TRICARE Prime Increases for New Military Retirees

As of Oct. 1 2011, annual fees for TRICARE Prime coverage increased by $30 for individual military service members, and $60 for new military retirees with families.

Yet military families remain significantly less concerned with their ability to pay for medical care during retirement than those in the general population. Just 16 percent of service members are extremely or very concerned about healthcare, compared to 42 percent of the general population.

With the modest raise in TRICARE Prime, annual TRICARE fees amount to $260 per year for individuals, and $520 per year for retirees with families who are new to Tricare Prime coverage.

CURRENT RETIREES AND ACTIVE DUTY FEES ARE UNCHANGED

According to Dr. Jonathan Woodson, Assistant Secretary of Defense for Health Affairs Tricare's modest annual fee increase was responsible cost management without putting a large financial strain on military service members and their families.

Retirees who have been enrolled in TRICARE Prime will continue to pay their original rates until Oct. 1, 2012- $230 for individual military service members and $460 a year for military families.

ADDITIONAL TRICARE INCREASES?

In October 2012, annual TRICARE Prime fees may rise, based on the 2012 Defense Authorization Bill.

Active-duty service members and their military families continue to pay no annual fees for TRICARE enrollment. The TRICARE increase will not apply to survivors of deceased active-duty sponsors, medically retired military service members and eligible family members.

According to Tricare Management, co-payments for inpatient and outpatient services will also remain stable, with the catastrophic cap at $3,000.

TRICARE RATES INCREASE WITH RETIREE PAY

The 2012 Defense Authorization Bill includes a plan by Rep. Buck McKeon of California, chairman of the House Armed Services Committee, which would peg Tricare fee increases to the percentage rise in annual retiree pay.

McKeon's plan counters the Defense Department's proposition that would increase Tricare rates for working military retirees by 5 to 6 percent, on par with rising medical inflation.

According to a Congressional Budget Office analysis, McKeon's plan would be closer to an annual rate increase of only 2 percent per year.