Department Of Defense Officials Reaffirm Need For Fee Increases Under TRICARE

Senior Department of Defense officials have reaffirmed the need to increase enrollment fees and copayments for 3.1 million military retirees and dependents covered under TRICARE, the Honolulu Advertiser reports. In 2006, congressional lawmakers “bolted like cats from a sprinkler” when the Pentagon released plans to reduce costs in the military health system, according to the Advertiser (Philpott, Honolulu Advertiser, 1/22). In May 2006, the House rejected a proposal developed by the Joint Chiefs of Staff that would have increased TRICARE copay and enrollment fees by 115% for military retirees younger than age 65 (Kaiser Daily Health Policy Report, 5/12/06). The Senate Appropriations Subcommittee on Military Construction, Veterans Affairs and Related Agencies rejected a proposal to increase TRICARE fees in July 2006 (Kaiser Daily Health Policy Report, 7/19/06). This year, DOD officials are hoping to gain the support of the Task Force on the Future of Military Healthcare, a new 14-member study group created by Congress whose members were appointed by the same officials urging the fee increases. DOD wants the task force to endorse higher TRICARE fees in an interim report to Congress due in May — “presumably early enough for legislative action this year, when no lawmaker stands for re-election,” the Advertiser reports. According to DOD officials, health care spending for the military could increase from 8% of the defense budget to 12%, or $64 billion, by 2015 unless fees are increased. Total military health spending for 2007 is expected to be $38 billion, up 131% since 2000. DOD maintains that a fee increase plan could save $11.2 billion over five years, while the Congressional Budget Office estimates the savings would be closer to $7 billion (Honolulu Advertiser, 1/22).

“Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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