To amend title 10, United States Code, to modify the rate of pay for care or services provided under the TRICARE program based on the location at which such care or services were provided.
If enacted, HB873 will require the Secretary of Defense to establish specific reimbursement rates for various locations such as inpatient hospitals, outpatient departments, and ambulatory surgical centers. The Secretary is mandated to ensure that a claim for reimbursement contains a unique identifier to specify the location of healthcare service providers. This approach is anticipated to create a more equitable reimbursement system that reflects the operational costs associated with different healthcare environments across the country.
House Bill 873 seeks to amend Title 10 of the United States Code, specifically regarding the reimbursement rates for care or services provided under the TRICARE program. This legislation proposes that the rate of pay for healthcare services should vary based on the specific location where the services were rendered. By introducing this locality-based pricing model, the bill aims to ensure that reimbursements are aligned with the costs associated with providing healthcare in different geographical areas.
While the bill is set to provide location-specific reimbursement rates, it may also generate discussions regarding the potential inequities this system could introduce. Stakeholders may raise concerns about how varying rates could affect healthcare access and the financial stability of providers in lower-cost areas compared to those in higher-cost metropolitan regions. Additionally, there may be apprehensions about the administrative burdens that could result from differentiating reimbursement based on geographical data and the readiness of the TRICARE system to implement such changes by the effective date of January 1, 2026.
Armed Forces and National Security