Pentagon extends reservists' health care coverage

The Pentagon announced Thursday that it will extend the Transitional Assistance Medical Program to allow reservists to keep their military health coverage for 180 days after they are demobilized.

The fiscal 2004 National Defense Authorization Act called for a number of experimental measures to support medical readiness and ensure that reservists are prepared for deployment. Under the legislation, reservists and their families will be eligible for the Defense Department's Tricare health coverage as soon as they are alerted of their pending mobilization. The authorization act also extends the Tricare coverage to some reservists who have not been moved to active duty but do not have private health care. Officials are hopeful the moves could help recruitment and retention efforts.

The measures are set to expire at the end of the calendar year, when lawmakers will determine if the rules should be extended. Defense officials said, however, that the experimental program might need to be extended before any decision is made.

"A change of benefits of this magnitude has to be very clearly thought through," said Air Force Surgeon General Lt. Gen. George Taylor.

The massive activation of military reservists for overseas deployment and swelling private health care costs are increasing the number of military personnel and retirees who are using the Defense Department's health care system, according to William Winkenwerder, the assistant defense secretary for health affairs.

"Health, as a percentage of DoD [spending], is likely to rise," Winkenwerder said during a Thursday hearing of the House Armed Services Subcommittee on Total Force.

In 2003, Defense Health Program officials saw a 7 percent increase in new users. Winkenwerder told House lawmakers that he expects another 7 percent increase in 2004 as well.

"This growth is the result of increased health care costs in the private sector, and the consequent election of [Military Health System]-eligible beneficiaries, mainly our retirees, to drop private insurance coverage," he said. "Activation of reserve component members adds to the number of MHS-eligible beneficiaries."

Winkenwerder said that the White House is requesting more than $17 billion for the Defense Health Program in fiscal 2005, an increase of 15 percent over the fiscal 2004 appropriation. The total Pentagon healthcare spending in fiscal 2005, including retiree costs, is projected to pass the $30 billion mark.

Early this month, Senate Appropriations Chairman Ted Stevens, R-Alaska, questioned the Pentagon over a projected $700 million shortfall in fiscal 2004 for the Defense Health Program. Pentagon Comptroller Dov Zakheim said the funding deficiency, which resulted from spending on overseas military deployments, would be covered with redirected funding from the fiscal 2004 budget.