TRICARE Administrative Prices in the Northwest Region May Be Too High
Abstract
The Department of Defense (DOD) initiated TRICARE-its nationwide managed health care program-to improve access for the military community while maintaining quality and controlling costs. This broad reform of DODs $16 billion health care system is changing the way it delivers services to 8.3 million beneficiaries. In authorizing the shift to managed care, the Congress directed that the cost of DODs new TRICARE program be budget neutral-that is, costs not increase over what they would have been without the program. To help achieve this goal, TRICARE managers are seeking opportunities to contain expenditures. During the course of our work on TRICAREs managed care support contracts,2 we observed that DOD did not take advantage of its contractual authority to adjust administrative support prices in the Northwest Region (Oregon, Washington, and part of Idaho) to correspond with a large health care price reduction. As a result, administrative support prices in the Northwest region may be up to an estimated $26 million too high over the 5-year contract period.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 24, 1997
- Accession Number
- AD1177427
Entities
People
- Stephen P. Backhus
Organizations
- United States Government Accountability Office