Veterans and troops set to lose health benefits under Obama's budget

Retirees in the military health care program will face increases in their annual costs of up to 345 per cent

Concern is sinking in over the long-term effects of President Barack Obama's proposed budget cuts to military health care spending.

Critics say that by taking aim at the military health care program by adding additional fees and increasing required payments, the President is dishonoring troops and hurting the military's recruiting power.

The budget put forth by Mr Obama- which still needs to be approved by Congress before being enacted- would create $487billion in cuts over the next 10 years.

Strategic cuts: As part of his proposed budget, President Obama will aim to have veterans opt out of their health care plan by raising the prices significantly

One of the biggest areas of contention is the increases of health care fees that specifically target military retirees by boosting their co-pay charges and deductibles.

Some reports cite unidentified administration officials as saying that they hope that the increases would put pressure on the retirees to opt out of their veterans benefits and sign up for the program put in place by President Obama's controversial Affordable Care Act which was approved in 2010.



'Would you stay with a car insurance company that raised your premiums by 345 per cent in five years? Probably not,' an unidentified congressional aide told Fox News, hinting that their plan to get veterans to sign up with other insurers would work.

The budget suggests that the annual premiums for the military health care program, called Tricare, would be raised by 30 to 78 per cent in the first year and then the individuals would be subjected to an additional 94 to 345 per cent increase.

Making his case: Since releasing his budget on February 13, President Obama has faced hearty criticism from Republicans who say he is hurting the military

'Would anybody accept their taxes being raised 345 per cent in five years? Probably not,' the aide continued.

Representative Howard McKeon, the chairman of the House Armed Services committee, and Senator John McCain, whose personal ties to the military make him an active commenter on the subject, have both criticized the plan publicly.



Mr McCain, who ran a failed presidential bid against Mr Obama in 2008, said that the budget 'continues the administration's habit of putting short-term political considerations over our long-term national security interests'.

Work in progress: The budget has to be approved by Congress before set into effect

While Mr McCain is likely referring to the price of quality human capital for the armed services, much of the budget's defence concerns are directly tied to the country's long term interests.

The progressive cutbacks in the wars in the Middle East, as well as delays in fighter jet purchases and shipbuilding efforts all contribute to the spending decreases.

Though he initially spoke out in strong favour of the budget when it was released on February 13, General Martin Dempsey, the chairman of the Joint Chiefs of Staff, did admit that they are planning to review the issue.

'I want those of you who serve and who have served to know that we’ve heard your concerns, in particular your concern about the tiered enrolment fee structure for TRICARE in retirement,' he said in a February 21 statement.