USA Today

By Gregg Zoroya, USA TODAY




<http://content.usatoday.com/topics/topic/People/Politicians,+Government+Off
icials,+Strategists/Executive/Barack+Obama> President Obama would raise
pharmacy co-pays for military families and hike medical coverage fees for
military retirees as part of his debt-reduction plan unveiled Monday.



"We are all in this together, and all of us must contribute to getting our
economy moving again and on a firm fiscal footing," President Obama said in
a statement regarding his latest economic plans.



Service groups representing millions of veterans moved quickly to criticize
the proposals. Peter Gaytan, executive director of the
<http://content.usatoday.com/topics/topic/American+Legion> American Legion,
which has 2.4 million veterans as members, said his organization opposes any
hikes without offsetting cost-of-living increases in pensions.

"We do not want to see the federal budget balanced on the backs of American
veterans who have earned these benefits through service to their country,"
Gaytan says.



<http://content.usatoday.com/topics/topic/Veterans+of+Foreign+Wars>
Veterans of Foreign Wars, with 1.5 million members, and the
<http://content.usatoday.com/topics/topic/Military+Officers+Association+of+A
merica> Military Officers Association of America also oppose the changes.

"In our book, (these are) a formula for retention and readiness disaster,"
says Steve Strobridge of the officers association.

The Obama plan would introduce a $200 annual fee for retired military
families who wish to continue with Tricare-for-Life program that supplements
Medicare for retirees over 65. The proposal would save $6.7billion in
government spending over 10 years, the
<http://content.usatoday.com/topics/topic/Places,+Geography/Landmarks,+Landf
orms/White+House> White House says.



The administration also wants to encourage military families and retirees to
use less expensive options when buying prescriptions under current coverage.
The deficit plan would eliminate co-pays for generic mail-order drugs, while
instituting a percentage co-pay rather than a small flat fee for drug store
purchases.



Obama says this would save more than $20 billion over 20 years.



On a subject that has upset military careerists, the administration is
looking to save money by revamping the
<http://content.usatoday.com/topics/topic/Department+of+Defense> Defense
Department pension plan. Obama calls for a commission to produce changes to
the current system.



The Pentagon would then modify as it sees fit and - just as previous
administrations dealt with the controversial issue of base closures - the
retirement reforms would have to be accepted without changes for approval by
Congress.



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