The Aug. 19 letter from Reps. Edward Madigan and Thomas Luken regarding the House-approved catastrophic insurance bill, which was endorsed by The Post, is the only communication I have seen spelling out some of the pitfalls of the bill. We appreciate their concern.
Although the proposed legislation would result in a tax increase for the majority of retirees, it would mean double jeopardy for federal retirees.
Most federal retirees are enrolled in Medicare A and Medicare B plus the Federal Employee Health Benefits plan (FEHB). The FEHB plans include practically all of the catastrophic insurance benefits that are included in the House-passed legislation.
But what has been overlooked by our legislators is that federal retirees who have Medicare would have to pay the additional tax and receive practically no additional benefits. This is obviously unfair.
By 1992, this would mean a tax of about $100 per month per person with adjusted gross income of $15,000 for single retirees and twice that amount for a married couple with double the income. This would be an unjust tax without increasing present benefits.
We hope that the Senate has enough members with the perspicuity and concern of Reps. Madigan and Luken so that the injustice is removed when the Senate considers the legislation.
Legislative Chairman, Silver Spring Chapter
National Association of Retired Federal Employees