2008/12/15 00:00:00
We know military benefits are confusing. Okay, really confusing. Hundreds of members contact our experts each month asking questions on topics ranging from TRICARE to military retired pay. Review four of the most frequently asked questions here, and get the answers you need!
1. TRICARE Versus Employer-Provided Coverage
2. TRICARE Mail Order Pharmacy (TMOP)
3. Taxes and Retroactive Concurrent Retirement and Disability Pay (CRDP) Payments
4. Arlington National Cemetery and Funeral Honors
1. I will retire next summer. I have four kids and a spouse. I need to know what type of TRICARE coverage is available and how much it is going to cost. I will have the option of purchasing health insurance through my new employer, but I want to compare costs between TRICARE and my civilian plan.
After retiring from active duty, your healthcare options are TRICARE Prime or TRICARE Standard. TRICARE Prime requires enrollment. No action is required to participate in TRICARE Standard, other than receipt of retired pay and payment of the associated fees noted below. TRICARE Prime is similar to a health maintenance organization (HMO). Health care is managed in a military treatment facility (MTF) with an annual enrollment fee of $230/person or $460/family. This is considered the most cost-effective option but has the least amount of provider choice. TRICARE Prime availability varies from installation to installation, and it is recommended you contact your TRICARE regional contractor to make sure TRICARE Prime is available in your area before making any decisions. Although you are not required to pay an annual deductible or copayments for care received at an MTF under TRICARE Prime, if you are referred to a civilian physician for any reason (i.e. particular specialty), you are responsible for copayments for office visits.
TRICARE Standard acts like a preferred provider organization (PPO) and gives you the greatest flexibility in managing your own care. This does NOT have an enrollment fee but has annual deductibles of $150/person or $300/family, plus 25-percent cost shares (20 percent for using network providers). This option allows you to decide which provider you will see and allows for “self-referral” for specialty care. For additional information, view the TRICARE Standard fact sheet.
If you choose TRICARE over employer-provided coverage, you might want to look into purchasing a TRICARE supplemental policy to help with out-of-pocket expenses. We encourage you to shop around, but MOAA Insurance Plans offers one of the best plans available. For more information, call (800) 247-2192 or visit www.moaainsurance.com.
If you do decide to take employer-provided coverage, you still retain your TRICARE benefits. Your other health insurance (OHI) will be your primary coverage, and TRICARE Standard will be your secondary insurance. You may be able to file claims with TRICARE Standard for reimbursement of copayments required by your OHI. TRICARE Standard will not reimburse you for any premiums you are required to pay.
2. I have a prescription generic drug that I must take daily. In the past I have had it refilled at the local drug store for a $3 copayment for 30 pills. I understand I can get 90 days supply via mail. How do I do that? What is the cost?
The TRICARE Mail Order Pharmacy (TMOP) provides up to a 90-day drug supply for the cost of 30 days, making it a very economical choice for individuals on maintenance medications. Call the TMOP Member Choice Center at (877) 363-1433 to assist with your one-time registration and prescription transfer, or visit the Express Scripts Web site.
3. I am rated 100 percent due to individual unemployability (IU) by the VA and currently receive Concurrent Retirement and Disability Pay (CRDP). I know there was legislation that ended the offset in retired pay as of October 2008 and authorized retroactive payments. What are the tax implications for retroactive CRDP payments?
The Defense Finance and Accounting Service (DFAS) is in the process of paying out Concurrent Retirement and Disability Pay (CRDP) payments to retirees rated 100 percent disabled due to individual unemployability (IU) by the VA. Retroactive payments are lump sum amounts and will be paid starting in November 2008 and are scheduled for completion in March 2009.
As a restoration of military retired pay, CRDP is taxable to the extent your retired pay is taxable, as are retroactive CRDP payments. Retroactive CRDP payments are considered taxable income for the year in which they are received, per Internal Revenue Service regulations. This is the case even though retroactive payments aim to restore previously offset military retired pay as far back as Jan. 1, 2005.
Retirees have asked about the ability to file an amended tax return. However, this is not an option. Amended tax returns are filed to correct a past mistake or when you paid taxes in the past that you didn’t need to pay. Retroactive CRDP payments do not apply to either of these situations because you were paid in accordance with the laws and policies at those times. Since the law changed in 2008 to eliminate the offset for retirees rated 100 percent IU, the retroactive payment is considered a current year income payment, with the current year being the year in which you receive your payment--either 2008 or 2009.
4. I would like to be placed in Arlington National Cemetery after my death. I am receiving military retirement pay. What do I need to do? What funeral honors are available?
Arlington National Cemetery does not make prearrangements. However, upon the passing of the veteran or veteran's spouse, the surviving spouse or personal representative should contact a local funeral home to arrange for any desired services in the home town. While the surviving spouse or personal representative is at the funeral home, the funeral director should telephone the Interment Office at Arlington National Cemetery (703) 607-8585 to arrange for the interment service. Before scheduling the service, the cemetery staff will need to determine the eligibility of the deceased. Upon verification of eligibility, the cemetery staff will schedule the interment.
You can assist in the process ahead of time by making sure you have the proper documentation and your survivor(s) know where to locate that information. The key document required is your DD-214 (discharge/separation from the military). The DD-214 generally provides all required information for verifying eligibility. The Web site for Arlington National Cemetery contains detailed information on the documentation required for verification of eligibility.
Funeral honors available to eligible retirees, regardless of interment at Arlington, consist of a minimum of two uniformed armed forces members (one from the service of the deceased), the folding and presentation of the American flag, and ceremonial bugle or a recording of “Taps” if a bugler is unavailable.
It is important to understand military funeral honors are NOT automatic. The next of kin must request the honors and the funeral director must contact DoD by calling (877) MIL-HONR (645-4667).