The House has approved a demonstration project allowing thousands of military retirees to enroll in the Federal Employees Health Benefits Program.
Under a provision in the 1999 Defense Authorization Act, which the Senate is considering this week, Medicare-eligible retirees and their families would be able to enroll in FEHBP in January 2000. FEHBP will act as a secondary payer for services not covered by Medicare. Up to 66,000 retirees in six to 10 areas around the country will be allowed to participate in the program.
Military retirees' insurance cuts off at age 65, when Medicare kicks in. Base closures, downsizing and consolidation of Defense Department health facilities have raised concerns among retirees about the quality of care provided to former service members.
The legislation allows for a three-year demonstration project to evaluate the costs and benefits of allowing military retirees to participate in FEHBP. The Congressional Budget Office estimates that allowing all Medicare-eligible military retirees to join FEHBP would cost $1.9 billion per year.
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