Tricare for under 65 retires costs are offered up by DOD for increase
All, hot off the Veterans Report I receive via e-mail:
DoD Asks for TRICARE Premium Increases
April 29, 2011 • Terry Howell
DoD plans to ask Congress to enact a law to permanently peg the rate of increase for TRICARE Prime premiums to the National Healthcare Expenditure (NHE) Index. This increase targets military retirees under age.
A DoD told the press that the decision was made to use the NHE Index because it was transparent, easy to understand, and “fair.” But, the issue is that the NHE Index was 3.1 percent in 2009; and over the past quarter-century, the average annual increase has been 6.4 percent.
This 6.4 percent average increase is huge when compared to the cost-of-living-adjustment for military retiree pay.
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Many veterans’organizations have been pushing to peg the TRICARE Prime premium increase to the annual COLA, which is tied to the Consumer Price Index. Jimmie L. Foster, national commander of The American Legion said that the “DoD plan is unacceptable. Many of our military retirees live on fixed incomes and their COLA just doesn’t keep up with the National Health Expenditure Index.”
Over the last 25 years, the COLA increase has averaged 2.8 percent; about four percent less than the rise in national health expenditures. This will mean more out-of-pocket expenses for military retirees and their families.
Is this a “fair” increase for retirees who have not seen a COLA increase since 2008? Let your elected officials know how you fell about this issue.
