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This is NOT the normal CHAMPUS supplement. This is a health care plan and therefore provides preventive health services at recommended life intervals (such as physicals, tests and immunizations) at no extra cost. Plus special prevention services from the local hospital such as: classes in smoking cessation, exercise, stress control and nutrition; special health screens and newsletters. The rates are based on whether or not the member's spouse smokes.

Following the advice of the active duty research the premiums for the plans are based upon pay grade. Pay grade E-1 to E-3 pay the lowest premium. Pay grade E-4 to E-6 pay slightly more and all pay grades E-7 and above including warrant and commissioned officers pay the top premium. The premiums for children are the same regardless of sponsor's rate or rank and are based upon whether you have one child or two or more children. Also, if the active duty sponsor is a single head of the household or if both parents are active duty they may insure the children under the plan without having to participate as adults. This is a unique provision in health care plans.

Considering

that the premium for an E-7 and above is the most expensive, you will recognize the modest cost of the plan as I tell you that the family (a non-smoking spouse and two or more children) of an E-7 or above is fully covered for a premium of $20.00 a month! We hope to accomplish four things with this new plan:

1.

To improve access to quality medical care for the
active duty dependent.

2.

To control costs within the Plan and the costs to
CHAMPUS and ultimately to ourselves.

3.

4.

To demonstrate that a private/public partnership can work effectively to deliver quality medical care to active duty dependents.

To focus attention on health promotion activities and positively changing lifestyle behavior as the long term solution to medical care costs.

The Fleet Reserve Association has fully briefed the U.S. Navy's hierarchy on its plan. During the six week period of 11 January 25 February 1988 we briefed the staff of the Navy's Surgeon General, the Navy Manpower Secretariat's staff, the Chief of Naval Personnel, VADM Leon A. Edney, U.S. N., and members of his staff, plus representatives of Marine Corps Headquarters and Coast Guard Headquarters. In addition we briefed the key staff members of the U.S. Naval Hospital in Portsmouth, Virginia, at the commanding officer's, CAPT L. Carey Hodges, MC, U.S.N.,

request. ADM Carlisle A. H. Trost, U.S.N., the Chief of Naval Operations is fully informed of our program and actions. We have plans to brief the hierarchy of the Air Force and Army in turn within the near future.

In addition to our briefing the Navy's hierarchy here in Washington, D.C. we have held seminars on the program in the four pilot cities where the plan will be implemented, Norfolk, San Diego, Pensacola and Jacksonville.

Needless to say, advance

notice of the plan has been very well received, especially when we inform our audiences that:

1.

the plan is open to every person, enlisted or commissioned, serving on active duty in one of our Armed Services, and

2. You do NOT have to be a member of the Fleet Reserve

Association to participate in the plan!

The Fleet Reserve Association is proud to join with Daughters of Charity National Health System to bring this model health plan to military beneficiaries as the most viable alternative today to CHAMPUS Reform Initiative in order to provide them access to quality medical care.

Mr. Chairman, the Fleet Reserve Association thanks you for allowing us to present our views and information about "Supercare" to you. I stand ready to answer any questions you may

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