Senators move to cap Tricare fee increases - Air Force News | News from Afghanistan & Iraq - Air Force Times

Senators move to cap Tricare fee increases

While the Bush administration appears to backpedal on a budget proposal to raise Tricare fees for military retirees and reservists, two senators — one a Democrat and one a Republican — have moved to cap fee increases.

The Department of Defense budget includes an assumption that $1.86 billion will be generated for military health care by doubling Tricare fees for senior enlisted retirees and tripling fees for retired officers.

At a Tuesday hearing, the Pentagon’s chief health official, Dr. William Winkenwerder, tried to pass off the $1.86 billion as a “placeholder” just in case an independent task force now looking at defense health care approved a fee increase. But members of Congress aren’t convinced that the Department of Defense is really open-minded about the fee increases.

If Task Force on the Future of Military Healthcare does not recommend fee increase when it issues a report later this year, or if Congress does not approve of the fee increases, the health care budget would be $1.86 billion short. A final report from the task force is expected in May, about the same time that the House and Senate armed services committees will start writing their versions of the 2008 defense authorization bill.

Winkenwerder was asked if there is a backup plan if the fee increases were not approved. He said there was a plan, but did not say what it might include.

Frank R Lautenberg, D-N.J., and Chuck Hagel, R-Neb., introduced a bill on Thursday that would allow but cap Tricare fee increases. Any jump in fees, deductibles and co-payments for Tricare coverage or pharmacies would be limited to the percentage increase in military pay. That would be retired pay for retirees and basic pay for active-duty members and reservists.

The bill, S 604, would not be binding, however. It asks but does not demand that the fee increases be limited, leaving open the possibility that the Department of Defense could act in defiance of Congress even if the measure passed. However, the bill is unlikely to pass on its own, so there is plenty of time to make changes, including making it binding.

Rep. Vic Snyder, D-Ark., the House military personnel subcommittee chairman who questioned Winkenwerder about the Pentagon’s intentions on Tuesday, said he is not opposed to any fee increase, but thinks the Pentagon plan is excessive in proposing to double and triple costs in a single year.