New Tricare law affirms no penalties from health reform - Getting out, military health issues - Navy Times

New Tricare law affirms no penalties from health reform

The signing April 26 of the Tricare Affirmation Act resolved one question about how national health care reform might affect current and former service members and their families. But a new congressional report shows other issues remain unresolved.

President Obama signed a measure that specifically defines Tricare health insurance, as well as defense health care benefits for non-appropriated fund employees, as minimal essential health plans required under the Patient Protection and Affordable Care Act. Tricare beneficiaries will be exempt from rules that, beginning in 2014, require people to either buy private insurance or face a $750 penalty.

The additional definition did not appear to be required to avoid the penalty, but Congress rushed to pass the bill — and Obama signed it — to quiet any fears.

Meanwhile, a new analysis of how health care reform might affect military and veterans health care, prepared by the nonpartisan Congressional Research Service, finds other questions remain unanswered.

In a report dated April 22, the research arm of Congress says the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act do “not make any significant changes” in military or veterans health care. But still to be determined, the report finds, are specifics about how military and veterans programs might be indirectly affected.

In general, health reform “does not affect Tricare administration, health care benefits, eligibility or cost to beneficiaries,” the report says. But, there is one positive effect. It includes a special enrollment window for Medicare Part B that would apply to older military retirees enrolled in the Tricare for Life program and waives a late enrollment penalty that applies to military retirees, their spouses, dependent children and survivors.

Health reform also “does not appear to affect current VA health care benefits, eligibility or cost to beneficiaries,” the CRS report says.

However, two things about veterans’ benefits are not resolved:

• There could be a future increase in the cost of prescription drugs and medical devices provided to veterans, the report says. This could happen as a result of a new 2.3 percent excise tax on the sale of medical devices and new fees on brand-name drugs that would take effect in 2013. The Veterans Affairs Department is required to study the two increases and to report to Congress about whether veterans will feel the increases.

• Tricare benefits are now defined as meeting the minimal essential standard, but some veterans benefits are not explicitly defined as meeting the standard. “It is unclear whether the Spina Bifida Health Care Program and the Children of Women Vietnam Veterans Health Care Program will meet the ‘minimum essential coverage’ requirement,” the CRS report says. VA’s small Children of Women Vietnam Veterans Health Care Program reimburses for care of certain birth defects identified by the VA as resulting in permanent physical or mental disability of the biological child of a female Vietnam veteran, according to the CRS report. However, the health reform law allows the secretary of the Department of Health and Human Services to determine which health programs meet the definition, so this could easily be decided in favor of beneficiaries.