Change in Tricare hospital payments delayed

[unhappycamper]

Change in Tricare hospital payments delayed
By Karen Jowers - Staff writer
Posted : Wednesday Feb 11, 2009 16:35:30 EST

Civilian hospitals that provide outpatient services to Tricare beneficiaries got a temporary, 11th-hour reprieve from the Pentagon’s proposed plan to have Tricare switch to using Medicare’s payment system for those services.

Critics said the change, which had been set to take effect Monday, has the potential to disrupt outpatient services in civilian hospitals for Tricare users.

In 2002, Congress required the Defense Department to use Medicare payment rates for the Tricare system “to the extent practicable.”

The Pentagon’s proposed plan, outlined in the April 1, 2008, Federal Register, would have Tricare adopt Medicare’s fee schedule for reimbursements to hospitals for outpatient services, which is about 25 percent less than Tricare’s current payment rates to hospitals.

Sen. Jim Webb, D-Va., one of the critics of the propsal, said the Pentagon plan “does not provide for a broad, multi-year transition period that is necessary for hospitals offering Tricare services to adjust to a lower payment schedule.”


Rest of article at: http://armytimes.com/news/2009/02/military_outpatientcivilian_tricare_021109w/%2e