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Senate Provides TRICARE Access for Reservists, Supports Provision's Passage into Law


March 11, 2004

In its debate of the Fiscal Year 2005 Budget Resolution, the Senate passed an amendment introduced by Senators Tom Daschle and Lindsey Graham that would allow National Guard and Reserve personnel to purchase health coverage for themselves and their families through TRICARE, the military health system. For those who choose to retain their private health insurance, the amendment would help them cover their health care costs. When fully phased in, CBO estimates this amendment would assist more than 300,000 reservists and their family members. With this victory in the Senate, Senate Democrats believe it is essential that the House of Representatives accept this provision when a conference committee meets to iron out the final details of the Budget Resolution.

Our security relies increasingly on a strong reserve force. The reserves have played an integral role in every military operation since Desert Shield/Desert Storm. Their overall activity level, measured by annual duty days, has risen from about 1 million in the late 1980s to more than 12 million in every year since 1996. For example, the reserves have taken charge of the entire peacekeeping mission in the Balkans. In Iraq, Guard and Reserve troops are now replacing active-duty forces, increasing their share of the total U.S. force to nearly 40 percent.

Reservists benefits remain largely unchanged. With the exception of last year's measure to provide TRICARE coverage for one year, the basic pay and benefit package for reservists has remained essentially unchanged since the Cold War.

The reserve component faces a potential recruitment and retention crisis.

  • The head of the Army Reserve said on March 9, 2004 that the 205,000-soldier force must guard against a potential crisis in its ability to retain troops, saying serious problems are being "masked" temporarily because reservists are barred from leaving the military while their units are mobilized in Iraq.

  • "This is the first extended-duration war our nation has fought with an all-volunteer force," said [Lt. General James R.] Helmly. "We must be sensitive to that. And we must apply proactive, preventive measures to prevent a recruiting-retention crisis." (The Washington Post, 01/21/04)

  • "We've got a real retention issue," said Governor Mark Sanford (R-SC), a member of the Air Force Reserve. "You're going to see just an emptying, when people's tickets are up, ... of Guardsmen not stepping up to the plate." (Associated Press, 02/22/04)

Amendment provisions. This amendment would improve unit readiness and enhance recruitment and retention by:

  • Providing access to TRICARE, the military health system to all Guard and Reserve members and their families for a modest annual premium regardless of deployment status. Premiums would be about $500 per year for individual coverage and $1,800 per year for families.

  • Covering a portion of the health care premium for reservists and their families who opt to maintain private health coverage when they called to active duty.

The cost of the amendment would be fully offset by rescinding Iraq Reconstruction funds that are not needed until Fiscal Year 2005 or later. This would not affect any reconstruction activities planned for Fiscal Year 2004, and it leaves enough funding for critical activities in Fiscal Year 2005.