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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CIA-RDP86B00338R000400520004-9
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RIPPUB
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11
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December 21, 2016
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September 12, 2008
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4
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Publication Date: 
April 19, 1984
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MEMO
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A Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 ~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 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 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 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 ? ? 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 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 ? 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); Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 (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 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 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. Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 . ? 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. Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 ? ? 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. Approved For Release 2008/09/12: CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 CIA-RDP86B00338R000400520004-9 ? 0 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 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 estimated costs as follows:. 6 FY 1987 F y Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 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 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9 ? 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. Approved For Release 2008/09/12 : CIA-RDP86B00338R000400520004-9