Pentagon Moves Forward on Cutting Prime Health Coverage for Vets

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Pentagon Moves Forward on Cutting Prime Health Coverage for Vets

by

Bridget Johnson Bio

January 11, 2013 - 3:46 pm

The Defense Department has moved ahead with a reduction in healthcare coverage for veterans in select areas of the country.

Starting Oct. 1, 2013, the Pentagon will reduce the number of Prime Service Areas (PSAs) where it offers the TRICARE Prime managed care option to retirees and their family members. This change will affect approximately 171,000 military retired beneficiaries in 41 states currently enrolled in TRICARE Prime, but not active duty service members and their families.

“The Department of Defense (DoD) has planned to make PSA reductions since 2007, when proposals were requested for the next generation of TRICARE contracts (known as T-3). Bidders for the three U.S. regional contracts were only required to establish PSAs around military hospitals or clinics and in areas that lost military hospitals or clinics due to BRAC decisions,” TRICARE said in an announcement of the change.

TRICARE Prime services will be offered only to those living within 40 miles of a Military Treatment Facility as a result of the incoming contractor, United Healthcare, not planning on covering the services