Tricare Senior Prime Demonstration Project at Madigan Army Medical Center: Is Cost Neutrality Achievable?

Abstract

Delivery of care under the Medicare Subvention Demonstration began 1 September 1998, at Madigan Army Medical Center (MAMC). The goal of the demonstration is to implement a cost-neutral alternative to delivering health care to Medicare-eligible military beneficiaries, while increasing the total federal cost to neither the Department of Defense (DOD) nor Department of Health and Human Services. The purpose of this research effort is to determine if MAMC can achieve cost-neutrality and contribute to the achievement of the DOD Level of Ef fort (LOE). Two supporting objectives are examined in this research effort. The first seeks to determine if the cost of treating Medicare dual-eligible beneficiaries is significantly greater than the cost of treating all other beneficiaries. The second examines whether MAMC will meet its assigned LOR based on accrued costs for care rendered to dual-eligible beneficiaries. Cost-neutrality is achieved if the LOR is met but not exceeded. Results indicate MAMC will meet and exceed its assigned LOE, but will not achieve cost-neutrality. Results also revealed that costs for Medicare patients are greater (significantly) . Information and methods presented in this study may assist health care decision-makers in innovating methods for controlling the associated costs.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1999
Accession Number
ADA420390

Entities

People

  • William H. Millar

Organizations

  • Madigan Army Medical Center

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