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Military Benefit Changes for 2022

Military Benefit Changes for 2022

Military Benefit Changes for 2022

These are the changes that have been announced so far. Please keep checking back, as we will continue updating new changes to your military benefits for 2022.

TRICARE Updates 2022

TRICARE Pharmacy Network

TRICARE Pharmacy Network will have updates going into 2022. As of December 15th, 2021, Walmart and Sam’s Club will no longer take TRICARE. CVS will be added after being away from the network for the last five years.

 

>> Have questions about you or your spouse’s military benefits? We’ve partnered with the Veterans Education Project to help find the answers you need. Find the answers to your benefits questions today!

 

TRICARE Premiums

TRICARE premiums will change for reservists, retired reserves, and some military family members. 

Monthly premiums for TRICARE Reserve Select will be going down. For individuals, they will drop 1% from $47.20 to $46.70. For families, it will go down 3.8% from $238.99 to $229.99. 

Monthly premiums for Retired Reserve will be going up. For Individuals, they will be changing from $484.83 to $502.32. For families, they will be changing from $1,165 to $1,206.59. 

TRICARE Young Adult monthly premiums will also be going up. TRICARE Young Adult Select Premiums will increase from $257 to $265, and TRICARE Young Adult Prime Premiums will increase from $459 to $512. 

Continued Health Care Benefit Program quarterly premiums are also going up. For the member, the amount is changing from $1,599 to $1,654, and for member and family, it is changing from $3,605 to $4,079. 

You should also check on the TRICARE fees that may have changed for 2022 on their website.

COLA Increases

COLA will have an increase of 5.9% in 2022. This is a big jump from the 2021 increase of 1.3%. The last time COLA was close to this percentage was in 2008 with an increase of 5.8%. 

COLA increases are based on the increase in the CPI-W, from the 3rd quarter of 2020 through the third quarter of 2021. Increases can change year to year. The last few years have seen 0.3% in 2017, 2.0% in 2018, 2.8% in 2019, and 1.6% in 2020. Military retirees, those who receive disability payments, or other benefits from the Department of Veterans Affairs, federal retirees, as well as Social Security recipients, will all see a 5.9% increase in their monthly payments.

Retirement Pay

When it comes to retirement pay, it is important to keep in mind that since the increase for the year is calculated differently than active duty pay, the raises can seem a little different based on the year. Based on the 5.9% increase, in 2022 you would receive $59 for every $1,000 in government benefits you receive. If a veteran is receiving around $2,000 a month as retirement pay, they would see an increase of $118 a month.

A veteran who entered military service after July 31, 1986, has had the option of going with the “Career Status Bonus” or (CSB)/REDUX instead of the “High 3-year average” option with regards to retirement pay. This means that they would have received $30,000 during their 15th year of service and will see a reduced retirement rate until they are 62 years old. This also means that their COLA increase is reduced by 1%, which would change the amount of the increase they would see in 2022.

VA Disability

VA Disability payments would also increase in 2022. A veteran with a 60% rating would see about a $51 a month increase, while a veteran with a 100% rating would see about an $85 a month increase. The amount they would receive depends on their rating as well as their veteran-dependent status. The rate for 2022 would be 5.9% and is based on COLA rates.

Social Security Payments

According to the Social Security Administration, the average monthly Social Security benefit in June 2021 was $1,555 for the retired worker. Based on this, the average beneficiary would see an increase of $87 in 2022.

3.0% Military Pay Increase

A 2.7% pay raise has been proposed for 2022. This is a little less than last year which was 3.0%. For junior enlisted, this would be an increase of around $768 a year.

The main guideline for determining military pay raises comes from the quarterly report of the US Employment Cost Index (ECI) which is put out by the Bureau of Labor Statistics (BLS).

The fiscal 2022 NDAA will need to be passed and then the 2.7% raise will take effect as of Jan 1, 2022.

BAH 2022 Rates

BAH is the Basic Allowance for Housing. The 2022 BAH rates have not been posted yet and the DOD’s BAH calculator still needs to be updated. You can use this to find out how much you will be bringing home for BAH in 2022 once updated. Remember, if your rate goes down you are grandfathered into the old rate unless you move or change rank.

BAH is based on your rank, dependent status, and geographic location. BAH is intended to cover 95% of your housing costs. This % can change each year and was 99% just a few years ago. Your rates are based on your duty station zip code.

Your new BAH rate will go into effect on January 1st and you will see it in your January 15, 2022 paycheck.

The proposed BAH increase will need to be approved by Congress and the President. That being said, individual rates are based on the cost of living in your exact location. 2.7% is being proposed for 2022. In 2021, BAH was 2.9%.

BAS 2022 Rates

BAS (Basic Allowance for Subsistence) 2022 rates have not been updated yet but 2.3% is proposed. BAS had a 3.7% increase in 2021. Rates have not changed all that much in the last few years since they are based on the cost of food.

BAS is meant to be used to pay for food for enlisted and officers. It is only intended to help pay for food, not to cover all the costs. The rate also does not change based on dependents because the money is not meant to cover food for family members.

The increase will take place on January 1st and you will see it on your January 15th, 2022 paychecks.

We will update as more 2022 military benefits changes are announced!

 

>> Have questions about you or your spouse’s military benefits? We’ve partnered with the Veterans Education Project to help find the answers you need. Find the answers to your benefits questions today!

 

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About the author

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Julie Provost is a freelance writer, blogger, and owner of Soldier's Wife, Crazy Life, a support blog for military spouses. She lives in Tennessee with her National Guard husband and three boys.