Civilian Health Insurance Options of Military Retirees: Findings from a Pilot Survey

摘要

Traditionally, DoD has provided health benefits to active-duty and retired service personnel and their families. After 20 years of service, active- duty personnel can retire and are immediately eligible to receive retiree health benefits for themselves, their spouses, and dependent children. DoD retirees are encouraged to enroll in TRICARE Prime, which has an annual enrollment fee of $230 for individual coverage and $460 for family coverage. Retirees and their families also have access to TRICARE Standard/Extra, which requires no enrollment contribution but has less generous cost-sharing provisions than TRICARE Prime. Since service personnel can conceivably retire in their late 30s or early 40s, many of these individuals are working in second careers and have access to non-DoD health insurance. Yet the growing gap between civilian health insurance premiums (estimated to be $2,713 on average for family coverage in 2005) and TRICARE enrollment fees makes TRICARE an increasingly attractive option vis- -vis civilian coverage. Recent evidence suggests that employees are declining employer-provided insurance in favor of alternative sources of health insurance coverage, such as TRICARE.