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LEGISLATIVE NEWS THAT AFFECTS YOU Modest Fee Hike?
The secretary of defense says billions will be cut in the defense budget, affecting nearly all areas of defense spending — including a proposed increase in TRICARE fees for retirees under age 65.
O
n Jan. 6, Secretary of De- fense Robert Gates outlined an ambitious plan of cuts and effi-
ciencies to squeeze more than $78 billion in savings from the defense budget over five years. The proposal included a wide range of changes that would affect all facets of defense spending — including civil- ian and uniformed personnel, command structures, weapons systems, intelli- gence, and benefits. As he has done repeatedly in recent
months, Gates told reporters health care costs are “eating the department alive,” in part because working-age retirees who have access to civilian health care coverage are foregoing that coverage to use TRICARE. Gates said the FY 2012 defense budget
will propose “modest” increases in fees for retirees under age 65 and propose adjusting those fees every year at the rate of medical inflation. MOAA will reserve judgment on what
constitutes modest increases until we see the numbers. However, back in 2007 and 2008, when Gates also was serving as secretary of defense, he proposed in- creasing fees by $1,000 to $2,000 a year. MOAA thinks that proposed increase fell well outside the accepted meaning of modest.
Gates also noted military retirees pay significantly lower fees than federal ci- vilians do for their health care.
MOAA thinks any such comparison is bogus if it doesn’t explicitly acknowledge career servicemembers and their families prepay — through decades of arduous service and sacrifice for their country — far greater premiums for their future health care coverage than any civilian. In recognition of those extraordinary
prepaid premiums, MOAA thinks the percentage growth in military health care fees shouldn’t exceed the percent- age growth in retired pay. Among other initiatives, the FY 2012 budget will propose: • reducing future Army and Marine Corps active duty forces — by 27,000 and 20,000-25,000, respectively — starting in FY 2015; • dramatically reducing the number of DoD contractors (nearly 800 in TRI- CARE alone); • eliminating or downgrading more than 100 general officer billets and 200 senior civilians; • canceling the Marine Corps expedi- tionary fighting vehicle; and • consolidating intelligence and informa- tion technology programs. When this article went to press in
late January, MOAA still was awaiting details of the proposal, which was to be formally laid out in the president’s Feb. 14 submission of the FY 2012 budget to Congress. Check back in April’s issue of Military Officer for more information and updates about the proposal.
*alert: On Feb. 14, we will know what specific TRICARE fees are proposed. MARCH 2011 MILITARY OFFICER 33
Debt Commission What did the National Commission on Fiscal Responsibility and Reform propose to ease America's growing debt problem, and how would the recommendations affect you? See "High Stakes," page 80.
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