TRICARE Rate Increases for Military Retirees

Since 02-27-06

The Joint Chiefs are joining the Defense Department in seeking to more than triple annual enrollment fees for officers in Tricare Prime and double the fees for enlisted retirees by 2008.

DoD wants Congress to jack up fees for retired officers under-65 from $240 to $750 a year for individual coverage, and from $450 to $1,500 a year for family coverage; for enlisted retirees under age 65 from $240 to $450 a year for individuals and from $450 to $900 for families. The deductible for Tricare Standard also would be raised and an annual enrollment fee would be imposed. Medicare-eligible retirees also would take a hit, with co-payments for retail generic drugs jumping from $3 to $5 and for brand name drugs from $9 to $15 retail and $10 by mail order. DoD claims it needs the medical care premiums from retirement pay of retirees to balance the defense budget.

In light of these significant increases there is no corresponding hint to fix what is broken. What of the significant numbers of retirees abandoned by Tricare with the closure of nearby military installations due to four rounds of base realignment and closure and a fifth round in progress? Physicians and providers in these ‘black holes' simply do not accept Tricare Standard due to low reimbursements, administrative hassles and slow payments. Obviously Tricare Prime and Extra (the money makers for the contractors) are not available in these 'black holes.'

How much more are military retirees (more correctly described as retired career military veterans -- RCMV) to sacrifice? RCMV gave 20 or more years of their lives, barely surviving at times, undergoing all kinds of hardships, low pay and long hours. The excuse for low pay was the promise of free life time benefits for retirees and their spouses.

During 1976-1993 Congress screwed RCMV reneged on COLA increases eight times -- three years of which there was no COLA at all. During that same era, with the advent of TRICARE, dental, eye and hearing medical care protection was taken from us. In 1995, Congress withdrew the no-out-of-pocket-cost medical care that military retirees and family members were promised and earned. When MR become eligible for Social Security they draw less than their peers for having served their country with low military pay ... again, part of the legacy for that low pay excuse.

TRICARE FOR LIFE, authorized in 2001, now costs husband and wife, both over age 65, $2,100.00 per year based on Part B premiums alone. Yes, one or both spouses might be eligible for meager Social Security benefits (remember they were paid less, hence their benefits are less). Realize that the average military retirement income is but $1620/month. That is one huge reduction in the standard of living and loss of retirement income the government is imposing on the few men and women who continue to bear the burden of freedom for the many.

NOTE: In response to a lawsuit filed by Military Retirees the U.S. Appellate Court said:

"IV. Conclusion- We cannot readily imagine more sympathetic plaintiffs than the retired officers of the World War II and Korean War era involved in this case. They served their country for at least 20 years with the understanding that when they retired they and their dependents would receive full free health care for life. The promise of such health care was made in good faith and relied upon.

"Congress has the power and authority under the Constitution to establish a system for the payment of retired pay [for military service members] and to change the system from time to time. . . . We understand and appreciate the dissatisfaction of the plaintiffs with the change in the retirement pay system, as they have rendered long and faithful service to our country in time of peace and war. However, if they are to get any relief, it must come from Congress, as this is not within [a court's] jurisdiction."

Action that has been taken against military retirees is not beneficial for military recruiting, nor does it bode well for supporting government when its most deserving citizens see that they cannot trust those elected to keep legitimate promises made by its agents.

I request you heed the Appellate court's decision and take immediate action to enact legislation that will return no-out-of-pocket-cost medical care (to include dental, eye and hearing care) to deserving retired career military veterans and their immediate family members.