DOD made awards in the next generation of contracts to run its TRICARE health plan: $41 billion to Humana and $18 billion to Health Net.
The Defense Department settled on two firms to manage the latest generation of its TRICARE health insurance system Thursday, picking Health Net Federal Services and Humana Military for contracts worth up to $18 billion and $41 billion, respectively, over nearly six years.
The Senate version of the defense authorization bill has a much more modest approach to enrollment fees for TRICARE users.
A Senate panel’s version of the 2017 defense authorization bill keeps the military pay raise at 1.6 percent, but expands some health care options.
Reforms in the 2017 defense authorization bill add enrollment fees to TRICARE to try to bring down government costs.
DoD’s 2017 budget includes few changes to pay and benefits, but DoD facilities and procurement take a major hit. The proposal includes an $8.1 billion reduction to acquisition programs, a $1 billion cut to new construction and severe underfunding of base maintenance.
With the defense authorization bill poised for President Obama’s signature, Federal News Radio looks at certain provisions that will impact federal workers.
The defense authorization bill agreed upon by House and Senate negotiators would affect military pocketbooks in ways both big and small. It includes a 1.3 percent pay increase for uniformed service members but chips away at the military’s pension system. In exchange for shrinking pensions, it encourages current troops — and mandates that future ones — invest in the Thrift Savings Plan.
Improper payments associated with the military’s TRICARE health system added up to about 0.3 percent of DoD’s overall costs. Improper payments associated with Medicare were more than 10 percent of overall costs for the Health and Human Services Department. Vijay D’Souza is director of health care issues at the Government Accountability Office. On In Depth with Francis Rose, he said TRICARE’s low rate of improper payments might be too good to be true.
The White House defense budget request is $38 billion over the limits set by sequestration. In an attempt to balance the increased funding, the Pentagon is pursuing pay and benefits reform, and another round of BRAC.