Military Officer - February 2008 - (Page 35) washingtonscene Military Benefits Unfair to Taxpayers? DoD task force says yes mulary), and $22 (non-formulary) to $15, $25, and $45, respectively — significantly greater increases than those previously proposed by the Pentagon. MOAA’s first-blush reaction to the proposals is (a) they impose means-tested premiums that aren’t imposed on any other federal health benefits, and (b) they focus almost exclusively on DoD costs and very little on what level of benefit career military people earn by virtue of their decades of service and sacrifice. In other words, focusing only on cash fees ignores that military people pay far larger premiums than any civilian — but pay them up front and in-kind. When asked that question directly, one of the commissioners answered, “That’s for Congress to decide.” MOAA believes that should have been a key topic in any even-handed report. Protect yourself by signing and mailing the four tear-out letters (addressed to House and Senate Armed Services committee leaders) located in this issue. T he DoD Task Force on the Future of Military Health Care released its final report Dec. 20, 2007, and the results were pretty much as expected. The report said the relatively low health fees paid by military retirees versus the growing cost of military health benefits are “out of step with overall trends in the U.S. health care system” and “unfair to the U.S. taxpayer.” The task force, cochaired by Gen. John D.W. Corley, USAF, commander, Air Combat Command, and economist Dr. Gail Wilensky, recommended retiree fee increases generally patterned after those DoD has recommended for the past two years. Under the task force’s plan, fees would be stratified in three tiers, based on the amount of a servicemember’s military retired pay. Most retired officers with families covered under TRICARE Prime would pay an annual enrollment fee of $780 for 2008, with the fee rising steeply to $1,800 a year by 2011 — about four times the $460 they pay now. Those in TRICARE Standard would end up paying about $1,100 a year in enrollment fees and deductibles — again, virtually quadrupling the current $300. Medicare-eligibles would have to start paying a new annual enrollment fee — $120 a year by 2011. Any beneficiary who didn’t pay the TRICARE For Life enrollment fee also wouldn’t be allowed to use military pharmacies. Speaking of pharmacy coverage, the task force recommended raising copayments for retail pharmacy users from the current $3 (generic), $9 (brand-name for- COLA Watch ■ In mid-December 2007, the Bureau of Labor Statistics announced the monthly CPI for November. Amid a sharp rise in energy costs, inflation shot up 0.8 percent above October’s CPI. At press time, inflation for the fiscal year stood at a cumulative 1.1 percent. Lump of Coal on G.I. Taxes Hill squabbles left troops in lurch H .R. 3997, the Defenders of Freedom Tax Relief Act of 2007, certainly sounds like a mom-andapple-pie bill, doesn’t it? Every single senator and representative apparently thought so, too. Enough so that, within one month, the House and Senate each passed it unanimously — twice. The problem is that every time it passed, it was a slightly different version, and the House and Senate never passed the same one before Congress adjourned for the year. The bill calls for a range of tax relief for military members, their families, and some small busi- [CONTINUES ON PAGE 38] FEBRUARY 2008 MILITARY OFFICER 35
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.