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“First, it should acknowledge … that the military retirement and health care pack- age is the primary offset for the extraordi- nary demands and sacrifices inherent in a multidecade military career.” “Second, it should acknowledge those decades of service and sacrifice constitute a very large, prepaid premium for their health care in retirement, over and above what they pay in cash.” “Finally, it should explicitly acknowl- edge that extraordinary, up-front premi-
Monetary Impact of DoD-Proposed Fee Adjustment Methodology
MOAA strongly objects to the DoD proposal to link future TRICARE Prime fee increases to a health care cost index averaging 6.2-percent growth per year. This chart shows how that would dramatically escalate fees compared to capping adjustments at the retired pay COLA percentage.
Cap at Re- tired Pay COLA*
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
$460 $520 $536 $552 $568 $585 $603 $621 $640 $659 $678 $699 $720 $741 $764 $787 $810 $834
DoD Pro- posal ** Difference
$460 $520 $552 $586 $623 $661 $702 $746 $792 $841 $894 $949
$1,008 $1,070 $1,137 $1,207 $1,282 $1,361
$0 $0
$16 $34 $55 $76 $99 $125 $152 $182 $216
Year 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
$250 2040 $288 2041 $329 2042 $373 2043 $420 2044 $472 2045 $527 2046
Cap at Re- tired Pay COLA*
$859 $885 $912 $939 $967 $996
$1,026 $1,057 $1,089 $1,121 $1,155 $1,190 $1,225 $1,262 $1,300 $1,339 $1,379 $1,421
DoD Pro- posal ** Difference
$1,446 $1,535 $1,631 $1,732 $1,839 $1,953 $2,074 $2,203 $2,339 $2,485 $2,639 $2,802 $2,976 $3,160 $3,356 $3,564 $3,785 $4,020
**The DoD proposal assumes a 6.2-percent annual cost inflation factor.
$587 $650 $719 $793 $872 $957
$1,048 $1,146 $1,250 $1,364 $1,484 $1,612 $1,751 $1,898 $2,056 $2,225 $2,406 $2,599
*Uses the 3-percent long-term COLA assumption used by DoD actuaries for the military retirement trust fund.
um in the adjustment process, by limiting the percentage growth in TRICARE fees in any year to the percentage growth in military retired pay.” Rep. Joe Heck (R-Nev.), a currently
serving Army Reserve doctor, asked whether “working-age retirees” should be required to pay more if they use TRI- CARE. Strobridge said that raises an “irk- some” point for retired servicemembers who were told throughout their careers that enduring 20 years to 30 years of mili- tary service conditions would earn them lifetime health care. “No retention officer or NCO ever quali- fied that with ‘except if you take a civilian job,’ ” Strobridge said. “That’s why we want something in law specifying that service constitutes a large prepaid premium that civilians don’t have to pay.” Rep. Niki Tsongas (D-Mass.) asked whether fees should be based on a retir- ee’s amount of retired pay. Strobridge said no, noting health care is an earned benefit, not a need-based pro- gram. Federal civilian and legislators’ health care plans and the vast majority of civilian health care plans aren’t means-tested, and military health care shouldn’t be either, he said. The service and sacrifice itself consti- tutes the bulk of the military premium, he reiterated, and that’s the same for all grades.
Funding Foolery Budget politics are hurting
defense operations. M 32 MILITARY OFFICER MAY 2011
OAA President Vice Adm. Norb Ryan Jr., USN-Ret., wrote a letter March 4 to House
and Senate Appropriations committee leaders urging immediate action on the FY 2011 Defense Appropriations Bill to avoid forcing the Pentagon into temporary
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