Forget the Pay Freeze: Start Worrying About Health Care Costs

Pay & Benefits Watch

Forget the Pay Freeze: Start Worrying About Health Care Costs

Buried in the news over the extended federal pay freeze, the impending fiscal cliff and the umpteenth continuing resolution to avoid a government shutdown is this fact: Many military retirees will be paying a little more for their health care as of Oct. 1.

Day 1 of fiscal 2013 means that some TRICARE Prime beneficiaries now will have to pay $39 to $79 more than they currently do in annual enrollment fees. Specifically, TRICARE Prime military retirees who enrolled in the health care program before Oct. 1, 2011, will pay an annual fee of $269.28 for individual coverage as of Oct. 1, 2012; those with the family plan will pay $538.56 per year under the adjustment. Those beneficiaries — all under the age of 65 — currently pay $260 per year in enrollment costs for the individual plan and $460 for family coverage. The 2012 National Defense Authorization Act allows for the annual increase of TRICARE Prime enrollment fees for most retired beneficiaries based on the annual cost-of-living increase. Continue reading “Forget the Pay Freeze: Start Worrying About Health Care Costs”