Military retirees may see big jump in health care premiums

A Pentagon task force proposed dramatic increases Thursday in thehealth insurance premiums paid by more than 3 million military retireesand their families, warning that medical costs are growing faster thanthe federal budget or the U.S. economy.  The 14-member panel unveiled a complicated fee structure that wouldmore than double the annual cost of family coverage for 1.1 millionmilitary retirees under age 65, hiking their average fee from $460 to$1,100. While all those retirees would see fee increases, the exactamount for each would be tied to his or her pension, so those whoretired at a higher rank would pay more.  Another 1.9 million retirees over 65 also would bear added costs;the panel urged that they be charged a $120 annual enrollment fee ontop of the monthly premium – currently $96.40 for most retirees – theypay for Medicare’s Part B supplemental insurance.  More than 137,000 military retirees live in Virginia, according toDefense Department figures compiled in 2005; some 53,000 of those arein Hampton Roads, a group of Old Dominion University researchers  estimated in 2003.

The task force suggested that premiums remain unchanged for activeduty troops; most of those choose the military’s Tricare Prime program,which is provided free of charge.

Source/more:  Hampton Roads Pilot, http://hamptonroads.com/2007/12/military-retirees-may-face-big-bump-health-costs