Military Update: Health Bills Won't Hurt Troops, Vets

The Military Officers Association of America, the Fleet Reserve Association of America, the American Legion and other veterans’ service organizations have studied both bills. Their reviews, and assurances they’ve received from committees, give them confidence that the bills won’t impact Tricare or VA benefits, nor will those beneficiaries be exposed to any new tax liabilities.

“We have not talked to anybody – Republican, Democrat, anyone in the administration or serving in Congress — who is trying to do anything to affect military people” as part of national health reform legislation, said Steve Strobridge, Military Officers Associaiion’s director of government relations. “They all are trying to hold military beneficiaries harmless.”

Steve Robertson, legislative director for the American Legion, said he has assurances from the armed services committees, veterans’ affairs committees and congressional leaders including House Speaker Nancy Pelosi that health reform will not impact Tricare programs or VA health care.

“My comfort level is pretty high,” Robertson said.

Confusing the issue for many beneficiaries has been an e-mail circulating among military retirees that warns falsely that the Congressional Budget Office has drafted legislation to attach new fees to Tricare for Life, the prized insurance supplement relied on by Medicare-eligible retirees.

The e-mail is filled with misinformation. the budget office has no authority to draft legislation. It did release a report last December presenting options for holding down federal health care costs and a few of those options would raise fees on military retirees and veterans.

But neither the Obama administration nor any members of Congress have embraced any of these ideas.

“Everyday I get to answer e-mails from people who are still telling me that this ‘CBO legislation’ is moving through rapidly,” said Robertson.

Other military retirees and disabled veterans are worried by news reports that national health care reform will impose an excise tax on “Cadillac” health insurance programs. Will that include Tricare or VA health care? It will not, say service groups and informed congressional staffs.

Strobridge noted that the Senate bill, the Patient Protection and Affordable Care Act, doesn’t contain the same specific language of the House bill does to shield Tricare programs and VA health benefits.

However, the Senate bill’s provision to allow an excise tax on “applicable employer-sponsored coverage” lists, among government plans, only the Federal Employees Health Benefits Plan for possible inclusion. Tricare and VA health care benefits are not named. Finance committee staffers have explained that this was intentional to shield these programs.

The military officer’s group has urged senators to add three clarifying provisions to their bill. One would duplicate language of the House bill that nothing in the legislation alters health care program authorities for Defense Department and VA.

Other language is sought to explicitly exclude military and veterans’ health care programs from excise tax on certain employer-provided plans. Finally, the group wants a study of national health reform’s impact on veterans.

Military people who seek assurance that the Senate health reform bill won’t impact them negatively end up “looking for something that isn’t there,” Strobridge said. The Senate, like the House, should make it clear, he said.
“There are lots of people out there who would like to raise military fees” on health benefits, Strobridge said. “But they are not trying to do it in this legislation.”

The only real threat to military and veteran benefits posed by national health reform, he said, is the likelihood that it will add to federal budget deficits and the national debt which is now $1.4 trillion. That will increase political pressure, over time, to curb federal entitlements including military health care and retirement plans, said Strobridge. Pressure on defense budgets already is enormous.

“What we’re concerned about is that budget pressure will drive arbitrary decisions. That is what has hurt us in the past,” said Strobridge. “Congress should take steps to spell out what military folks have earned.”

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