BILL ANALYSIS
SJR 10
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Date of Hearing: August 27, 2008
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Mary Salas, Chair
SJR 10 (Committee on Veterans Affairs) - As Introduced: May
28, 2009
SENATE VOTE : 36-0
SUBJECT : Military Health Care.
SUMMARY : request that the President and the Congress of the
United States pass H.R. 816 that would prohibit certain
increases in fees for military health care.
EXISTING LAW created established TRICARE as the uniformed
services health care program for active duty service members and
their families, retired service members and their families,
members of the National Guard/Reserve and their families,
survivors and other eligible beneficiaries. The uniformed
services include the U.S. Army, U.S. Navy, U.S. Air Force, U.S.
Marine Corps, U.S. Coast Guard, the Commissioned Corps of the
U.S. Public Health Service, and the Commissioned Corps of the
National Oceanic and Atmospheric Administration.
FISCAL EFFECT : None.
COMMENTS :
TRICARE BACKGROUND: TRICARE replaced the Civilian Health and
Medical Program of the Uniformed Services (CHAMPUS) program in
1993. TRICARE's primary objectives are to optimize delivery of
health care services in the military's direct care system, which
includes Military Treatment Facilities (MTFs), and attain the
highest level of patient satisfaction through delivery of a
world-class health care benefit.
TRICARE combines the health care resources of the uniformed
services and supplements them with networks of civilian health
care professionals, institutions, pharmacies, suppliers and
other providers to provide access to high-quality health care
services while maintaining the capability to support military
operations and the military readiness mission.
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TRICARE is available worldwide and managed regionally in six
separate TRICARE regions - TRICARE North, TRICARE South, TRICARE
West, TRICARE Europe, TRICARE Pacific and TRICARE Latin America
and Canada - jointly by the TRICARE Management Activity (TMA)
and TRICARE Regional Offices (TRO). TMA has partnered with
civilian managed care support contractors in the North (Health
Net Federal Services, LLC), South (Humana Military Healthcare
Services) and West (TriWest Healthcare Alliance) to assist TROs
and MTF Commanders in operating an integrated health care
delivery system.
Background on HR 816 of 2009:
As introduced on 2/3/2009, the Military Retirees Health Care
Protection Act contains congressional intent language that
states:
1) the Department of Defense (DOD) and the nation have a
committed health benefits obligation to retired military
personnel that exceeds the obligation of corporate
employers to civilian employees; and
2) DOD has many additional options to constrain the growth
of health care spending in ways that do not disadvantage
beneficiaries, and should pursue such options rather than
seeking large fee increases for beneficiaries.
Prohibits:
1) an increase after: April 1, 2006, in a premium,
deductible, co-payment, or other charge prescribed by the
Secretary of Defense for medical and dental health care
coverage for military personnel; and
2) an increase after September 30, 2009, in the dollar
amount of a cost-sharing requirement under the DOD pharmacy
benefits program.
3) charges for DOD inpatient care from exceeding $535 per
day; and
4) beginning on January 1, 2009, an increase in premiums
under TRICARE (a DOD managed health care program) for
certain members of the Selected Reserve.
The Congressional Budget Office, a nonpartisan arm of Congress,
has compiled a list of 115 options for changes in medical care
programs. These are primarily ways to cut federal funding. The
Senate Budget Committee is considering these changes as it
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prepares the 2010 federal spending guide. The options include
raising enrollment fees, co-payments and deductibles for
military retirees younger than age 65 and their families who use
the TRICARE health benefits program; requiring some veterans to
pay co-payments when treated for medical issues not related to
military service; and a novel idea of allowing active-duty
families to pocket money - up to $500 each year - if they don't
use health benefits. Also included is a cost-sharing idea for
Medicare-eligible military retirees under which the government
would not cover the first $525 of health care costs each year
and provide limited reimbursement of the next $4,725 in costs,
all in an effort to discourage unnecessary medical treatment.
The cost of health care has consistently risen, between 2001 and
2007 health care premiums for average Americans increased by 78
percent. TRICARE fees have not increased since that program was
created in the mid-1990s - despite constant calls by the Defense
Department to raise deductibles, co-payments and enrollment fees
to cut military health care costs. When taking these facts into
account the healthcare cost at TRICARE remain relatively low.
The Senate Budget Committee does not have the power to increase
TRICARE fees or change veterans' health care benefits. Instead,
it exercises its influence by making recommendations on federal
spending which includes an annual revenue and spending plan
that, if approved by Congress, sets limits for various programs.
There has been no information provided to the committee that
shows an increase in TRICARE fees has been offered by any member
of Congress or the current administration
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550