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'Widow's tax' fix in defense budget compromise would raise some Tricare co pays
Posted on: 11/09/17


  Congressional negotiators included a partial fix for the so-called “widow’s tax” in the final draft of the fiscal 2018 defense authorization bill, but paying for it will mean higher prescription drug costs for some military beneficiaries.

The legislation, released by officials of the House and Senate Armed Services Committees on Wednesday, makes the Special Survivor Indemnity Allowance a permanent payout for the first time. That stipend had been set to expire next spring, taking away about $300 a month for some military widows and widowers.

The SSIA payouts are a partial fix to an ongoing benefits problem that has frustrated military advocates for decades.

 

Currently, individuals who receive Defense Department Survivor Benefit Plan payments and Dependency and Indemnity Compensation stipends simultaneously see their total payouts offset, even though the programs aren’t linked in any way. As a result, grieving families lose up to $15,000 a year in benefits they had expected to receive.

 

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