[HEALTH.MIL] Survey: Military Families Report Concern Over Potential TRICARE Fee Hike

From: HEALTH.MIL Mailing List
To: <HEALTH.MIL@xxxxxxxxxxxxx>
Date: Tue, 15 Nov 2011 10:11:30 -0600
Survey: Military Families Report Concern Over Potential TRICARE Fee Hike

By Kellie Lunney klunney@xxxxxxxxxxx

November 14, 2011

 

Military families are worried about changes to their health insurance, and those
concerns are prompting them to sock away more money for such costs during
retirement, according to a new survey. 

 

Thirty-one percent of middle-class military families who responded to a survey
from First Command Financial Behaviors Index are nervous about potentially
higher health care costs under the military's TRICARE program; as a result, 52
percent of respondents said they were increasing the amount of money they are
saving for such expenses during retirement. Sixteen percent of survey
participants said they planned to investigate different retirement options.

 

"Almost nine out of 10 respondents say that TRICARE is an extremely or very
important part of their military retirement benefits," said Scott Spiker, chief
executive officer of First Command Financial Services Inc. "Faced with the
possibility of an erosion of this benefit, active-duty families are dedicated to
learning more today and saving more for tomorrow." 

 

The Pentagon has pushed for fee increases -- originally proposing a 13 percent
boost in 2012 -- and continues to weigh changes to the program as part of
overall deficit reduction. Costs for new enrollees rose slightly as of Oct. 1,
and other increases could be coming. Beneficiaries who joined TRICARE Prime in
fiscal 2012 will pay an additional $2.50 per month for individual members and $5
per month for family enrollment -- bringing the total annual fee to $260 and
$520, respectively. Costs for retirees already in the program, as well as
survivors of active-duty service members and medically retired participants,
remain at $230 per year for individuals and $460 per year for families. 

 

There also is support on Capitol Hill for changes in the TRICARE fee structure.
Sens. Carl Levin, D-Mich., and John McCain, R-Ariz., last month submitted
recommendations to the deficit reduction super committee in support of the Obama
administration's cost-saving proposal released in September. The plan would
mandate annual fees under TRICARE for Life, which pays beneficiaries'
out-of-pocket Medicare costs. Fees would start at $200 in 2012 and increase
annually to align with those paid by all TRICARE enrollees. The proposal also
would eliminate pharmacy co-payments for generic mail-order drugs while shifting
retail co-pays from a dollar figure to a percentage. The change would affect
military families and retirees but would not apply to active-duty service
members. The administration also recommended the creation of a panel to look at
reforming military retirement benefits.

 

According to the latest First Command survey, military families typically save
less for retirement health care costs than the general population does -- about
$30 per month compared to $100 per month. Spiker said one of the positive
repercussions of proposed TRICARE hikes is "an increased focus on saving for
retirement needs, which would bring active-duty families more in line with the
general population."

 

 

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================

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SOURCE:  GovExec Web Site at http://www.govexec.com/dailyfed/1111/111411kl1.htm

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[HEALTH.MIL] Survey: Military Families Report Concern Over Potential TRICARE Fee Hike

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