The Military Offices Association of America has proposed a list of 15 items that could make Tricare more cost-effective, as alternatives to the Defense Department’s idea of raising Tricare fees and other medical costs for military retirees under age 65:
- Make Tricare a second payer to other insurance.
- Reduce or eliminate mail-order copayments to encourage use of this lowest-cost pharmacy service.
- Negotiate with drug manufacturers for discounts at retail pharmacies.
- Streamline the electronic claims system.
- Educate beneficiaries and providers about the advantages of mail-order pharmacy.
- Change the law to limit incentives private firms can offer employees to shift to Tricare, or require such matching payments to Tricare.
- Eliminate DoD-unique administrative requirements that make DoD pay higher overhead fees.
- Reduce Tricare Reserve Select costs by allowing service members the option of a government subsidy (at costs capped below that of Tricare) of civilian employer premiums during periods of mobilization.
- Promote programs to offer special care management services to beneficiaries with chronic or unusually expensive conditions.
- Change the law to mandate federal pricing for the retail pharmacy network (rather than charging beneficiaries more if drug companies don’t).
- Establish one central DoD facility to order and fill all prescriptions for exceptionally high-cost drugs.
- Centralize the military treatment facility pharmacy budgeting and funding process, emphasizing accountability and cost-shifting.
- Increase efficiency via a single contract for all claims processing.
- Test voluntary participation in Medicare Advantage Regional PPO to foster chronic care improvement and disease management.
- Size military facilities (least costly care option) to reduce reliance on civilian providers.