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Work Begins on Shaping Future TRICARE Contracts

September 23, 2010

FALLS CHURCH, Va. – The future of military of military health care marches on in an ever-changing landscape. A TRICARE “fourth generation” (T-4) work group is undertaking a year long project to explore that landscape and make recommendations which will shape future TRICARE contracts.

The T-4 work group, which began its work Sept. 20, 2010, is charged with evaluating options and opportunities for the design of future TRICARE contracts to provide the best possible health care for more than 9.6 million Military Health System beneficiaries from 2015 onward.

Co-hosted by the Assistant Secretary of Defense for Health Affairs, TRICARE Management Activity, and the Industrial College of the Armed Forces at National Defense University (NDU), the T-4 group includes military health system leaders and subject matter experts under the mentorship of Dr. Guy Clifton. Dr. Clifton, a Professor of Surgery at the Uniformed Services University of the Health Sciences, is author of the book Flatlined: Resuscitating American Medicine, and a former Robert Wood Johnson Health Policy Fellow.

Opening day of the T-4 seminar saw prominent military, government and industry experts discussing challenges ranging from rising health care costs, how to engage patients in their own health care, making better use of electronic health information, and how medical staff can improve care through better coordination.

“This seminar sets the tone for the work ahead,” said Dr. George Peach Taylor Jr., who is Performing the Duties of the Assistant Secretary of Defense (Health Affairs). Invited speakers included experts from MIT, the Institute of Medicine, the Center for New American Security, Kaiser Permanente, NDU, private industry, and the Department of Health and Human Services.

“They offered a broad perspective on trends in health care, global security, economics, information technology, science, workforce demographics and more,” said Taylor. “All of these trends will influence future health plan design.”

As their work proceeds, the T4 work group will explore historical and future MHS perspectives, transformation studies such as findings of the Task Force on the Future of Military Health Care, and how the TRICARE program operates globally within a framework of legal, acquisition and financial considerations.

“DoD leaders and the services’ surgeons general embrace the MHS Quadruple Aim, which supports military readiness while improving health, enhancing the patient experience and responsibly managing costs,” said Taylor. “The group is charged with addressing strategic issues in health plan design while reinforcing patient centered care, the military direct care system, and the enduring value of the Quadruple Aim,” he said.

Key areas for evaluation include leveraging federal partnerships and national health reform, exploring alternate health care delivery and finance models, addressing adoption of best practices and services for diverse populations, meaningful use of health information technology, and shaping the scope of the benefit while making it easier to use.

Over the course of the next year, the work group will participate in seminars and conduct site visits to other health systems, government agencies and professional organizations and businesses to determine best practices.

A report of the group’s recommendations for changes and the shape of the T4 contracts will be presented to senior MHS leadership in the summer of 2011. 

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The TRICARE Management Activity administers the worldwide health care plan for 9.6 million eligible beneficiaries of the uniformed services, retirees and their families.

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