Direct Download Civilian Health Insurance Options of Military Retirees: Findings from a Pilot Survey (Rand Corporation Monograph)

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Pilot survey results on military retirees offer the Department of Defense (DoD) useful information on retirees' health care status, enrollment in civilian health care plans, and reliance on Tricare, the DoD sponsored health insurance. Higher premiums for civilian health insurance may be increasing retirees' reliance on Tricare, which in turn may be causing DoD health care spending costs to rise.
Traditionally, the U.S. Department of Defense (DoD) has provided generous health benefits toactive-duty and retired service personnel and their families. For example, there are no enrollmentfees for active-duty service personnel or their families for health care coverage. DoDretirees are encouraged to enroll in TRICARE Prime, which has an annual enrollment feeof $230 for individual coverage and $460 for family coverage-fees that have remained fixedsince the plan's inception in the mid-1990s. Retirees and their families also have access toTRICARE Standard/Extra, which requires no enrollment contribution but has less generouscost-sharing provisions than TRICARE Prime. In contrast, worker contributions to employerprovidedfamily health insurance coverage in the civilian sector averaged $2,713 in 2005, anincrease of 46 percent over 1996 premiums (Kaiser Family Foundation and Health Researchand Educational Trust, 2005).
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