LEGISLATIVE UPDATE
Military Retiree Healthcare Concerns Weigh Heavily on Congress
Healthcare: to the military retiree, this is a subject that enflames passion. Broken promises, earned benefits, healthcare for life; these phrases elicit emotions that motivate our senior members to take action at the grass roots.
But a simple promise does not make for a simple solution. When the military was a part of every state, military healthcare could be provided at numerous bases. Then with BRAC, healthcare providers at military hospitals and clinics were shutdown. CHAMPUS, which provided remote healthcare to military families, was expanded to provide healthcare for retirees as well. TRICARE, the current military health plan, grew from the CHAMPUS program. TRICARE was modeled on the private sector health plans with premiums, co-payments and an age 65 conversion to Medicare.
Pressures from the military retiree community grew. Retirees viewed this coverage as inadequate. Congress began to explore various demonstration programs to test different options to expand retiree healthcare. But these demonstrations took time, studies measured in years.
The specter of time weighs heavily on our military retirees; "looking into it" was not a correct answer. ADHOC groups formed. Letters were mailed, faxes were transmitted, e-mails were sent, phone calls were placed to Congressional offices. The center of gravity on defense issues shifted to military healthcare. A military retirees lobby, an alliance of grassroots and associations, pummeled Congress against the ropes.
This year's dramatic change is the Warner-Hutchinson Amendment to the FY01 Defense Authorization Bill. It is a step towards providing fully paid lifetime health care. If Warner-Hutchinson passes through conference, the military health care benefit will be improved. This should make it possible to drop Medicare Supplements. It is the intention of the Senate to waive the CHAMPUS/TRICARE deductible. If the proposal works correctly, Medicare would pay first, with CHAMPUS/TRICARE paying second and the retirees/family members/survivors would have no out of pocket cost. If enacted, implementation would take effect Oct 1, 2001.
Before the conference is also Pharmacy benefits for Medicare-eligibles. In addition to military installation access to pharmaceutical support, this would provide mail order and retail coverage. The Senate version is without enrollment fees or deductibles. The House version adds non-network retail, but with a 25 percent copayment and $150 deductible for non-network purchases.
Healthcare Highlights:(Both House and Senate)
- Pharmacy Benefits plan for retired military members over 64.
- Improve Business Practices in the administration of the TRICARE Program.
- Continue Federal Employees Health Benefits (FEHB) Test.
- Eliminate FTRICARE Prime copayments for active duty family coverage.
- Require a report on establishing Retiree Health Care Trust Fund.
(Senate)
- Make Medicare-eligible beneficiaries eligible for TRICARE (Prime and Standard) provided they are enrolled in both Medicare Part A and B.
- Inactive Reserve members of the Public Health Service Corps can augment the Army Medical Department.
- Require a DOD report on feasibility of providing care for retirees living overseas.
(House)
- Extend TRICARE Senior Supplemental Program for one year.
- Extend TRICARE Senior Prime Demonstration Program.
- Extend TRICARE FEHBP Demonstration Program for one year.
- Improve TRICARE claims processing.
- Reimburse TRICARE beneficiaries for travel over 100 miles to a referral medical site.
- Reduce catastrophic cap for retirees in TRICARE Standard from $7500 to $3000.
- Make Reservists who suffer heart attack or stroke during drill eligible for VA disability or burial benefits.
Why should military retiree healthcare be a concern to a drilling reservist? Healthcare affects us at retirement as TRICARE coverage is a benefit at age 60, and without legislation, it lasts only through age 64 years.
These items have yet to be passed in a final Defense Authorization Bill. The bill is in Conference. While Congress is in the August recess (ending Sept 5, 2000), staff members are meeting to work out details. The bill should be finalized in September, as final adjournment of the 106th Congress is tentatively planned for Oct 6, 2000.
In an independent act, Long Term Care Insurance has been signed into law. A benefit to federal employee, active and reserve military, this is a self-insured program with a pool of 13 million members. This should equate to between a 10-15% discount below current market insurance plans. Drilling reservists and retirees in pay are eligible to participate. Gray area retirees are not included in current legislation, but we will continue to work this as a future correction. In building the plan, it is anticipated that application will not be available until the Fall of 2002.
While Congress may not have meet the expectations of many of our members, this year's bill should be viewed as steps in the right direction. Continued demonstration of grassroots opinion will help direct Congress in the future.