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U.S. Military (Ret).: Try not to worry (yet) about the health reform bill

Judging from my mail in recent weeks, retirees are nervous about the potential impact of the new health care reform legislation on Tricare — particularly Tricare for Life — and the Veterans Affairs Department health care program.

How HR 3200, the America’s Affordable Health Choices Act, may reshape the nation’s health care system is a concern for all Americans. For those who use the military and VA health care systems, one particular concern has been whether Tricare and VA would be exempt from the 2.5 percent tax penalty on gross income that the new legislation would levy on those who, for whatever reason, do not obtain “acceptable minimum health care coverage.”

While the massive bill (1,017 pages!) is far from being finalized, I can tell you that Section 202 addresses this specific point in a positive way for military retirees.

It states: “Members of the armed forces and dependents (including Tricare) and those who receive VA care will be considered as having acceptable minimum coverage.” In other words, those using Tricare or VA health care will not be subject to the 2.5 percent tax penalty.

Under this provision, “acceptable care” is defined as one of the following:

• You already have a qualified health benefits plan.

• You have grandfathered health insurance coverage in the form of an employee or group health plan.

• You are a current user of Medicare.

• You are a member of the armed forces, a military retiree or a family member of a service member or retiree.

• You qualify for VA health care.

In addition to the language in the bill, both Democratic and Republican lawmakers have taken steps to clarify, in no uncertain terms, that the military and veterans communities will be shielded from any punitive effects of the new law.

Again, we still have a long way to go before any national health care reform legislation is enacted, and there’s always a chance something could change.

But right now, it looks as though lawmakers are taking measured, focused steps to ensure that health care reform does not infringe on the authority of the secretaries of defense and veterans affairs to run their Tricare and VA health care programs without disruption.

If you’d like to wade through the bill yourself, go online to http://thomas.loc.gov. Under “Legislation in Current Congress,” click “Bill Number,” type “HR 3200” in the box and click “Search.”

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Retired Command Master Chief Alex Keenan served 28 years in the Coast Guard. E-mail him at retired@atpco.com.