March 2007

ARMED FORCES NEWS
BILL WOULD ALLOW PRE-TAX INSURANCE PREMIUMS
March 9, 2007

H.R. 110, introduced by Rep. Tom Davis, R-Va., and 28 co-sponsors, would allow active-duty troops as well as federal and military retirees to pay health insurance premiums with pre-tax dollars. Federal civilian employees already have this premium conversion benefit. The plan could save troops and retirees as much as $820 a year, according to government estimates. However, unless more co-sponsors sign on, passage is not considered likely because of the estimated $12-billion lost tax revenue over 10 years. 
 

ARMED FORCES NEWS
COALITION: FORGET HIGHER TRICARE FEES

March 30, 2007


Five leaders of The Military Coalition (TMC) of more than 30 associations told the Task Force on the Future of Military Healthcare March 7 that proposed huge increases in Tricare fees for retirees under age 65 are absolutely unwarranted. They exemplified their complaint in a brochure from the Military Officers Association of America (MOAA) that says military retirees’ premiums have been "paid in full through decades of arduous service and sacrifice." TMC members pointed out that the Defense Department has yet to act on almost two dozen alternative cost-saving moves that MOAA has proposed. Retired Air Force Col. Steve Strobridge, TMC co-chair and MOAA representative, reminded the task force of the financial impact upon the under-65 retirees from active-duty pay caps imposed on them in the 1980s and ‘90s. Those who retired in 1995, for example, lost 12.6 percent of their retired pay due to Tricare fees. 
 

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