DOD PROPOSED REPORT ON S. 1613 TO AMEND TITLE 10 UNITED STATES CODE WITH RESPECT TO THE PROVISION OF MEDICAL BENEFITS AND POST AND BASE EXCHANGE AND COMMISSARY STORE PRIVILEGES TO CERTAIN FORMER SPOUSES OF CERTAIN MEMBERS OF FORMER MEMBE
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Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP86B00338R000400520004-9
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
11
Document Creation Date:
December 21, 2016
Document Release Date:
September 12, 2008
Sequence Number:
4
Case Number:
Publication Date:
April 19, 1984
Content Type:
MEMO
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A
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~Ju'v iu c..c~
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 206CJ
TO: Legislative Liaison Officer
Department of Transportation
*Veterans Administration
*Department of Health and Human Services
Central Intelligence Agency
Department of State
Office of Personnel Management
SUBJECT: DOD'proposed report on S. 1613 "To amend title 10,
United States Code, with respect to the provision
of medical benefits and post and base exchange and
commissary store privileges to certain former
spouses of certain members of former members of
the Armed Forces."
*Amendment suggested on page 5 of proposed report.
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship to
the program of the President, in accordance with OMB Circular A-19.
A response to this request for your views is needed no later than
May 4, 1984.
Questions should be referred to Chris Gamble
(395-3796 ) or to Hilda Schreiber
the legislative analyst in this office.
STAT
( 395-4650 )-
Naomi R. Sweeney for
Assistant Director for
Legislative Reference
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DEPARTMENT OF DEFENSE
OFFICE OF GENERAL COUNSEL
WASHINGTON, D.C. 20301
April 11, 1984
Honorable-bavid A. Stockman
Director, Office of Management
and Budget
Washington, D. C. 20503
Dear Mr. Stockman:
The views of the Department of Defense have been requested on
S. 1613, 98th Congress, a bill, "To amend title 10, United
States Code, with respect to the provision of medical benefits
and.post and base exchange and commissary store privileges to
certain former spouses of certain members of former members of
the Armed Forces."
Advice is requested as to whether there is objection to the
presentation of the attached report to the Committee.
The committee has requested that this report be expedited.
Sincerely,
Werner Windus
Director
Legislative Reference Service
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Honorable John G. Tower
Chairman
Senate Armed Services Committee
Washington, D.C. 20510
Dear Mr. Chairman:
This is.'in response to your request for the views of the
Department of Defense on S. 1613, 98th Congress, a bill "To amend
title 10, United States Code, with respect to the provision of
medical benefits and post and base exchange and commissary store
privileges to certain former spouses of certain members or former
members of the Armed Forces."
If enacted, this legislation would amend the definition of
"dependent" contained in section 1072 of title 10, United States
Code, by: (1) deleting the current provision in paragraph (F)
for an
. unremarried former spouse of a member
or former member who (i) on the date of the
final decree of divorce, dissolution, or annul-
ment, had been married to the member or former
member for a period of at least 20 years
during which period the member or former member
performed at least 20 years of service which is
creditable in determining that member's or former
member's eligibility for retired or retainer pay,
or equivalent pay, and (ii) does not have medical
coverage under an employer-sponsored health plan
and inserting in lieu thereof a provision to include as a
dependent:
a.person who is the former spouse of a member or
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former member who performed at least twenty years
of service which is creditable in determining the
member's or former member's eligibility for re-
tired or retainer pay, or equivalent pay, and who
on t'he date of the final decree of divorce, dis-
solution, or annulment had been married to the
member or former member for a period of at least
twenty years, not less than ten years of which
were during the period the member or former
member performed service creditable in determining
the member's eligibility for retired or retainer
pay;
(2) adding a provision as paragraph (G) to include also as a
dependent
(G) A person (i) who is the former spouse of
a member or former member, and (ii) who has a
disease or disability attributable to or arising
from the nature or location of the service per-
formed by the member or former member during the
marriage, or from the treatment received at a
United States military medical facility;
.also, limiting the health care to be provided under proposed
paragraph (G) if the individual is not also covered by proposed
paragraph (F), to that care necessary for the treatment of any
disease or disability of that person described in clause (ii) of
proposed paragraph (G);
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(3) adding as a new section 1043 of Title 10, United States Code,
subject to such rules and regulations as the
Secretary concerned may prescribe, a dependent
of a member or former member of the armed services,
as defined in clause (F) or (G) of section 1072(a)
of this title shall be entitled to use the services
and facilities of post or base exchanges and com-
missary stores operated under the jurisdiction of
any military department;
(4) providing that the foregoing health benefit amendments shall
apply with respect to health care furnished on or after the date
of enactment; and (5) for exchange and commissary privileges and
health benefits the amendments shall apply regardless of the date
of the applicable decree of divorce, dissolution, or annulment.
We note that the bill would remove the provision in section
1072(2)(F) that a former spouse would not be eligible for health
care if covered under an employer sponsored health plan. We also
note the bill would add an additional group of former spouses to
those eligible for dental benefits under current law.
The Department does not object in principle to disregarding
the date of divorce, annulment or separation. We do not agree,
however, with that part of the proposed amendment to section 1072
which eliminates the requirement that the former spouse be
unremarried. Providing health care to remarried former spouses
is inconsistent with limiting health care to unremarried widows
and widowers. Additionally, such a provision is inconsistent
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ith the Provisions in title 38, United States Code,-which define
ried
souse" to exclude those who are remar as well as
surviving p
with similar provisions of the social Security Act for widows who
remarry before age 60.
We, furthermore, do not agree with.reducing to ten?years the
creditable service being gained
requirement of twenty years
in our view, to
It is not equitable,
during the marriage. life
ervicemembers themselves whose affiliation with military
s to permit
must be twenty years before gaining retirement,
f'ts without also being
'th military life for
bene i
an equal period of time,
affiliated wi
recommend proposed paragraph (F) be amended to. read
We
"a person who is the unremarried former spouse of a
of
member or former member who performed at least twenty years
the member's or former
in determining
member's eligibility for
retired or retainer pay,
the dAte of the
or equivalent
final decree of divorce,
pay, and who on
dissolution or annulment had been married to the member for a
rmer member
f
f
o
during which the member or
least twenty years
ed at least twenty years of service creditable in
perform
in the member's eligibility for retired or retainer
determin 9
pay."
The amended language would ensure that a full twenty y benefit
c ualify for the
creditable service would be necessary to q qualifying period
would be the minimum permissible q
and that
of service affiliated marriage.
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It is recommended that the provision for "treatment received
at a United States military medical facility," proposed paragraph
(G), be amended by deleting the word "military" and substituting
therefor the word "government." Many dependents have received
care and treatment in other non-military governmental medical
facilities as, for example, those operated by the Public Health
Service.
With regard to cost and budget data, the Department of
Defense does not maintain statistics on the number of divorces
occurring in-the military community. Consequently, no one knows
how many former spouses there are. However, by applying national
rates to a defined population the following can be deduced:
o There are some 3,000 retirements per month
or 36,000 per year, and the average age at
retirement is 42-50.
o In.that age group, 83 percent or 29,880 are
married. '
(The figures were computed by the DoD Actuary.)
We assume the servicemember must marry before age 30 in order to
serve 20 years while married.
Based on D.S. Department of Commerce, Bureau of Census, Current
Population Report, "Number, Timing, and Duration of Marriages and
Divorces.in the United States: June 1975," Series P-20, No. 297,
Issued October 1976 (latest version), Table H:
o Of men who marry, 88.6 percent do so before age 30;
thus, approximately 26,474 married retirees served
20 years while married.
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Unpublished Census Bureau Current Population Survey of June 1980
data show 4% of married men aged 45-74 divorce after 20 years of
marriage.
o 4% of 26,474 20 years married retirees is
1,059 divorced retirees after 20 years.of marriage.
This group
would encompass all f ormer.spouses who were
married
for 20 years to retired members. (who had served at least 20
years) regardless of the length of time married concurrently with
military service.
The total, 1,059, is roughly comparable to the one year of
experience we have gained under current law. Since February 1,
1983, through January 31, 1984, 580 former spouses with 20 years
of marriage while the servicemember served 20 years have sought
and obtained former spouse benefits.
To estimate the size of the group of former spouses who
were married 20
years to a 20 year servicemember, with 10 years
of marriage during
military
service as proposed in the bill, we
assume the servicemember must
marry before age 40 in order :to
serve 10 years while married. Table H of the Census
age 40.
above shows 98.2 percent o= u-Cl, ,~?aL~s ---___
o 98.2 percent of 1,059 divorced 20 years
retirees is 1,040.
married
Therefore, we could estimate the potential number of former
member who retired and could have been
rr.ied twenty years, to a
married 10 years during
service would not be more than~l,040. Next, we must estimate the
total of such former-spouses that there may be.
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proposes to disregard the date of dissolution of
The bill prof would
all former spouses who otherwise qualify.
marriage. Thus,
s.
ncluded. The bill would include remarried former spouse 79 and
Ibef i is
we then assume' the former spouses's life expectancy
is (arbitrarily) 42 we could estimate there
the age of divorce or
former spouses per year,
are not more than 37 times the 1,040
38,480. This potential population must be applied to benefits
usage rates to project possible costs*
rates for this population can be found in the
Utilization endent females,
Survey. Retired-dep
latest (1978) DoD Beneficiary hospital days and 4.81
aged 35-54 produced an average of 1.82 his visits do not include-
ln
clinic visits per
person
x-ray or dental work.) Thus,
per
year. (C
,; sits performed solely for lab,
tal potential benetlclai--
t
under
the
bill
can be
and
o
the 38,480
nerate not more than 70,034 inpatient days
expected to ge passage
first year after bill p
h
l
e
n t
8 clinic visits i
185,08
using standard DoD cost factors of $49
These usages Would,
slate into
per clinic
Cost
Estimate
39.4 40.4
36.
(Millions) They do not account for
These figures are only approximations.
or for
or for disqualification by Medicare coverage,
mortality, of active duty
the un'xriown additional number of former spouses ces. It should also be noted that if the
members of the Armed ror uses be unremarried
bill were amended to require that former spouses
inpatient day,
FY '1984 FY_ 1985 FY--192
q 37.4 38.4
visit and $391 per
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estimated costs as follows:. 6 FY 1987 F y
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benefits as under current law, the costs may be
to qualify for ublished
reduced. That is because the Census Bureau's,unp of
greatly percent o .
cited above, shows 69 percent to 77 p
June 1980 survey, and aged
those women who had divorced from their first marriages,
45-74 at the time of the survey, did remarry.
to the extension of exchange and commissary
Turning the
to those former spouses proposed in the bill,
privileges
analysis is slightly different.
methodology as used
Using the same population estimating
roximately 38,480
above for medical benefits, there could. be app
1984
former spouses eligible for privileges in growing at a rate
which would produce 42,640 eligibles in 1988, if the date of
only those unremarried
er relevant. Currently
decree is.no tong
lized after 1
fina
former spouses whose divorce decrees were February
1983 would be eligible for commissary and exchange
benefits. orting 38,480
the government of supp
t
o
st
The annual co $9.1M in
d at n
timate
in the commissaries is es commi
patrons
This is based on $.106 cost.f or
1988.
1984 growing to $10.1M by of
70
l
y
that on
es and assumes
l
dded sa
dollar of a and the
each
potential patronage would actually use the facilities
the ly. This represents expenses
average patron spends $3200 year
stockage
with manpower, administration, procurement,
associated the costs
ra a of the goods sold. This does not include
and"sto g
enlarging existing facilities or constructing
associated with the patrons.
ditional ones which inmost cases are borne by path
ad predominantly
Since exchanges are operated and built p
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estimated costs
the
S&lest
riated funds generated by
customers, not the taxpayer.
;,napProP bed by the c reserving existing
,ould be absorbed of Defense favors p addition of
The Department rized without the
or those presently autho
lees for .?- and commissaries are
?rivl g Most exchanges
substantial
of patrons. support a
new groups to
to
unable
would be osi
and in a P
oV tion
zed, The Department is not er_util~1
increase of Pat Consequently. the Department
to Provide
absorb these additional costs. clearly its intent rants
s in any legislation that 9
requests that Congress express
ltional Patron
funds for these add.
ndations
additional benefits. of the foregoing recomme and
these no
to the Department has
Subject to the adoption costs,
cover the additional
funding islation. that. from the
objection to this leg ement and Budget advises
objection
s
of Manag no
ramt there i
The office.
inistrat3.on Prog ration Of-
f Dint of the Ate' report for the con side
standp
his
of t
to the submission
Committee. Sincerely.
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