White House rejecting TRICARE revamp; backing retirement, other changes to military benefits

U.S. officials say the White House is rejecting a proposal to largely replace the military's TRICARE health care system but has agreed to further study a proposal that would let service members participate in retirement savings plans like a 401(k).

The administration is prepared to support 10 recommendations made by the Military Compensation and Retirement Modernization Commission, mainly for less sweeping changes and improvements affecting child care, education, travel and other benefits. The decisions reflect recommendations made by the Pentagon.

The panel released a report in late January laying out 15 recommendations they estimated would generate more than $20 billion in savings over four years. U.S. officials described the administration plans on condition of anonymity because they were not authorized to discuss them publicly.