FW: [RxNews] Pentagon seeks to triple health insurance premiums for vets - from Suddenly Senior

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They couldn't just but one less stapler???

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Pentagon seeks to triple health insurance premiums for vets

 

Some see hardships, breaking of promise

 

By DAVID GOLDSTEIN

KNIGHT RIDDER NEWSPAPERS

2/18/2006

 

WASHINGTON - To slow its rising medical expenses, the Pentagon wants to

triple the insurance premiums for its 3 million military retirees and

their families.

 

Veterans and their advocates said the plan would create a financial

hardship and violate the military's pledge to volunteers who wear a

uniform for 20 years or more.

 

" I think it breaks with the promise the Department of Defense has

implied all these years, which is men and women who have dedicated their

lives to service, who have fought wars and defended the nation, would

get health care for life, " said retired Army Col. Michael Neer of

Overland Park, Kan., president of the Kansas City area chapter of the

Association of the U.S. Army.

 

The plan was tucked away amid the billions for new jet fighters and

warships that the Pentagon requested this week in its proposed budget

for the fiscal year that will begin Oct. 1.

 

William Winkenwerder Jr., assistant secretary of defense for health

affairs, said the increases were needed because the military's share of

the costs of retiree health benefits had risen 15 percent in the past

decade while the premiums had not been raised in 10 years.

 

" Our fundamental purpose is to maintain and sustain a really outstanding

health benefit for all of those we serve - active duty, families and

retirees - by placing the program on a sound fiscal foundation, " he

said. " That is it in a nutshell. "

 

The proposed increases would mean that the annual health insurance

premium for a retired officer under age 65 with family coverage would

more than triple - rising to $1,400 from $460 - by 2008. Premiums in the

next two years for a retired officer with single coverage would jump to

$700 from $230.

 

A retired noncommissioned officer younger than 65, who earns a smaller

retirement benefit than an officer, also would take a hit. Family

coverage, now $460 annually, would cost from $650 to $950 by 2008.

Single coverage, now $230 annually, would cost $325 to $475 in two

years.

 

After that, increases could come through higher co-pays, deductibles and

enrollment fees, said Pentagon spokeswoman Cynthia Smith. But she said

the net financial effect on retiree health benefits would be no higher

than the average health insurance increase for federal workers.

 

Federal workers, whose health insurance premiums can vary from state to state,

generally pay higher rates than the military.

 

 

 

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