Although the Senate has shown some support for cutting the Pentagon’s health-care costs by asking beneficiaries to pay more, Republican and Democratic leaders of the House Armed Services Committee have come out against the idea.

Rep. Duncan Hunter, R-Calif., the committee chairman, and Rep. Ike Skelton, D-Mo., its senior Democrat, said in a March 3 letter on the 2007 budget that the committee will not support the administration plan, although a rejection of the fee hikes would blow a $735 million hole in the budget.

The Pentagon plan would affect retirees under age 65 and their families. The annual Tricare Prime enrollment fee, now $230 for an individual and $460 for a family, would jump to between $275 and $500 for individuals and between $550 and $1,000 for officers in 2007, depending on rank.

$325 to $700 for individuals and from $650 to $1,400 for families.
Tricare Standard, which has no enrollment fees, would cost between $75 and $150 for individuals and $150 to $300 for families in 2007, also with fees based on rank. In 2008, fees would range from $140 to $280 for individuals and from $280 to $560 for families.
The annual deductible for Tricare Standard also would rise over the two years, as would Tricare pharmacy co-payments.

The Defense Department has told Tricare contractors to prepare to start collecting larger fees, effective Oct. 1, but the letter says that is unacceptable without congressional approval.

“Circumventing congressional oversight by quickly implementing fundamental changes to a highly viable medical benefit is not keeping the promise to the sailors, soldiers, airmen and Marines that serve our country,” the letter says.

Testifying March 7 before the Senate Appropriations Committee, Pentagon comptroller Tina Jonas said escalating health-care costs have become a major concern.

“Over the past five years, the full cost of providing military health care has nearly doubled,” from $19 billion in fiscal 2001 to $37 billion in fiscal 2006, she said. “Unless action is taken to address the rising cost of care, the current program is projected to increase to $50 billion by 2011 and to $64 billion by 2015.”

David S.C. Chu, the undersecretary of defense for personnel and readiness, told the Senate Armed Services Committee on March 1 that “rebalancing” fees is important to the military medical program’s long-term financial viability.

“One of the important factors contributing to this cost spiral is increased usage among retirees under 65, reflecting our failure to adjust cost-sharing since the Tricare program began 11 years ago,” he said.
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Contributed,
YNCS Don Harribine, USN(ret)