The Defense Department has proposed raising premiums for more than 500,000 retirees by $2.50 per month for individuals and $5 per month for families beginning next year. Families also would pay annual enrollment fees of $520 a year, up from $460. Individual coverage would rise from $30 to $260 annually.
The fees would remain unchanged for active-duty service member and retirees over age 65.
The Defense Department proposal calls for rates to be adjusted annually based on an inflationary index beginning in 2013.
That’s one of the elements of the proposal for which lawmakers sought clarity during a hearing before the Armed Services Military Personnel Subcommittee on Wednesday.
“The subcommittee has a number of concerns about the Department’s initiatives,” Rep. Joe Wilson, chairman of the subcommittee, told Defense Department officials in his opening remarks. “The Department of Defense proposes increasing the fee in the out years based on an inflation index ... but it is unclear exactly which index you are using.’’
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