Rep. Cardin Proposes Legislation To Help Military Retirees Receive New Benefits

FT. MEADE, MD – Rep. Benjamin L. Cardin today introduced legislation to help military retirees access the health care benefits "to which they are entitled." This legislation will help retirees fully participate in the Department of Defense's health care program, TRICARE.

The Floyd A. Spence National Defense Authorization Act which became law on October 30, 2000, extended TRICARE eligibility to military retirees over 65 and provided them with a new pharmacy benefit. Enrollment in Medicare Part B, which covers physician services, outpatient hospital care, and ancillary services, is required for participation in TRICARE.

Under current law, individuals who do not enroll in Medicare Part B when first eligible must pay a 10% penalty for every year they do not participate. The Medicare Part B monthly premium for 2001 is $50. The Department of Defense estimates that 84,000 military retirees are subject to the late enrollment penalty. America's military retirees could not have anticipated the changes that have taken place in the military health system since 1996, when DOD replaced CHAMPUS with TRICARE, and could not have known that participation in TRICARE after age 65 would eventually require Medicare Part B enrollment.

Rep. Cardin's TRICARE Retirees Opportunity Act, HR 2073, would waive the late enrollment penalty for military retirees and their dependents who sign up for Medicare Part B between January 1, 2001 and December 31, 2002. The bill would also permit year-round enrollment through 2002 so that retirees can access the new benefits immediately. Under current law, individuals who do not enroll in Medicare Part B when initially eligible can only sign up during the open enrollment period, which runs annually from January 1 until March 31.

"We promised our military personnel that we would take care of their medical needs. It's time to eliminate barriers to full participation in the programs we establish for them. This legislation will allow retirees to fully access TRICARE without any unfair or burdensome penalty. It's the right thing to do and it makes sense," said Rep. Cardin at a press conference at Ft. Meade, MD.

Medicare-eligible retirees started receiving a pharmacy benefit April 1, 2001 and can participate in the TRICARE For Life program on Oct. 1, 2001.