The Congressional Budget Office (CBO) has once again targeted TRICARE For Life (TFL) in its biennial report outlining options for reducing the deficit.

The December 2024 report highlights savings that could be achieved by introducing a TFL enrollment fee or minimum out-of-pocket cost requirements. Similar concepts have been presented in past CBO reports, which are issued every two years to provide information to lawmakers confronting budgetary challenges.

Last year, nearly 200 MOAA members and staff took this issue to Capitol Hill as part of our Advocacy in Action campaign, ensuring elected officials understand the intense opposition to TFL fees. Retirees already have fulfilled all the requirements to earn their health care benefit, and MOAA will fight any attempts to cut it, including fee increases designed to shift costs from DoD to seniors who rely on TFL.

[RELATED: From TRICARE Fees to Lower COLA, These Budget Options Could Gut Service-Earned Benefits]

While no current legislation proposes TRICARE fee increases, MOAA takes these threats seriously given pressures on the DoD budget and precedent for such proposals. From FY 2013 to FY 2017, MOAA’s efforts helped to block five consecutive administration budget request proposals for TFL enrollment fees.

Some details on the options included in the CBO report:

TFL Enrollment Fee

TFL enrollment is automatic once a beneficiary starts paying Medicare Part B premiums. There is no enrollment fee or monthly premium for TFL coverage.

A CBO proposal would require Medicare-eligible beneficiaries who choose to enroll in TFL to pay an annual enrollment fee of $610 for individual coverage or $1,220 for family coverage.

The enrollment fees would be indexed to grow at the same rate as average Medicare costs in later years.

[RELATED: What Is IRMAA, and What Does It Mean for My Medicare Premium?]

TFL Cost Sharing

The other CBO measure affecting TFL would introduce minimum out-of-pocket requirements, including an $850 deductible – TFL would not cover any of the first $850 of a beneficiary’s Medicare cost-sharing. For the first $4,250 in total medical expenses each year, Medicare would pay its 80% (or $3,400) while the TFL beneficiary would be responsible for the full $850 not covered by Medicare.

After the deductible was satisfied, TFL would cover only 50% of the next $7,650 in Medicare cost-sharing. This means TFL beneficiaries could face up to $4,675 in cost-sharing per year. Similar to the enrollment fee proposal, cost-sharing requirements would increase annually at the rate of Medicare cost increases.

Protecting Your Earned Benefit

The options outlined in the CBO report come from various sources including past proposed legislation or budget proposals, congressional offices, federal agencies, and the private sector. “As a collection, the options are intended to reflect a range of possibilities, not a ranking of priorities or an exhaustive list,” the report states. “Inclusion or exclusion of any particular option does not imply approval or disapproval by CBO, and the report makes no recommendations.”

[FOR PREMIUM AND LIFE MEMBERS: Transitioning Into Medicare and TRICARE For Life]

MOAA appreciates the importance of addressing the deficit, but our nation must fulfill obligations to those who serve a full career in uniform. We will fight any proposal that increases costs to seniors who rely on TFL for their health care. The TFL benefit was a key component of the compensation and benefits package that sustained the all-volunteer force throughout two decades of war – MOAA will also protect the future of TFL for current working-age retirees and career servicemembers who are counting on TFL as a critical part of their future retirement plans.

We will be monitoring for any signs that CBO’s concepts have gotten traction. The administration budget request, due in February but sometimes delayed during the first year of a new administration, will likely give us our first glimpse at any potential proposals to increase TRICARE fees. Look for updates on these and other legislative issues in The MOAA Newsletter and at MOAA.org, and register at our Legislative Action Center so you can take part in upcoming grassroots efforts designed to preserve service-earned benefits.