Senators urge transition period for DoD TRICARE rule

Fifty-seven senators today expressed concern with a Department of Defense proposed rule for TRICARE that would adopt Medicare’s prospective payment system for hospital outpatient services. In a letter to Secretary of Defense Robert Gates, the senators said the rule “lacks a broad, effective transition that would cushion all hospitals serving TRICARE beneficiaries from disruptive reductions in payments across all services. Sudden and severe shifts in payments as have been proposed by DoD could jeopardize providers’ ability to care for TRICARE patients. To prevent such disruptions to quality of and access to care, it is crucial that such new payment policies be implemented with a meaningful transition period.” The AHA expressed similar concerns in a Nov. 7 letter to the Office of Management and Budget.