Fight over
Pentagon proposal to raise health care fees begins
Since 02-11-06
From:
Waspscpo@aol.com [mailto:Waspscpo@aol.com]
Sent: Friday, February 10, 2006 3:20 PM
To: undisclosed-recipients:
Subject: Fight over Pentagon proposal to raise health care fees begins
Fight over Pentagon proposal to raise health care fees begins
http://www.govexec.com/story_page.cfm?articleid=33375&dcn=todaysnews
By Megan Scully,
CongressDaily
10 February 2006
With a vast and motivated grassroots lobbying base in tow, military
organizations are gearing up to battle the Pentagon over an fiscal 2007 budget
proposal that offsets the Defense Department's skyrocketing healthcare costs by
increasing premiums and other fees for military retirees under age 65.
The budget proposal, which has the unanimous blessing of the Joint Chiefs of
Staff, would save the department $735 million in fiscal 2007, and $11 billion
over the next five years -- tremendous savings at a time of increased fiscal
pressures across the federal government.
In fiscal 2006 alone, the military will pay $37 billion for healthcare programs,
which amounts to 8 percent of the Defense budget and $18 billion more than the
department paid five years ago. Without making significant changes to the
program, the military is on track to spend a whopping $64 billion a year on
health care by 2015, nearly twice this year's entire Homeland Security
Department budget.
"We believe that this healthcare benefit is unique and superb," Joint Chiefs
Chairman Peter Pace said this week. "We want it to continue ... and we believe
that [the proposal] is one way to assist in helping us achieve the goal of
long-term sustained health care." But less than a week after President Bush
released his budget request, a wide range of military groups has launched
letter-writing campaigns and begun pounding the pavement on Capitol Hill to sway
lawmakers to reject the proposal.
Indeed, more than 22,000 members of the Military Officers Association of
American have inundated Capitol Hill with letters since December, when word of
possible increases to TRICARE healthcare fees began to circulate. "The military
and veterans community is all on the same page with this issue," said Michael
Wysong, director of national security and foreign affairs at Veterans of Foreign
Wars, one of the largest groups behind the protest.
"We're marching in the same direction." The proposal essentially would increase
enrollment fees and deductibles, on a sliding scale based on rank at retirement.
It also would increase retail pharmacy co-payments, and reward retirees for
using mail-order services for generic prescriptions. Administration officials
say TRICARE cost shares and fees have not been adjusted in 11 years, while most
other healthcare programs have made substantial increases.
But that could still mean a 300 percent increase on some premiums, said Sydney
Hickey, a board member at the National Military Family Association. "That's a
little excessive, like a lot excessive," she added. Some families could pay $100
a month more under the new policy, estimates John Class, deputy director of
government affairs for the military officers group. "You're going to contain
costs by making it expensive so people won't join ... and maybe use other
insurance," Class said.
"Or just not seek medical care." In fact, the Defense Department is banking on
some current TRICARE enrollees dropping the plan and seeking insurance from
employers -- who, Pentagon officials say, are encouraging their retired military
employees to choose TRICARE over their plans. But opponents argue that many
retirees might not have the option of turning to private insurers. "There are a
lot of assumptions that they're making with regards to second careers," Class
said.
On Capitol Hill, several key lawmakers said they hope to work with the Defense
Department during the authorization process to either explain or amend the
proposal. "Some of DOD's numbers and assumptions look questionable on a number
of levels -- mathematically and morally," said House Armed Services Personnel
Subcommittee ranking member Vic Snyder, D-Ark.
"Hopefully, we can take a real hard look at this." Personnel Subcommittee
Chairman John McHugh, R-N.Y., has long been wary of increased TRICARE costs, due
in part to Congress' decisions to expand coverage eligibility over the years.
But he is not sold on the proposal, and expressed concern about the increased
costs to retirees the country is "deeply indebted to."
"That doesn't say there isn't an enormous problem on the near- and long-term
horizon," McHugh said. "Affordability is a critical issue and we've got to begin
to get very serious about it, or the program in general will be taking over
virtually everything else that we do for active, Guard, Reserve, as well as
retired."
-----------------------------------------------------------------
Contributed,
YNCS Don Harribine, USN(ret)