New Military Retirees’ Insurance

Military retirees and dependents in California and Hawaii will be allowed to join a private health insurance plan in an effort intended to save money for both government and patients, it was announced today.

The private plan, administered by Foundation Health Corp. of Sacramento, will cost the military $3 billion over the next five years and save about $300 million, U.S. Sen. Pete Wilson (R-Calif.) said. The savings would come from cuts in payments under a military program that reimburses retirees and dependents for private medical bills they incur when military hospitals are too busy to treat them. The retirees and dependents will save money because they won’t be required to pay the 20% “co-payment” required by the military reimbursement plan.