Don't Discriminate Against Military Retirees

[DonaldN]

The National Defense Authorization Act conference will happen soon. We need you to let your elected reps know that their proposals to limit TRICARE use by retirees are discriminatory. Tell your familiy and friends to take action too. We really need your help on this one!!!!!

Don't Discriminate Against Military Retirees Take Action!

Remove Provisions from Defense Authorization Conference

The 2007 National Defense Authorization Act is currently in a conference between the House and Senate. A section in the House bill and a section in the Senate bill discriminate against military retirees. Both sections (Section 710 of HR 5122 and Section 722 of S 2766) should be deleted from the final agreement.

These provisions, which would prohibit employers from helping pay TRICARE fees of military retiree employees, are discriminatory and peremptory, and have the perverse effect of shifting costs to military retirees while providing little or no long term benefit to the US Government. Both the Senate and House defense authorization bills have provisions that will require studies of the Military Health System. Making these proposed changes now before the studies are completed is premature. Further, the changes are seen as discriminatory since federal civilian retirees in a second career have no such limitations and can have their employers reimburse them for their FEHBP premiums and co-pays.

While the proposed changes are no doubt made with the best of intentions, the language is so broad that it even impacts employees and employers with cafeteria (IRS Section 125) plans. These plans, created by Federal statute, allow the employer and employee to set aside part of the employee’s compensation in a tax free account to help pay for certain IRS approved benefits such as dental, vision, insurance, and health care. The proposed legislation would outlaw the payment of TRICARE fees by the employee with these pre-tax funds.

Even if you support a general ban on employer payments of TRICARE fees, we urge you to support language exempting IRS Section 125 plans from the provisions. Administration of these plans is tightly regulated and would preclude any improper payments to retirees regarding their health care options.