IRS Guidance for Organizations

Some members within our Chapters are not aware of our organization’s tax status thinking that we are a 501(c)3 type of Non-Profit. MOAA and several other military related organizations fall under Section 501(c)19 of the Internal Revenue Code because we/they are not organized nor operate for profit and operate exclusively for the purpose of social welfare. Additionally, organizations such as MOAA are allowed to participate in political and lobbying activities. Below is a brief description of the differences between 501(c)(3) and 501(c)(19).

  • 501(c)(3) refers specifically to public charities, private foundations, or private operating foundations. Donations to most 501(c)(3) organizations are deductible for federal tax purposes. Many states allow 501(c)(3) to be exempt from sales tax on purchases and exempt from property taxes.
  • 501(c)(19) veterans’ organizations also have the benefit of allowing their donors to deduct their charitable contributions on their federal income tax returns. However, at least 75% of the organization’s membership has to be made up of war veterans. At least 97.5 percent of its members must be present or former members of the United States Armed Forces, cadets (including only students in college or university ROTC programs, or at Armed Services academies) or spouses, widows, widowers, ancestors, or lineal descendants of individuals referred to in the first or second bullet. The IRS defines “war veterans” as “persons, whether or not present members of the United States Armed Forces, who have served in the United States Armed Forces during a period of war.”

See details in the attached document:

Update to TRICare Network

Thousands of Pharmacies Will Have a Chance to Rejoin the TRICARE Network

NOVEMBER 16, 2022

Nearly 15,000 independent pharmacies will have a chance to rejoin the Tricare retail pharmacy network, according to officials with Express Scripts.

The move comes in response to the Kroger grocery chain’s Sept. 30 announcement that its 2,200 pharmacies in 35 states would no longer participate in the Tricare provider network, officials said.

Express Scripts will send a notice announcing a December contract solicitation directly to the pharmacies that either declined the recent contract or are affiliated with a wholesaler that declined the contract on their behalf. If the pharmacy accepts the contract, it will be able to rejoin the Tricare network effective Jan. 15.

Until Oct. 24, there were roughly 55,586 retail pharmacies in the Tricare network but, as of that date, 14,963 dropped out. The reduction in pharmacies affects an estimated 400,000 Tricare beneficiaries, according to the National Community Pharmacists Association. Lawmakers and advocates have raised questions about the effect on beneficiaries, especially those in rural areas.


2023 TRICARE Costs Announced

By: Kevin Lilley NOVEMBER 08, 2022

Inflation figures which will lead to the highest cost of living adjustment (COLA) for military retirees in decades next year also will lead to significant increases in TRICARE enrollment fees, premium, and other rates. TRICARE announced the 2023 rates Nov. 7, a week before this year’s open season. Find all the rates at this link; click this link for the same charts from 2022. Costs for next year’s TRICARE Reserve Select, TRICARE Retired Reserve, and TRICARE Young Adult plans were announced in late August.


FROM MOAA’s TRICARE GUIDE: TRICARE and FEDVIP Open Season: Which Plan Is Best?

Thanks in part to MOAA’s persistent advocacy, by law, many fees are indexed to the retiree COLA increase, which will be 8.7% in the new year. MOAA defeated an alternative approach proposed by Congress and DoD which would have indexed increases to national health expenditures, resulting in consistently larger price hikes. One example of a COLA-linked increase for next year: Annual TRICARE Select enrollment fees for most Group A retirees and their families will rise to $171.96 for individuals and $345 for families for 2023, up from $158 and $317, respectively.

MOAA has worked to roll back these enrollment fees, which took effect in 2021 after being enacted in the FY 2017 National Defense Authorization Act (NDAA).

***TAKE ACTION: [Ask Your Senators to Repeal the TRICARE Select Enrollment Fee]

TRICARE Select Group B retirees (entered service on or after Jan 1, 2018) and their families will pay annual enrollment fees of $547.92 for individual plans and $1,095.96 for family plans in 2023, up from $504 and $1,008 this year. Annual deductibles for TRICARE Select Group A remain the same year over year ($150 individual/$300 family), while Group B rates rose:

  • Individual in network: $182 (up from $168)
  • Individual out of network: $365 (up from $336)
  • Family in network: $365 (up from $336)
  • Family out of network: $730 (up from $672)

The annual catastrophic cap for TRICARE Select Group A retirees will rise from $3,706 in 2022 to $4,028 next year, and Group B retirees will see an increase from $3,921 to $4,262. Annual enrollment fees apply to the cap.

The catastrophic cap for TRICARE Prime Group A retirees remains at $3,000, while Group B retirees will have a $4,262 cap in 2023, up from $3,921.

Click this link for a full listing of costs for the new calendar year.

***TAKE ACTION: [Help MOAA Fight Cuts to the TRICARE Pharmacy Network]