“Age-Out” Planned for USFHP Enrolled Retirees
The Defense Department has gained some support in the House of Representatives for a DoD budget plan that would force retirees out of the U.S. Family Health Plan and into TRICARE For Life at age 65. This cost saving move would reportedly save DOD $739 million in military health care costs in the first year and $3.2 billion over the next 10 years.
A DoD official, referred to this move as a way to ensure equitable treatment for all Medicare-eligible military retirees, since currently USFHP enrolled retirees are not required to enroll in TFL while all other Medicare-eligible military retirees are required to transition from TRICARE to TFL at age 65.
USFHP is a TRICARE Prime option which is offered in specific regions throughout the U.S. including most of the northeast, and parts of Texas, Louisiana, and Washington. The USFHP option saves eligible retirees $96 a month in Medicare Part B premiums.
If the plan gains Congressional approval, current USFHP enrollees over age 65 would be excluded from the TFL requirement; however, all current working-age retirees would be “aged-out” of the USFHP as they become Medicare eligible.