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Considerable discussion has taken place on ROA’s position on TRICARE fees as communicated by the Association’s President and Executive Director. Why did ROA choose not to join the entire position of The Military Coalition? Because we could not agree with all elements of that position.
BACKGROUND
1. Any position taken by ROA must be consistent with its Charter. We must promote and support positions that will “provide adequate national security.”
2. TRICARE for serving Reserves and for Retirees is an “earned benefit” that ROA should fight to sustain and continue. Failure to control costs on medical care supports the argument made by some Defense Department leaders that “DoD must get out of the health care business.” Such an abandonment by DoD would be a disaster for military people and families.
3. Senator Lindsey Graham, the Senate’s only serving Reserve and a former ROA Minuteman of the Year, noted that the Congress and DoD must gain control for the cost of military health care, especially in time of war.
4. Congress’ original intent was for retirees to pay 27 percent of the total TRICARE cost. Out of pocket contributions by retirees have not increased for 11 years. During that period, the actual cost of health care has gone up dramatically – probably double.
5. ROA believes that the true costs of DoD health care has not yet been reliably established.
TRICARE PRIME
1. GAO is currently studying health care costs for serving and retired military members and their families. Premiums and co-pays should not be increased until GAO completes that study and determines the true current cost of DoD health care.
2. Increases in the retiree share (once the true costs are determined) cannot be “caught up” in one or two years. Bringing the retiree share back to the original Congressional intent should be gradual.
3. DoD health care costs should not be tied to those of the Federal Employee Health Benefits Plan or other commercial premiums.
TRICARE STANDARD
1. ROA opposes an annual enrollment fee.
2. The retiree cost share adjustment should operate as part of the deductible once that cost is determined.
3. Retiree cost share should be determined by using the total cost, not just selected parts.
4. TRICARE STANDARD costs should not be carried over to TRICARE Reserve Select (TRS). This provision – directly applicable to serving Reserve personnel – was not even discussed by The Military Coalition.
PHARMACY COSTS
1. ROA supports eliminating all deductible amounts for mail-order prescriptions.
2. Mail-order only should be required for refills after initial prescriptions have been filled.
Cost-Saving Measures Recommended to DoD by The Military Coalition
ROA has long supported such efforts, and continues to do so.
CONCLUSION
The flexible approach outlined above is consistent with the Association’s charter and we believe it is the approach that will best preserve the important health care benefits that military personnel – both Active and Reserve, serving and retired – have earned. This balanced approach to a very difficult problem has been commended by Senator Graham and many Congressional leaders.
/s/Robert W. Smith III
Major General, USAR (Ret.)
President, 2005–2006
/s/Dennis M. McCarthy
Lieutenant General, USMC (Ret.)
Executive Director
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