Legislators prepare bill to thwart proposed Tricare fee hike

After wrangling with the Pentagon for weeks over a cost-cutting plan to raise healthcare fees for military retirees under age 65, at least 20 lawmakers are expected to sign on to a bipartisan bill that would block the Defense Department from acting without congressional consent.

Rep. Walter Jones, R-N.C., a member of the House Armed Services Committee, and House Military Quality of Life Appropriations ranking member Chet Edwards, D-Texas, will introduce the legislation Wednesday, their offices said Monday afternoon.

If it succeeds, the bill would thwart Pentagon efforts to leverage the increased fees for military retirees to offset skyrocketing healthcare costs. It also would change current law, which allows the Pentagon to alter healthcare fees without the blessing of Capitol Hill.

"For some retirees, this means increases of up to $1,000 to their annual payments," according to a written statement from Jones' office. "We must pass legislation now that blocks this massive burden from being placed on their shoulders."

The Pentagon's plan, outlined in the department's fiscal 2007 budget request, would increase enrollment fees and deductibles on a sliding scale based on rank at retirement. It also would raise retail pharmacy co-payments and reward retirees for using mail-order services for generic prescriptions.

Pentagon leaders estimate the proposal would save $735 million in fiscal 2007 and a staggering $11 billion over the next five years.

But "sense of Congress" language in the draft bill asserts that the Pentagon would generate a large portion of those savings from retirees who opt to use private-sector health insurance plans instead of their "earned military benefits."

The language also indicates that the affordable Tricare system is a crucial recruiting and retention tool, particularly at a time of war.

"The primary offset for enduring the extraordinary sacrifices inherent in a military career is a system of extraordinary retirement benefits, including health care coverage ... that a grateful nation provides for those who choose to subordinate much of their personal life to the national interest for so many years," according to the draft.

The Tricare proposal has ignited the powerful and expansive military grassroots base, which already has inundated congressional offices with thousands of letters and helped push the issue to the forefront of this round of budget deliberations.

"We've all been involved in supporting the issue and making some noise . . . about our unhappiness with the DOD plan," said Steve Strobridge, director of government relations at the Military Officers Association of America.

Indeed, Strobridge helped craft the Jones-Edwards bill, and is now looking for Senate sponsors for this or similar legislation. "We don't have anybody lined up yet, but I think we will," he said.

The Senate Armed Services Personnel Subcommittee has scheduled a hearing Tuesday on military health benefits, with defense officials and leaders of several veterans groups expected to address the Pentagon's proposed cost-cutting measures.

In fiscal 2006, the military expects to pay $37 billion for healthcare programs, which amounts to 8 percent of the Defense budget and $18 billion more than the department paid five years ago.

The Defense Department has not increased Tricare premiums since the program began in 1995. If premiums and other fees remain static, the military is on track to spend $64 billion annually on health care by 2015, according to Pentagon leaders.