Noteboom The Law Firm

Pentagon Could Triple TRICARE Payments

February 1, 2011 - There is no official word, yet, but Department of Defense (DoD) officials will soon release their 2012 budget, which will include plans for increasing TRICARE fees. Based on what they have done in the past with their plans, however, fees for certain veterans could up to quadruple. "Modest" increases in TRICARE fees will likely save the military $7 billion in health care costs, according to Defense Secretary Robert Gates. Increases in fees will in no way affect any active-duty soldiers or their families. Those that will be affected will be working-age retirees who are currently paying $460 a year for their coverage.

The DOD's Task Force on the Future of Military Health Care suggested increases in TRICARE's health care fees should occur in steps. The steps would be based on the veteran's income. Those veterans making under $20,000 would suffer increases over a 4-year period to a ceiling payment of $900. Over the same time period, veterans earning over $40,000 would see their fees top out at just under $1,800. This plan was first recommended 3 years ago.

There is no telling if the Pentagon will use this same plan or these same numbers again when they submit their 2012 budget proposal. The Pentagon has used these numbers in the past, supporting their use by arguing those numbers are less expensive than private sector health care plans with comparable offerings and benefits.

Over the last 10 years Congress has refused to accept that proposal. The Pentagon will meet more than just Congressional resistance, however. As has happened in the past, multiple veterans groups will offer their resistance to any fee increases as well.