DoD seeks health care savings, reorganization of Military Health System

The Defense Department has identified four ways it wants to cut healthcare costs and increase the quality of its care.

Assistant Secretary of Defense for health affairs Dr. Jonathon Woodson told the House Armed Services Committee it wants to reorganize the Military Health System. DoD also wants to update the pay rates for private insurers, launch prevention programs and change its cost-sharing system with TRICARE.

The four proposals, according to a posting, are:

  • Internal efficiencies to better organize the Military Health System’s decision-making and execution functions;
  • Continuation of efforts to pay private-sector health care providers appropriately;
  • Reducing illness, injury and hospitalization by emphasizing initiatives that promote health; and
  • Changing beneficiary cost-sharing in the TRICARE military health system.

This story is part of Federal News Radio’s daily DoD Report. For more defense news, click here.


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