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More TRICARE Changes Planned

May 18, 2011
Terry Howell,

“Age-Out” Planned for USFHP Enrolled Retirees

The Defense Depart­ment has gained some sup­port in the House of Rep­re­sen­ta­tives for a DoD bud­get plan that would force retirees out of the U.S. Fam­ily Health Plan and into TRICARE For Life at age 65. This cost sav­ing move would report­edly save DOD $739 mil­lion in mil­i­tary health care costs in the first year and $3.2 bil­lion over the next 10 years.

A DoD offi­cial, referred to this move as a way to ensure equi­table treat­ment for all Medicare-eligible mil­i­tary retirees, since cur­rently USFHP enrolled retirees are not required to enroll in TFL while all other Medicare-eligible mil­i­tary retirees are required to tran­si­tion from TRICARE to TFL at age 65.

USFHP is a TRICARE Prime option which is offered in spe­cific regions through­out the U.S. includ­ing most of the north­east, and parts of Texas, Louisiana, and Wash­ing­ton. The USFHP option saves eli­gi­ble retirees $96 a month in Medicare Part B pre­mi­ums.

If the plan gains Con­gres­sional approval, cur­rent USFHP enrollees over age 65 would be excluded from the TFL require­ment; how­ever, all cur­rent working-age retirees would be “aged-out” of the USFHP as they become Medicare eligible.

And now… the rest of the story. …..

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