U.S. targets health fees
WASHINGTON — A military built for fighting wars is looking more and more like a health care entitlement program.
Costs of the program that provides health coverage to some 10 million active duty personnel, retirees, reservists and their families have jumped from $19 billion in 2001 to $53 billion in the Pentagon’s latest budget request.
Desperate to cut spending in Washington’s time of fiscal austerity, President Barack Obama has proposed increasing the fees for working-age retirees in the decades-old health program, known as TRICARE. After years of resisting proposed increases for the military men and women who sacrificed for a nation, budget-conscious lawmakers suddenly are poised to make them pay a bit more for their health care, though not on the president’s terms.
The current fees, unchanged in 11 years, are $230 a year for an individual and $460 for a family. That’s far less than what civilian federal workers pay for health care, about $5,000 a year, and what most other people in the U.S. pay.
Obama is seeking a fee increase of $2.50 per month for an individual and $5 per month for families, which approaches the current price of a gallon of gasoline. Future increases starting in 2013 would be pegged to rising costs as measured by the national health care expenditure index produced by the Centers for Medicare and Medicaid Services, which projects 6.2 percent growth.
“Health care is eating the department alive,” Defense Secretary Robert Gates said bluntly — two years ago.
The explosive expense of health care rivals what the Pentagon shells out to buy fighter aircraft, submarines and high-tech weapons, and is about half of the $118 billion that the Obama administration wants in the next budget to fight the wars in Iraq and Afghanistan.
Rep. Howard “Buck” McKeon, chairman of the House Armed Services Committee, backs Gates’ proposal to raise fees for working-age retirees in the next budget, and he has the support of the committee’s top Democrat, Rep. Adam Smith of Washington state.
But McKeon, R-Calif., rejects the plan to link increases in 2013 and beyond to the health care expenditure index. He wants to tie any future increases to military retirees’ cost-of-living adjustment, which this year was zero.
McKeon planned to release his version of the defense bill today. The legislation says members of the military face “unique and extraordinary demands and make extra sacrifices over the course of a 20 to 30 year career in protecting freedom for all Americans. Decades of sacrifices is a significant prepaid premium for health care that is over and above what the member pays in money.”
The full committee meets Wednesday to pull together an overall defense bill for the budget year beginning Oct. 1. The committee is expected to override members of its personnel subcommittee who last week unanimously approved a one-year prohibition on any increase in health care fees.
Even as Washington wrestles with a ballooning deficit estimated at $1.6 trillion, lawmakers are reluctant to raise health care costs for members of the military and retirees.
But this year, Gates singled out working-age retirees, such as those in their 40s who retired after some 20 plus years in the military, as individuals who could afford a small increase.
“Many of these beneficiaries are employed full time while receiving full pensions, often forgoing their employer’s health plan to remain with TRICARE,” Gates told Congress. “This should come as no surprise, given that the current TRICARE enrollment fee was set in 1995 ... and has not been raised since.”
Gates and the administration are up against the network of veterans groups and retired generals determined to stop any increase.
