Some of you read in your morning papers that the Department of Defense (DoD) announced today the selection of new TRICARE Managed Care Support (MCS) contractors for the North, South and West TRICARE regions in the United States. Most of what’s posted below is lifted from the Tricare Management Activity (TMA) press release about the contractor selections.
The selected contractors in both North and South Regions are new. Aetna Government Health Plans, Hartford, Conn., is selected for the North Region where Health Net Federal Services is the current contractor. UnitedHealth Military & Veterans Services, Minnetonka, Minn., is selected for the South Region where Humana Military Healthcare Services is the current contractor. The TRICARE West region retains its current contractor, TriWest Healthcare Alliance Corp.
States included in each region and other contract information can be found at a special Web page at http://www.tricare.mil/T3contracts.
This is the third generation (T-3) of TRICARE managed care support contracts. They are worth an estimated $55.5 billion over the base and five options periods. Transition from the current contracts is scheduled to begin immediately, with the start of health care delivery under the new contracts anticipated to be April 1, 2010. The transition will occur during the base period and health care delivery will begin with the first option.
TRICARE Management Activity (TMA) is the Defense Department activity that administers the health care plan for 9.4 million members of the uniformed services, retirees and their families worldwide. MCS contractors provide health, medical and administrative support services to eligible beneficiaries in each of the three TRICARE regions within the United States.
Although two new contractors have been selected, the three-region structure in the United States and all of the TRICARE benefit options offered under the current contracts remain the same.
The T-3 contracts feature financial incentives to encourage exceptional customer service; high quality care; detection of fraud, waste, and abuse; increased electronic claims processing; better program management, improved preventive care and cost savings. To apply these incentives fairly, TRICARE has improved methods to measure and assess network provider, beneficiary, and military treatment facility commander satisfaction.
As with the current contracts, the new contracts require prime service areas around Military Treatment Facilities and Base Realignment and Closure (BRAC) sites. Under T-3, some prime service areas may be discontinued, and as a result some beneficiaries will no longer be offered Prime. These beneficiaries still retain TRICARE coverage under the Standard or Extra plan. TRICARE Standard is the most flexible of the TRICARE options and is available everywhere. TRICARE Extra is a discount given to TRICARE Standard beneficiaries when they use a TRICARE network provider. Officials remind beneficiaries that both TRICARE Prime and Standard are excellent options with high satisfaction rates.
The Managed Care Support contractors who served our members over the past five plus years did a fine job by most accounts, and there is every reason to expect that the new MCS comntractors will also. MOAA reps will work with TMA, and the existing and new contractors as the transition gets underway. We will continue to post information and developments on our web site and blogs, and our magazine and electronic newsletters as details become known.