TRICARE fees could increase

Time To Think About TRICARE. Representatives from various military services on November 5 urged the congressionally mandated commission on military compensation reform to take a serious look at health care spending accounts as a means of cutting costs. Commissioner Peter Chiarelli, former Army Vice Chief of Staff, said the service chiefs all have asked Congress to allow changes to the basic fee structure for TRICARE for Life, but it has largely gone unchanged since the 1990s. Dick Newton, former head of personnel on the Air Staff and AFA’s executive vice president, told commissioners the Defense Department should be looking at innovative ways to meet service member needs—this could include looking at Tricare fees and cost of living adjustments. There must be a transformational approach to dealing with rising health care costs in the military, said Newton.

This report came from the Air Force Magazine daily electronic newsletter.

Webmaster’s Comments: As mentioned earlier in Retiree News, TRICARE Standard and TRICARE for Life are currently free to retired members.  The costs of these programs come from the Department of Defense’s budget.  These programs are not funded independently like other entitlement programs administered by the Veterans Administration.

The DOD has its back to the wall.  Between reduced budgets, increased operational costs and sequestration, they must make important budget decisions in the coming year (and beyond). The DOD’s proposed is a “small nominal fee” to start and the fee would increase annually, tied to the cost of living adjustments.  Think of it as your Social Security annuity increasing but Medicare costs increasing at the same percentage rate.  By the way, they have already increased copays on prescription drugs.

In the near future, there will be calls by military retiree organizations to contact your Congressional members to express your opposition to this plan.  Members of Congress have not allowed any recurring fees for both TRICARE Standard and TRICARE for Life since their inception. But unless retirees and their families speak out, this could be the time where fees begin.  Are you ready for the start of monthly fees?