Rep. Cardin Introduces Bipartisan Bill to Eliminate Medicare Late Enrollment Penalty for Military Retirees

WASHINGTON – 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 Medicare-eligible retirees and their spouses fully participate in the Department of Defense’s health care program, TRICARE.

The Floyd A. Spence National Defense Authorization Act of 2000 extended TRICARE eligibility to military retirees over 65 and provided them with a new pharmacy benefit. To participate in TRICARE-for-Life, retirees must be enrolled in Medicare Part B, a voluntary program that covers physician services, outpatient hospital care, and ancillary services. The Medicare Part B monthly premium for 2003 is $57.80.

Under current law, persons who do not enroll in Medicare Part B when first eligible must pay a 10% penalty for every year they have not participated. But retirees could not have anticipated the rules changes that have occurred in the military health system since 1996, when DOD replaced CHAMPUS with TRICARE, nor could they have known that participation in TRICARE after age 65 would eventually require Medicare enrollment. In some cases, the military advised retirees that Medicare coverage was duplicative and recommended that they not enroll. The Department of Defense now estimates that 84,000 military retirees would be subject to the penalties.

Rep. Cardin’s TRICARE Retirees Opportunity Act of 2003, H.R. 2361, would waive the late enrollment penalty for military retirees and their spouses who sign up for Medicare Part B between January 1, 2001 and December 31, 2004. The bill would also permit year-round enrollment through 2004 so that retirees can access the new benefits immediately. Currently, individuals who do not join Medicare Part B when initially eligible can only do so during the annual open enrollment season, which runs from January 1 until March 31.

The TRICARE Retirees Opportunity Act will also be introduced shortly in the Senate by John Ensign of Nevada. It has been endorsed by the Military Coalition, and similar provisions of the bill were included in HR 4954, Medicare legislation that passed the House in June 2002.

"We promised our military personnel that we would take care of their medical needs. It’s time for Congress to eliminate barriers to full participation in the programs we establish for them. My legislation will allow retirees to receive their medical benefits without unfair penalties," said Rep. Cardin.

Editor’s Note: A list of Military Coalition members is attached below.

MEMBERS OF THE MILITARY COALITION

Army Aviation Association of America (AAAA)

Air Force Association (AFA)

Air Force Sergeants Association (AFSA)

Air Force Women Officers Associated (AFWOA)

AMVETS (American Veterans)

Association of Military Surgeons of the United States (AMSUS)

Association of the United States Army (AUSA)

Chief Warrant Officer and Warrant Officer Association, (CWO&WOA)

of the United States Coast Guard

Commissioned Officers Association (COA) of the United

States Public Health Service, Inc.

Enlisted Association of the National Guard of the United States (EANGUS)

Fleet Reserve Association (FRA)

Gold Star Wives of America (GSW)

Jewish War Veterans of the United States of America (JWV)

Marine Corps League (MCL)

Marine Corps Reserve Officers Association (MCROA)

Military Chaplains Association of the United States of America (MCA)

Military Officers Association of America(MOAA)

Military Order of the Purple Heart

National Guard Association of the United States (NGAUS)

National Military Family Association (NMFA)

National Order of Battlefield Commissions (NOBC)

Naval Enlisted Reserve Association (NERA)

Naval Reserve Association (NRA)

Navy League of the United States (NLUS)

Non Commissioned Officers Association (NCOA)

Reserve Officers Association (ROA)

The Retired Enlisted Association(TREA)

Society of Medical Consultants to the Armed Forces (SMCAF)

United Armed Forces Association (UAFA)

United States Army Warrant Officers Association (USAWOA)

USCG Chief Petty Officers Association (CPOA)

Veterans of Foreign Wars (VFW)

Veterans' Widows International Network (VWIN)