Lawmakers consider seeking review of plans for Tricare fee hike

House Armed Services Personnel Subcommittee Chairman John McHugh, R-N.Y., is considering an independent review of Pentagon plans to raise healthcare premiums and other fees for military retirees under the age of 65.

"My instincts tell me it would probably behoove us to take some kind of dispassionate, third-party view," McHugh said in an interview Thursday. The review, he added, could be conducted by GAO or an outside firm to provide an in-depth look at the proposal, which Pentagon leaders say would save $735 million in fiscal 2007 and $11 billion over the next five years.

Senate Armed Services Personnel Subcommittee Chairman Lindsey Graham, R-S.C., called for a similar review during a hearing Tuesday.

While the fee increases could help offset the military's burgeoning TRICARE healthcare bills, McHugh and other lawmakers are concerned the plan would burden retirees, including veterans returning from Iraq and Afghanistan. "It troubles me somewhat morally," McHugh said.

A strong and vocal coalition of military organizations opposing the plan estimates it could cost some retirees an additional $100 a month. McHugh, who last year was wary of the hefty costs associated with Congress' decision to expand TRICARE benefits, said he recognized the potential for savings in the Pentagon's proposal.

If the defense committees opt to overturn the department's decision, the money might have to come from somewhere else in the defense budget, he said. As a compromise, McHugh said he might favor incremental fee boosts for retirees over the next several years.

Administration officials say TRICARE cost shares and fees have not been adjusted in 11 years, while most other healthcare programs have substantially increased.

House Armed Services Personnel Subcommittee ranking member Vic Snyder, D-Ark., said he had not talked to McHugh about the third-party review but agreed it could be helpful as the committee considers the fiscal 2007 budget request. Like McHugh, he emphasized that the panel must give the matter --including the Pentagon's cost arguments --careful consideration before making a final decision.

This year, the military expects to spend 8 percent of its budget, or $37 billion, on healthcare programs --twice what the department spent five years ago. If premiums and other fees remain unchanged, the military is on track to spend $64 billion on healthcare in fiscal 2015.

Other House lawmakers are attempting to stop the cost hikes outside of the defense appropriations and authorization processes. Earlier this week, Rep. Walter Jones, R-N.C., a House Armed Services member, and House Military Quality of Life Appropriations ranking member Chet Edwards, D-Texas, introduced a bill that would thwart the fiscal 2007 TRICARE proposal.

It also would change current law that allows the Pentagon to alter healthcare fees without the blessing of Capitol Hill. The bill has 77 co-sponsors, including several Republican members of the Armed Services Committee. The Military Officers Association of America, which helped write the House bill, is looking for senators to sponsor similar legislation.