ineligible for TRICARE, Military OneSource, and are very rarely eligible for health care through the VA. Many will choose to locate in rural areas lacking available mental health providers. We need to address the distance issues families face in finding mental health resources and obtaining appropriate care. Isolated servicemembers, veterans, and their families do not have the benefit of the safety net of services and programs provided by MTFs, VA facilities, Community-Based Outpatient Centers and Vet Centers. We recommend: using alternative treatment methods, such as telemental health; modifying licensing requirements in order to remove geographic practice barriers that prevent psychological health providers from participating in telemental health services outside of a VA facility; educating civilian network psychological health providers about our military culture as the VA incorporates Project Hero; and encouraging DOD and VA to work together to provide a seamless ``warm hand-off'' for families, as well as servicemembers transitioning from active duty to veteran status and funding additional transitional support programs if necessary. National Guard and Reserve Members The National Military Family Association is especially concerned about fewer mental health care services available for the families of returning National Guard and Reserve members. Some are eligible for TRICARE Reserve Select but, as we know, National Guard and Reserve members are often located in rural areas where there may be fewer mental health providers available. Policymakers need to address the distance issues that families face in linking with military mental health resources and obtaining appropriate care. Isolated National Guard and Reserve families do not have the benefit of the safety net of services provided by MTFs and installation family support programs. Families want to be able to access care with a provider who understands or is sympathetic to the issues they face. We recommend the use of alternative treatment methods, such as telemental health; increasing mental health reimbursement rates for rural areas; modifying licensing requirements in order to remove geographic practice barriers that prevent mental health providers from participating in telemental health services; and educating civilian network mental health providers about our military culture. We urge DOD to expand information outreach about the new TRIAP program, which provides access to non-medical counseling via phone and web through the TRICARE managed care support contractors. We hear the National Guard Bureau's Psychological Health Services (PHs) is not working as designed to address members' mental health issues. This program needs to be evaluated to determine its effectiveness. Children Our Association is concerned about the impact deployment and/or the injury of the servicemember is having on our most vulnerable population, children of our military servicemember and veterans. Our study on the impact of the war on caregivers and children found deployments are creating layers of stressors, which families are experiencing at different stages. Teens especially carry a burden of care they are reluctant to share with the non-deployed parent in order to not ``rock the boat.'' They are often encumbered by the feeling of trying to keep the family going, along with anger over changes in their schedules, increased responsibility, and fear for their deployed parent. Children of the National Guard and Reserve members face unique challenges since there are no military installations for them to utilize. They find themselves ``suddenly military'' without resources to support them. School systems are generally unaware of this change in focus within these family units and are ill prepared to lookout for potential problems caused by these deployments or when an injury occurs. Also vulnerable are children who have disabilities that are further complicated by deployment and subsequent injury of the servicemembers. Their families find stress can be overwhelming, but are afraid to reach out for assistance for fear of retribution to the servicemember's career. They often choose not to seek care for themselves or their families. We appreciate the inclusion of a study on the mental health needs of our children in the NDAA for Fiscal Year 201O. The impact of the wounded, ill, and injured on children is often overlooked and underestimated. Military children experience a metaphorical death of the parent they once knew and must make many adjustments as their parent recovers. Many families relocate to be near the treating MTF or the VA Polytrauma Center in order to make the rehabilitation process more successful. As the spouse focuses on the rehabilitation and recovery, older children take on new roles. They may become the caregivers for other siblings, as well as for the wounded parent. Many spouses send their children to stay with neighbors or extended family members, as they tend to their wounded, ill, and injured spouse. Children get shuffled from place to place until they can be reunited with their parents. Once reunited, they must adapt to the parent's new injury and living with the ``new normal.'' We appreciate the inclusion of a study to assess the impact on children of the severely wounded in the NDAA for Fiscal Year 2010. We encourage partnerships between government agencies, DOD, VA, and State agencies and recommend they reach out to those private and nongovernmental organizations who are experts on children and adolescents. They could identify and incorporate best practices in the prevention and treatment of mental health issues affecting our military children. We must remember to focus on preventative care upstream, while still in the active duty phase, in order to have a solid family unit as they head into the veteran phase of their lives. School systems must become more involved in establishing and providing supportive services for our Nation's children. Caregiver Burnout In the eighth year of war, care for the caregivers must become a priority. There are several levels of caregivers. Our Association hears from the senior officer and enlisted spouses who are so often called upon to be the strength for others. We hear from the health care providers, educators, rear detachment staff, chaplains, and counselors who are working long hours to assist servicemembers and their families. They tell us they are overburdened, burnt out, and need time to recharge so they can continue to serve these families. These caregivers must be afforded respite care, given emotional support through their command structure, and be provided effective family programs. Education The DOD, VA, and State agencies must educate their health care and mental health professionals of the effects of mild Traumatic Brain Injury (mTBI) in order to help accurately diagnose and treat the servicemember's condition. They must be able to deal with polytrauma- Post-Traumatic Stress Disorder (PTSD) in combination with multiple physical injuries. We need more education for civilian health care providers on how to identify signs and symptoms of mild TBI and PTSD. The families of servicemembers and veterans must be educated about the effects of TBI, PTSD, and suicide in order to help accurately diagnose and treat the servicemember/veteran's condition. These families are on the ``sharp end of the spear'' and are more likely to pick up on changes attributed to either condition and relay this information to their health care providers. Programs are being developed by each Service. However, they are narrow in focus targeting line leaders and health care providers, but not broad enough to capture our military family members and the communities they live in. As Services roll out suicide prevention programs, we need to include our families, communities, and support personnel. Reintegration Programs Reintegration programs become a key ingredient in the family's success. Our Association believes we need to focus on treating the whole family with programs offering readjustment information; education on identifying mental health, substance abuse, suicide, and traumatic brain injury; and encouraging them to seek assistance when having financial, relationship, legal, and occupational difficulties. We appreciate the inclusion in the NDAA for Fiscal Year 2010 for education programs targeting pain management and substance abuse for our families. Successful return and reunion programs will require attention over the long term, as well as a strong partnership at all levels between the various mental health arms of DOD, VA, and State agencies. DOD and VA need to provide family and individual counseling to address these unique issues. Opportunities for the entire family and for the couple to reconnect and bond must also be provided. Our Association has recognized this need and successfully piloted family retreats in the national parks promoting family reintegration following deployment. We recommend an extended outreach program to servicemembers, veterans, and their families of available psychological health resources, such as DOD, VA, and State agencies. We encourage Congress to request DOD to include families in its Psychological Health Support survey; perform a pre- and post-deployment mental health screening on family members (similar to the PDHA and PDHRA currently being done for servicemembers). We recommend the use of alternative treatment methods, such as telemental health; increasing mental health reimbursement rates for rural areas; modifying licensing requirements in order to remove geographic practice barriers that prevent mental health providers from participating in telemental health services; and educating civilian network mental health providers about our military culture. Caregivers must be afforded respite care; given emotional support through their command structure; and, be provided effective family programs. Wounded Servicemembers Have Wounded Families Our Association asserts that behind every wounded servicemember and veteran is a wounded family. It is our belief the government, especially the DOD and VA, must take a more inclusive view of military and veterans' families. Those who have the responsibility to care for the wounded, ill, and injured servicemember must also consider the needs of the spouse, children, parents of single servicemembers and their siblings, and the caregivers. DOD and VA need to think proactively as a team and one system, rather than separately; and addressing problems and implementing initiatives upstream while the servicemember is still on active duty status. Reintegration programs become a key ingredient in the family's success. For the past 2 years, we have piloted our Operation Purple"'HealingAdventures camp to help wounded servicemembers and their families learn to play again as a family. We hear from the families who participate in this camp, as well as others dealing with the recovery of their wounded servicemembers that, even with Congressional intervention and implementation of the Services' programs, many issues still create difficulties for them well into the recovery period. Families find themselves having to redefine their roles following the injury of the servicemember. They must learn how to parent and become a spouse/lover with an injury. Each member needs to understand the unique aspects the injury brings to the family unit. Parenting from a wheelchair brings a whole new challenge, especially when dealing with teenagers. Parents need opportunities to get together with other parents who are in similar situations and share their experiences and successful coping methods. Our Association believes we need to focus on treating the whole family with DOD and VA programs offering skill based training for coping, intervention, resiliency, and overcoming adversities. Injury interrupts the normal cycle of deployment and the reintegration process. We must provide opportunities for the entire family and for the couple to reconnect and bond, especially during the rehabilitation and recovery phases. Brooke Army Medical Center (BAMC) has recognized a need to support these families by expanding in terms of guesthouses colocated within the hospital grounds and a family reintegration program for their Warrior Transition Unit. The on-base school system is also sensitive to issues surrounding these children. A warm, welcoming family support center located in guest housing serves as a sanctuary for family members. The DOD and VA could benefit from looking at successful programs like BAMCs, which has found a way to embrace the family unit during this difficult time. The Vet Centers are an available resource for veterans' families providing adjustment, vocational, and family and marriage counseling. The VA health care facilities and the community-based outpatient clinics (CBOCs) have a ready supply of mental health providers, yet regulations have restricted their ability to provide mental health care to veterans' families unless they meet strict standards. Unfortunately, this provision hits the veteran's caregiver the hardest, especially if they are the parents. We recommend DOD partner with the VA to allow military families access to mental health services. We also believe Congress should require the VA, through its Vet Centers and health care facilities to develop a holistic approach to care by including families when providing mental health counseling and programs to the wounded, ill, and injured servicemember or veteran. The Defense Health Board has recommended DOD include military families in its mental health studies. We agree. We encourage Congress to direct DOD to include families in its Psychological Health Support survey; perform a pre- and post-deployment mental health screening on family members (similar to the PDHA and PDHRA currently being done for servicemembers). We appreciate the NDAA for Fiscal Year 2010 report on the impact of the war on families and the DOD's Millennium Cohort Study including families. Both will help us gain a better understanding of the long-term effects of war on our military families. Transitioning for the Wounded and Their Families Transitions can be especially problematic for wounded, ill, and injured servicemembers, veterans, and their families. The DOD and the VA health care systems, along with State agency involvement, should alleviate, not heighten these concerns. They should provide for coordination of care, starting when the family is notified that the servicemember has been wounded and ending with the DOD, VA, and State agencies working together, creating a seamless transition, as the wounded servicemember transfers between the two agencies' health care systems and, eventually, from active duty status to veteran status. Transition of health care coverage for our wounded, ill, and injured and their family members is a concern of our Association. These servicemembers and families desperately need a health care bridge as they deal with the after effects of the injury and possible reduction in their family income. We have created two proposals. servicemembers who are medically retired and their families should be treated as active duty for TRICARE fee and eligibility purposes for 3 years following medical retirement. This proposal will allow the family not to pay premiums and be eligible for greater access to care at certain MTFs and for certain benefits offered to active duty families for 3 years. Following that period, they would pay TRICARE premiums at the rate for retirees. servicemembers medically discharged from service and their family members should be allowed to continue for 1 year as active duty for TRICARE benefits and then move into the Continued Health Care Benefit Program (CHCBP) if needed. Caregivers Caregivers need to be recognized for the important role they play in the care of their loved one. Without them, the quality of life of the wounded servicemembers and veterans, such as physical, psycho- social, and mental health, would be significantly compromised. They are viewed as an invaluable resource to DOD and VA health care providers because they tend to the needs of the servicemembers and the veterans on a regular basis. Their daily involvement saves DOD, VA, and State agency health care dollars in the long run. Their long-term psychological care needs must be addressed. Caregivers of the severely wounded, ill, and injured servicemembers who are now veterans have a long road ahead of them. In order to perform their job well, they will require access to mental health services. The VA has made a strong effort in supporting veterans' caregivers. The DOD should follow suit and expand their definition. We appreciate the inclusion in NDAA for Fiscal Year 2010 of compensation for servicemembers with assistance in everyday living. However, our Association believes this provision does not go far enough. In order to perform their job well, caregivers must be taught the skills to be successful. Compensation of caregivers should be a priority for DOD and the Secretary of Homeland Security. Caregivers must be recognized for their sacrifices and the important role they play in maintaining the quality of life of our wounded servicemembers and veterans. Financial compensation must be established for caregivers of injured servicemembers and veterans that begin while the hospitalized servicemember is still on active duty and transitions seamlessly to a VA benefit. Current law creates a potential gap in compensation during transition from active duty to veteran status. Our Association proposes that compensation should reflect the types of medical and non-medical care services provided by the caregiver. The caregiver should be paid directly for their services. Non-medical care should be factored into a monthly stipend tied to severity of injury--cognitive and physical injury and illness-and care provided. In order to perform their job well, caregivers must be taught the skills to be successful. This will require the caregiver to be trained through a standardized, certified program. Compensation for medical care should be an hourly wage linked to training and certification of the caregiver paid for by the VA and transferrable to employment in the civilian sector if the care is no longer needed by the servicemember or veteran. Consideration should also be given to creating innovative ways to meet the health care and insurance needs of the caregiver, with an option to include their family. Current proposed legislation does not include a ``family'' option. Additional services caregivers need are: respite care, such as 24 hour in-home care, mental health services, and travel and lodging expenses when accompanying servicemembers and veterans for medical care. There must be a provision for transition benefits for the caregiver if the caregiver's services are no longer needed, chooses to no longer participate, or is asked by the veteran to no longer provide services. The caregiver should still be able to maintain health care coverage for 1 year. Compensation would discontinue following the end of services/ care provided by the caregiver. Our Association looks forward to discussing details of implementing such a plan with members of this subcommittee. The VA currently has eight caregiver assistance pilot programs to expand and improve health care education and provide needed training and resources for caregivers who assist disabled and aging veterans in their homes. DOD should evaluate these pilot programs to determine whether to adopt them for caregivers of servicemembers still on active duty. Caregivers' responsibilities start while the servicemember is still on active duty. Relocation Allowance and Housing Active duty servicemembers and their spouses qualify through the DOD for military orders to move their household goods when they leave the military service. Medically retired servicemembers are given a final PCS move. Medically retired married servicemembers are allowed to move their family; however, medically retired single servicemembers only qualify for moving their own personal goods. Our Association suggests that legislation be passed to allow medically retired single servicemembers the opportunity to have their caregiver's household goods moved as a part of the medical retired single servicemember's PCS move. This should be allowed for the qualified caregiver of the wounded servicemember and the caregiver's family (if warranted), such as a sibling who is married with children or mom and dad. This would allow for the entire caregiver's family to move, not just the caregiver. The reason for the move is to allow the medically retired single servicemember the opportunity to relocate with their caregiver to an area offering the best medical care, rather than the current option that only allows for the medically retired single servicemember to move their belongings to where the caregiver currently resides. The current option may not be ideal because the area in which the caregiver lives may not be able to provide all the health care services required for treating and caring for the medically retired servicemember. Instead of trying to create the services in the area, a better solution may be to allow the medically retired servicemember, their caregiver, and the caregiver's family to relocate to an area where services already exist. The decision on where to relocate for optimum care should be made with the Federal Recovery Coordinator (case manager), the servicemember's medical physician, the servicemember, and the caregiver. All aspects of care for the medically retired servicemember and their caregiver shall be considered. These include a holistic examination of the medically retired servicemember, the caregiver, and the caregiver's family for, but not limited to, their needs and opportunities for health care, employment, transportation, and education. The priority for the relocation should be where the best quality of services is readily available for the medically retired servicemember and higher caregiver. The consideration for a temporary partial shipment of caregiver's household goods may also be allowed, if deemed necessary by the case management team. Medical Power of Attorney We have heard from caregivers of the difficult decisions they have to make over their loved one's bedside following an injury. We support the Traumatic Brain Injury Task Force recommendation for DOD to require each deploying servicemember to execute a Medical Power of Attorney and a Living Will. Provide medically-retired wounded, ill, and injured servicemembers and their families a bridge of extended active duty TRICARE e1igibility for 3 years, comparable to the benefit for surviving spouses. Servicemembers medically discharged from Service and their family members should be allowed to continue for 1 year as active duty for TRICARE and then start the Continued Health Care Benefit Program (CHCBP) if needed. Caregivers of the wounded, ill, and injured must be provided with opportunities for training, compensation and other support programs because of the important role they play in the successful rehabilitation and care of the servicemember. The National Military Family Association is requesting the ability for medically retired single servicemembers to be allowed the opportunity to have their caregiver's household goods moved as a part of the medically retired single servicemember's PCS move. DOD should require each deploying servicemember to execute a Medical Power of Attorney and a Living Will. Senior Oversiqht Committee Our Association is appreciative of the provision in the NDAA for Fiscal Year 2010 establishing a DOD Task Force on the Care, Management, and Transition of Recovery, Wounded, Ill, and Injured Members of the Armed Forces to access policies and programs. We understand the Office of Wounded Warrior Care and Transition Policy (WWCTP), a permanent structure for the Senior Oversight Committee, is in the process of being established and manned. This Task Force will be independent and in a position to monitor DOD and VA's partnership initiatives for our wounded, ill, and injured servicemembers and their families, while this organization is being created. The National Military Family Association encourages all committees with jurisdiction over military personnel and veterans matters to talk on these important issues. We can no longer continue to create policies in a vacuum and be content on focusing on each agency separately because this population moves too frequently between the two agencies, especially our wounded, ill, and injured servicemembers and their families. We would like to thank you again for the opportunity to provide information on the health care needs for the servicemembers, veterans, and their families. Military families support the Nation's military missions. The least their country can do is make sure servicemembers, veterans, and their families have consistent access to high quality mental health care in the DOD, VA, and within network civilian health care systems. Wounded servicemembers and veterans have wounded families. The caregiver must be supported by providing access to quality health care and mental health services, and assistance in navigating the health care systems. The system should provide coordination of care with DOD, VA, and State agencies working together to create a seamless transition. We ask Congress to assist in meeting that responsibility. iii. family transitions Survivors In the past year, the Services have increased their outreach to surviving families. In particular, the Army's Survivor Outreach Services (SOS) program makes an effort to remind these families that they are not forgotten. DOD and the VA must work together to ensure surviving spouses and their children can receive the mental health services they need, through all of VA's venues. New legislative language governing the TRICARE behavioral health benefit may also be needed to allow TRICARE coverage of bereavement or grief counseling. The goal is the right care at the right time for optimum treatment effect. DOD and the VA need to better coordinate their mental health services for survivors and their children. We thank Congress for extending the TRICARE active duty family dental insurance benefit to surviving children. The current TRICARE Management Activity policy directive allows for the surviving children of Reserve component servicemembers who had not previously been enrolled to be eligible for the expanded benefit. We ask that eligibility be expanded to those active duty family members who had not been enrolled in the active duty TRICARE dental insurance program prior to the servicemember's death. Our Association recommends that eligibility be expanded to active duty survivors who had not been enrolled in the TRICARE Dental Program prior to the servicemember's death. We also recommend that grief counseling be more readily available to survivors. Our Association still believes the benefit change that will provide the most significant long-term advantage to the financial security of all surviving families would be to end the Dependency and Indemnity Compensation (DIC) offset to the Survivor Benefit Plan (SBP). Ending this offset would correct an inequity that has existed for many years. Each payment serves a different purpose. The DIC is a special indemnity (compensation or insurance) payment paid by the VA to the survivor when the servicemember's service causes his or her death. The SBP annuity, paid by DOD, reflects the longevity of the service of the military member. It is ordinarily calculated at 55 percent of retired pay. Military retirees who elect SBP pay a portion of their retired pay to ensure that their family has a guaranteed income should the retiree die. If that retiree dies due to a service-connected disability, their survivor becomes eligible for DIC. Surviving active duty spouses can make several choices, dependent upon their circumstances and the ages of their children. Because SBP is offset by the DIC payment, the spouse may choose to waive this benefit and select the ``child only'' option. In this scenario, the spouse would receive the DIC payment and the children would receive the full SBP amount until each child turns 18 (23 if in college), as well as the individual child DIC until each child turns 18 (23 if in college). Once the children have left the house, this choice currently leaves the spouse with an annual income of $13,848, a significant drop in income from what the family had been earning while the servicemember was alive and on active duty. The percentage of loss is even greater for survivors whose servicemembers served longer. Those who give their lives for their country deserve more fair compensation for their surviving spouses. We believe several other adjustments could be made to the SBP. Allowing payment of the SBP benefits into a Special Needs Trust in cases of disabled beneficiaries will preserve their eligibility for income based support programs. The government should be able to switch SBP payments to children if a surviving spouse is convicted of complicity in the member's death. We believe there needs to be DIC equity with other Federal survivor benefits. Currently, DIC is set at $1,154 monthly (43 percent of the Disabled Retirees Compensation). Survivors of Federal workers have their annuity set at 55 percent of their Disabled Retirees Compensation. Military survivors should receive 55 percent of VA Disability Compensation. We are pleased that the requirement for a report to assess the adequacy of DIC payments was included in the NDAA for Fiscal Year 2009. We are awaiting the overdue report. We support raising DIC payments to 55 percent of VA Disability Compensation. When changes are made, ensure that DIC eligibles under the old system receive an equivalent increase. We ask the DIC offset to SBP be eliminated to recognize the length of commitment and service of the career servicemember and spouse. We also request that SBP benefits may be paid to a Special Needs Trust in cases of disabled family members. We ask that DIC be increased to 55 percent of VA Disability Compensation. Education of Military Children The National Military Family Association would like to thank Congress for including a ``Sense of Congress'' in regards to the Interstate Compact on Educational Opportunity for Military Children in last year's National Defense Authorization Act. The Compact has now been adopted in 27 States and covers over 80 percent of our military children. The Interstate Commission, the governing body of the Compact, is working to educate military families, educators, and States on the appropriate usage of the Compact. The adoption of the Compact is a tremendous victory for military families who place a high value on education. However, military families define the quality of that education differently than most States or districts that look only at issues within their boundaries. For military families, it is not enough for children to be doing well in their current schools, they must also be prepared for the next location. The same is true for children in under performing school systems. Families are concerned that they will lag behind students in the next location. With many States cutting educational programs due to the economic downturn, this concern is growing. A prime example is Hawaii, which opted to furlough teachers on Fridays, cutting 17 days from the school calendar. With elementary schools already on a shortened schedule for Wednesday, these students are only getting 3\1/2\ days of instruction a week. In addition, the recent cuts have made it increasingly hard for schools to meet IEP requirements for special needs students. Furthermore, Hawaii is requiring parents to pay more for busing, and the cost of school meals have gone up 76 percent. Our Association believes that Hawaii's cuts are just the ``tip of the iceberg'' as we are beginning to see other States make tough choices as well. Although Hawaii's educational system has long been a concern for military families, many of whom opt for expensive private education, Hawaii is not the only place where parents have concerns. The National Military Family Association believes that our military children deserve to have a good quality education wherever they may live. However, our Association recognizes that how we provide that quality education may differ in each location. We urge Congress to encourage solutions for the current educational situation in Hawaii and recognize that servicemembers' lack of confidence that their children may receive a quality education in an assignment location can affect the readiness of the force in that location. While our Association remains appreciative for the additional funding Congress provides to civilian school districts educating military children, Impact Aid continues to be underfunded. We urge Congress to provide appropriate and timely funding of Impact Aid through the Department of Education. In addition, we urge Congress to increase DOD Impact Aid funding for schools educating large numbers of military children to $60 million for fiscal year 2011. We also ask Congress to include an additional $5 million in funding for special needs children. The DOD supplement to Impact Aid is critically important to ensure school districts provide quality education for our military children. As increased numbers of military families move into new communities due to Global Rebasing and BRAC, their housing needs are being met further and further away from the installation. Thus, military children may be attending school in districts whose familiarity with the military lifestyle may be limited. Educating large numbers of military children will put an added burden on schools already hard-pressed to meet the needs of their current populations. We urge Congress to authorize an increase in this level of funding until BRAC and Global Rebasing moves are completed. Once again, we thank Congress for passing the Higher Education Opportunity Act of 2008, which contained many new provisions affecting military families. Chief among them was a provision to expand in-State tuition eligibility for military servicemembers and their families, and provide continuity of in-State rates if the servicemember receives Permanent Change of Station (PCS) orders out of State. However, family members have to be currently enrolled in order to be eligible for continuity of in-State tuition. Our Association is concerned that this would preclude a senior in high school from receiving in-State tuition rates if his or her family PCS's prior to matriculation. We urge Congress to amend this provision. We ask Congress to increase the DOD supplement to Impact Aid to $60 million to help districts better meet the additional demands caused by large numbers of military children, deployment-related issues, and the effects of military programs and policies. We also ask Congress provide $5 million for school districts with Special Needs children. Support for Military Voters The National Military Family Association would like to thank Congress for passing the Military and Overseas Voter Empowerment (MOVE) Act which was included in the National Defense Authorization Act for Fiscal Year 2010. As a member of the Alliance for Military and Overseas Voting Rights (AMOVR), our Association worked hard to pass this important legislation which resolves many of the absentee voting issues for our military servicemembers and their families. The passage of the MOVE ACT was a tremendous victory for our military community whose very service helps protect the right to vote. Spouse Education and Employment Our Association wishes to thank Congress for recent enhancement to spouse education opportunities. In-State tuition, Post-September 11 G.I. bill transferability to spouses and children, and other initiatives have provided spouses with more educational opportunities than previous years. Since 2004, our Association has been fortunate to sponsor our Joanne Holbrook Patton Military Spouse Scholarship Program, with the generosity of donors who wish to help military families. Our 2010 application period closed on January 31, 2010. We saw a 33 percent increase in applications from previous years with more than 8,000 military spouses applying to our program. Military spouses remain committed to their education and need assistance from Congress to fulfill their educational pursuits. We have heard from many military spouses who are pleased with the expansion of the Military Spouse Career Advancement Accounts, now called MyCAA. Unfortunately the abrupt halt of the program on February 16, 2010 has created a financial burden and undue stress for military spouses. Spouses who have established accounts and those who planned to set-up accounts in the future have been barred for accessing funds. The MyCAA system only permitted users to request financial assistance 30 days prior to a class start date. Many, who had planned on the funding, will not receive it, if they didn't have a start date entered into the system by February 16. We ask Congress to push DOD to restart this critical program and find a way to assist spouses who have been abruptly cut-off from receiving funding. We also ask Congress to fully fund the MyCAA program, which is providing essential educational and career support to military spouses. The MyCAA program is not available to all military spouses. We ask Congress to work with the appropriate Service Secretary to expand this funding to the spouses of Coast Guard, the Commissioned Corps of NOAA and U.S. Public Health Service. Our Association thanks you for establishing a pilot program to secure internships for military spouses with Federal agencies. Military spouse are anxious for the program to launch and look forward to enhanced career opportunities through the pilot program. We hope Congress will monitor the implementation of the program to ensure spouses are able to access the program and eligible spouses are able to find Federal employment after successful completion of the internship program. To further spouse employment opportunities, we recommend an expansion to the Workforce Opportunity Tax Credit for employers who hire spouses of active duty and Reserve component servicemembers, and to provide tax credits to military spouses to offset the expense in obtaining career licenses and certifications when servicemembers are relocated to a new duty station within a different State. The Services are experiencing a shortage of medical, mental health and child care providers. Many of our spouses are trained in these professions or would like to seek training in these professions. We think the Services have an opportunity to create portable career opportunities for spouses seeking in-demand professions. In addition to the MyCAA funding, what can the Services do to encourage spouse employment and solve provider shortages? We would like to see the Services reach out to military spouses and offer affordable, flexible training programs in high demand professions to help alleviate provider shortages. Our Association urges Congress to recognize the value of military spouses by fully funding the MyCAA program, and by creating training programs and employment opportunities for military spouses in high demand professions to help fill our provider shortages. Military Families--Our Nation's Families We thank you for your support of our servicemembers and their families and we urge you to remember their service as you work to resolve the many issues facing our country. Military families are our Nation's families. They serve with pride, honor, and quiet dedication. Since the beginning of the war, government agencies, concerned citizens and private organizations have stepped in to help. This increased support has made a difference for many servicemembers and families, yet, some of these efforts overlap while others are ineffective. In our testimony, we believe we have identified improvements and additions that can be made to already successful programs while introducing policy or legislative changes that address the ever-changing needs of our military families. Working together, we can improve the quality of life for all these families. Senator Webb. Thank you very much. Mr. Cline. STATEMENT OF MASTER SERGEANT MICHAEL CLINE, USA (RET.), EXECUTIVE DIRECTOR, ENLISTED ASSOCIATION OF THE NATIONAL GUARD OF THE UNITED STATES Mr. Cline. Mr. Chairman, we thank you, on behalf of the Enlisted Association of the National Guard of the United States and the Military Coalition, for holding these hearings. Mr. Chairman, over 142,000 National Guard and Reserve servicemembers are serving on Active Duty. Since September 11, 2001, more than 752,000 of our citizens, soldiers, airmen, sailors, marines, Guard and Reserve servicemembers, have been called up, including well over 200,000 who have served multiple tours. With your permission, Mr. Chairman, I'd like to cut out the fluff and just get to the point of the needs of our Guard and Reserve people and their families. The next step in modernizing the Reserve retirement system is to provide equal retirement age reduction credit for all activated service rendered since September 11, 2001. The current law that credits only active service since January 28, 2008, disenfranchises and devalues the service of hundreds of thousands of Guard and Reserve members who have served combat tours, many with multiple combat tours, between 2001 and 2008. The statute also must be amended to eliminate the inequity inherent in the current fiscal year retirement calculation, which only credits 90 days of active service for early retirement purposes if it occurs within the same fiscal year. The current rule significantly penalizes members who deploy in July or August, versus those deploying earlier in the fiscal year. It is potently unfair, as the current law requires giving 3 months retirement-age credit for 90-day tours served from January through March, but only half credit for 120-day tours served from August through November, because the latter covers 60 days in each of the 2 fiscal years. Mr. Chairman, we fully understand the budgetary problems facing our country, but we're also aware that more than $700 billion was given to banks, financial institutions, automakers; $3 billion for Cash for Clunkers was spent, in 3 weeks, that did nothing more than reduce the inventory of autodealers; the American people, many of which are the very veterans who have been passed by, are looking at a trillion-dollar healthcare bill. If CBO figures are accurate, it will cost $2.1 billion over 10 years, or just about $21 million a year, to provide retroactivity for early retirement for those who have protected our freedom. It's the right thing to do to honor the unselfish heroes and their families who have given up so much to protect us and our way of life. For the near term, we place particular priority on authorizing early retirement credit for all qualifying post- September 11 Active Duty service performed by Guard and Reserve members, and eliminating the fiscal-year-specific accumulator that bars equal credit for members deploying for equal periods during different months of the year. Ultimately, we believe we must move forward to provide a reduced-age entitlement for retired pay and health coverage for all Reserve component members that is an age-service formula or outright eligibility, if otherwise qualified, at age 55. Further, we urge repeal of the annual cap of 130 days of inactive duty points that may be credited towards a Reserve retirement. Yellow Ribbon. We urge the subcommittee to hold oversight hearings and to direct additional improvements in coordination and collaboration and consistency of Yellow Ribbon services. DOD must ensure that State-level best practices, such as those in Maryland, Minnesota, and New Hampshire, are applied for all operational Reserve Force members and their families, and that Federal Reserve veterans have equal access to services and support available to National Guard veterans. Community groups, employers, and Service organizations' efforts need to be encouraged and better coordinated to supplement unit, component, Service, and VA outreach and service. We are grateful to you, in Congress, for inclusion of a critical ``earn as you serve'' principle, in the post-September 11 GI Bill, which allows operational reservists to accumulate additional benefits for each aggregate call-up of 90 days or more on Active Duty. However, Active Duty members of the National Guard serving under Title 32 orders were not included in the new program, despite their critical role in homeland defense, counterdrug, border control, and other missions. We urge this subcommittee to work with the Veterans Affairs Committee to include Title 32 AGRs in the post-September 11 statute. The Military Coalition's longstanding recommendation of coordinating and integrating various educational benefit programs has been made more challenging with the post-September 11 GI Bill. For example, benefits for initially joining the Guard and Reserve, as authorized under Chapter 1606 of title 10, continue to decline in proportion to the Active Duty Montgomery GI Bill, Chapter 30, title 38, in the new post- September 11 GI Bill. Reserve MGIB benefit levels have slipped to 24 percent of the Active Duty MGIB benefit, compared to 47 to 50 percent during the first 15 years of the program. Restoration of the original ratio would raise basic Reserve rates from the current $333 a month to $643 to $684 a month for full-time duty. TMC maintains that restoring the ratio is not only a matter of equity, but essential to long-time success of the Guard and Reserve recruiting program. Continuing healthcare insurance options for the Guard and Reserve. The Coalition is very grateful for the passage of TRICARE for gray-area retirees; however, we're very disappointed that it's going to take DOD 18 months to implement the new program. As we have sent letters to you, we ask that you intervene with DOD to speed this program up. It's a benefit---- Senator Graham. Absolutely. Mr. Cline.--that is needed. Senator Graham. Absolutely. Mr. Cline. When we look at the TRICARE Reserve Select Program, a disturbing fact is that only 6 to 7 percent of our eligible beneficiaries are taking advantage of the TRICARE Reserve Select Program. DOD and the Services and the Reserve components must do more to advertise the TRS program. The Coalition also believes that Congress is missing an opportunity to reduce long-term healthcare costs and increase beneficiary satisfaction by authorizing eligible members the option of electing a DOD subsidy of their civilian insurance during periods of activation. Current law already authorizes payment of up to 24 months of FEHBP premiums for activated members who are civilian employees of the Defense Department. Over the long term, the Guard and Reserve activations can be expected at a reduced pace. This option would offer considerable savings opportunities, relative to DOD permanent, year-round TRICARE. We recommend to the subcommittee--require a GAO review of DOD's methodology for determining TRS costs for premium adjustment purposes to assess whether it includes any costs of maintaining readiness or ``costs of doing business'' for DOD that don't contribute to beneficiary benefit values, and thus excluded from cost premium calculations. Mr. Chairman, I look forward to any questions that you or Senator Graham may have. Senator Webb. Thank you very much. Ms. Holleman. STATEMENT OF DEIRDRE PARKE HOLLEMAN, EXECUTIVE DIRECTOR, THE RETIRED ENLISTED ASSOCIATION Ms. Holleman. Good morning. Mr. Chairman---- Senator Webb. Good afternoon, actually. [Laughter.] Ms. Holleman. Good afternoon. Senator Graham. My stomach says it's afternoon. Ms. Holleman. Life goes quickly, right? It is an honor to speak to you today about the Military Coalition's legislative goals concerning military retirees and military survivors. I know you will not be surprised that TMC is urging you to, once and for all, end the unfair offset of military retired pay by VA disability pay. We are grateful for the great strides that have been made in ending this practice, which we all now acknowledge is terribly unfair. But, there are two groups of valiant retirees who are not getting the relief that you ordered for the others. One group is those longevity retirees with VA disabilities of 10 to 40 percent. The other group is those servicemembers who were forced to medically retire with less than 20 years, due to an injury or medical condition that is not deemed combat- related under the Combat Related Special Compensation program. Even in these tough economic times, simple fairness should call for the end of the offset for all. But, even more dramatically, the President, for the second year, has proposed, in his budget, to end the offset for medical retirees. To have the administration propose a change that, in the past, was the goal of only you, in Congress, is a historic opportunity. We strongly urge you to join the President in this laudable goal and end the offset for medical retirees now. It is also clearly time to finally end the Survivor Benefit Plan (SBP)/Dependency and Indemnity Compensation (DIC) offset. SBP is an employee benefit, while DIC is an indemnity program for survivors of those who died because of their service in the military. The present practice of taking a dollar from a survivor's SBP payment for every dollar paid by the VA's DIC program is unfair and illogical. Legislation to end this offset is pending in both Houses of Congress. Now that Senator Bill Nelson's S. 535 has 55 cosponsors, and Representative Ortiz's H.R. 811 has 319 cosponsors, it is clear that a majority of the Members of Congress agree that this offset should end. It should end now, while our servicemembers are fighting in two wars and at risk throughout the world. While these two issues are of great and continuing concern to all of the members of the Coalition, there are several additional matters that we believe are critically important. We urge you to support Senator Blanche Lincoln's soon-to-be- introduced legislation that will be a companion bill to Representative Walter Jones's H.R. 613. Their Military Retirees Survivor Comfort Acts would authorize the retention of the full month's retired pay of the last month of a retiree's life by his or her surviving spouse. Presently, DFAS removed the month's retired pay from the retiree account, calculates how much is owed by how many days the retiree lived in the month that he or she died in, and then returns the prorated share to the survivor. This method can cause confusion and even bounce checks during a tremendously tense and sorrowful time. Senator Lincoln's bill would stop this, and treat military retiree survivors the same way as disabled veteran survivors are treated concerning the disability payments. The Uniformed Services Former Spouse Protection Act desperately needs improvement. While some organizations want dramatic fundamental changes, and other groups adamantly do not, it truly is time that we had a hearing on this rather explosive issue. There are already several improvements that DOD has supported, for years, that could be made during this session. These changes include basing the amount awarded in a divorce on the grade and years of service at the time of the divorce, rather than at the time of retirement, and prohibiting the inclusion of imputed income in a divorce property award, which often forces Active Duty members into retirement. A full list of our suggestions can be found in our written testimony. Finally, we urge that DFAS be allowed to make SBP payments into a Special Needs Trust. Presently, they may only pay SBP to a person. This means that a permanently disabled survivor cannot make use of this State-created legal device that allows a disabled person to protect their eligibility for SSI, Medicaid, and State means-tested programs. With the help of supporters like you, Chairman Webb, we hope that this change will be made. It would only affect a few people, but for those survivors, this small change would be an enormous help. Thank you for your time, and may I have the honor to introduce Colonel Strobridge. Senator Webb. Thank you very much for your testimony. Colonel Strobridge. STATEMENT OF STEVEN P. STROBRIDGE, USAF (RET.), DIRECTOR OF GOVERNMENT RELATIONS, MILITARY OFFICERS ASSOCIATION OF AMERICA Colonel Strobridge. Mr. Chairman, Senator Graham, my testimony is going to focus on healthcare and Wounded Warrior issues. The primary issue for all beneficiaries is access. The primary threat to access continues to be the perpetual threat of major cuts in Medicare and TRICARE payments to doctors. We fully realize that's beyond the authority of this subcommittee, but it is the number-one healthcare issue among our beneficiaries. On national healthcare reform, the principal issues for our members in the coalition are ensuring protection of military- unique health benefits, including TRICARE For Life, and protection of uniformed services beneficiaries from taxation on the value of those benefits. On TRICARE fees, we're grateful that the administration has not proposed any increases for fiscal year 2011, however, without congressional action, the TRICARE standard outpatient deductible will be increased administratively by more than $110 per day as of October 1. Last October, the subcommittee acted, during conference action on the National Defense Authorization Act, to stop that change. We urge you to put a provision in law, capping the outpatient deductible at the current $535 per day, which the coalition believes is plenty high enough and should not be increased for the foreseeable future. We also ask you to put a ``Sense of Congress'' provision in the National Defense Authorization Act, as the Senate approved last year, highlighting the importance of military health benefits in offsetting the adverse conditions of service and recognizing that military people pay large upfront premiums through decades of service and sacrifice, over and above their cash fees. On Wounded Warriors, we're concerned that the change of the administration has left many senior positions vacant for more than a year, and that close joint oversight previously provided by top leaders has been delegated and diffused back along agency-centric lines. The coalition is particularly concerned that the diminution of the Senior Oversight Committee, or SOC, has weakened day-to-day oversight of, and priority on, joint agency operations and management. We urge revitalization of the SOC, or a similar joint agency staffed with senior officials with full-time primary oversight responsibility for seamless transition initiatives. Similarly, the transition from Active Duty to retiree care or to VA coverage still catches many wounded warriors and their families unaware. They need the same protections that we provide when someone dies on Active Duty: 3 years of continued Active Duty-level coverage to ensure a smooth transition to the next phase of their life. We appreciate the subcommittee's efforts last year to provide caregiver benefits on a par with what's provided by the VA. The Veterans Affairs Committees are now finalizing significant upgrades for caregivers, and we hope you'll act to reestablish comparability of DOD programs once that happens. Regarding psychological health, PTSD, and TBI, we know the subcommittee and DOD and the Services are pursuing a wide range of initiatives to enhance access to care and counseling, and to remove the stigma from seeking care. Unfortunately, some facets of the military environment continue to undermine those efforts. In that regard, many who suffer after-effects of combat continue being barred from reenlistment, or separated for other reasons, because service disciplinary and administrative systems are much less flexible and resilient than we're asking military people to be. We hope the subcommittee will continue its efforts to protect returnees from these lower profile, but still devastating, secondary effects of war. Mr. Chairman, that concludes my remarks. [The prepared statement of The Military Coalition follows:] Prepared Statement by The Military Coalition Mr. Chairman and distinguished members of the subcommittee. On behalf of The Military Coalition (TMC), a consortium of nationally prominent uniformed services and veterans' organizations, we are grateful to the committee for this opportunity to express our views concerning issues affecting the uniformed services community. This testimony provides the collective views of the following military and veterans' organizations, which represent approximately 5.5 million current and former members of the 7 uniformed services, plus their families and survivors. Air Force Association Air Force Sergeants Association Air Force Women Officers Associated American Logistics Association AMVETS (American Veterans) Army Aviation Association of America Association of Military Surgeons of the United States Association of the United States Army Association of the United States Navy Chief Warrant Officer and Warrant Officer Association, U.S. Coast Guard Commissioned Officers Association of the U.S. Public Health Service, Inc. Enlisted Association of the National Guard of the United States Fleet Reserve Association Gold Star Wives of America, Inc. Iraq and Afghanistan Veterans of America Jewish War Veterans of the United States of America Marine Corps League Marine Corps Reserve Association Military Chaplains Association of the United States of America Military Officers Association of America Military Order of the Purple Heart National Association for Uniformed Services National Guard Association of the United States National Military Family Association National Order of Battlefield Commissions Naval Enlisted Reserve Association Noncommissioned Officers Association Reserve Enlisted Association Reserve Officers Association Society of Medical Consultants to the Armed Forces The Retired Enlisted Association United States Army Warrant Officers Association United States Coast Guard Chief Petty Officers Association Veterans of Foreign Wars of the United States The Military Coalition, Inc., does not receive any grants or contracts from the Federal Government. executive summary Wounded Warrior Care Institutional Oversight The Coalition believes there's no substitute for a permanent Department of Defense (DOD)-Department of Veterans Affairs (VA) Senior Oversight Committee or other Joint Seamless Transition Office, staffed with senior officials working together full-time and charged with innovation and daily oversight of initiatives to institutionalize and sustain a culture of cross-department seamless transition. Continuity of Health Care The Coalition recommends: Authorizing active-duty level TRICARE benefits, independent of availability of VA care, for 3 years after medical retirement to help ease transition from DOD to VA; Authorizing blanket waiver authority for VA physicians treating active duty patients with multiple medical trauma conditions for all aspects of the member's treatment, including referral outside the VA/TRICARE system if needed; and Either exempting severely wounded, ill, or injured members who must be medically retired from paying Medicare Part B premiums until age 65 or authorizing a special DOD allowance to help offset the cost of such premiums until age 65. Mental/Behavioral Health Issues TMC recommends: Increased efforts to promote the destigmatization on all levels in service/unit administrative and strict accountability programs with outlined and enforced consequences to non-compliancy to ensure unit actions are consistent with leadership pronouncements; Continuing priority efforts to deliver information and assistance on-line, confidential options for counseling and uniformed access and availability to telemedicine services; Substantial increases in outreach efforts to provide such services and resources to Guard and Reserve members, rural populations and all families who don't live near military or VA facilities; Priority efforts to educate private sector providers on the unique needs of military and veteran patients and family members, and deliver needed information via on-line services, including contact points for discussion/consultation with military and VA providers; Consistent implementation of pre- and post-deployment evaluations and follow-up programs, particularly for Guard and Reserve members who may be leaving active duty; Establishing common DOD and VA protocols for diagnosis, treatment, and rehabilitation for Traumatic Brain Injury (TBI) conditions, as well as an electronic system to share and exchange a patient's medical history and other key medical information; Expanding Traumatic Servicemember Group Life Insurance (TSGLI) criteria to include moderate and severe TBI, without onerous ``functions of daily living'' standards that aren't required for other (and often much more functional) TSGLI- eligibles; Increasing availability and outreach on substance abuse counseling options; Pursuing aggressive medication reconciliation and management programs to protect against inadvertent over medication and adverse reactions and or accidental or intentional overdose; Requiring TBI and psychological health assessments for members who have been deployed to a combat zone as part of the disciplinary process prior to a decision concerning nonmedical separation; and Implementing recommendations from the 2008 RAND report (``Invisible Wounds of War Psychological and Cognitive Injuries, Their Consequences, and Services to Assist Recovery''). DOD-VA Disability Evaluation Systems (DES) TMC recommends: Barring ``fit, but unsuitable'' separations when a member's medical condition prevents continued service; Authorizing automatic enrollment in the VA health care system for any medically separated or medically retired servicemember (Chapter 61); Ending distinctions between disabilities incurred in combat vice non-combat; Monitoring the effectiveness of recent DOD compensation for catastrophically injured or ill servicemembers requiring assistance with activities of daily living authorized in the 2010 NDAA; Ensuring benefits afforded members wounded, ill, or disabled in the line of duty are applied equally for all uniformed services; Ensuring that the VA is the single authority for rating service-connected disabilities for military disability retirements and separations; Preserving the statutory 30 percent disability threshold for medical retirement and lifetime TRICARE coverage for members injured while on active duty; Continued monitoring of Service/DOD Medical-Physical Evaluation Boards, DOD DES Pilot Project, and the Physical Disability Board of Review, to assess needed DES changes; Eliminating member premiums for TSGLI; Barring ``pre-existing condition'' determinations for any member who deploys to a combat zone; Ensuring that any adjustment to the disability retirement system does not result in a member receiving less disability retired pay than he or she would receive under the current system; and Ensuring that members electing accelerated disability retirement/separation are fully counseled on any possible negative changes in compensation, health care and other benefits, with consideration to allowing a limited time to reverse a regrettable decision. Caregiver/Family Support Services The Coalition recommends: Upgraded compensation and assistance for caregivers of severely disabled active duty members, consistent with pending legislative action to improve compensation/assistance for caregivers of veterans; and Authorizing up to 1 year of continued residence in on- base housing facilities for medically retired, severely wounded servicemembers and their families. Active Forces and Their Families Military End Strength The Coalition urges the subcommittee to: Continue end strength growth as needed to sustain the war and other operational commitments while materially increasing dwell time for servicemembers and families; Sustain adequate recruiting and retention resources to enable the uniformed services to achieve required optimum- quality personnel strength; and Seek a 2011 defense budget of at least 5 percent of Gross Domestic Product that funds both people and weapons needs. Military Pay Comparability The Coalition believes a basic pay raise of at least 1.9 percent--.5 percent above the Employment Cost Index (ECI) standard--is the bare minimum the Nation should do to sustain its military pay comparability commitment for 2011. Family Readiness and Support The Coalition recommends that the subcommittee: Press DOD to assess the effectiveness of programs and support mechanisms to assist military families with deployment readiness, responsiveness, and reintegration; Ensure that effective programs--including the Family Readiness Council--are fully funded and their costs are included in the annual budget process; Provide authorization and funding to accelerate increases in availability of child care to meet both Active and Reserve component requirements; Insist DOD implement flexible spending accounts to let active duty and Selected Reserve families pay out-of-pocket dependent and health care expenses with pre-tax dollars; Monitor and continue to expand family access to mental health counseling; Promote expansion of military spouse opportunities to further educational and career goals; Ensure additional and timely funding of Impact Aid plus continued DOD supplemental funding for highly-impacted military schools; and Mitigate the impact of Service transformation, overseas rebasing initiatives, housing privatization and base realignment on school facility needs and educational programs affecting military children. Permanent Change of Station (PCS) Allowances The Coalition urges the subcommittee to continue its efforts to upgrade permanent change-of-station allowances to better reflect expenses imposed on servicemembers, with priority on: Shipping a second vehicle on overseas accompanied assignments; Authorizing at least some reimbursement for house- hunting trip expenses; and Increasing PCS mileage rates to more accurately reflect members' actual transportation costs. Education Enhancements The Coalition urges the subcommittee to support amending the statute to authorize all otherwise-qualifying members of the ``uniformed services'' to transfer Post-September 11 GI Bill benefits to family members. Morale, Welfare, and Recreation (MWR) and Quality of Life (QoL) Programs TMC urges the subcommittee to: Protect funding for critical family support and QoL programs and services to meet the emerging needs of beneficiaries and the timelines of the Services' transformation plans; Oppose any initiative to withhold or reduce appropriated support for family support and QoL programs to include: recreation facilities, child care, exchanges and commissaries, housing, health care, education, family centers, and other traditional and innovative support services; Prevent any attempts to consolidate or civilianize military service exchange and commissary programs; and Sustain funding for support services and infrastructure at both closing and gaining installations throughout the entire transformation process, including exchange, commissary, and TRICARE programs. National Guard and Reserve Operational Reserve Sustainment and Reserve Retirement For the near term, the Military Coalition places particular priority on authorizing early retirement credit for all qualifying post-September 11 active duty service performed by Guard/Reserve servicemembers and eliminating the fiscal-year-specific accumulator that bars equal credit for members deploying for equal periods during different months of the year. Ultimately, TMC believes we must move forward to provide a reduced age entitlement for retired pay and health coverage for all Reserve component members--that is, an age/service formula or outright eligibility, if otherwise qualified, at age 55. Further, TMC urges repeal of the annual cap of 130 days of inactive duty training points that may be credited towards a reserve retirement. Guard and Reserve Yellow Ribbon Readjustment TMC urges the subcommittee to hold oversight hearings and to direct additional improvements in coordination, collaboration, and consistency of Yellow Ribbon services. DOD must ensure that State-level best practices--such as those in Maryland, Minnesota, and New Hampshire--are applied for all Operational Reserve Force members and their families, and that Federal Reserve veterans have equal access to services and support available to National Guard veterans. Community groups, employers and service organization efforts need to be encouraged and better coordinated to supplement unit, component, Service and VA outreach and services. Guard/Reserve GI Bill TMC urges the subcommittee to work with the Veterans Affairs Committee to include Title 32 AGRs in the Post-September 11 statute. Based on the DOD/Services' 10-year record of indifference to the basic Selected Reserve GI Bill under Chapter 1606, 10 U.S.C., TMC recommends either: restoring Reserve benefits to 47-50 percent of active duty benefits or transferring the chapter 1606 statute from title 10 to title 38 so that it can be coordinated with other educational benefits programs in a 21st century GI Bill architecture. TMC also supports assured academic reinstatement, including guaranteed re-enrollment, for returning operational reservists. Special and Incentive Pays The Coalition urges the subcommittee to ensure equitable treatment of Guard and Reserve vs. active duty members for the full range of special and incentive pays. Retiree Issues Concurrent Receipt The Coalition's continuing goal is to fully eliminate the deduction of VA disability compensation from earned military retired pay for all disabled retirees. In pursuit of that goal, the Coalition's immediate priorities include: Phasing out the disability offset for all Chapter 61 (medical) retirees; and Correcting the Combat-Related Special Compensation (CRSC) formula to ensure the intended compensation is delivered. Proposed Military Retirement Changes TMC urges the subcommittee to: Reject any initiatives to ``civilianize'' the military system without adequate consideration of the unique and extraordinary demands and sacrifices inherent in a military vs. a civilian career; and Eliminate the Career Status Bonus for servicemembers as it significantly devalues their retirement over time. In the short term, the Services should be required to better educate eligible members on the severe long-term financial penalty inherent in accepting the REDUX option. Disability Severance Pay The Coalition urges the subcommittee to amend the eligibility rules for disability severance pay to include all combat--or operations-- related injuries, using same definition as CRSC. For the longer term, the Coalition believes the offset should be ended for all members separated for service-caused disabilities. Former Spouse Issues The Coalition requests a hearing to address Uniformed Services Former Spouse Protection Act (USFSPA) inequities. In addition, we recommend legislation to include all of the following: Base the award amount to the former spouse on the grade and years of service of the member at time of divorce (and not retirement); Prohibit the award of imputed income, which effectively forces active duty members into retirement; Extend 20/20/20 benefits to 20/20/15 former spouses; Permit the designation of multiple Survivor Benefit Plan (SBP) beneficiaries with the presumption that SBP benefits must be proportionate to the allocation of retired pay; Eliminate the ``10-year Rule'' for the direct payment of retired pay allocations by the Defense Finance and Accounting Service (DFAS); Permit SBP premiums to be withheld from the former spouse's share of retired pay if directed by court order; Permit a former spouse to waive SBP coverage; Repeal the 1-year deemed election requirement for SBP; and Assist DOD and Services with greater outreach and expanded awareness to members and former spouses of their rights, responsibilities, and benefits upon divorce. Survivor Issues SBP-DIC Offset The Coalition urges repeal of the SBP-DIC offset. TMC further recommends: Authorizing payment of SBP annuities for disabled survivors into a Special Needs Trust; Allowing SBP eligibility to switch to children if a surviving spouse is convicted of complicity in the member's death; and Reinstating SBP for survivors who previously transferred payments to their children at such time as the youngest child attains majority, or upon termination of a second or subsequent marriage. Final Retired Paycheck TMC urges the subcommittee to authorize survivors of retired members to retain the final month's retired pay for the month in which the retiree dies. Health Care Issues Defense Health Program Cost Requirements The Coalition urges the subcommittee to take all possible steps to ensure continued full funding for Defense Health Program needs. National Health Reform TMC urges that any national health reform legislation must: Protect the unique TRICARE, TRICARE For Life (TFL), and VA health care benefits from unintended consequences such as reduced access to care; Bar any form of taxation of TRICARE, TFL, or VA health care benefits, including those provided in nongovernmental venues; and Preserve military and VA beneficiaries' choices. TRICARE Fees Establish a ``Sense of Congress'' which recognizes that military retiree health benefits are an essential offset to arduous service conditions which have been paid for upfront. Military vs. Civilian Cost-Sharing Measurement The Coalition believes that military beneficiaries from whom America has demanded decades of extraordinary service and sacrifice have earned coverage that is the best America has to offer. Large Retiree Fee Increases Can Only Hurt Retention Reducing military retirement benefits would be particularly ill- advised when an overstressed force already is at increasing retention risk despite the current downturn of the economy and current recruiting successes. Pharmacy The Coalition urges the subcommittee to ensure continued availability of a broad range of medications, including the most- prescribed medications, in the TRICARE pharmacy system, and to ensure that the first focus on cost containment should be on initiatives that encourage beneficiaries to take needed medications and reduce program costs without shifting costs to beneficiaries. Alternative Options to Make TRICARE More Cost-Efficient The Coalition has offered a long list of alternative cost-saving possibilities, including: Positive incentives to encourage beneficiaries to seek care in the most appropriate and cost effective venue; Encouraging improved collaboration between the direct and purchased care systems and implementing best business practices and effective quality clinical models; Focusing the military health system, health care providers, and beneficiaries on quality measured outcomes; Improving MHS financial controls and avoiding overseas fraud by establishing TRICARE networks in areas fraught with fraud; Establishing TRICARE networks in areas of high TRICARE Standard utilization to take full advantage of network discounts; Promoting retention of other health insurance by making TRICARE a true second-payer to other insurance (far cheaper to pay another insurance's co-pay than have the beneficiary migrate to TRICARE); Encouraging DOD to effectively utilize their data from their electronic health record to better monitor beneficiary utilization patterns to design programs which truly match beneficiaries needs; Sizing and staffing military treatment facilities to reduce reliance on network providers and develop effective staffing models which support enrolled capacities; Reducing long-term TRICARE Reserve Select (TRS) costs by allowing servicemembers the option of a government subsidy of civilian employer premiums during periods of mobilization; Doing far more to promote use of mail-order pharmacy system and formulary medications via mailings to users of maintenance medications, highlighting the convenience and individual expected cost savings; and Encouraging retirees to use lowest-cost-venue military pharmacies at no charge, rather than discouraging such use by limiting formularies, curtailing courier initiatives, etc. TMC Healthcare Cost Principles The Coalition strongly recommends that Congress establish statutory findings, a sense of Congress on the purpose and principles of military health care benefits earned by a career of uniformed service that states: Active duty members and families should be charged no fees except retail pharmacy co-payments, except to the extent they make the choice to participate in TRICARE Standard or use out-of-network providers under TRICARE Prime; The TRICARE Standard inpatient copay should not be increased further for the foreseeable future. At $535 per day, it already far exceeds inpatient copays for virtually any private sector health plan; There should be no enrollment fee for TRICARE Standard or TFL, since neither offers assured access to TRICARE- participating providers. An enrollment fee implies enrollees will receive additional services, as Prime enrollees are guaranteed access to participating providers in return for their fee. Congress already has required TFL beneficiaries to pay substantial Medicare Part B fees to gain TFL coverage; All retired servicemembers earned equal health care coverage by virtue of their service; and DOD should make all efforts to provide the most efficient use of allocated resources and cut waste prior to proposing additional or increased fees on eligible beneficiaries. TRICARE Prime The Military Coalition urges the subcommittee to require reports from DOD and from the managed care support contractors, on actions being taken to improve Prime patient satisfaction provide assured appointments within Prime access standards, reduce delays in preauthorization and referral appointments, and provide quality information to assist beneficiaries in making informed decisions. TRICARE Standard TRICARE Standard Provider Participation The Coalition urges the subcommittee to insist on immediate delivery of an adequacy threshold for provider participation, below which additional action is required to improve such participation. The Coalition also recommends requiring a specific report on participation adequacy in the localities where Prime Service Areas will be discontinued under the new TRICARE contracts. TRICARE Reimbursement Rates The Coalition places primary importance on securing a permanent fix to the flawed statutory formula for setting Medicare and TRICARE payments to doctors. To the extent a Medicare rate freeze continues, we urge the subcommittee to encourage DOD to use its reimbursement rate adjustment authority as needed to sustain provider acceptance. The Coalition urges the subcommittee to require a Comptroller General report on the relative propensity of physicians to participate in Medicare vs. TRICARE, and the likely effect on such relative participation of a further freeze in Medicare/TRICARE physician payments along with the effect of an absence of bonus payments. Dental Care Active Duty Dependent Dental Plan The Coalition recommends increasing the DOD subsidy for the Active Duty Dependent Dental Plan to 72 percent and increasing the cap on orthodontia payments to $2,000. Guard and Reserve Healthcare Continuum of Health Care Insurance Options for The Guard and Reserve The Coalition recommends the subcommittee: Require a GAO review of DOD's methodology for determining TRS costs for premium adjustment purposes to assess whether it includes any costs of maintaining readiness or ``costs of doing business'' for the Defense Department that don't contribute to beneficiary benefit value and thus should be excluded from cost/premium calculations; Authorize development of a cost-effective option to have DOD subsidize premiums for continuation of a Reserve employer's private family health insurance during periods of deployment as an alternative to ongoing TRS coverage; Allow eligibility in Continued Health Care Benefits Program (CHCBP) for Selected reservists who are voluntarily separating and subject to disenrollment from TRS; Authorize members of the IRR who qualify for a Reserve retirement at age 60 to participate in TRICARE Retired Reserve (TRR) as an incentive for continued service (and higher liability for recall to active duty); Monitor implementation of the new TRR authority to ensure timely action and that premiums do not exceed 100 percent of the TRS premium; and Allow FEHB plan beneficiaries who are selected reservists the option of participating in TRS. Guard and Reserve Mental Health TMC believes that Guard and Reserve members and their families should have access to evidence-based treatment for PTSD, TBI, depression, and other combat-related stress conditions. Further, Post Deployment Health examinations should be offered at the member's home station, with the member retained on active duty orders until completion of the exam. Guard and Reserve Health Information The Coalition believes there should be an effort to improve the electronic capture of non-military health information into the servicemember's medical record. TRICARE For Life Coalition priorities for TFL-eligibles include: Securing a permanent fix to the flawed formula for setting Medicare/TRICARE payments to providers; Resisting any effort to establish an enrollment fee for TFL, given that many beneficiaries already experience difficulties finding providers who will accept Medicare patients; and Including TFL beneficiaries in DOD programs to incentivize compliance with preventive care and healthy lifestyles. Restoration of Survivors' TRICARE Coverage The Coalition recommends restoration of TRICARE benefits to previously eligible survivors whose second or subsequent marriage ends in death or divorce. Base Realignment and Closure (BRAC) and Rebasing The Coalition recommends requiring an annual DOD report on the adequacy of health resources, funding, services, quality and access to care for beneficiaries affected by BRAC/rebasing. overview Mr. Chairman, The Military Coalition extends our thanks to you and the entire subcommittee for your steadfast support of our Active Duty, Guard, Reserve, retired members, and veterans of the uniformed services and their families and survivors. Your efforts have had a dramatic, positive impact in the lives of the entire uniformed services community. Last year was an extremely tumultuous, difficult year. As our servicemembers continued to fight terror on two separate fronts, our Nation slowly started to recover from an economic crisis, the worst seen since the great depression. Congress and the administration had difficult choices to make as they attempted to ``jump start'' the economy while faced with a record budget deficit. We are grateful that both the Defense Department and Congress put top priority on personnel issues last year. As we enter the ninth year of extremely stressful wartime conditions, the Coalition believes that this prioritization should continue for fiscal year 2011. Despite ever-increasing pressures on them at home and abroad, men and women in uniform are still answering the call--thanks in no small measure to the subcommittee's strong and consistent support--but only at the cost of ever-greater sacrifices. Troubling indicators such as dramatic increases in suicide and divorce rates may reflect the effects of the long-term consequences we know are coming as we require the same people to return to combat again and again and yet again. In these times of growing political and economic pressures, the Coalition relies on the continued good judgment of the Armed Services Committees to ensure the Nation allocates the required resources to sustain a strong national defense, and in particular, to properly meet the pressing needs of the less than 1 percent of the American population--servicemembers and their families--who protect the freedoms of the remaining 99 percent. In this testimony, The Coalition offers our collective recommendations on what needs to be done to meet these essential needs. wounded warrior care Much has been done in the last 3 years to address the grievous and negligent conditions that were brought to light since the tragic incident at Walter Reed Army Medical Center, where wounded and disabled troops and their families had fallen through the cracks as they transitioned from the military to VA health care and benefits systems. Subsequently, the subcommittee has worked hard to address these difficulties, and significant progress has been made on that score. But the extent and complexity of the challenges remain daunting, requiring continuing coordination of effort between the military services; the Department of Defense (DOD); the Department of Veterans Affairs (VA); several Centers of Excellence; a multitude of civilian contractors and nongovernmental agencies; and the two Armed Services, two Veterans Affairs, and two Appropriations Committees. The Coalition looks forward to working with the subcommittee this year in its ongoing efforts to identify and ease significant remaining problems. DOD-VA Seamless Transition Institutional Oversight While many legislative and fiscal changes have improved the care and support of our wounded and disabled members, the Coalition is concerned that the recent dissolution of the Senior Oversight Committee (SOC) poses significant risks for effective day-to-day leadership and coordination of DOD and VA seamless transition efforts. Last year, the Coalition expressed concern that the change of administration would pose a significant challenge to the two departments' continuity of joint effort, as senior leaders whose personal involvement had put interdepartmental efforts back on track left their positions and were replaced by new appointees who had no experience with past problems and no personal stake in ongoing initiatives. Unfortunately, those concerns are being realized, as many appointive positions in both departments have gone unfilled for a year, responsibilities have been reorganized, and oversight duties previously assumed by senior officials have been divested to lower-level administrators who are less regularly engaged with their cross- department counterparts. The result has been more uncertainty and degradation of cooperation, communication, and collaboration between the two departments over the last year. The Coalition is concerned that, having exerted major efforts to address the most egregious problems, there is a significant potential to fall victim to a ``business as usual'' operating mode, even though the difficult journey to true seamless transition between the departments has just begun. While many well-meaning and hard working military and civilians are doing their best to keep pushing progress forward, transitions in leadership and mission changes clearly are challenging and require formal and more standardized structures, policies, and programs that won't be as subject to disruption by one participant's unilateral organizational changes. It sends a message about departmental priorities when these responsibilities are pushed to lower-level officials. The Coalition believes there's no substitute for a permanent DOD-VA Senior Oversight Committee or other Joint Seamless Transition Office, staffed with senior officials working together full-time and charged with innovation and daily oversight of initiatives to institutionalize and sustain a culture of cross-department seamless transition. Continuity of Health Care Transitioning between DOD and VA health care systems remains challenging, confusing, and overwhelming to those trying to navigate and use these systems. Systemic, cultural, and bureaucratic barriers often prevent the servicemember or veteran from receiving the necessary continuity of care they need to heal and have productive and a high level of quality of life they so desperately need and desire. While servicemembers and their families tell us that DOD has done much to address trauma care, acute rehabilitation, and basic short-term rehabilitation, they are less satisfied with their transition from the military health care systems to longer-term care and support in military and veterans medical systems. We hear regularly from members who experienced significant disruptions of care upon separation or medical retirement from service. One is in the area of cognitive therapy, which is available to retired members under TRICARE only if it is not available through the VA. Unfortunately, members are caught in the middle because of differences between DOD and VA authorities on what constitutes cognitive therapy and the degree to which effective, evidenced-based therapy is available. The NDAA for Fiscal Year 2010 requires a report on such issues, but action is needed to protect the wounded and disabled. The subcommittee has acted previously to authorize 3 years of active-duty-level TRICARE coverage for the family members of those who die on active duty. The Coalition believes we owe equal transition care continuity to those whose service-caused illnesses or injuries force their retirement from service. Another significant issue faced by many members forced from active duty by severe service-caused disabilities is that the severity of their disability qualifies them for Medicare. In such cases, TRICARE is second-payer to Medicare. Under laws that were designed for elderly retirees but apply equally to all Medicare-eligible military beneficiaries, these younger disabled warriors must pay Medicare Part B premiums ($110 per month in 2010) to retain any coverage under TRICARE. The Coalition believes it's wrong that members whose service caused them to become severely wounded, ill or injured should have to pay more for their care than they would if not injured by service, and believes they should either be exempt from paying the Part B premium until age 65 or DOD should help them offset the cost of such payments. Finally, doctors at VA polytrauma centers indicate that one of their biggest problems is the requirement to get multiple authorizations from DOD to provide a variety of specialty care for active duty members with multiple medical problems. When an active duty member is referred to VA facility for care, DOD should grant an automatic waiver of preauthorization/referral requirements to allow the VA providers to deliver needed care without bureaucratic delays. The Coalition recommends: Authorizing active-duty-level TRICARE benefits, independent of availability of VA care, for 3 years after medical retirement to help ease transition from DOD to VA; Authorizing blanket waiver authority for VA physicians treating active duty patients with multiple medical trauma conditions for all aspects of the member's treatment, including referral outside the VA/TRICARE system if needed; and Either exempting severely wounded, ill, or injured members who must be medically retired from paying Medicare Part B premiums until age 65 or authorizing a special DOD allowance to help offset the cost of such premiums until age 65. Mental/Behavioral Health Issues The military community is experiencing a crisis of demand for mental/behavior health care, both for servicemembers and their spouses and children. The subcommittee included several initiatives in the NDAA for Fiscal Year 2010 aimed at increasing the number of military providers in this field and improving access for members and families. While the Coalition is very grateful for these initiatives, we respectfully request that the subcommittee continue, and more importantly expand, its efforts in addressing the growing epidemic of difficulties regarding post-traumatic stress disorder (PTSD), traumatic brain injuries (TBI), depression, and other mental/behavioral health issues disproportionally plaguing our military and veteran communities. Today our servicemembers, their spouses and children are facing immense stresses and uncertainties associated with repeated deployments and protracted separations. Our country is at war on multiple fronts and we must take all the necessary actions to ensure the mental well being of all those involved, at home and those on the frontlines. One of the most prevalent obstacles in successfully identifying and treating mental/behavioral health conditions is the stigma which the military's warrior culture continues to associate with such conditions and the threat or fear that admission of experiencing them may affect one's peer standing, security clearance, promotions, or ability to remain in service. Despite the continued efforts by senior leaders to reduce the stigmas associated with mental health issues, the unit-level reality is far different. The reality is that many officers, NCOs, and peers continue to view these conditions as signs of weakness or inability to coup. Furthermore, many servicemembers are deterred from seeking care by cases of friends who have been disciplined or separated as a result of using the available support systems the military has implemented. As a direct result, the suicide and divorce rates, as well as childhood depression diagnosis' continue to climb within the military and veteran communities. DOD openly acknowledges that stigmas remain within the ranks, despite their efforts of significantly ramping up efforts and outreach programs composed of anti-stigma campaigns, upper- level training programs, and easier access to mental health providers. The Coalition stresses our grave concerns to the subcommittee regarding the current state of DOD's inability to effectively handle the increasing demands/need for mental health services and outreach to all demographics of today's military forces. While our forces and their families display extraordinary strengths, resiliency and undaunted tenacity in the face of all stresses associated with service; it is vital that we never forget that these same stressors of service to this country are in all likelihood, leading to untreated mental and physical health conditions. The Coalition believes that due to the numerous unrealistic standards and high expectations of resiliency and coping abilities we have somehow come to expect from our servicemembers and their families, that the current military administrative and disciplinary systems being used are not effectively meeting the mental health needs, whether proactive or reactive, of the same people to whom we expect so much. DOD and VA have an obligation to provide the best care available to any servicemember who sustains an injury as a result of their service. Unfortunately, many of today's servicemembers have mental wounds that are undiagnosed and thus untreated. This lack of care or treatment for PTSD, TBI, or any one of the numerous stressors associated with service, is leading to an increased number of early separations or even more alarming, being barred from reenlisting due to a charge of misconduct, such as a driving under the influence (DUI) or other such incident, by a servicemember who has never previously displayed any such behaviors. These uncharacteristic behaviors are only one of the symptoms associated with untreated mental/behavioral health conditions. Ironically, some civil authorities often are more tolerant and offer more assistance in dealing with such cases involving combat veterans than military authorities. As a result of such circumstances, thousands, if not countless, of affected servicemembers, veterans and their family members have gone unidentified, untreated, or deterred from being given the opportunity to seek the care they deserve. Moreover, many have difficulty accessing and utilizing programs that are in place. In addition to expanding the availability of providers, the Coalition believes that two key elements will be in expanding the opportunities for confidential access to counseling or treatments and achieving more consistency between leadership campaigns for destigmatization/individual resiliency and the practical demonstration of greater resiliency and rehabilitation initiatives at the unit/ administrative level. TMC recommends: Increased efforts to promote the de-stigmatization on all levels in service/unit administrative and strict accountability programs with outlined and enforced consequences to non-compliancy to ensure unit actions are consistent with leadership pronouncements; Continuing priority efforts to deliver information and assistance on-line, confidential options for counseling and uniformed access and availability to telemedicine services; Substantial increases in outreach efforts to provide such services and resources to Guard and Reserve members, rural populations and all families who don't live near military or VA facilities; Priority efforts to educate private sector providers on the unique needs of military and veteran patients and family members, and deliver needed information via on-line services, including contact points for discussion/consultation with military and VA providers; Consistent implementation of pre-and post-deployment evaluations and follow-up programs, particularly for Guard and Reserve members who may be leaving active duty; Establishing common DOD and VA protocols for diagnosis, treatment, and rehabilitation for TBI conditions, as well as an electronic system to share and exchange a patient's medical history and other key medical information; Expanding Traumatic Servicemember Group Life Insurance (TSGLI) criteria to include moderate and severe TBI, without onerous ``functions of daily living'' standards that aren't required for other (and often much more functional) TSGLI- eligibles; Increasing availability and outreach on substance abuse counseling options; Pursuing aggressive medication reconciliation and management programs to protect against inadvertent over medication and adverse reactions and/or accidental or intentional overdose; Requiring TBI and psychological health assessments for members who have been deployed to a combat zone as part of the disciplinary process prior to a decision concerning non-medical separation; and Implementing recommendations from the 2008 RAND report (``Invisible Wounds of War, Psychological and Cognitive Injuries, Their Consequences, and Services to Assist Recovery''). DOD-VA Disability Evaluation Systems (DES) Several recommendations made by various commissions, task forces and committees were addressed in the National Defense Authorization Acts for Fiscal Year 2008, 2009, and 2010; however, more needs to be done. One of the most emotional issues that emerged from the Walter Reed scandal was the finding that Services were ``low-balling'' disabled servicemembers' disability ratings, with the result that many significantly disabled members were being separated and turned over to the VA rather than being medically retired (which requires a 30 percent or higher disability rating). Encouraging rhetoric was heard from leadership in both the DOD and VA that this would be addressed by having DOD accept the (usually higher) disability ratings awarded by the VA. Congress has taken positive steps to correct previous ``low-ball'' ratings and streamline the DES. Congress created the Physical Disability Board of Review (PDBR) to give previously separated servicemembers an opportunity to appeal their ``low-balled'' disability rating. They also authorized a jointly executed DOD-VA DES pilot in the 2008 NDAA, and feedback from members and families who participated in the pilot program is that it has simplified the process and provided a more standardized disability rating outcome. TMC was further encouraged that wounded, ill, and injured members would benefit from the 19 Dec 07 Under Secretary of Defense (Personnel and Readiness) Directive Type Memorandum (DTM) which added ``deployability'' as a consideration in the DES decision process-- permitting medical separation/retirement based on a medical condition that renders a member nondeployable. Unfortunately, several cases have surfaced indicating the Services have failed to incorporate the DTM in their DES process. In this regard, the services continue to issue findings that a member is ``fit, but unsuitable'' for service. Under this system, a member found ``fit'' by the PEB, is deemed by the service to be ``unsuitable'' for continued service--and administratively separated-- because the member's medical condition prevents them from being able to deploy or maintain their current occupational skill. The Coalition believes strongly that medical conditions which preclude servicemembers from continuing to serve should be deemed ``unfitting''--not ``unsuitable.'' In addition, we remain concerned about language used by some indicating a wish to remove DOD from the DES process (i.e., DOD determines fitness and VA determines disability). This simplified process could result in neglect of DOD's employer responsibilities, such as TRICARE eligibility for disabled members and their families. The Coalition believes strongly that members determined by parent service to be 30 percent or more disabled should continue to be eligible for a military disability retirement with all attendant benefits, including lifetime TRICARE eligibility for the member and his/her family. We do not support efforts to disconnect health care eligibility from disability retired pay eligibility. The Coalition also agrees with the opinion expressed by Secretary Gates that a member forced from service for wartime injuries should not be separated, but should be awarded a high enough rating to be retired for disability. TMC recommends: Barring ``fit, but unsuitable'' separations when a member's medical condition prevents continued service; Authorizing automatic enrollment in the VA health care system for any medically separated or medically retired servicemember (Chapter 61); Ending distinctions between disabilities incurred in combat vice non-combat; Monitoring the effectiveness of recent DOD compensation for catastrophically injured or ill servicemembers requiring assistance with activities of daily living authorized in the 2010 NDAA; Ensuring benefits afforded members wounded, ill, or disabled in the line of duty are applied equally for all uniformed services; Ensuring that the VA is the single authority for rating service-connected disabilities for military disability retirements and separations; Preserving the statutory 30 percent disability threshold for medical retirement and lifetime TRICARE coverage for members injured while on active duty; Continued monitoring of Service/DOD Medical-Physical Evaluation Boards, DOD DES Pilot Project, and the Physical Disability Board of Review, to assess needed DES changes; Eliminating member premiums for Traumatic Servicemember Group Life Insurance (TSGLI); Barring ``pre-existing condition'' determinations for any member who deploys to a combat zone; Ensuring that any adjustment to the disability retirement system does not result in a member receiving less disability retired pay than he or she would receive under the current system; and Ensuring that members electing accelerated disability retirement/separation are fully counseled on any possible negative changes in compensation, health care and other benefits, with consideration to allowing a limited time to reverse a regrettable decision. Caregiver/Family Support Services The sad reality is that, for the most severely injured servicemembers, family members or other loved ones are often required to become full-time caregivers. Many have lost their jobs, homes, and savings in order to meet caregiver needs of a servicemember who has become incapacitated due to service-caused wounds, injuries or illness. The Coalition believes the government has an obligation to provide reasonable compensation and training for such caregivers, who ever dreamed that their own well-being, careers, and futures would be devastated by military-caused injuries to their servicemembers. Last year, the subcommittee authorized a special payment to an active duty servicemember to allow compensation of a family member or professional caregiver. The authorized payment was in the same amount authorized by the VA for veterans' aid-and-attendance needs, reflecting the subcommittee's thinking that caregiver compensation should be seamless when the member transitions from active duty to VA care, as long as the caregiver requirements remain the same. The Coalition supported this initiative, but recognizes that both chambers have since approved legislation to authorize more significant VA assistance and compensation for caregivers. Once the House and Senate versions of the VA caregiver legislation have been reconciled in conference, the Coalition hopes the subcommittee will propose similar upgrades for caregivers of members while on active duty, consistent with the ``seamless transition'' philosophy adopted last year. In a similar vein, many wounded or otherwise-disabled members experience significant difficulty transitioning to medical retirement status. To assist in this process, consideration should be given to authorizing medically retired members and their families to remain in on-base housing for up to 1 year after retirement, in the same way that families are allowed to do so when a member dies on active duty. The Coalition recommends: Upgraded compensation and assistance for caregivers of severely disabled active duty members, consistent with pending legislative action to improve compensation/assistance for caregivers of veterans; and Authorizing up to 1 year of continued residence in on- base housing facilities for medically retired, severely wounded servicemembers and their families. active forces and their families In our overview, the Coalition expressed our collective concern over the stressors our servicemembers and their families are experiencing due to the long, repeated deployments and unrelenting operations tempo. In order to sustain a sufficient, highly trained and highly capable Active Force, the continuing overriding requirement is to find additional ways to ease the terrible burden of stress on servicemembers and their families. Military End Strength Increased end strength is the only effective way to reduce stress on forces and families as long as deployment requirements not only continue, but actually increase. The creators of the All-Volunteer Force never envisioned that the force would be deployed into combat 1 year out of 3--let alone every other year, as has been the case with many ground units. Regrettably, the scenario faced by today's forces is not unlike the World War II ``Catch-22'' situation described by Joseph Heller, in which aircrews braving horrendous enemy flak had their wartime mission requirements increased again and again, until they perceived that the terrible sacrifices being demanded of them would never end. Unfortunately, many in government and among the public seem to have become desensitized to the truly terrible sacrifices that the current mismatch between missions and force levels has already imposed on those in uniform. They acknowledge the problem, but most assume that servicemembers and families will simply continue to accept these--or even greater--levels of sacrifice indefinitely. Many point to the achievement of service recruiting and retention goals as indicators that all is well. Such perceptions grossly underestimate the current stresses on the force and the risk that poses for readiness and national security. The Coalition believes any complacency about retention is sadly misplaced, and that the status of the current force should be viewed in the context of a rubber band that has been stretched to its limit. The fact that it has not yet broken is of little comfort. Well-respected studies have shown that 20 to 30 percent of combat returnees have experienced PTSD, TBI, or depression, and that the likelihood of a servicemember returning as a changed person rises with each subsequent deployment. Other studies have shown that rising cumulative family separations are having significant negative effects on servicemembers' children. These are not mere academic exercises. They are well-known facts of life to those who are alone in actually experiencing them. A far truer, and truly tragic, indicator of these extremely troubling circumstances has been the significant rise in servicemembers' suicide and divorce rates. So the Coalition is very grateful for the subcommittee's support for end strength increases for all Services in the National Defense Authorization Act for Fiscal Year 2010, and for fending off the efforts of those who proposed cutting force levels to fund hardware needs. But we must not understate the reality that the increases approved to date will not significantly improve dwell time for military families anytime in the near future, given increasing operational requirements in Afghanistan. New requirements for massive humanitarian aid in Haiti and elsewhere only exacerbate the already grievous situation. The Coalition is relieved that the administration is requesting an increase to the overall defense budget by $100 billion over the next 5 years--we just hope it's enough. The Coalition urges the subcommittee to: Continue end strength growth as needed to sustain the war and other operational commitments while materially increasing dwell time for servicemembers and families; Sustain adequate recruiting and retention resources to enable the uniformed services to achieve required optimum- quality personnel strength; and Seek a 2011 defense budget of at least 5 percent of Gross Domestic Product that funds both people and weapons needs. Military Pay Raise The Coalition thanks the subcommittee for its sustained commitment to restoring full military pay comparability--a fundamental underpinning of the All-Volunteer Force. To that end, we are grateful for the committee's leadership in approving a 3.4 percent military pay raise for 2010--vs. the 2.9 percent proposed in the defense budget submission. Throughout the 1980s and 1990s, military pay raises consistently were capped below private sector pay growth, causing a ``pay comparability gap'' that reached 13.5 percent in 1998-1999, and contributed significantly to serious retention problems. Every year since then, the subcommittee has acted to pare the gap by approving military raises that have been at least .5 percent above private sector pay growth. Now that significant progress has been made and the ``erosion of pay and benefits'' retention-related problems have abated, some have renewed calls to cut back on military raises, create a new comparability standard, or substitute more bonuses for pay raises in the interests of ``efficiency.'' The Defense Department has proposed a new comparability standard under which each pay and longevity cell would represent the 70th percentile of compensation for similarly-educated civilians. A recent Congressional Budget Office report asserted that, considering adjustments in housing allowances, military people actually are paid 10 percent more than their civilian counterparts in terms of Regular Military Compensation (RMC), composed of basic pay, food and housing allowances, and the tax advantage that accrues because the allowances are tax-free. The Coalition believes such assertions are fundamentally flawed. First, the RMC concept was developed in the 1960s, when all servicemembers received the same allowances, regardless of location, and the allowances were arbitrary figures that weren't actually based on anything. In the interim, Congress has transformed the allowances into reimbursements for actual food costs and median locality-based housing costs. If one were to use the RMC comparability methodology in this scenario, basic pay--the largest element of military pay and the one that drives retired pay--would become ``flex'' compensation element. With tax rates and allowances figures set independently, a year in which average housing allowances rose (e.g., based on growth in high- cost areas) and taxes increased could actually yield a requirement to cut basic pay (and future retirement value) to restore ``comparability.'' Second, the Coalition is not convinced that the civilian comparison cohort or percentile comparison point proposed by DOD are the proper ones, given that the military: Recruits from the top half of the civilian aptitude population; Finds that only about 25 percent of America's youth qualify for entry; Requires career-long education and training advancement; Enforces a competitive ``up-or-out'' promotion system; and Imposes severe limits on personal freedoms (e.g., not being able to quit when you want; risking a felony conviction for refusing an order). A fundamental requirement for any pay comparability standard is that it should be transparent and understandable. The Coalition has asked for, but has never been provided by DOD, any data on what civilian comparison cohort was selected and why, and what rationale was used to establish a specific percentile comparison point. Third, the Coalition believes it is essential to recognize that compensation is not simply the amount one is paid. It is pay divided by what's required of the recipient to earn that pay. If we increase pay 25 percent but require 100 percent more sacrifice to earn it, that's not a pay raise. In that context, today's conditions of service are far more arduous than anything envisioned 40 years ago by the creators of the All- Volunteer Force, who believed a protracted war would require reinstitution of the draft. Finally, private sector pay growth between 2008 and 2009 would set the military pay raise for 2011 at 1.4 percent--the smallest military pay raise in almost 50 years, even while servicemembers are being asked to endure the most arduous service conditions in more than 60 years. Further, the Coalition observes that there is a lag of more than a year between the time the civilian pay growth is measured and the time it is applied to the military. The Coalition agrees with the approach the subcommittee has taken consistently -that the best comparability measure is a comparison of the military basic pay raise percentage with the percentage growth in the ECI. The government uses the ECI for every other measure of private pay growth, and it's very transparent to government leaders and servicemembers alike. As of 2010, cumulative military basic pay increases lag cumulative private sector pay growth by 2.4 percent since 1982--the last time it was generally agreed that a state of comparability existed. Given the historic low raise produced by the ECI for 2011, the historic sacrifices being asked of servicemembers in this time of protracted war, and the dubious rationale for alternative pay raise proposals, any assertion that military people are overpaid is grossly off the mark. The Coalition believes a basic pay raise of at least 1.9 percent--.5 percent above the ECI standard--is the bare minimum the Nation should do to sustain its military pay comparability commitment for 2011. Family Readiness and Support A fully funded, robust family readiness program continues to be crucial to overall readiness of our military, especially with the demands of frequent and extended deployments. Resource issues continue to plague basic installation support programs. At a time when families are dealing with increased deployments, they often are being asked to do without in other important areas. We are grateful that the subcommittee included a provision in last year's defense bill that will help improve family readiness and support though greater outreach. The Department's establishment of a comprehensive benefits web site for servicemembers and their families will help provide virtual assistance regardless of their physical proximity to installation-supported networks. Additionally, we could not agree more with last year's ``Sense of Congress'' regarding the establishment of flexible spending accounts (FSAs) for members of the uniformed services. We urge the subcommittee to continue to press the Defense Department until servicemembers are provided the same eligibility to participate in FSAs that all other Federal employees enjoy. Quality education is a top priority to military families. Servicemembers are assigned all across the United States and the world. Providing appropriate and timely funding of Impact Aid through the Department of Education is critical to ensuring quality education military children deserve, regardless of where they live. The Coalition believes that several initiatives could have unintended negative consequences on school facility needs and educational programs affecting military children. Service transformation, overseas rebasing initiatives, housing privatization, base realignment and closure actions all have the potential to affect the military family and their access to quality education programs. The Coalition recommends that the subcommittee: Press DOD to assess the effectiveness of programs and support mechanisms to assist military families with deployment readiness, responsiveness, and reintegration; Ensure that effective programs--including the Family Readiness Council--are fully funded and their costs are included in the annual budget process; Provide authorization and funding to accelerate increases in availability of child care to meet both Active and Reserve component requirements; Insist DOD implement flexible spending accounts to let active duty and Selected Reserve families pay out-of-pocket dependent and health care expenses with pre-tax dollars; Monitor and continue to expand family access to mental health counseling; Promote expansion of military spouse opportunities to further educational and career goals; Ensure additional and timely funding of Impact Aid plus continued DOD supplemental funding for highly-impacted military schools; and Mitigate the impact of Service transformation, overseas rebasing initiatives, housing privatization and base realignment on school facility needs and educational programs affecting military children. Permanent Change of Station (PCS) Allowances It's an unfortunate fact that members and their families are forced to incur significant out-of-pocket expenses when complying with government-directed moves. For example, the current Monetary Allowance in Lieu of Transportation (MALT) rate used for PCS moves still fall significantly short of meeting members' actual travel costs. The current rate of 24 cents per mile is less than half of the 50 cents per mile authorized for temporary duty travel. Also, military members must make any advance house-hunting trips at personal expense, without any government reimbursements such as Federal civilians receive. DOD states that the MALT rate was not intended to reimburse servicemembers for travel by automobile, but simply a payment in lieu of providing transportation in-kind. The Coalition believes strongly that the MALT concept is an outdated one, having been designed for a conscripted, single, non- mobile force. Travel reimbursements should be adjusted to reflect the reality that today's all-volunteer servicemembers do, in fact, own cars and that it is unreasonable not to reimburse them for the cost of driving to their next duty stations in conjunction with PCS orders. Simply put, PCS travel is no less government-ordered than is TDY travel, and there is simply no justification for paying less than half the TDY travel rate when personal vehicle use is virtually essential. Additionally, the government should acknowledge that reassigning married servicemembers within the United States (including overseas locations) usually requires relocation of two personal vehicles. In that regard, the overwhelming majority of service families consist of two working spouses, making two privately owned vehicles a necessity. Yet the military pays for shipment of only one vehicle on overseas moves, including moves to Hawaii and Alaska, which forces relocating families into large out-of-pocket expenses, either by shipping a second vehicle at their own expense or selling one car before leaving the States and buying another upon arrival. At a minimum, the Coalition believes military families being relocated to Alaska, Hawaii, and U.S. territories should be authorized to ship a second personal vehicle, as the subcommittee has rightly supported in the past. The Coalition urges the subcommittee to continue its efforts to upgrade permanent change-of-station allowances to better reflect expenses imposed on servicemembers, with priority on: Shipping a second vehicle on overseas accompanied assignments; Authorizing at least some reimbursement for house- hunting trip expenses; and Increasing PCS mileage rates to more accurately reflect members' actual transportation costs. Education Enhancements The Post-September 11 GI Bill was a truly historic achievement that will provide major long-term benefits for military people and for America; however, the Coalition remains sensitive that transferability of the benefit to family members was restricted to members of the ``Armed Forces.'' The Coalition believes all members of the uniformed services, including commissioned officers of the U.S. Public Health Service and NOAA Corps, should be able to transfer their benefit to family members. All previous GI Bill provisions have applied equally to all uniformed services, and the Post-September 11 GI Bill should not be an exception. The Coalition urges the subcommittee to support amending the statute to authorize all otherwise-qualifying members of the ``uniformed services'' to transfer Post-September 11 GI Bill benefits to family members. Morale, Welfare, and Recreation (MWR) and Quality of Life (QoL) Programs MWR activities and QoL programs have become ever more critical in helping servicemembers and their families cope with the extended deployments and constant changes going on in the force. The availability of appropriated funds to support MWR activities is an area of continuing concern for the Coalition. We are especially apprehensive that additional reductions in funding or support services may occur due to slow economic recovery and record budget deficits. BRAC actions pose an additional concern as DOD is struggling to meet the 2011 deadline at many BRAC locations. Two reports issued by the Government Accountability Office indicate significant challenges remain in areas of funding, facilities, and overall management. The Coalition is very concerned whether needed infrastructure and support programs will be in place in time to meet families' needs. TMC urges the subcommittee to: Protect funding for critical family support and QoL programs and services to meet the emerging needs of beneficiaries and the timelines of the Services' transformation plans; Oppose any initiative to withhold or reduce appropriated support for family support and QoL programs to include: recreation facilities, child care, exchanges and commissaries, housing, health care, education, family centers, and other traditional and innovative support services; Prevent any attempts to consolidate or civilianize military service exchange and commissary programs; and Sustain funding for support services and infrastructure at both closing and gaining installations throughout the entire transformation process, including exchange, commissary and TRICARE programs. national guard and reserve Over 142,000 Guard and Reserve service men and women members are serving on active duty. Since September 11, 2001, more than 752,000 Guard and Reserve service men and women have been called up, including well over 200,000 who have served multiple tours. There is no precedent in American history for this sustained reliance on citizen-soldiers and their families. To their credit, Guard and Reserve combat veterans continue to reenlist, but the current pace of routine, recurring deployments cannot be sustained indefinitely. Guard and Reserve members and families face unique challenges in their readjustment following active duty service. Unlike active duty personnel, many Guard and Reserve members return to employers who question their contributions in the civilian workplace, especially as multiple deployments have become the norm. Many Guard-Reserve troops return with varying degrees of combat-related injuries and stress disorders, and encounter additional difficulties after they return that can cost them their jobs, careers and families. Despite the continuing efforts of the Services and Congress, most Guard and Reserve families do not have access to the same level of counseling and support that active duty members have. In short, the Reserve components face increasing challenges virtually across the board, including major equipment shortages, end-strength requirements, wounded-warrior health care, and pre- and post-deployment assistance and counseling. Operational Reserve Retention and Retirement Reform Congress took the first step in modernizing the Reserve compensation system with enactment of early retirement eligibility for certain reservists activated for at least 90 continuous days served since January 28, 2008. This change validates the principle that compensation should keep pace with service expectations and work as an inducement to retention and sustainment of the Operational Reserve Force. Guard/Reserve mission increases and a smaller Active-Duty Force mean Guard/Reserve members must devote a much more substantial portion of their working lives to military service than ever envisioned when the current retirement system was developed in 1948. Repeated, extended activations make it more difficult to sustain a full civilian career and impede reservists' ability to build a full civilian retirement, 401(k), etc. Regardless of statutory protections, periodic long-term absences from the civilian workplace can only limit Guard/Reserve members' upward mobility, employability and financial security. Further, strengthening the Reserve retirement system will serve as an incentive to retaining critical mid-career officers and NCOs for continued service and thereby enhance readiness. As a minimum, the next step in modernizing the Reserve retirement system is to provide equal retirement-age-reduction credit for all activated service rendered since September 11, 2001. The current law that credits only active service since January 28, 2008 disenfranchises and devalues the service of hundreds of thousands of Guard/Reserve members who served combat tours (multiple tours, in thousands of cases) between 2001 and 2008. The statute also must be amended to eliminate the inequity inherent in the current fiscal year retirement calculation, which only credits 90 days of active service for early retirement purposes if it occurs within the same fiscal year. The current rule significantly penalizes members who deploy in July or August vs. those deploying earlier in the fiscal year. It is patently unfair, as the current law requires, to give 3 months retirement age credit for a 90-day tour served from January through March, but only half credit for a 120-day tour served from August through November (because the latter covers 60 days in each of 2 fiscal years). For the near term, the Military Coalition places particular priority on authorizing early retirement credit for all qualifying post-September 11 active duty service performed by Guard/Reserve servicemembers and eliminating the fiscal-year-specific accumulator that bars equal credit for members deploying for equal periods during different months of the year. Ultimately, TMC believes we must move forward to provide a reduced age entitlement for retired pay and health coverage for all Reserve component members--that is, an age/service formula or outright eligibility, if otherwise qualified, at age 55. Further, TMC urges repeal of the annual cap of 130 days of inactive duty training points that may be credited towards a Reserve retirement. Guard and Reserve Yellow Ribbon Readjustment Congress has provided increased resources to support the transition of warrior-citizens back into the community. But program execution remains spotty from State to State and falls short for returning Federal Reserve warriors in widely dispersed regional commands. Military and civilian leaders at all levels must improve the coordination and delivery of services for the entire Operational Reserve Force. Many communities are eager to support and many do that well. But, yellow ribbon efforts in a number of locations amount to little more than PowerPoint slides and little or no actual implementation. TMC is grateful for the subcommittee's attention to this issue and for including reporting requirements on progress in the National Defense Authorization Act for Fiscal Year 2010. Making Yellow Ribbon work effectively is a major Coalition priority, and our hope is that the NDAA-required reports will point the way for further subcommittee action in this important area. TMC urges the subcommittee to hold oversight hearings and to direct additional improvements in coordination, collaboration, and consistency of Yellow Ribbon services. DOD must ensure that State-level best practices--such as those in Maryland, Minnesota and New Hampshire--are applied for all Operational Reserve Force members and their families, and that Federal Reserve veterans have equal access to services and support available to National Guard veterans. Community groups, employers, and service organization efforts need to be encouraged and better coordinated to supplement unit, component, Service and VA outreach and services. Guard/Reserve GI Bill TMC is grateful to Congress for inclusion of a critical ``earn as you serve'' principle in the new Post-September 11 GI Bill, which allows operational reservists to accrue educational benefits for each aggregate call-up of 90 days or more active duty. Inexplicably, however, active duty members of the National Guard serving under Title 32 orders were not included in the new program despite their critical role in homeland defense, counter-drug, border control, and other missions. TMC urges the subcommittee to work with the Veterans Affairs Committee to include Title 32 AGRs in the Post-September 11 statute. TMC's longstanding recommendation of coordinating and integrating various educational benefit programs has been made more challenging with the Post-September 11 GI Bill. For example, benefits for initially joining the Guard or Reserve as authorized in Chapter 1606, 10 U.S.C. continue to decline in proportion to the active duty Montgomery GI Bill (Chap. 30, 38 U.S.C.) and the new Post-September 11 GI Bill. Reserve MGIB benefit levels have slid to 24 percent of the active duty MGIB benefit, compared to 47-50 percent during the first 15 years of the program. Restoration of the original ratio would raise basic Reserve rates from the current $333 per month to $643-$684 per month for full-time study. TMC maintains that restoring the ratio is not only a matter of equity, but essential to long-term success of Guard and Reserve recruiting programs. Based on the DOD/Services' 10-year record of indifference to the basic Selected Reserve GI Bill under Chapter 1606, 10 U.S.C., TMC recommends either: restoring Reserve benefits to 47-50 percent of active duty benefits or transferring the Chapter 1606 statute from title 10 to title 38 so that it can be coordinated with other educational benefits programs in a 21st century GI Bill architecture. TMC also supports assured academic reinstatement, including guaranteed re-enrollment, for returning operational reservists. Special and Incentive Pays Increased reliance on Guard and Reserve Forces to perform active duty missions has highlighted differentials and inconsistencies between treatment of active duty vs. Guard and Reserve members on a range of special and incentive pays. Congress has acted to address some of these disparities, but more work is needed. The Coalition urges the subcommittee to ensure equitable treatment of Guard and Reserve vs. Active Duty members for the full range of special and incentive pays. retiree issues The Military Coalition remains grateful to the subcommittee for its support of maintaining a strong military retirement system to help offset the extraordinary demands and sacrifices inherent in a career of uniformed service. Concurrent Receipt In the NDAA for Fiscal Year 2003 and Fiscal Year 2004, Congress acknowledged the inequity of the disability offset to earned retired pay and established a process to end or phase out the offset for many disabled retirees. The Coalition is extremely grateful with the subcommittee's efforts to continue progress in easing the adverse effects of the offset. Last year we were very optimistic that another very deserving group of disabled retirees would become eligible for concurrent receipt when the White House included a concurrent receipt proposal in the Budget Resolution--the first time in history any administration had ever proposed such a fix. The administration's proposal, again submitted in this year's budget, would expand concurrent receipt eligibility over a 5 year period to all those forced to retire early from Service due to a disability, injury, or illness that was service-connected (chapter 61 retirees). Thanks to the strong support of Armed Services Committee leaders, the proposal was included in the House version of the NDAA for Fiscal Year 2010. The Coalition was dismayed that, despite your leadership efforts and White House support, the provision failed to survive conference--an extremely disappointing outcome for a most deserving group of disabled retirees. Our fervent hope is that the subcommittee will redouble its efforts to authorize this initiative for fiscal year 2011. Additionally, the Coalition is concerned that an inadvertent problem exists in the statutory Combat-Related Special Compensation (CRSC) computation formula causes many seriously disabled and clearly eligible members to receive little or nothing in the way of CRSC. The Defense Department has acknowledged the problem in discussions with the subcommittee staff, and the Coalition urges the subcommittee to correct this technical problem. The Coalition believes strongly in the principle that career military members earn their retired pay by service alone, and that those unfortunate enough to suffer a service-caused disability in the process should have any VA disability compensation from the VA added to, not subtracted from their service-earned military retired pay and this remains a key goal in 2010--regardless of years of service or severity of their disability rating. The Coalition's continuing goal is to fully eliminate the deduction of VA disability compensation from earned military retired pay for all disabled retirees. In pursuit of that goal, the Coalition's immediate priorities include: Phasing out the disability offset for all Chapter 61 (medical) retirees; and Correcting the CRSC formula to ensure the intended compensation is delivered. Proposed Military Retirement Changes The Coalition remains concerned that as budgets get tighter and calls to establish a new entitlement or debt-reduction commission grow louder, the military retirement system may come under greater scrutiny to seek savings or ``efficiencies.'' Our concern is based on past experience that seeking to wring savings from military retirement programs poses a significant threat to long-term retention and readiness by decreasing the attractiveness of serving for 2 or 3 decades in uniform, with all of the extraordinary demands and sacrifice inherent in such extended career service. For example, the Coalition is very concerned that proposals to ``civilianize'' military retirement benefits, such as the changes recommended by the 10th Quadrennial Review of Military Compensation (QRMC) fail utterly to recognize the fundamental purpose of the military retirement system in offsetting service conditions that are radically more severe than those experienced by the civilian workforce. The QRMC proposed converting the military retirement system to a civilian-style plan under which full retired pay wouldn't be paid until age 57-60; vesting retirement benefits after 10 years of service; and using flexible ``gate pays'' and separation pay at certain points of service to encourage continued service in certain age groups or skills and encourage others to leave, depending on service needs for certain kinds of people at the time. Reduced to its essence, this admittedly cost-neutral plan would take money from people who stay for a career in order to pay additional benefits to those who leave the military short of a career. If this system were in place today, a 10-year infantryman facing his or her fourth combat tour would be offered a choice between: (a) allowing immediate departure with a vested retirement; vs. (b) continuing under current service conditions for another 10-20 years and having to wait until age 58 for immediate retired pay. The Coalition believes strongly that, if such a system existed for today's force under today's service conditions, the military services would already be mired in a deep and traumatic retention crisis. Further, the QRMC proposal is so complicated that people evaluating career decisions at the 4- to 10-year point would have no way to project their future military retirement benefits. Gate pays available at the beginning of a career could be cut back radically if the force happened to be undergoing a strength reduction later in a member's career. In contrast, the current military retirement system makes it very clear from the pay table what level of retired pay would be payable, depending how long one served and how well one progressed in grade. The sustained drawing power of the 20-year retirement system provides an essential long-term moderating influence that keeps force managers from over-reacting to short-term circumstances. Had force planners had such a system in effect during the drawdown-oriented 1990s, the Services would have been far less prepared for the post- September 11 wartime environment. Many such proposals have been offered in the past, and have been discarded for good reasons. The only initiative to substantially curtail/delay military retired pay that was enacted--the 1986 REDUX plan--and only a remnant remain as the mandatory REDUX was scrapped 13 years later after it began inhibiting retention. The only remnant that remains--and has been in place unchanged since 1999--is a voluntary program known as the Career Status Bonus--a $30,000 ``bonus'' bait and switch--where the servicemember can receive $30,000 at their 15 year point as long as they accept REDUX. That ``bonus'' was a bad deal at the time and it gets worse with every passing year as pay (and retired pay) increases. After taxes, the so-called bonus is more like $22,000 or $23,000. To get that, the typical NCO who retires with 20 years of service must agree to sacrifice more than $300,000 in future retired pay (those who live longer than average sacrifice far more). That's how much less REDUX is worth compared to the normal system. TMC urges the subcommittee to: Reject any initiatives to ``civilianize'' the military system without adequate consideration of the unique and extraordinary demands and sacrifices inherent in a military vs. a civilian career; and Eliminate the Career Status Bonus for servicemembers as it significantly devalues their retirement over time. In the short term, the Services should be required to better educate eligible members on the severe long-term financial penalty inherent in accepting the REDUX option. Disability Severance Pay The Coalition is grateful for the subcommittee's inclusion of a provision in the NDAA for Fiscal Year 2008 that ended the VA compensation offset of a servicemember's disability severance for people injured in the combat zone. However, we are concerned that the language of this provision imposes much stricter eligibility than that used for Combat-Related Special Compensation. The Coalition urges the subcommittee to amend the eligibility rules for disability severance pay to include all combat--or operations-- related injuries, using same definition as CRSC. For the longer term, the Coalition believes the offset should be ended for all members separated for service-caused disabilities. Former Spouse Issues For nearly a decade the recommendations of the Defense Department's September 2001 report to Congress on the Uniformed Services Former Spouse Protection Act (USFSPA) have gone nowhere. For several years, DOD submitted many of the report's recommendations annually to Congress only to have one or two supported by the subcommittee while many others were dropped. The USFSPA is a very emotional topic with two distinct sides to the issue--just as any divorce has two distinct parties affected. The Coalition believes strongly that there are several inequities in the act that need to be addressed and corrected that could benefit both affected parties--the servicemember and the former spouse. But in order to make progress, we believe Congress cannot piecemeal DOD's recommendations. We support a collective grouping of legislation that would provide benefit to both affected parties. Absent this approach, the legislation will be perceived as supporting one party over the other and go nowhere. To fairly address the problems with the act, all affected parties need to be heard--and the Coalition would greatly appreciate the opportunity to address the inequities in a hearing before the subcommittee. The Coalition requests a hearing to address USFSPA inequities. In addition, we recommend legislation to include all of the following: Base the award amount to the former spouse on the grade and years of service of the member at time of divorce (and not retirement); Prohibit the award of imputed income, which effectively forces active duty members into retirement; Extend 20/20/20 benefits to 20/20/15 former spouses; Permit the designation of multiple Survivor Benefit Plan (SBP) beneficiaries with the presumption that SBP benefits must be proportionate to the allocation of retired pay; Eliminate the ``10-year Rule'' for the direct payment of retired pay allocations by the Defense Finance and Accounting Service (DFAS); Permit SBP premiums to be withheld from the former spouse's share of retired pay if directed by court order; Permit a former spouse to waive SBP coverage; Repeal the 1-year deemed election requirement for SBP; and Assist the DOD and Services with greater outreach and expanded awareness to members and former spouses of their rights, responsibilities, and benefits upon divorce. survivor issues The Coalition is grateful to the subcommittee for its significant efforts in recent years to improve the Survivor Benefit Plan (SBP), especially its major achievement in eliminating the significant benefit reduction previously experienced by SBP survivors upon attaining age 62. SBP-DIC Offset The Coalition believes strongly that current law is unfair in reducing military SBP annuities by the amount of any survivor benefits payable from the DIC program. If the surviving spouse of a retiree who dies of a service- connected cause is entitled to DIC from the Department of Veterans Affairs and if the retiree was also enrolled in SBP, the surviving spouse's SBP annuity is reduced by the amount of DIC. A pro-rata share of the SBP premiums is refunded to the widow upon the member's death in a lump sum, but with no interest. This offset also affects all survivors of members who are killed on active duty. The Coalition believes SBP and DIC payments are paid for different reasons. SBP is insurance purchased by the retiree and is intended to provide a portion of retired pay to the survivor. DIC is a special indemnity compensation paid to the survivor when a member's service causes his or her premature death. In such cases, the VA indemnity compensation should be added to the SBP annuity the retiree paid for, not substituted for it. It should be noted as a matter of equity that surviving spouses of Federal civilian retirees who are disabled veterans and die of military-service-connected causes can receive DIC without losing any of their Federal civilian SBP benefits. The reality is that, in every SBP-DIC case, active duty or retired, the true premium extracted by the Service from both the member and the survivor was the ultimate one--the very life of the member. This reality was underscored by the August 2009 Federal Court of Appeals ruling in Sharp v. U.S. which found ``After all the servicemember paid for both benefits: SBP with premiums; DIC with his life.'' The Veterans Disability Benefits Commission (VDBC) was tasked to review the SBP-DIC issue, among other DOD/VA benefit topics. The VDBC's final report to Congress agreed with the Coalition in finding that the offset is inappropriate and should be eliminated. In 2005, Speaker Pelosi and all House leaders made repeal of the SBP-DIC offset a centerpiece of their GI Bill of Rights for the 21st Century. Leadership has made great progress in delivering on other elements of that plan, but the only progress to date on the SBP-DIC offset has been the enactment a small monthly Special Survivor Indemnity Allowance (SSIA). The Coalition recognizes that the subcommittee's initiative in the fiscal year 2008 defense bill to establish a special survivor indemnity allowance (SSIA) was intended as a first, admittedly very modest, step in a longer-term effort to phase out the Dependency and Indemnity Compensation (DIC) offset to SBP. We appreciate the subcommittee's subsequent work to extend the SSIA to survivors of members who died while on active duty in the NDAA for Fiscal Year 2009, as well as its good-faith effort to provide a substantial increase in SSIA payments as part of the Family Smoking Prevention and Tobacco Control Act. The Coalition was extremely disappointed that the final version of that legislation greatly diluted the House-passed provision and authorized only very modest increases several years in the future. While fully acknowledging the subcommittee's and full committee's good-faith efforts to win more substantive progress, the Coalition shares the extreme disappointment and sense of abandonment of the SBP- DIC widows who are being forced to sacrifice up to $1,110 each month and being asked to be satisfied with a $60 monthly rebate. For years, legislative leaders touted elimination of this ``widow's tax'' as a top priority. The Coalition understands the mandatory- spending constraints the subcommittee has faced in seeking redress, but also points out that those constraints have been waived for many, many far more expensive initiatives. The Coalition believes widows whose sponsors' deaths were caused by military service should not be last in line for redress. The Coalition urges repeal of the SBP-DIC offset. TMC further recommends: Authorizing payment of SBP annuities for disabled survivors into a Special Needs Trust; (Certain permanently disabled survivors can lose eligibility for Supplemental Security Income (SSI) and Medicaid and access to means-tested State programs because of receipt of SBP. This initiative is essential to put disabled SBP annuitants on an equal footing with other SSI/Medicaid-eligibles who have use of special needs trusts to protect disabled survivors.) Allowing SBP eligibility to switch to children if a surviving spouse is convicted of complicity in the member's death; and Reinstating SBP for survivors who previously transferred payments to their children at such time as the youngest child attains majority, or upon termination of a second or subsequent marriage. Final Retired Pay Check Under current law, DFAS recoups from military widows' bank accounts all retired pay for the month in which a retiree dies. Subsequently, DFAS pays the survivor a pro-rated amount for the number of days of that month in which the retiree was alive. This often creates hardships for survivors who have already spent that pay on rent, food, etc., and who routinely are required to wait several months for DFAS to start paying SBP benefits. The Coalition believes this is an extremely insensitive policy imposed by the government at the most traumatic time for a deceased member's next of kin. Unlike his or her active duty counterpart, a retiree's survivor receives no death gratuity. Many older retirees do not have adequate insurance to provide even a moderate financial cushion for surviving spouses. The VA is required by law to make full payment of the final month's VA disability compensation to the survivor of a disabled veteran. The disparity between DOD and VA policy on this matter is simply indefensible. Congress should do for retirees' widows the same thing it did 10 years ago to protect veterans' widows. TMC urges the subcommittee to authorize survivors of retired members to retain the final month's retired pay for the month in which the retiree dies. health care issues The Coalition appreciates the subcommittee's strong and continuing interest in keeping health care commitments to military beneficiaries. We are particularly grateful for your support for the last few years in refusing to allow the Department of Defense to implement disproportional beneficiary health care fee increases. The Coalition is encouraged that the current administration so far has declined to pursue such increases, but has worked to reestablish a mutually constructive dialogue with beneficiary representatives. The unique package of military retirement benefits--of which a key component is a top-of-the-line health care benefit--is the primary offset afforded uniformed servicemembers for enduring a career of unique and extraordinary sacrifices that few Americans are willing to accept for 1 year, let alone 20 or 30. It is an unusual, and essential, compensation package that a grateful Nation provides for a relatively small fraction of the U.S. population who agree to subordinate their personal and family lives to protecting our national interests for so many years. This sacrifice, in a very real sense, constitutes a pre paid premium for their future healthcare. Defense Health Program Cost Requirements The Coalition is grateful for the subcommittee's support for maintaining--and expanding where needed--the healthcare benefit for all military beneficiaries and especially for the Guard, Reserve, and military children, consistent with the demands imposed upon them. It's true that many private sector employers are choosing to shift an ever-greater share of health care costs to their employees and retirees, and that's causing many still-working military retirees to fall back on their service-earned TRICARE coverage. Fallout from the recent economic recession is likely to reinforce this trend. In the bottom-line-oriented corporate world, many firms see their employees as another form of capital, from which maximum utility is to be extracted at minimum cost, and those who quit are replaceable by similarly experienced new hires. But that can't be the culture in the military's closed, all-volunteer personnel system, whose long-term effectiveness is dependent on establishing a sense of mutual, long-term commitment between the servicemember and his/her country. The Coalition believes it's essential to bear other considerations in mind when considering the extent to which military beneficiaries should share in military health care costs. First and foremost, the military health system is not built for the beneficiary, but to sustain military readiness. Each Service maintains its unique facilities and systems to meet its unique needs, and its primary mission is to sustain readiness by keeping a healthy force and to be able to treat casualties from military actions. That model is built neither for cost efficiency nor beneficiary welfare. It's built for military readiness requirements. When military forces deploy, the military medical force goes with them, and that forces families, retirees and survivors to use the more expensive civilian health care system in the absence of so many uniformed health care providers. These military-unique requirements have significantly increased readiness costs. But those added costs were incurred for the convenience of the military, not for any beneficiary consideration, and beneficiaries should not be expected to bear any share of that cost - particularly in wartime. The Coalition urges the subcommittee to take all possible steps to ensure continued full funding for Defense Health Program needs. National Health Reform The Coalition opposes any effort to integrate TRICARE and VA health care systems in any proposal that Congress may develop as part of national health care reform. These two programs are integral to military readiness and are designed expressly to meet the unique needs of servicemembers, military retirees, veterans, wounded servicemembers, guardsmen and reservists, their families, and survivors. TMC urges that any national health reform legislation must: Protect the unique TRICARE, TRICARE For Life, and VA health care benefits from unintended consequences such as reduced access to care; Bar any form of taxation of TRICARE, TRICARE For Life, or VA health care benefits, including those provided in nongovernmental venues; and Preserve military and VA beneficiaries' choices. Military vs. Civilian Cost-Sharing Measurement Defense leaders have in the past, and may in the future, assert that substantial military fee increases are needed to bring military beneficiary health care costs more in line with civilian practices. But merely contrasting military vs. civilian cash cost-shares is a grossly misleading, ``apple-to-orange'' comparison. For all practical purposes, those who wear the uniform of their country are enrolled in a 20- to 30-year prepayment plan that they must complete to earn lifetime health coverage. In this regard, military retirees and their families paid enormous ``upfront'' premiums for that coverage through their decades of service and sacrifice. Once that prepayment is already rendered, the government cannot simply pretend it was never paid, and focus only on post-service cash payments. DOD and the Nation--as good-faith employers of the trusting members from whom they demand such extraordinary commitment and sacrifice--have a reciprocal health care obligation to retired servicemembers and their families and survivors that far exceeds any civilian employer's to its workers and retirees. The Coalition believes that military beneficiaries from whom America has demanded decades of extraordinary service and sacrifice have earned coverage that is the best America has to offer. Large Retiree Fee Increases Can Only Hurt Retention The reciprocal obligation of the government to maintain an extraordinary benefit package to offset the extraordinary sacrifices of career military servicemembers is a practical as well as moral obligation. Mid-career military losses can't be replaced like civilians can. Eroding benefits for career service can only undermine long-term retention/readiness. Today's servicemembers are very conscious of Congress' actions toward those who preceded them in service. One reason Congress enacted TRICARE For Life in 2000 is because the Joint Chiefs of Staff at that time said inadequate retiree health care was affecting attitudes among active duty servicemembers. That's more than backed up by two independent Coalition surveys. A 2006 Military Officers Association of America survey drew 40,000 responses, including more than 6,500 from active duty servicemembers. Over 92 percent in all categories of respondents opposed the DOD- proposed fee hikes. There was virtually no difference between the responses of active duty servicemembers (96 percent opposed) and retirees under 65 (97 percent opposed). A Fleet Reserve Association survey showed similar results. Reducing military retirement benefits would be particularly ill- advised when an overstressed force already is at increasing retention risk despite the current downturn of the economy and current recruiting successes. Pharmacy The Coalition supports a strong TRICARE pharmacy benefit which is affordable and continues to meet the pharmaceutical needs of millions of eligible beneficiaries through proper education and trust. The TMC will oppose any degradation of current pharmacy benefits, including any effort to charge fees or copayments for use of military treatment facilities. The Coalition would oppose the need for pharmacy co-pay increases now that Congress has approved Federal pricing for the TRICARE retail pharmacy system. The Coalition notes that due to continued legal maneuvering, Federal pricing still has not been implemented by the executive branch, and this failure is costing DOD tens of millions of dollars with every passing month. This is an excellent example of why the Coalition objects to basing beneficiary fees on a percentage of DOD costs--because DOD all-too-frequently does not act, or is not allowed to act, in a prudent way to hold costs down. The Coalition has volunteered to conduct a joint campaign with DOD to promote beneficiary use of lower-cost medications and distribution venues--a ``win-win'' opportunity that will reduce costs for beneficiaries and the government alike. The Coalition also believes that positive incentives are the best way to encourage beneficiaries to continue medication regimens that are proven to hold down long-term health costs. In this regard, TMC believes eliminating copays for medications to control chronic conditions (e.g., diabetes, asthma, high blood pressure, and cholesterol) are more effective than negative ones such as copayment increases. The Coalition urges the subcommittee to ensure continued availability of a broad range of medications, including the most- prescribed medications, in the TRICARE pharmacy system, and to ensure that the first focus on cost containment should be on initiatives that encourage beneficiaries to take needed medications and reduce program costs without shifting costs to beneficiaries. Alternative Options to Make TRICARE More Cost-Efficient TMC continues to believe strongly that DOD has not sufficiently investigated options to make TRICARE more cost-efficient without shifting costs to beneficiaries. The Coalition has offered a long list of alternative cost-saving possibilities, including: Positive incentives to encourage beneficiaries to seek care in the most appropriate and cost effective venue; Encouraging improved collaboration between the direct and purchased care systems and implementing best business practices and effective quality clinical models; Focusing the military health system, health care providers, and beneficiaries on quality measured outcomes; Improving MHS financial controls and avoiding overseas fraud by establishing TRICARE networks in areas fraught with fraud; Establishing TRICARE networks in areas of high TRICARE Standard utilization to take full advantage of network discounts; Promoting retention of other health insurance by making TRICARE a true second-payer to other insurance (far cheaper to pay another insurance's co-pay than have the beneficiary migrate to TRICARE); Encouraging DOD to effectively utilize their data from their electronic health record to better monitor beneficiary utilization patterns to design programs which truly match beneficiaries needs; Sizing and staffing military treatment facilities to reduce reliance on network providers and develop effective staffing models which support enrolled capacities; Reducing long-term TRICARE Reserve Select (TRS) costs by allowing servicemembers the option of a government subsidy of civilian employer premiums during periods of mobilization; Doing far more to promote use of mail-order pharmacy system and formulary medications via mailings to users of maintenance medications, highlighting the convenience and individual expected cost savings; and Encouraging retirees to use lowest-cost-venue military pharmacies at no charge, rather than discouraging such use by limiting formularies, curtailing courier initiatives, etc. The Coalition is pleased that DOD has begun to implement some of our suggestions, and stands ready to partner with DOD to investigate and jointly pursue these and other options that offer potential for reducing costs. TMC Healthcare Cost Principles The Military Coalition believes strongly that the recent fee controversy is caused in part by the lack of any statutory record of the purpose of military health care benefits and the specific benefit levels earned by a career of service in uniform. Under current law, the Secretary of Defense has broad latitude to make administrative adjustments to fees for TRICARE Prime and the pharmacy systems. Absent congressional intervention, the Secretary can choose not to increase fees for years at a time or can choose to quadruple fees in 1 year. Until a few years ago, this was not a particular matter of concern, as no Secretary had previously proposed dramatic fee increases. Given recent years' unsettling experience, the Coalition believes strongly that the subcommittee needs to establish more specific and permanent principles, guidelines, and prohibitions to protect against dramatic budget-driven fluctuations in this most vital element of servicemembers' career compensation incentive package. The Coalition strongly recommends that Congress establish statutory findings, a sense of Congress on the purpose and principles of military health care benefits earned by a career of uniformed service that states: Active duty members and families should be charged no fees except retail pharmacy co-payments, except to the extent they make the choice to participate in TRICARE Standard or use out-of-network providers under TRICARE Prime; The TRICARE Standard inpatient copay should not be increased further for the foreseeable future. At $535 per day, it already far exceeds inpatient copays for virtually any private sector health plan; There should be no enrollment fee for TRICARE Standard or TRICARE For Life (TFL), since neither offers assured access to TRICARE-participating providers. An enrollment fee implies enrollees will receive additional services, as Prime enrollees are guaranteed access to participating providers in return for their fee. Congress already has required TFL beneficiaries to pay substantial Medicare Part B fees to gain TFL coverage; All retired servicemembers earned equal health care coverage by virtue of their service; and DOD should make all efforts to provide the most efficient use of allocated resources and cut waste prior to proposing additional or increased fees on eligible beneficiaries. TRICARE Prime The Coalition is very concerned about growing dissatisfaction among TRICARE Prime enrollees--which is actually higher among active duty families than among retired families. The dissatisfaction arises from increasing difficulties experienced by beneficiaries in getting appointments, referrals to specialists, and sustaining continuity of care from specific providers. Increasingly, beneficiaries with a primary care manager in a military treatment facility find they are unable to get appointments because so many providers have deployed, PCSed, or are otherwise understaffed/unavailable. The Coalition supports the implementation of a pilot study by TMA in each of the three TRICARE Regions to study the efficacy of revitalizing the resource sharing program used prior to the implementation of the TRICARE-The Next Generation (T-NEX) contracts under the current Managed Care Support contract program. The Coalition supports adoption of the ``Medical Home'' patient- centered model to help ease such problems. But the new TRICARE contracts and the attendant reduction of Prime service areas outside the vicinity of military installations will exacerbate anxieties by forcing disenrollment of many thousands of current Prime beneficiaries. The Coalition strongly advocates the transparency of healthcare information via the patient electronic record between both the MTF provider and network providers. Additionally, institutional and provider healthcare quality information should be available to all beneficiaries so that they can make better informed decisions. The Military Coalition urges the subcommittee to require reports from DOD and from the managed care support contractors, on actions being taken to improve Prime patient satisfaction, provide assured appointments within Prime access standards, reduce delays in preauthorization and referral appointments, and provide quality information to assist beneficiaries in making informed decisions. tricare standard TRICARE Standard Provider Participation The Coalition appreciates the subcommittee's continuing interest in the specific problems unique to TRICARE Standard beneficiaries. TRICARE Standard beneficiaries need assistance in finding participating providers within a reasonable time and distance from their home. This is particularly important with the expansion of TRICARE Reserve Select and the upcoming change in the Prime Service Areas, which will place thousands more beneficiaries into TRICARE Standard. The Coalition is concerned that DOD has not yet established any standard for adequacy of provider participation, as required by section 711(a)(2) of the NDAA for Fiscal Year 2008. Participation by half of the providers in a locality may suffice if there is not a large Standard beneficiary population. The Coalition hopes to see an objective participation standard (perhaps number of beneficiaries per provider) that would help shed more light on which locations have participation shortfalls of Primary Care Managers and Specialists that require positive action. The Coalition urges the subcommittee to insist on immediate delivery of an adequacy threshold for provider participation, below which additional action is required to improve such participation. The Coalition also recommends requiring a specific report on participation adequacy in the localities where Prime Service Areas will be discontinued under the new TRICARE contracts. TRICARE Reimbursement Rates Physicians consistently report that TRICARE is virtually the lowest-paying insurance plan in America. Other national plans typically pay providers 25-33 percent more. In some cases the difference is even higher. While TRICARE rates are tied to Medicare rates, TRICARE Managed Care Support Contractors make concerted efforts to persuade providers to participate in TRICARE Prime networks at a further discounted rate. Since this is the only information providers receive about TRICARE, they see TRICARE as lower-paying than Medicare. This is exacerbated by annual threats of further reductions in TRICARE rates due to the statutory Medicare rate-setting formula. Physicians may not be able to afford turning away Medicare patients, but many are willing to turn away a small number of patients who have low-paying, high-administrative-hassle TRICARE coverage. The TRICARE Management Activity has the authority to increase the reimbursement rates when there is a provider shortage or extremely low reimbursement rate for a specialty in a certain area and providers are not willing to accept the low rates. In some cases, a State Medicaid reimbursement for a similar service is higher than that of TRICARE. But the Department has been reluctant to establish a standard for adequacy of participation to trigger higher payments. The Coalition places primary importance on securing a permanent fix to the flawed statutory formula for setting Medicare and TRICARE payments to doctors. To the extent a Medicare rate freeze continues, we urge the subcommittee to encourage DOD to use its reimbursement rate adjustment authority as needed to sustain provider acceptance. The Coalition urges the subcommittee to require a Comptroller General report on the relative propensity of physicians to participate in Medicare vs. TRICARE, and the likely effect on such relative participation of a further freeze in Medicare/TRICARE physician payments along with the effect of an absence of bonus payments. Dental Care The Coalition appreciates the subcommittee's action in continuing active duty-level dental coverage for dependent survivors and allowing transitional dental care for Reserve members who separate after supporting contingency missions. Active Duty Dependent Dental Plan TMC is sensitive to beneficiary concerns that Active Duty Dental Plan coverage for orthodontia has been eroded by inflation over a number of years. The current orthodontia payment cap is $1,500, which has not been changed since 2001. In the intervening years, the orthodontia cost has risen from an average of $4,000 to more than $5,000. The Coalition understands that, under current law, increasing this benefit could require a reduction in some other portion of the benefit, which we do not support. The Coalition notes that current law assumes a 60 percent DOD subsidy for the active duty dental plan, whereas other Federal health programs (e.g., FEHB Plan and TRS) are subsidized at 72 percent. The Coalition recommends increasing the DOD subsidy for the Active Duty Dependent Dental Plan to 72 percent and increasing the cap on orthodontia payments to $2,000. Guard and Reserve Healthcare Continuum of Health Care Insurance Options for The Guard and Reserve The Coalition is very grateful for passage of TRICARE Retired Reserve (TRR) coverage for ``gray area'' reservists in the NDAA for Fiscal Year 2010. The Coalition notes that DOD complied with direction from Congress to reduce TRICARE Reserve Select (TRS) premiums to the actual cost of coverage. For 2009, monthly TRS premiums were reduced to $47.51 (vs. $81) for member-only coverage and to $180.17 (vs. $253) for family coverage. TMC believes a review of the current statutory methodology for adjusting premiums based on program costs should be conducted to assess whether any of the costs currently included are, in fact, costs of maintaining readiness or ``costs of doing business'' for the Defense Department that don't contribute to delivering benefit value to beneficiaries (and therefore should be excluded, with the expected result that premiums would go down). In principle, TMC believes Congress should establish a moratorium on TRS premium increases and direct DOD to make a determined effort for the most efficient use of resources allocated and to cut waste prior to the consideration of any adjustment in such premiums. Moreover, TMC believes that holding the line on TRS premiums will encourage more families to enroll. DOD, the Services, and the Reserve components must do much more to advertise the TRS program which stands at only 6-7 percent of eligible beneficiaries. The Coalition also believes Congress is missing an opportunity to reduce long-term health care costs and increase beneficiary satisfaction by authorizing eligible members the option of electing a DOD subsidy of their civilian insurance premiums during periods of activation. Current law already authorizes payment of up to 24 months of FEHBP premiums for activated members who are civilian employees of the Defense Department. The Coalition believes all members of the Selected Reserve should have a similar option to have continuity of their civilian family coverage. Over the long term, when Guard and Reserve activations can be expected at a reduced pace, this option would offer considerable savings opportunity relative to funding permanent, year-round TRICARE coverage. DOD could calculate a maximum monthly subsidy level that would represent a cost savings to the government, so that each member who elected that option would reduce TRICARE costs. The Coalition recommends the subcommittee: Require a GAO review of DOD's methodology for determining TRS costs for premium adjustment purposes to assess whether it includes any costs of maintaining readiness or ``costs of doing business'' for the Defense Department that don't contribute to beneficiary benefit value and thus should be excluded from cost/premium calculations; Authorize development of a cost-effective option to have DOD subsidize premiums for continuation of a Reserve employer's private family health insurance during periods of deployment as an alternative to ongoing TRS coverage; Allow eligibility in Continued Health Care Benefits Program (CHCBP) for Selected reservists who are voluntarily separating and subject to disenrollment from TRS; Authorize members of the IRR who qualify for a Reserve retirement at age 60 to participate in TRR as an incentive for continued service (and higher liability for recall to active duty); Monitor implementation of the new TRR authority to ensure timely action and that premiums do not exceed 100 percent of the TRS premium; and Allow FEHB plan beneficiaries who are Selected reservists the option of participating in TRS. Guard and Reserve Mental Health The Coalition is concerned that Guard and Reserve members and their families are at particular risk for undetected effects of the unseen injuries of war. The risk is compounded by Reserve component members' anxiety to return to their families as soon as possible, which typically entails expedited departure from active duty and return to a community where military health care and other support systems are limited. Unfortunately, most such members view the current post deployment health self-assessment program at demobilization sites as an impediment to prompt return to their families. Under this scenario, strong disincentives for self-reporting exacerbate an already wide variation in the diagnosis and treatment of post-traumatic stress disorder (PTSD), traumatic brain injury (TBI), depression, and other combat- related stress conditions. The Coalition believes redeploying Reserve component members should be allowed to proceed to their home station and retained on active duty orders to complete post-deployment examination requirements at the home station. This change is important to improve proper diagnosis, reporting and treatment of physical and mental injuries; to help perfect potential service connected disability claims with the VA; and to help correct the non-reporting of injuries at the demobilization site. The Coalition believes that Guard and Reserve members and their families should have access to evidence-based treatment for PTSD, TBI, depression, and other combat-related stress conditions. Further, post- deployment health examinations should be offered at the member's home station, with the member retained on active duty orders until completion of the exam. Guard and Reserve Health Information The Coalition is concerned that the current health records for many Guard and Reserve members do not contain treatment information that could be vital for diagnosis and treatment of a condition while on active duty. The capture of nonmilitary treatment is an integral part of the member's overall health status. The Coalition believes there should be an effort to improve the electronic capture of nonmilitary health information into the servicemember's medical record. TRICARE For Life (TFL) When Congress enacted TFL in 2000, it explicitly recognized that this coverage was fully earned by career servicemembers' decades of sacrifice, and that the Medicare Part B premium would serve as the cash portion of the beneficiary premium payment. The Coalition believes that this remains true today and will oppose any new additional fees. Additionally, the Coalition believes that means-testing has no place in setting military health fees. The Coalition is aware of the challenges imposed by Congress' mandatory spending rules, and appreciates the subcommittee's efforts to include TFL-eligibles in the preventive care pilot programs included in the NDAA for Fiscal Year 2009. We believe their inclusion would, in fact, save the government money and hope the subcommittee will be able to find a more certain way to include them than the current discretionary authority, which DOD has declined to implement. The Coalition also hopes the subcommittee can find a way to resolve the discrepancy between Medicare and TRICARE treatment of medications such as the shingles vaccine, which Medicare covers under pharmacy benefits and TRICARE covers under doctor visits. This mismatch, which requires TFL patients to absorb the cost in a TRICARE deductible or purchase duplicative Part D coverage, deters beneficiaries from seeking this preventive medication. Coalition priorities for TFL-eligibles include: Securing a permanent fix to the flawed formula for setting Medicare/TRICARE payments to providers; Resisting any effort to establish an enrollment fee for TFL, given that many beneficiaries already experience difficulties finding providers who will accept Medicare patients; and