TRICARE Benefits Extremely Rich - What??
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Since 01-15-06


From: Waspscpo@aol.com [mailto:Waspscpo@aol.com]
Sent: Saturday, January 14, 2006 11:53 PM
To: undisclosed-recipients:
Subject: "TRICARE Benefits Extremely Rich"

 

Words from Assistant Secretary of Defense Dr. William Winkenwerder:

After describing the TRICARE benefit as “extremely rich,” Dr. Winkenwerder began defending the yet-to-be officially proposed changes as a necessity to sustain the benefit. 

HEALTH CARE NEWS

DoD Officials Address Military Associations on proposed TRICARE Increases
On Jan 11, Dr. William Winkenwerder, assistant secretary of defense for health affairs, presented a briefing to members of The Military Coalition on the justifications for increasing the cost share of the TRICARE healthcare program for the under-65 military retiree.  NAUS legislative director Rick Jones and health care advisor Kimberly Standish participated in the TMC-sponsored discussion.

After describing the TRICARE benefit as “extremely rich,” Dr. Winkenwerder began defending the yet-to-be officially proposed changes as a necessity to sustain the benefit. 

“We don’t want to find ourselves where some have found themselves in the private sector, and that is at the breaking point, a crisis where we have to cut something out,” Dr. Winkenwerder said when discussing the department’s rising healthcare costs and overall budgetary constraints.

Regarding the specific plan, Dr. Winkenwerder told the group, “I wouldn’t want you to think that what you have seen reported is what’s going to happen.”  When asked for detail on the proposal, he avoided the question saying, “We’ll share more information in the near future,” indicating the department’s clear intention to alter the program.

Though no detail on the exact DoD plan was given, Dr. Winkenwerder strongly suggested the possibility of a TRICARE means test. He said there should be consideration on “the relative ability to pay.”  “Clearly,” he said, “people have different abilities to pay for these things, and we should be mindful of that.”

In a previous Weekly Update, NAUS reported that the department planed to raise TRICARE cost-shares, deductibles, and enrollment fees over the next three years.  According to NAUS sources, TRICARE Prime enrollment for enlisted service members would increase to $450 (individual coverage) / $900 (family coverage); and officers would see an increase to $750 / $1,500 by fiscal year 2009. 

There would also be an increase in TRICARE Standard deductibles; enlisted service members $200 / $400 and officers $300 / $600.  Also, a TRICARE Standard enrollment fee would be established.  And, co-payments for the TRICARE Retail pharmacy program would increase to $5 (Tier I), $15 (Tier II) and $22 (Tier III) from $3 (Tier 1), $9 (Tier II) and $22 (Tier III). 

NAUS health care advisor, Kimberly Stanish, noted during the meeting that even though Dr Winkenwerder glossed over some of the DoD’s attempts at cost savings and efficiencies, such as the new TRICARE contracts and BRAC consolidations, there still seemed to be a clear decision to put the cost savings on the retiree and not Department. 

An example, the TRICARE Mail Order Pharmacy (TMOP) program costs the government much less money (due to Federal Pricing of drugs) than the TRICARE Retail Program.  However, instead of marketing/communicating the TMOP program, which also saves the beneficiary money, DoD will instead increase the cost-share for using the Retail program. 

While DoD believes that they have the legal authority to raise these fees, they realize that they can be stopped.  All it takes is Congress.  This is where we need your help.  Please contact your Senators and Representatives and urge them to stop DoD from eroding your benefits. 
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Contributed,
YNCS Don Harribine, USN(ret)