FOR IMMEDIATE RELEASE

AFA CONCERNED ABOUT IMPACT OF PRESIDENT’S FY 07 BUDGET ON VETERANS AND RETIREES

Contact: Ladd Everitt at (703) 247-5847 or leveritt@afa.org

Arlington, VA, February 22, 2006 – The Air Force Association (AFA) is concerned about certain provisions in the President’s Fiscal Year 2007 budget that could have an adverse impact on our nation’s veterans and retirees and their families. The Bush administration’s budget would significantly increase fees and co-pays for certain groups of individuals in both the TRICARE and Department of Veterans Affairs (VA) health care systems.

The TRICARE proposals would primarily affect military retirees under the age of 65. Annual enrollment fees for TRICARE Prime would double for senior enlisted personnel and nearly triple for officer retirees. A third tier of fees and deductibles for retirees at the E-6 level and below would see their out-of-pocket costs increase by more than 40%. The budget also calls for an increase in annual deductibles for TRICARE Standard, the military fee-for-service option, and, for the first time, an enrollment fee for the plan. Finally, in a change that would also impact Medicare-eligible retirees, co-pays under the TRICARE retail pharmacy network would be increased from $3 to $5 for generic drugs and $9 to $15 for brand name drugs.

The administration’s VA budget provides an eight percent increase in discretionary funding for VA health care, but also proposes to create an annual enrollment fee of $250 for almost two million veterans in Priority Groups 7 and 8 who lack service-connected disabilities. Their pharmacy co-payments would also nearly double—the cost for a 30-day supply of a prescription drug increasing from $8 to $15. The VA is estimating that, if enacted, these provisions could drive 200,000 veterans out of the VA health care system.

"The Air Force Association believes that the nation has a moral obligation to provide promised health care to military retirees,” said AFA Chairman of the Board Stephen P. Condon. "We appreciate that the administration is attempting to make the best out of a tough fiscal situation, but the budget must not be balanced on the backs of veterans.”

Condon believes that in a time when the nation is engaged in a "Long War" against terrorists globally, it might be time to take a closer look at the defense budget topline. "Defense spending currently accounts for approximately four percent of America’s GDP, an insignificant amount historically when compared to past wars,” Condon said. "In the past, the American people have been willing to sacrifice and provide our military with the resources it needed to defeat the enemy. AFA believes they will do so again if asked."

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The Air Force Association (AFA) is an independent, nonprofit, civilian organization promoting public understanding of aerospace power and the pivotal role it plays in the security of the nation. AFA has more than 230 chapters nationwide and overseas, and more than 130,000 members. Visit us on the Internet at www.afa.org.