Here are a few highlights from the article. DoD: Squeeze Tricare, slash grocery savings, cap BAH Tricare Prime, the managed care option that allows beneficiaries to enroll in an approved network of providers for a small annual fee plus modest co-payments for care, presumably would end. Defense health officials argue Congress hasnt allowed fees to be raised enough to keep Prime affordable. While managed care in the private sector still serves to dampen health costs, Prime is seen as too costly to operate for the military. Commissary cuts: The prized commissary system, which offers deep discounts on groceries, would see taxpayer support slashed from $1.4 billion annually to $400 million. This would occur over three years and lower average shopper discounts from 30 percent down to 10 percent compared to commercial grocers. The military would continue to subsidize commissaries overseas and at remote U.S. bases.The intent, said Hagel, is not to close any stores. But resale industry experts say closings are inevitable once stateside stores cant offer enough savings to keep patrons from using commercial discounters off base. Housing allowances: Service members living off base stateside would see Basic Allowance for Housing level off for a few years. The plan is not to cut payments but to cap yearly adjustments until members must pay five percent of monthly rent and utility costs using other income.In the late 1990s, BAH rates covered only 82 percent of average rental costs off base. When war broke out, Congress gradually closed that allowance gap. Today BAH fully covers average rent, utilities and renters insurance. Defense officials now call that coverage unsustainable. sunherald/2014/03/01/5381277/dod-squeeze-tricare-slash-grocery.html##storylink=cpy
Posted on: Thu, 06 Mar 2014 13:27:51 +0000
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