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 substantially reduced the DoD-proposed copayment increases for FY 2013;  put a statutory cap on any increases after FY 2013, so the percentage increase in phar- macy copayments in any year couldn’t ex- ceed the retired pay COLA percentage; and  to pay for these, established a five-year pilot program that would require TFL beneficiaries to use the mail-order system for at least one year to refill any main- tenance medications (waivers would be allowed under certain hardship or other conditions); after one year, beneficiaries could opt out of mail-order participation. What copayment reductions would the


House plan buy with the mail-order offset? The chart below contrasts how copay- ments would change over the next five


years under the House proposal versus the DoD/Senate plan. Compared to the DoD/Senate plan, the


House-passed plan would:  cut retail copayments by about 40 per- cent below the DoD plan;  keep access to non-formulary medica- tions in retail stores;  cut mail-order copayments by more than 50 percent for brand-name medications;  Cut mail-order copayments by 25 per- cent for non-formulary medications; and  keep mail-order copayments at zero for generic medications. Without the House-proposed statutory cap on future increases, we’ll be held hos- tage to bigger copayment increase propos- als every year. But if the COLA-based cap


DoD/Senate vs. House-Passed Pharmacy Copayments


The table shows the differences over the next five years between the House plan and the DoD/Senate proposal for TRICARE pharmacy copayment increases.


Retail


Generic DoD/Senate House


Brand name DoD/Senate House


Non-formulary DoD/Senate House


Mail Order


Generic DoD/Senate House


Brand name DoD/Senate House


Non-formulary DoD/Senate House


FY 2012 FY 2013 FY 2014* FY 2015* FY 2016* FY 2017* $5


$5 $5


$12


$26 $17


$25 ** $44 ** $45.32 ** $46.68 ** $48.08 ** $49.52


FY 2012 FY 2013 FY 2014* FY 2015* FY 2016* FY 2017* $0


$0 $0


$9


$26 $13


$25


$51 $43


*Assumes 3-percent annual COLAs **Non-formulary medications wouldn’t be available in retail pharmacies under the DoD/Senate plan $54 $44.29 $58 $45.62 $62 $46.99 $66 $48.40 $28 $13.39 $30 $13.79 $32 $14.20 $34 $14.63


$0 $0


$0 $0


$0 $0


$9 $0


$28 $17.51 $30 $18.04 $32 $18.58 $34 $19.14 $6 $5.15 $7 $5.30 $8 $5.46 $9 $5.62


34 MILITARY OFFICER AUGUST 2012


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