Veterans groups split on fee increases for Tricare

Veterans groups were split Wednesday during a hearing on the Obama administration's proposal to require working-age military retirees to pay higher fees for health care benefits.

But they remain united on one key point: their opposition to setting up automatic fee increases in Tricare, the military insurance program, tied to rising medical costs.

Kathy Moakler of the National Military Family Association said the plan to require working-age retirees to pay an extra $2.50 a month for individual coverage and $5 for family coverage "is fair." The total annual cost would rise to $260 for an individual and $520 for a family. Active-duty service members and their families are not charged for Tricare.

Marshall Hanson of the Reserve Officers Association agreed with Moakler, telling the House Armed Services Committee's military personnel subcommittee that the increase would be a "modest rise" and not excessive.

But Rick Jones of the National Association of Uniformed Services labeled it a "Trojan horse designed to divide Congress and divide military associations' support."

Jones and Steve Strobridge of the Military Officers Association of America restated the long-standing argument of veterans groups that low-cost health care benefits are owed to retirees for their contribution to the country.

"The bulk of what military people pay for their health care is paid up front in terms of service and sacrifice," said Strobridge, a retired Air Force colonel.

All six veterans organizations whose representatives testified Wednesday before Congress object to a companion proposal to gradually raise health care fees in future years as military health expenses increase.

Veterans fear that more and more costs will be pushed onto them as the military tries to deal with rising expenses, said Deirdre Holleman of the Retired Enlisted Association.

"The primary mission of the military health care system is readiness," Holleman said, and the cost increases should be shouldered by the entire country, not just veterans.

Defense Secretary Robert Gates, who included the fee increases last month in his proposed 2012 budget, has repeatedly warned that fast-rising health care costs pose a threat to the military. Pentagon officials have said the cost of health care, $19 billion in 2001, will rise to an estimated $52 billion in 2012.

Jones said retirees and their families are being made to pay for increases that are not their fault.

"The blame for the dramatic rise of military health care costs is the war, not military retirees," Jones said. "These benefits were earned the hard way. They are part of the moral contract."

When questioned by members of Congress, the veterans group leaders expressed support for several other changes to Tricare that are intended to save money. Among them: greater use of mail-order prescriptions for regular medication, establishing a modern computerized record-keeping system, and setting up a central medical command, rather than having multiple commands among the branches of service.

U.S. Rep. Niki Tsongas, D-Mass., asked if the panelists would support a graduated fee system in which higher-ranking retirees - some of whom collect six-figure annual pensions - would pay more for Tricare than those with pensions of less than $20,000 a year.

The answer was no.

"You earn the package by your service," not by the size of your pension, Strobridge said.

During a similar hearing on Tuesday, Pentagon officials said they didn't consider a graduated fee or step increase because the proposed changes are so small.

What about only applying the higher fees for care to new veterans, asked U.S. Rep. Mike Coffman, R-Colo.

Again, the answer was no.

"Creating a population of haves and have-nots is never a good thing in the military," Moakler said.

Bill Bartel, (757) 446-2398, bill.bartel@pilotonline.com