Home News

NDAA Blocks TRICARE Fee Increase

In testimony, in correspondence and in discussions with legislators and staff, FRA’s Legislative Team consistently expressed concerns during the past year about the prohibition on TRICARE fee increases that expired at the end of FY2009. Despite assurances from Secretary of Defense Robert Gates that no fee increases would be implemented in FY2010, the prohibition expired on September 30^th and, as reported last week, DoD unexpectedly announced FY2010 increases of more than 20 percent for some TRICARE Standard beneficiaries who receive inpatient care at civilian hospitals and inpatient behavioral health services. The cost-share increases took effect on October 1, 2009.  

FRA’s National Executive Director Joe Barnes shared members’ frustration and concerns in a letter to Gates, asking him to “halt implementation of the fee hikes consistent with your commitment earlier this year.” 

In response to this and the advocacy efforts of FRA’s members and other Military Coalition organizations, House and Senate negotiators repealed the increase for FY2010 as part of the FY2010 National Defense Authorization Act (NDAA, H.R. 2647), which was approved by the House this week and is scheduled for Senate consideration next week. For the fourth consecutive year, military retirees under age 65 are not burdened by drastically higher TRICARE fees increases thanks to strong advocacy work and grassroots support from FRA, its members and others.

Other important health care provisions in the FY2010 NDAA include full funding for the Defense Health Program ($28 billion), and extended eligibility for TRICARE Standard to Reserve Component retirees under age 60 – so called “gray area retirees.” The bill also expands TRICARE health coverage for Reserve component members and their families from 90 days to 180 days prior to mobilization and provides continued dental coverage for children of service members who die on active duty. Special compensation for designated care givers who assist service members with catastrophic injuries or illness is also authorized when, in the absence of that assistance, the service member would require hospitalization or institutional care. The legislation also extends family medical leave to employees who are family members of deploying service member, and requires medical examination before administrative separation for service members with Post Traumatic Stress Disorder (PTSD) or traumatic brain injury (TBI).  

The bill also authorizes a 3.4-percent pay increase for active duty personnel (0.5 percent more than the Employment Cost Index, or ECI), extends the authority for the Defense Department to offer bonuses and incentive pay, and increases the maximum amount of Supplemental Subsistence Allowance from $500 to $1100 per month for junior enlisted members with dependents.  The bill provides $49 million to aid schools with large military populations, and also reduces barriers for military overseas absentee voting.

Despite the Administration’s unprecedented request to begin lifting the ban on the concurrent receipt of military retired pay and veterans’ disability compensation for “Chapter 61” retirees – those medically retired for service-related conditions before they could complete 20 or more years of service – the provision was dropped by conferees.  Also excluded were provisions eliminating the SBP/DIC (Survivor Benefit Plan/Dependency Indemnity Compensation) offset and authorization for retroactive retirement credit for mobilized Reserve Component members since 9/11/2001. (Currently Reservists get early retirement credit for service after January 28, 2009.)

The FY2013 Cost-of-Living adjustment (COLA) reduction was also eliminated from the legislation thanks in part to the nearly 3,000 shipmates who contacted their elected officials on this issue.

More information about the TRICARE fees and other provisions of the NDAA are discussed in Tom Philpott's syndicated "Military Update" column (10-8-09).