washingtonscene
LEGISLATIVE NEWS THAT AFFECTS YOU Singled Out?
TRICARE beneficiaries continue to be easy targets in budget- balancing schemes, despite shouldering the burden of numerous other DoD cost-cutting initiatives.
T
RICARE beneficiaries are doing more than their fair share to decrease military per-
sonnel costs. In 2014 alone, beneficiaries were responsible for 80 percent of the savings achieved by the Defense Health Agency (DHA). Singling out beneficia- ries instead of cutting costs within the department continues to be the fiscal answer for DoD and some members of Congress, who are poised to increase TRICARE fees in the FY 2016 Defense Authorization Bill. Over the past five years, military beneficiaries have shouldered the majority of DoD’s cost-cutting initia- tives, including: TRICARE fee increases. Since 2011, TRICARE Prime annual fees and co- payments have increased 20 percent. Although automatic annual fee increases now are in- dexed to COLAs, Congress initially imple- mented a “one-time catch-up.” Pharmacy copayment increases. Phar- macy copayments vary by class, but ben- eficiaries now pay 60 percent more for their medicine than they did in 2011. TRICARE Pharmacy Home Delivery
program. In 2013, Congress forced TRI- CARE For Life beneficiaries to refill most maintenance medications by mail order. Imposition of this mandate restricted choice for beneficiaries and reaped huge
savings for DoD. Home delivery saved DoD $215 million in 2014 alone. In Octo- ber, the home-delivery program expands to serve active duty family members and retirees under age 65 (see page 34). Reduction in TRICARE Prime service
needs to look at other ways to save money before raiding the wallets of TRICARE beneficiaries.
Congress
areas. In 2013, changes to regional TRI- CARE contracts reduced Prime service areas to a 40-mile radius from military treatment facilities. Over 180,000 Prime enrollees were transferred into TRI- CARE Standard. Although Congress passed a one-time exception a year after implementation, tens of thousands of benefi- ciaries were affected. The majority of DoD’s sav-
ings have been on the backs of beneficiaries. When DoD actually finds ways to cut costs, savings are not passed on to the beneficiary. For example, DoD negoti-
ated federal pricing for pharmaceuticals and recouped more than $1.3 billion in refunds from overpayments. Despite DoD paying less for medica-
tions, beneficiaries continue to pay more. In this year’s defense budget, if DoD has its way, pharmacy copayments could triple over the next decade.
Military beneficiaries continue to pay
more and get less. MOAA thinks Con- gress needs to look at other ways to save money before raiding the wallets of TRI- CARE beneficiaries.
OCTOBER 2015 MILITARY OFFICER 33
Where Do Your Legislators Stand? Turn to page 35 to see your legislators’ statuses as cosponsors of MOAA- supported bills. Visit
www.moaa.org/takeac tion to send a message to your elected officials asking them to support key legislation that af- fects the military.
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