New Health Care Premiums for Certain Retired Reservists Take Effect

The Defense Department put the finishing touches on a four-year-old program that provides health care coverage to retired reservists, just before the 2015 premium rates took effect on Jan. 1.

Defense published its final rule on TRICARE Retired Reserve on Dec. 31, though the program has been available to eligible reservists and their family members since late 2010 after Congress created the health insurance option in the fiscal 2010 National Defense Authorization Act. The final rule, which takes effect on Jan. 30, was mostly a formality, but it did address an issue that has concerned some since the plan took effect: the cost of premiums.

Of the 92 comments submitted on the rule, 76 commenters complained that the premium rates were too high. “We recognize that the premiums were much higher than many expected,” the Defense Department wrote in the final rule. “In fulfillment of law, TRR premiums represent the full cost of delivering the benefit without the Department of Defense absorbing any of the cost. In other words, the department cannot cover or share any of the cost of the premiums by law; TRR members pay full-cost premiums.”

The 2015 monthly premiums are $390.89 for self-only coverage and $961.35 for family coverage. That’s about the same as the 2014 monthly rates, which were $390.99 and $956.65, respectively. The annual rates have fluctuated since TRICARE Retired Reserve took effect. For example, the 2012 monthly premiums were $419.72 for members-only and $1,024.43 for family coverage.

“We endeavored to be very open and transparent with the detailed information that we provided in the late preamble of the interim final rule about the establishment of the TRR premiums,” the final rule stated. “Nonetheless, we would be glad to participate in a congressionally-directed request or a request under proper and applicable authority as appropriate to study the actuarial approach used to establish the TRR premium rates.”

TRICARE Retired Reserve allows members of the retired reserve eligible for non-regular retirement and younger than 60 years of age, as well as certain family members and survivors, to buy health insurance equivalent to TRICARE Standard and Extra, unless they are eligible for a health benefits plan under Chapter 89 of Title 5 in the U.S. Code. That would include the Federal Employees Health Benefits Program.

(Image via Christian Delbert / Shutterstock.com)