Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 06-02-2011, 04:37 PM   #1
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Secretary Gates is proposing increases to Military TRICARE medical insurance premiums. This comes on the back of all the other attacks on government and state worker benefits. Should we really be making military retirees pay more for their health care?
__________________

__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-02-2011, 04:43 PM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,120
Quote:
Originally Posted by nun View Post
Secretary Gates is proposing increases to Military TRICARE medical insurance premiums. This comes on the back of all the other attacks on government and state worker benefits. Should we really be making military retirees pay more for their health care?
What you see as an 'attack' might be viewed quite differently by the general (taxpaying) public. And while I would like to see it unnecessary, I think we must all share the burden - at least in part.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-02-2011, 05:46 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,896
In Michigan, pensions used to be tax free up to 45K single / 90K married filing jointly, with no limit on public pensions. The law was just changed, hitting retirees under 65 hardest. I think that military pensions might have slipped through.

It is a trend.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 06-02-2011, 06:39 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
The monthly increase is only going to be $2.50/$5.00. I have no problem with that. We all have to do our part to balance the budget. Tricare is still the best bargain in medical care by far.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 06-02-2011, 08:35 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,284
Quote:
Originally Posted by nun View Post
Secretary Gates is proposing increases to Military TRICARE medical insurance premiums. This comes on the back of all the other attacks on government and state worker benefits. Should we really be making military retirees pay more for their health care?
Quote:
Originally Posted by mickeyd View Post
The monthly increase is only going to be $2.50/$5.00.
nun, you started a thread to complain about a $2.50 monthly increase!?!?!

Gee, I'd sure hate to hear about all those 'other attacks' on government and state worker benefits. I don't think I could bear it.

Maybe they should have made the increase to just $4.99 (see this thread)?

-ERD50
__________________
ERD50 is offline   Reply With Quote
Old 06-02-2011, 08:47 PM   #6
Recycles dryer sheets
 
Join Date: May 2007
Posts: 213
I heard on NPR that the cost hasn't increased since 1995. Of course we shouldn't balance the budget on the backs of the veterans but it doesn't seem unfair to have a small increase when you are only paying perhaps 10% or less of what most taxpayers pay.
__________________
52andout is offline   Reply With Quote
Old 06-02-2011, 09:54 PM   #7
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Keep in mind that Gates is retiring soon, so he's being used as both the messenger and the whipping boy for all the nasty news that nobody wants to hear, let alone deal with.

He's also been proposing increases in Tricare premiums for just about every year of his tenure, not that Congress has paid any attention to him. But I think he mentioned once that healthcare is 19% of the military's budget, and that includes a huge chunk of retiree healthcare expenses.

Finally, the reason military retirees should be more happy (or less unhappy) with this increase is that future increases will be indexed to inflation. We've been playing "no increase" chicken for over 15 years, and that's a game that we only have to lose once. I'd much rather pay a known increase than to keep playing chicken.

When I blogged about an earlier proposal I got a lot of e-mails from people whose doctors will no longer take Tricare. The unhappy reality is that it doesn't matter what Gates or Congress think-- the doctors are making the decisions for them.

MOAA: As I See It

Proposed Tricare fee hikes | Military Retirement & Financial Independence
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 06-03-2011, 06:53 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,645
Quote:
Originally Posted by Nords View Post
Keep in mind that Gates is retiring soon, so he's being used as both the messenger and the whipping boy for all the nasty news that nobody wants to hear, let alone deal with.
Yeah, I heard him on NPR yesterday. When he mentioned Tricare I initially thought lets not screw the military on pay. But then when he mentioned what they were proposing (annual costs from $400 to $550 or some such I almost laughed out loud.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Old 06-03-2011, 09:26 AM   #9
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by donheff View Post
Yeah, I heard him on NPR yesterday. When he mentioned Tricare I initially thought lets not screw the military on pay. But then when he mentioned what they were proposing (annual costs from $400 to $550 or some such I almost laughed out loud.
Me too, my take would be to make the premiums more in line with other federal employees.....an argument could be made to make them higher as obviously the military are a high risk pool.
__________________
nun is offline   Reply With Quote
Old 06-03-2011, 09:31 AM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,120
Quote:
Originally Posted by nun View Post
Secretary Gates is proposing increases to Military TRICARE medical insurance premiums. This comes on the back of all the other attacks on government and state worker benefits. Should we really be making military retirees pay more for their health care?
Quote:
Originally Posted by nun View Post
Me too, my take would be to make the premiums more in line with other federal employees.....an argument could be made to make them higher as obviously the military are a high risk pool.
OK, I give. Which side of this issue do you support - both?
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-03-2011, 09:52 AM   #11
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 752
Quote:
Originally Posted by REWahoo View Post
OK, I give. Which side of this issue do you support - both?
+1 I'm a 22 year Navy vet. When I signed on long, long ago, part of the deal was a good pension and health benefits at the end of service. Also part of the deal was long deployments away from home doing dangerous things (landing on a carrier in rough seas at night can be rather stressful). Although I was never in combat (which I am very thankful for) I did (as other military vets) my duty. Now the government needs to fulfill their commitment. If they want to change the deal, then it should be on the new folks coming in, not on the older veterans.
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 06-03-2011, 09:53 AM   #12
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by REWahoo View Post
OK, I give. Which side of this issue do you support - both?
I'm being a bit rhetorical and a little sarcastic. But I am on both sides. I think healthcare should be readily available to everyone and I would like to see everyone paying $500 a year in premiums and the recent attacks on state and federal workers benefits have been a bit hysterical. But I also realize that that would bankrupt the system the way it's currently organized. Obviously $500 a year in premiums is a very good deal when other federal and state workers pay 10 times that much. So I believe that this is an obvious case where there could be far more parity in what federal workers pay. Also when I see the outrage at teachers benefits I wonder why people aren't up in arms at the low level of TRICARE premiums.
__________________
nun is offline   Reply With Quote
Old 06-03-2011, 09:56 AM   #13
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by dtbach View Post
+1 I'm a 22 year Navy vet. When I signed on long, long ago, part of the deal was a good pension and health benefits at the end of service. Also part of the deal was long deployments away from home doing dangerous things (landing on a carrier in rough seas at night can be rather stressful). Although I was never in combat (which I am very thankful for) I did (as other military vets) my duty. Now the government needs to fulfill their commitment. If they want to change the deal, then it should be on the new folks coming in, not on the older veterans.
I agree that contracts should be honored, however, increasingly benefits are being "adjusted" for employees and retirees. Given current deficit and the high cost of military benefits increasing TRICARE premiums is an obvious thing to do. I don't see a good argument why the military should be treated any differently from other state and federal workers.....I do see a good argument why ALL contracts should be honored though.
__________________
nun is offline   Reply With Quote
Old 06-03-2011, 10:18 AM   #14
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 752
Quote:
Originally Posted by nun View Post
Costs need to be contained, lots of people have their benefits changed on them by employers, why should the military be different? Medicare is going to be change for me and I have 25 years of payments, why should TRICARE be immune form such changes?
Visit a military cemetery sometime and you might see that its "not just another j*b". By your reasoning, maybe they should cut my pension too. If the government want to attract a "volunteer" military force they need to honor their commitments.
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 06-03-2011, 10:24 AM   #15
Full time employment: Posting here.
 
Join Date: Jun 2007
Posts: 567
Quote:
Originally Posted by dtbach View Post
+1 I'm a 22 year Navy vet. When I signed on long, long ago, part of the deal was a good pension and health benefits at the end of service.
Was part of the contract also no inflation-indexed adjustments on health benefits? I'm pretty clueless in that department. If so, then you're right and they should only change the agreement with new recruits.
__________________
Webzter is offline   Reply With Quote
Old 06-03-2011, 10:27 AM   #16
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 752
Quote:
Originally Posted by Webzter View Post
Was part of the contract also no inflation-indexed adjustments on health benefits? I'm pretty clueless in that department. If so, then you're right and they should only change the agreement with new recruits.
I really don't know on that. I agree that health care costs to vets should be allowed to go up with inflation. Since the pensions they give us are COLA adjusted, the additional $ from that could be used to pay the higher premiums.
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 06-03-2011, 10:31 AM   #17
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by dtbach View Post
I really don't know on that. I agree that health care costs to vets should be allowed to go up with inflation. Since the pensions they give us are COLA adjusted, the additional $ from that could be used to pay the higher premiums.
But healthcare premiums are going up at least 3x inflation in most medical organizations, using inflation rate would seem to be a bit generous.
__________________
nun is offline   Reply With Quote
Old 06-03-2011, 10:33 AM   #18
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 752
Quote:
Originally Posted by nun View Post
But healthcare premiums are going up at least 3x inflation in most medical organizations, using inflation rate would seem to be a bit generous.

Whatever happens, its above my paygrade. . . .
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 06-03-2011, 10:47 AM   #19
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
Yes the healthcare benefit was inflation adjusted.
The promise was:

FREE HEALTHCARE FOR LIFE.

Inflate it anyway you want, it should still be FREE!

Now, I will admit that some service members did not get that promise. It depends on how long ago you served. The government realized some years ago that they could not keep that promise, changed to TRICARE and started charging the service member for his retirement healthcare and his families healthcare while he was on active duty. It did not matter if he was already retired or not. Or if he had served the majority of his time under the 'promise'.

Along with TRICARE, the government then forced the retiree off TRICARE and onto MEDICARE when they turn 65. So their healthcare then went from $550 a year to almost $3,000 a year for two. A 445% increase. This is not a complaint, just a broken promise. By the way, there have been proposal to charge the retiree a TRICARE for Life premium also. So the beat goes on!

Politician love the military! They love to stand by them at parades in their home town. They love to tell people how much they support them. In reality the military are easy pickins behind close doors. Virtually no politician has enough military in their district tp change their vote. It does happen sometimes, but it is rare.

In truth, why should this surprise anyone? Look at the promises to the American Indian from the Government, and how well those have been kept over the years.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is online now   Reply With Quote
Old 06-03-2011, 11:15 AM   #20
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 752
Quote:
Originally Posted by Rustic23 View Post
Yes the healthcare benefit was inflation adjusted.
The promise was:

FREE HEALTHCARE FOR LIFE.

Inflate it anyway you want, it should still be FREE!

Now, I will admit that some service members did not get that promise. It depends on how long ago you served. The government realized some years ago that they could not keep that promise, changed to TRICARE and started charging the service member for his retirement healthcare and his families healthcare while he was on active duty. It did not matter if he was already retired or not. Or if he had served the majority of his time under the 'promise'.

Along with TRICARE, the government then forced the retiree off TRICARE and onto MEDICARE when they turn 65. So their healthcare then went from $550 a year to almost $3,000 a year for two. A 445% increase. This is not a complaint, just a broken promise. By the way, there have been proposal to charge the retiree a TRICARE for Life premium also. So the beat goes on!

Politician love the military! They love to stand by them at parades in their home town. They love to tell people how much they support them. In reality the military are easy pickins behind close doors. Virtually no politician has enough military in their district tp change their vote. It does happen sometimes, but it is rare.

In truth, why should this surprise anyone? Look at the promises to the American Indian from the Government, and how well those have been kept over the years.
Sir, you could not have said it better.
__________________

__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Federal Long Term Care Insurance Premium Increases Purron Health and Early Retirement 77 11-24-2009 08:17 PM
Federal LTC Insurance Premium Increases Purron Health and Early Retirement 2 11-11-2009 08:03 AM
ER increases 25%~ Welcome to the party! mickeyd Other topics 8 05-25-2009 08:13 AM
2008 Health Ins Premium Increases fisherman Health and Early Retirement 21 03-06-2008 11:52 PM
Wage Increases vs. CPI Increases TromboneAl FIRE and Money 19 05-06-2005 02:05 PM

 

 
All times are GMT -6. The time now is 08:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.