The CBO also suggested instituting enrollment fees for Tricare for Life, the program that serves as supplemental coverage for military retirees on Medicare. Analysts estimated that the Defense Department could save $12 billion between 2021 and 2028 if it adopted annual enrollment fees of $485 for an individual or $970 for a family for Tricare for Life, in addition to the Medicare premiums most military retirees 65 and older pay.
The Department of Veterans Affairs also presents several opportunities for cost-savings measures. Some suggestions in the CBO assessment include: · Narrowing eligibility for disability compensation for seven diseases the Government Accountability Office has said are not caused or aggravated by military service, including arteriosclerotic heart disease, chronic obstructive pulmonary disease, Crohn’s disease, hemorrhoids, multiple sclerosis, osteoarthritis, and uterine fibroids. This option would save $33 billion over 10 years. · Ending the VA’s individual unemployability payments to disabled veterans when they turn 67, the retirement age for receiving full Social Security benefits, which would save an estimated $48 billion. · Reducing disability benefits to veterans older than 67 who are receiving Social Security payments. This could save the government $11 billion. · Eliminating disability compensation for 1.3 million veterans with disability rates below 30 percent, saving $38 billion over an eight-year period.
Finally, the CBO said the federal government could raise revenue by including VA disability payments as taxable income. According to the CBO, if all disability payments were to be taxed, federal revenues during the time frame would increase by $93 billion