Plan Advances to Hike Military Retirees' Healthcare Tab

Raising out-of-pocket healthcare costs for working-age military retirees moved a step closer to reality as the House Armed Services Committee signed off on a proposal from the Obama administration. If Congress approves the plan, it would be the first increase in 16 years in the program known as Tricare, The Washington Post reported.

If the bill is enacted, retired service members still eligible to work will see their yearly premium for family coverage go from $460 a year to $520. Individual coverage would go from $230 to $260, the Post reported.

The question now moves to the Senate, which is expected to take up the matter in June. The Defense Department has argued that Tricare premiums need to rise by more than 3 percent a years to keep pace with projected costs expected to hit $65 billion in five years, according to the Post.