The House panel did agree to allow a $4
co-pay increase for retirees and their family members below the age of 65 for outpatient
care. Doctor visit co-pays are slated to increase to $16, while the co-pay for
mental health care visits will stay at $12. The $4 increase is expected to save
funds for health programs and medical research. The Department of Defense has not been authorized
to increase any additional TRICARE fees.
The Secretary of Defense along with the Joint
Chiefs of Staff had pushed for higher TRICARE fees to save fund for supplies, training,
maintenance, and weapons procurement from being slashed. But resistance to
boosting fees or capping pay from bipartisan members of the House Armed
Services Committee has so far kept fees low. Additionally, Defense officials
have reportedly overstated health care costs to the tune of $400 million a year,
on average, to fund other defense accounts.
President Obama may decide to cap the
military pay raise regardless of congressional approval by declaring a national
emergency or claiming that "serious economic conditions" make it
necessary, and presenting "alternative pay adjustment" plans to
Congress by the first of September. It is hoped that the White House will not decide
to do so, as there is currently in place a proposed 1.8 percent raise for military
pay as of January 2013.
The Department of Defense currently plans
to roll out a plan to stop TRICARE Prime coverage for the more than 170,000
current TRICARE enrollees who live more than 40 miles from a military treatment
facility. Retirees below the age of 65
and their families will be forced to use TRICARE Standard, a more economic
version of the fee-for-service program. As of October 1, TRICARE beneficiaries age
65 and up will be required to have their long-term medications filled via mail
order or on base, in order to save millions of dollars a year for TRICARE that
would otherwise go to local pharmacies.
