Noteboom The Law Firm

TRICARE Members to Pay Higher Fees

March 7, 2011- Defense Secretary Robert Gates sent out a teaser last month hinting at the idea of TRICARE fees being raised as part of the new Department of Defense (DoD) budget. The word he used to describe the increase, if it were to happen, was "modest." The DoD has since submitted their proposed budget for 2012, and not only will fees be increased, which isn't shocking, "modest" means $60 more a year.

Congress still has to pass the DoD's proposed budget, but for retiree families, their TRICARE prime enrollment fees would increase from $460 to $520 every year. The fees for enrollment for single retirees would jump from $230 to $260 every year. It is important to note these fee increases only affect those retired veterans who are enrolled in TRICARE Prime. These fee increases do not affect active-duty soldiers or their families nor do they affect veterans who have retired and are past 65 years of age. 

The $60 annual enrollment fee for veteran retirees under 65 years of age will likely not be the last increase imposed. DoD officials will begin increasing enrollment fees on an incremental basis over the next 5 years. The reason given for the increases is to cover the costs of the program.