To reduce the imbalance of a steadily ballooning federal deficit, the Congressional Budget Office has published a list of options to reduce the nation deficit over the next ten years. Three of those options will impact Tricare and six of those options will impact veterans’ healthcare benefits (Elmendorf, 2015.) In a recently published plan, the CBO identified 121 opportunities to reduce the deficit, among those are, raising Tricare enrollment fees for retirees and reducing veterans’ benefits (Foster, 2012). Additionally, enrollment fees will be instituted for Tricare for life beneficiaries as well. This is not the first time that the CBO has recommended raising enrollment for working-age retirees, this is the fourth time. By raising Tricare enrollment fees, the CBO suggest that the deficit could be reduced by 12.6 billion dollars.
In order to accomplish this, the CBO recommends that the Department of Defense more than doubles the annual enrollment fees for service members and their families. This would mark a drastic change because currently retirees do not pay enrollment fees. Tricare Prime, Tricare Select, and Tricare for life would all acquire new fees. If this option is adopted it would result in a total of 485.00 per individual and 970.00 per family (Foster, 2012).
In a large military medical center, active duty personnel and retirees make up about 75% of the total population. If these patients can no longer afford Tricare, they may have to opt out and venture into the private sector. Beneficiaries, including active duty families who receive care at military treatment facilities, may be forced to seek it in the Tricare networks. Fewer patients means fewer providers. Pharmacy, lab, and radiology services may be greatly reduced.
References
Richard S. Foster, Chief Actuary, Centers for Medicare & Medicaid Services, Estimated Financial Effects of the “Patient Protection and Affordable Care Act,” as Passed by the Senate, January 8, 2012 Available at http://www.cms.hhs.gov/ActuarialStudies/Downloads/S_PPACA_2010-01-08.pdf.
Elmendorf, Letter to the Honorable Nancy Pelosi, p. 15.
In order to accomplish this, the CBO recommends that the Department of Defense more than doubles the annual enrollment fees for service members and their families. This would mark a drastic change because currently retirees do not pay enrollment fees. Tricare Prime, Tricare Select, and Tricare for life would all acquire new fees. If this option is adopted it would result in a total of 485.00 per individual and 970.00 per family (Foster, 2012).
In a large military medical center, active duty personnel and retirees make up about 75% of the total population. If these patients can no longer afford Tricare, they may have to opt out and venture into the private sector. Beneficiaries, including active duty families who receive care at military treatment facilities, may be forced to seek it in the Tricare networks. Fewer patients means fewer providers. Pharmacy, lab, and radiology services may be greatly reduced.
References
Richard S. Foster, Chief Actuary, Centers for Medicare & Medicaid Services, Estimated Financial Effects of the “Patient Protection and Affordable Care Act,” as Passed by the Senate, January 8, 2012 Available at http://www.cms.hhs.gov/ActuarialStudies/Downloads/S_PPACA_2010-01-08.pdf.
Elmendorf, Letter to the Honorable Nancy Pelosi, p. 15.