FOR IMMEDIATE RELEASE

AFA SPEAKS OUT AGAINST TRICARE FEE PROPOSALS FOR MILITARY RETIREES

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

Arlington, VA, March 15, 2006 – Air Force Association (AFA) Executive Director Donald L. Peterson joined Representative Chet Edwards (D-TX), Representative Walter B. Jones (R-NC), and other leaders from The Military Coalition at a press conference today to announce H.R. 4949, the Military Retirees’ Health Care Protection Act.

H.R. 4949 was introduced by Edwards and Jones in response to proposals in the President’s budget for Fiscal Year 2007 that would affect military retirees under the age of 65 by increasing certain fees in the military’s health care program. Under the proposals, TRICARE Prime annual enrollment fees 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 increase their out-of-pocket costs by more than 40%. Furthermore, the President’s budget 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.

The Military Retirees’ Health Care Protection Act would prohibit the Secretary of Defense from enacting these fee increases, now or in the future, without the express authorization of the United States Congress. The act would also express the Sense of Congress that the Department of Defense (DoD) has an obligation to retired uniformed service members that exceeds the obligation of corporate employers to civilian employees; and that DoD has many additional options to constrain the growth of health care costs without seeking large fee increases for beneficiaries.

Speaking on behalf of the 130,000 members of the Air Force Association, Peterson agreed with these sentiments and stated that, “now is the time to put a hold on any and all [TRICARE fee] increases until this issue receives a thorough review and hearing and all parties are heard.” “We should not ask our military retirees to bear the burden to balance the budget and to provide resources that the services need for active duty personnel or modernization initiatives,” he said.

Peterson served 35 years in the U.S. Air Force, retiring at the rank of Lieutenant General. In his final assignment, he served as the Air Force’s Deputy Chief of Staff for Personnel. Peterson became the Air Force Association's executive director on August 1, 2002. In this position he directs the association's professional staff in all functional areas and is responsible for the management and operations of the association and its educational affiliate, the Aerospace Education Foundation. He also currently serves as the co-chair of the Air Force Retiree Council.

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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.