Members of the National Guard, Air National Guard and military Reserves who have met the 20 year service requirement are generally eligible for receiving retirement benefits at age 60. However, the 2008 National Defense Authorization Act authorized early retirement benefits for members of the Reserve Corps who met certain criteria. This only applies to starting retirement pay early. Other benefits still begin at age 60, including access to the commissary or base exchange, and TRICARE benefits eligibility.

Under the 2008 National Defense Authorization Act, members of the Reserve Component who served at least 90 days during a fiscal year on a deployment in support of overseas operations such as the Iraq or Afghanistan campaigns are authorized to retire three months early for each 90 day period they served in any given fiscal year. This only applies to members of the Guard or Reserves who participated in a qualifying active-duty mobilization after Jan. 28, 2008, which is the date the Act was signed into law. Service on or before this date does not count toward early retirement.

In January 2013, Congress expanded the criteria for early retirement by authorizing additional eligibility requirements. The new rules allow members of the Guard or Reserves to count activations for national emergencies including natural disasters such as earthquakes, hurricanes, tornadoes, floods, etc. Members of the Reserve Components may also be eligible to retire early if they were in a Warrior Transition unit and were injured while mobilized for responses as mentioned above.

Early Retirement from the Guard and Reserves

How early retirement works. A member must serve a full 20 year service obligation before being eligible to retire from the National Guard or Reserves. They would then be eligible to begin receiving retirement benefits at age 60, including pay, medical benefits, and base entitlements such as commissary and base exchange privileges.

To be eligible for early retirement, a member of the Reserve Corps must still complete the 20 year service requirement. They must also serve at least 90 days during a given fiscal year in support of an authorized event to be eligible for early retirement. Members are only authorized one 90 day period per fiscal year. For example, a year-long deployment that stats and ends in a fiscal year can only help you retire 90 days early, not 360 days early. The entire 90 days must also be served during the fiscal year. If you served 90 days, but part of your mobilization was before the fiscal year end and part was during the new fiscal year, then the 90 day mobilization wouldn’t help you retire early.

The good news is that your mobilization doesn’t need to be continuous. If you served 30 days at the beginning of the fiscal year, and 60 days at the end of the fiscal year, you would meet the requirements, so long as all 90 days were served within the fiscal year. Many Guard and Reserve members are often mobilized for short time frames, including 15 or 30 day rotations. You can add all of these together to meet the 90 day requirement, so long as they all fall withing the same fiscal year. If you find yourself in a similar situation, then be sure to keep good track of your mobilization dates so you know whether or not your mobilizations will help you qualify for early retirement.

90 Early Retirement Periods are Cumulative. Servicemembers can qualify for more than one 90 day early retirement period, again, as long as they are served within different fiscal years. For example, someone who served 90+ days in FY 2009, 90+ days in FY 2010, and 90+ days in FY 2011, and 90+ days in FY 2012 would be eligible to retire at age 59 (four  three month periods, or 1 year early). The only rule for the cumulative early retirement benefit is that members cannot retire before age 50.

Qualifying and Non-Qualifying Service for Early Retirement

Most active duty time counts for early retirement, including deployments in support of overseas operations, mobilizations for natural emergencies which are authorized by the governor and paid for by federal funds, and other active duty service including training and attending military schools. However, not all service counts toward early retirement.

You must have been a member of the Guard or Reserves when you were activated for the qualifying service. Members who originally joined the service as active duty then later transitioned to the Guard or Reserves are not able to count their previous active duty service toward early retirement. Other ineligible Guard or Reserve duty includes actions such as performing weekend drills, 2 weeks annual training, those in full-time AGR or TAR status, muster duty, those who were activated for courts-martial or disciplinary reasons, and those who were listed as not participating at a satisfactory level.

Meeting Eligibility Requirements is Only Part of the Battle

It’s up to the member to be aware of these changes, and file for early retirement. In these instances, you will need to have proof of your activation, including the reason and the duration of time you were activated. This is where your mobilization orders and DD Form 214 are essential. As you know, your DD Form 214 is issued when you are released from active duty service. This is a different form than your DD Form 256, which is the Honorable Discharge paperwork you receive when you separate from the Guard or Reserves.

Keep good records of your service. Your mobilization orders should state the reason for your mobilization or activation, as will your DD Form 214. In order to qualify for the early retirement under the new rules, you will need to have either Title 10 or Title 32 orders with the following annotation: 12301(a), 12301(d), 12301(h), 12302, 12304, 12305 or 12306.

Because much of this is up to you filing the required paperwork on time, you need to keep excellent records. If you notice discrepancies in your paperwork, contact your unit immediately to have your records corrected. If you have since left your unit and are no longer serving, you may need to contact the National Archives. We have an article on requesting military records.

Early Retirement is For Pay; Other Benefits Come at Age 60

While your deployments can start the clock earlier for your retirement pay and benefits such as access to the commissary or base exchange, early retirees will have to wait until age 60 to be eligible for TRICARE benefits.

Military and veterans benefits often vary from person to person. There are many factors that determine which benefits you may be eligible for, including when and where you served, how long you were in the service, and whether your were on active duty or in the Guard or Reserves. Our question today is from a former Reservist who received a DD Form 256, and wants to know if this can be used to obtain a DD Form 214 in order to qualify for certain Veterans Benefits.

Here is his question:

I am wondering if you have had any experience helping a veteran receive a DD214. I was in the USAFR from January 1967 through January 1973, Honorably Discharged. I received my DD256 but it is not sufficient to qualify for Medical Benefits. The requirement is to have a DD214. My question involves determining if there is a process to now secure a DD214. Any assistance would be appreciated.

Thanks for contacting me. This is a common question among former Guard and Reserve members. Let’s define a couple common military discharge forms to better answer your question.

• DD Form 214: Certificate of Release or Discharge from Active Duty
• DD Form 256: Honorable Discharge Certificate
• DD Form 257: General Discharge Certificate

A DD Form 214 is only issued to servicemembers when they separate from active duty service. Members of the Guard and Reserves receive a Discharge Certificate upon completion of their service agreement and their time in the IRR. If a member of the Reserve Corps serves on Active Duty during his or her time in the military, then he or she would be issued a DD Form 214 when they leave active duty service (this often applies to activation under Title 10 orders and other circumstances).

Members of the Guard or Reserves who have been activated more than once may have been issued more than one DD Form 214. The paperwork gets tricky in these circumstances, because technically, the member is released from his Guard commitment and immediately enrolled on active duty service. At the end of the activation period, the member is discharged from active duty, issued a DD Form 214, and reinstated into his or her Guard or Reserve status. Confused yet? VetsCVC has a graphic which shows this in better detail.

Why a DD Form 214 is Important

As alluded to in the reader question, a DD Form 214 is often required by the VA and other benefits organizations to qualify for veterans benefits. It is the key to proving military service and qualifying for a variety of veterans benefits. Because of this, a veteran’s DD Form 214 is probably his or her most valuable military document.

The instructions the veteran receives with the DD Form 214 are simple: Don’t lose it! (It’s OK if you did; we will how you how to get a replacement further down the page).

But what if you never received a DD Form 214? All active duty servicemembers are issued a DD Form 214 when they separate from active duty.If you didn’t receive a DD Form 214 when you left the service, you should contact your last unit if you separated recently. Otherwise you should contact the National Archives, where military service records are maintained.

Members of the Reserve Corp only receive a DD Form 214 when they served on active duty. If you served in the Guard or Reserves, but were never activated, you may not have a DD Form 214. This is the case even if you successfully and honorably served your term. Guard and Reserve members who complete their term of service are issued a DD Form 256 (Honorable Discharge Certificate) or DD Form 257 (General Discharge Certificate) upon completion of their term.

If you were activated while part of the Reserves, then you should have a DD Form 214. However, some older Guard or Reserve members have reported they don’t remember receiving a physical form. If this is the case, and you should have received a DD Form 214, then you will need to contact the National Archives to obtain a copy of your DD Form 214.

How to get Copies of Your Records

Here are some tips for getting copies of your DD Form 214, military records, and other information:

• Get copy of DD Form 214
• Get copies of military records
• Replace military awards and decorations

Correcting Errors in Your Military Records

If there is an error in your military records and you were supposed to have been issued a DD Form 214, but for some reason it was never issued, then you would need to file a request with the Board of Corrections for Military Records. That can be done with DD Form 149, Application for Correction of Military Records. You will need to substantiate any request for change of military records with evidence, such as a copy of your orders, travel vouchers, signed statements from your commanding officer or someone you served with, or other evidence. Filling out this type of form is outside of the scope of this article, but you should be able to obtain free assistance with any of these issues at your county or state Veterans Affairs office, or through a Veterans Service Organization such as the DAV, VFW, American Legion, etc.

It’s no secret our government is having problems balancing the books. The problems go more than skin deep, and Congress is considering a variety of options to increase government revenues while decreasing spending. One of the areas where the government is looking to cut spending is with government benefits, including Social Security benefits, military retirement benefits, VA disability compensation, government retirement benefits, and similar benefits. But here’s the kicker: you won’t hear the government tell you they want to cut these benefits. Instead, they will tout the benefits of Chained CPI.

Chained CPI could be a silent killer

Chained what? Glad you asked. If you are a military retiree, social security recipient, or someone who receive VA disability compensation, then you should at least be aware of CPI and how it functions.

Government benefits are tied to inflation. As the cost of living increases, so do government benefits, at least in theory. There are a variety of ways to index inflation, but the method that matters for anyone receiving government benefits is the Consumer Price Index, or CPI. According to the Bureau of Labor Statistics, the CPI is “a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.”

The Consumer Price Index works like this: the government tracks and measures prices of approximately 80,000 products and services on a monthly basis. As these costs rise, so does the measure of inflation. These costs are used to give a cost of living measurement which is then tied to certain government benefits, including the aforementioned Social Security, Social Security Disability Benefits, military retirement benefits, VA disability compensation, and more.

This leads us to Chained CPI.

How Chained CPI Will Slowly Decrease Your Benefits

Here is how it works: when the cost of an item increases, people react several ways: they either pay the higher price, they do without the item, or they replace the item with a lower cost item. For example, when the cost of steak increases, some people pay the higher prices, some people don’t eat it any more, and some people eat less steak and substitute it with chicken or pork.

Here is a brief video which describes how Chained CPI affects seniors who receive Social Security benefits. You can apply this to your own situation if you are receiving benefits that base their annual COLA of CPI.

Robert B. Reich, is the Chancellor’s Professor of Public Policy at the University of California at Berkeley, and was Secretary of Labor in the Clinton administration.

As you can see from the video, Chained CPI results in a lower Cost of Living Adjustment at the end of the year.

Here is the worst part: The decreased COLA increases will compound indefinitely.

Will Chained CPI Decrease Military Retirement or VA Disability Benefits?

If Chained CPI is instituted, the answer is yes, your benefits will decrease accordingly (assuming your benefits are tied to the new system). The difference likely won’t be much. In fact, you may not even notice it the first year. A couple dollars a month makes a difference, but it is a small difference, and one that won’t be noticed by everyone – which is exactly what the government is hoping will happen. The problem is that Chained CPI would be cumulative and would result in a lower cost of living adjustment every year. That $2 or $3 a month difference might be $5 or $6 a month next year, or possibly higher. Within a decade, your monthly benefits may be significantly lower than they otherwise would have under the current Consumer Price Index measurements. Here are some charts which show how you may be affected.

Military Retirees and Veterans Could Get a Triple or Quadruple Whammy

Military retirees and some other government retirees would receive the brunt of this change, as they could be affected, two, three, or even more times by a change to the Chained CPI method of calculating COLA. Here is how: a military retiree currently receiving a pension would receive a lower COLA which compounds over time. The same decrease would apply to Social Security benefits he or she is receiving. A third way this could affect them is if they receive VA Disability compensation benefits. Some military retirees also receive a government pension for their service after they left the military, or they receive a government pension in addition to a pension from their service with the Guard or Reserves. They would be affected as well.

If this might affect you, then take it upon yourself to contact your military lobbying group or your Congressional representative.

Photo credit: racineur

The Department of Defense recently announced they would restore the Tuition Assistance Programs that were cut by most branches of the military as a result of the sequestration spending cuts. The sequestration forced unilateral spending cuts across the DoD, leaving each branch of the military to find places to cut spending. Among the first programs eliminated by most branches of the military were the popular Tuition Assistance Programs.

Tuition Assistance Programs Are Back!

The Air Force, Army, Marines, and Coast Guard all cut their Tuition Assistance Programs as a method for getting under budget. Of the major branches of the military, only the Navy did not cut their TA program, though they were considering a modified program that would only cover a portion of tuition. Thankfully, each branch of the service will restore their Tuition Assistance Programs for their members.

Tuition Assistance Programs Restored by DoD

Cutting Tuition Assistance was an unpopular move that received a lot of backlash from current servicemembers, veterans groups, and even certain members of Congress. However, military leadership was in a bind because the budget cuts were forced upon them.

Restoring Tuition Assistance received enough attention to garner over 100,000 signatures on a petition to the White House. 100,000 signatures is the required minimum to receive a response from the White House. Congress responded by passing legislation that will provide funding to the Department of Defense to enable them to reinstate Tuition Assistance Programs. The bill, General Provisions of the 2013 Appropriations Bill, was signed into law by President Obama in late March.

When will Tuition Assistance be reinstated? As of right now, the Navy is still the only branch of service still operating their Tuition Assistance Program, since they never suspended it. The other branches suspended their Tuition Assistance Programs in Mid March. Military leadership is awaiting the wording of the law and the funding before they can reinstate the programs.

Cuts may still affect Tuition Assistance Programs. The new legislation orders the services to reinstate Tuition Assistance up to their allocated budgets, minus the required 9.4% spending cut initiated by the sequestration. This leaves the potential for some of the services to run out of funds before the end of FY13. It is recommended servicemembers sign up for classes as soon as the Tuition Assistance Programs are reinstated.

There is no word on how the sequestration will affect the future of the Tuition Assistance Programs beyond the current fiscal year.

Photo credit: Official U.S. Navy Imagery

Update: Military Tuition Assistance Programs have been restored by Congress. The dates will be released in the near future.

The US Air Force was the latest branch to suspend tuition assistance, following the cuts made by US Marines and the Army. The tuition assistance cuts were part of a larger set of cuts caused by the sequestration, the result of the Budget Control Act of 2011 which created automatic spending cuts as part of the budget passed by Congress.

USAF suspends Tuition Assistance Program

The original goal of the Budget Control Act was to cut the federal deficit over the next decade. When Congress couldn’t agree on the language of the cuts, they wrote in a set of sweeping budget cuts in order to get the law passed at the last hour to avoid reaching the spending cliff. The goal was to address these cuts before they took effect. Unfortunately, this didn’t happen and virtually every government agency was caught in the cross-fire. This includes the DoD, which is forced to make broad spending cuts across the board.

Here is how the sequestration impacts USAF operations and civilian jobs. In addition to the Air Force cutting flying hours, civilian hours, and training programs, the Air Force has been forced to make other cuts to morale and support programs, including the popular Tuition Assistance Program, effective March 11, 2013. According to the Air Force, this will affect approximately 110,000 members.

USAF Cuts Tuition Assistance

Here is a roundtable discussion with Chief Master Sergeant of the Air Force, CMSAF James Cody. This is a video well worth watching to better understand how the decision to cut Tuition Assistance was made and why.

As you heard from CMSAF James Cody, the Tuition Assistance Program has only been paused, it has not been eliminated forever. The only issue is we don’t know when it will be restored, as that hinges upon the sequestration being lifted and a new budget being passed.

CMSAF Cody also discussed several other aspects of how cutting the Tuition Assistance Program will affect USAF members, including the impact on Enlisted Performance Reports (EPRs), retention and recruiting, and other aspects.

How to pay for classes if you lost Tuition Assistance. There are several ways you can pay for classes if you are no longer able to use Tuition Assistance. First and foremost, you may have access to the Montgomery GI Bill, or the Post-9/11 GI Bill. These benefits are most valuable after you leave the service, so if you plan on saving your benefit, or if you have already transferred your GI Bill benefits, you may have other options. Some of them include grants such as the Pell Grant or other government grants, private military scholarships, state benefits programs for Guard members, or federal student loans.

Visit your base Education and Training Office for more information about your options for paying for classes.

Photo credit: Scott*

Update: Military Tuition Assistance Programs have been restored by Congress. The dates will be released in the near future.

Update: The Marines have released the following information about resuming Tuition Assistance:

• JEC will start processing TA requests 11 April 2013
• Limits for TA remain the same at $250/Sem Hour $4500/FY
• TA will only be allocated quarterly so if it runs out then there is no more TA for the Qtr.
• TA requests will only be processed 2 weeks prior to start date of course (used to be 60 days.)

Defense officials are struggling with the budget cuts forced by the sequestration. While the budget cuts won’t affect military pay, many other areas will be cut, including DoD civilian hours, operations, training, and many popular support programs. One of the first areas to see the chopping block were non-mission essential programs such as the popular Tuition Assistance Program. USMC officials stated Tuition Assistance would be closed to new enrollments until the budget issues are resolved.

USMC suspends Tuition Assistance Program

The sequestration came about after the Budget Control Act of 2011 was passed. This act created automatic spending cuts in virtually every government sector, including the military. As a result, many government programs are slashing spending and placing many employees on involuntary furloughs.

The US Marines need to trim $1.4 billion from their budget this year. This has led to many unfortunate cuts, including base support, morale, welfare and recreation activities, tuition assistance, and other morale related programs.

USMC Suspends Tuition Assistance Program

The USMC Tuition Assistance Program helps Marines pay for accredited training at to achieve vocational certifications, or work toward a degree at the associate, bachelors, masters, or doctoral level. Marines are eligible to receive up to $250 per credit hour toward their degree, up to $4,500 per year.

However, as of March 2, 2013, new enrollments in the Marine Corps Tuition Assistance Program have been temporarily suspended until further notice. Those who are currently enrolled in course will be able to complete their coursework without interruptions. USMC leadership will reevaluate the Tuition Assistance Program after the new budget has been finalized and the sequestration has been lifted.

Tips to pay for school: If you are currently attending courses and your tuition assistance has been cut, you still have options to stay on track and complete your degree. Some examples include using the GI Bill, either the Montgomery GI Bill, or the Post-9/11 GI Bill. If you do not wish to use the GI Bill, or you have already transferred your GI Bill benefits to a family member, then you may find other ways to pay for coursework. Some examples include private military scholarships, government grants, state benefits programs, or student loans. (In general, it is best to avoid student loans if possible).

Cuts are occurring military-wide. Please keep in mind these cuts are not limited to the Marines. The Air Force and Army have cut tuition assistance, and the Navy is likely to follow soon. Operations and support programs have also been cut across the other branches, as have DoD civilian hours and other programs. Let’s hope the government passes a balanced budget soon so we can get past these cuts.

Photo credit: Fort Meade

Update: Military Tuition Assistance Programs have been restored by Congress. Details to be released in the near future.

The sequestration is hitting the military hard, as defense officials are scrambling to make the government-imposed budget cuts. The good news is that military pay remains unaffected. The bad news is that many popular programs are under the chopping block. Included in the cuts are many discretionary spending items, including tuition assistance programs, morale welfare and recreation, base activities, and more. Operational spending and training are also being affected, with defense officials stating they will cut back in many areas across the board.

Army Tuition Assistance Program Suspended

The sequestration is a result of the Budget Control Act of 2011, which placed automatic spending cuts across virtually every branch of the government, including military spending. At the time, Congress had intended to alter the Act to make cuts where they felt it was best. Unfortunately, no spending agreement was reached, and the automatic spending cuts were enforced.

Army Tuition Assistance Program Suspended

Military tuition assistance programs are one of the most popular benefits programs among active duty military members. In fact, education is one of the primary reasons many people join the military. These programs are also popular among military leadership who often encourage their troops to take classes in their off-duty time. A highly educated force is beneficial to operations.

Who will be affected? There are approximately 200,000 members of the Regular Army, Army Reserve, and Army National Guard currently using tuition assistance benefits. The Army Tuition Assistance Program will be shut down to new applications effective March 8, 2013, and will remain closed until the sequestration is lifted and the budget is finalized. The good news is that this will not affect any members of the Army who are currently participating in a Tuition Assistance Program. They will be able to complete courses in which they are currently enrolled. However, they will not be able to enroll in new courses through the Army Tuition Assistance Program until the sequestration has been lifted.

When will the suspension be lifted? Unfortunately, this is above even the Chief of Staff’s pay grade. The suspension will remain in place until the new budget has been passed, the sequestration has been lifted, and all programs have been reevaluated. It is possible the sequestration could be lifted soon (as in a matter of a couple months), or it could last through the remainder of the fiscal year. After that, it is anybody’s guess.

How can I pay for school? If you are attending courses on the Tuition Assistance program, you can continue your current course(s) until complete. After that, you will not be able to enroll in new courses through the Tuition Assistance Program until the budget issues have been resolved. Other ways to pay for college include using your GI Bill (Post-9/11 GI Bill or your MGIB), grants, military scholarships, or state tuition assistance if your state offers these benefits to Guard participants. One of the most popular grants many military members qualify for is the Pell Grant. If you are planning to apply for grants or scholarships, it is recommended to apply as soon as possible.

Stay tuned to www.goarmyed.com for updates.

Image credit: U.S. Army Korea (Historical Image Archive)

TRICARE service areas are being reorganized, which will cause many military retirees and dependents to lose access to TRICARE Prime on October 1, 2013. Retirees, their dependents, surviving dependents, and TRICARE Young Adult members who live more than 40 miles away from a military medical facility or base closure site may be required to change their health care from TRICARE Prime to TRICARE Standard.

These changes will not affect active duty military members or their families when they are stationed away from a local military treatment facility. This includes active duty members in remote assignments, education or training assignments, recruiting positions, and more.

Understanding the TRICARE Changes

TRICARE Prime Service Areas are changing

Please note this will not affect every TRICARE Prime member, every retiree, or every dependent. According to TRICARE.mil, the Prime Service Area (PSA) changes will not affect the following classes of beneficiaries:

• Active duty service members and family enrolled in TRICARE Prime*
• Activated Guard/Reserve members and family enrolled in TRICARE Prime*
• Surviving spouses of deceased active duty service members enrolled in TRICARE Prime* (for the first three years after the sponsor’s death)
• Surviving children of deceased active duty service members enrolled in TRICARE Prime*
• Children of active duty service members using TRICARE Young Adult-Prime
• Beneficiaries who already use TRICARE Standard and Extra
• Beneficiaries using TRICARE Retired Reserve, TRICARE Reserve Select, TRICARE Young Adult-Standard or TRICARE For Life

Find out if you will be affected. TRICARE has a Zip Code tool to help you determine if your TRICARE Prime eligibility will lapse.

Comparing the TRICARE Plans

To understand the impact of these changes, it’s important to understand how TRICARE Prime and TRICARE Standard function. (Note: All figures apply to retirees and their dependents. Some numbers may vary depending on your status. Please visit the TRICARE website for more information.)

TRICARE Prime is a low cost health care program, which charges members a fixed annual enrollment fee each year, and a small co-pay each visit. The FY2013 enrollment fees for retirees are $269.28 for an individual, or $538.56 for a family. The co-pays for retirees and family members are $12 per visit. TRICARE Prime members are required to receive their health care from network providers.

TRICARE Standard is a fee for service health care program, which allows members to choose their own medical care providers. There is currently no annual fee, and certain preventive visits are available at no cost, including preventive care such as mammograms, vaccines, cancer screening, prostate examinations and routine check-ups. However, there are additional out of pocket expenses. For example, beneficiaries are required to pay 25% of the allowable charges out of pocket. There is an annual deductible of $150 per individual, or $300 per family (this is money that beneficiaries are required to pay before the insurance kicks in). The maximum out of pocket expense per family is $3,000.

Some TRICARE Prime members may be able to remain under Prime with waivers. TRICARE is allowing some service members to receive a waiver to remain under TRICARE Prime, even if they live outside of the 40 mile limit. To be eligible, the Prime members must live within a 100 miles of the nearest TRICARE Prime network and must sign an access waiver to waive the driving-distance limits imposed by TRICARE Prime (normally a 30 minute drive to their primary care provider). TRICARE officials have stated that any displaced PRIME members will be admitted into the network if they meet these conditions, regardless regardless of number of beneficiaries enrolled.

What is not changing. In some cases, TRICARE members will be able to keep their current medical providers, even if they are moving from TRICARE Prime to TRICARE Standard. If you are losing your TRICARE Prime eligibility, then contact your physician to see if they provide service for TRICARE Standard members (most will provide service for both policies).

Impact of TRICARE Changes

This cost cutting move is expected to affect approximately 175,000 TRICARE beneficiaries, and will save the TRICARE system between $45 and $55 million a year. There are pros and cons to each of the TRICARE programs, but ultimately, how you use your benefits will determine how much you are affected. How will this affect the average retiree? Let’s take a look at some of the numbers (current for FY2012):

Cost for Enrollment (note: current enrollment fees; there have been proposed changes to TRICARE enrollment fees, including the creation of an enrollment fee for TRICARE Standard members):

• Prime individual: $269.28
• Prime family: $538.56
• Standard individual: None
• Standard family: None

Cost for Deductibles:

• Prime individual: None
• Prime family: None
• Standard individual: $150
• Standard family: $300

Co-Pays:

• Prime individual: $12 per visit
• Prime family: $12 per visit
• Standard individual: 25% of the allowable charges, up to $3,000 annual family limit
• Standard family: 25% of the allowable charges, up to $3,000 annual family limit

Some preventive health examinations are also cost free under TRICARE Prime, so there is no $12 co-pay for certain annual exams and preventive screening.

How will this affect you? If you are someone who doesn’t visit the doctor frequently, or only visits for annual screenings, you may come out ahead under TRICARE Standard. If you have other health needs, you may end up spending less under TRICARE Prime. It’s important to note that the most you will pay out of pocket with TRICARE Standard is $3,000 per year, but you could spend significantly less, depending on your needs.

Learn more about these changes at AF.mil, and TRICARE.mil.

Big news for TRICARE beneficiaries: the cost of TRICARE pharmacy copays is increasing for many individuals on Feb 1, 2013. These changes were authorized as part of the Fiscal Year 2013 Defense Authorization Act and will increase the cost of prescription copays on brand name and non-formulary medications that aren’t filled at military hospitals or clinics. The good news is there is no increase in copays for generic medications (in most cases, generic medications are still free or $5 for most TRICARE members).

You prescription medication costs may increase this year.

In addition to these copay increases, the law also allows TRICARE to increase co-payments each year by the same percentage of the retiree Cost of Living Adjustment (COLA). There is a condition to the COLA increase: the increase must be at least $1; if not, it will carry over to the next year and then be implemented. Let’s take a look at the changes and how they will affect your bottom line.

How TRICARE Pharmacy Copay Changes Will Affect You

Who will be affected: The first thing to note is that this only applies to medications that are filled outside of pharmacies located at military hospitals and clinics. In other words, if you don’t live near a military installation, or normally get your prescriptions filled at an off-base location, your copays may be increased. This usually affects more retirees than active duty individuals. However, this may affect some active duty members who are stationed away from military installations, including recruiters and those who are assigned to remote locations and embassies.

Prescription copay increases: Here is a sampling of the TRICARE prescription medication copay increases (Current copay first, then upcoming copay):

Home Delivery by mail (for up to 90 day supplies):

• Generic medications: free by mail (No increase)
• 90-day prescription brand-name formulary medications: $9 to $13 ($4 increase)
• 90-day prescription non-formulary medications: $25 to $43 ($18 increase)
• Generics: free by mail

Retail copay at Network Pharmacies (for up to 30 day supplies):

• Generic: $5 (No increase)
• Formulary prescription brand-name medications: from $12 to $17 ($5 increase)
• Non-formulary prescription medications: $25 to $44 ($19 increase)

Note: If you want to have a 90-day prescription filled, you will pay the copayment for each 30-day supply.

Retail copay at Non-Network Pharmacies (for up to 30 day supplies): Prescriptions filled at non-network pharmacies and host nation pharmacies generally cost more, and will vary, depending on the type of prescription you have filled. According to TRCIARE:

• Active duty service members will receive a full reimbursement after they file a claim.
• All others enrolled in a Prime option pay 50% cost share after the point of service deductible is met.
• Beneficiaries using Standard/Extra, TRICARE Reserve Select, TRICARE Retired Reserve or TRICARE Young Adult pay:
  • Formulary-Generic or Brand Name: $12 ($17 beginning February 1, 2013) or 20% of the total cost, whichever is greater, after the annual deductible is met
  • Non-Formulary: $25 ($44 beginning February 1, 2013) or 20% of the total cost, whichever is greater, after the annual deductible is met

TRICARE for Life and Medicare Eligible Retirees

This price increase will affect some more than others, particularly retirees and those on fixed incomes. Because of this, there were some compromises in the FY13 Defense Bill that will provide for a pilot program that allows Medicare-eligible retirees and their family members participating in TRICARE for Life to receive common medications via mail for a minimum of a year, or to get them from a military pharmacy in lieu of obtaining them from a commercial pharmacy. The details for this program have not yet been released. Please check back for more information.

The good news is that TRICARE members can always receive their prescription medications free of charge when they obtain them from a military clinic or hospital. It’s important to note that not all medications are available at all military pharmacies. Non-formulary medications and certain other prescriptions are not usually filled at military pharmacies. Be sure to check for availability or ask your doctor if there is another equivalent option for your prescription. Your doctor may be able to give you a prescription that will work equally well, but will cost much less.

See the TRICARE pharmacy costs or the TRCIARE smart phone app for up to date information.

The VA clothing allowance is a little known benefit for certain veterans with service-connected disabilities. This benefit only applies to veterans with a service-connected disability which require the use of a prosthetic, orthopedic device, or skin medication that cause irreparable damage to clothing, and because of this damage, requires more frequent replacement. Here is the quote from the application form, VA Form 10-8678 (pdf):

Veterans who wear or use a qualifying prescribed prosthetic or orthopedic appliance and/or prescription medication for a service-connected disability or skin condition may be eligible for an annual clothing allowance. To be eligible, the appliance must wear or tear clothing, or medication must irreparably damage the veteran’s outer-garments.

Disabled Veteran Clothing Allowance

Clothing Allowance Benefit: The VA Clothing Allowance is for eligible veterans with a service-connected disability and is worth $742 per year (increases to $753 on August 1, 2013). The benefit is designed to be used to replace clothing that worn or torn by the continued use of prosthetic or orthopedic devices, or because of required skin medications. It is possible to receive two clothing allowance benefits (for a total of $1,482; $1,506 after August 1, 2013) if you have more than one qualifying condition. For example, veterans with multiple prosthetic devices or skin conditions may be eligible to receive two allowances per year if they qualify, provided the conditions damage distinct clothing items. Multiple awards are made on a case by case basis.

Eligibility: The first requirement is to have a service-connected disability that requires the use of a prosthetic or orthopedic device, or the use of skin cremes which irreparably damage the outer garments. According to the VA, “Irreparable damages do not include stains that are removable through regular laundering or dry cleaning.”

Common examples include the wearing of a prosthetic or orthopedic device, artificial limb, rigid brace, back brace, the use of a wheelchair, or the required application of skin cremes or other medications which may damage clothing.

How to Apply: You can apply for this benefit at your VA hospital or clinic or by mailing in the completed application form. Submit the form to the Prosthetic and Sensory Aids Service (PSAS) at the VA Medical Center closest to you. This is an annual allowance which must be renewed each year. The form must be submitted no later than August 1st of each year.

Before you apply, you should gather all your relevant paperwork and supporting information to help fill out the application form. Printing the form and reviewing it before you apply will help you gather all applicable information.

When filling out the form you will need to list the clothing item that becomes damaged by your prosthetic, medical device or skin cream, the related disability, when it was issued, the VA Facility that issued it, and how it impacts your life.

As with all forms you submit to the VA you will be required to sign and certify the information is accurate.

If this is your first time submitting the application, it is recommended you visit the VA center closest to you for assistance with the application.

Photo credit: Sergeant Ian Forsyth RLC