As part of the $487 billion spending cut to the Pentagon budget proposed by the Obama administration, US active duty and retired military personnel will be asked to pay sharply more for their healthcare while unionized civilian defense workers' benefits remain untouched.
According to administration officials, the goal for the increased fees is designed to force military retirees to reduce their involvement in Tricare and use the state-run health insurance exchanges that are being established in each of the states.
Premiums for retired military personnel would increase between 30 and 78 percent for the first year. After that, premiums would go up between 94 and 345 percent over the next five years. This would be more than three times current levels.
For active duty personnel, co-payments for drugs would go up as well. Incentives for using generics drugs would be eliminated.
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