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October 1st is the first day of the US military’s new fiscal year, which means its TRICARE medical contracts come into effect on that day. As one might image, quite a few TRICARE contracts were announced recently – over $900 million worth for FY 2009, and up to $4.66 billion from FY 2009 through FY 2013.

The Uniformed Services Family Health Plan (USFHP) contracts provide health care coverage to active duty military family members, plus all military retirees and their eligible family members – including those 65 years of age and over. There are 6 providers designated to provide the TRICARE Prime benefit to eligible beneficiaries under the USFHP, and all awards have been funded by Fiscal Year 2009 Defense Health Program funds. The US Department of Defense TRICARE Management Activity manages these contracts.

TRICARE is becoming a lot more expensive for the US Department of Defense, in part because of greater usage, and in part because of benefits increases with long-term cost implications. Military health care costs, which have doubled since 2001, could double again by 2015. See “TRICARE Trials and Tribulations” and “US DoD Trying to Slow Ballooning Prescription Drug Costs” for more background. TRICARE Prime Benefit contracts awarded to begin FY 2009 include:

Oct 1/08: Brighton Marine Health Center in Boston, MA won a fixed-price contract for the TRICARE USFHP. The performance period includes a base year worth $114.7 million from Oct 1/08 – Sept 29/09, and 4 one-year option periods which could raise the contract’s value to $573.6 million (H94002-09-C-0001).

Oct 1/08: CHRISTUS Health Systems in Houston, TX won a fixed-price contract for the TRICARE USFHP. The performance period includes a base year worth $154 million from Oct 1/08 – Sept 29/09, and 4 one-year option periods which could raise the contract’s value t $769.8 million (H94002-09-C-0002).

Oct 1/08: Johns Hopkins Medical Services Corp. in Baltimore, MD won a fixed-price contract for the TRICARE USFHP. The performance period includes a base year worth $226.1 million from Oct 1/08 – Sept 29/09, and 4 one-year option periods which could raise the contract’s value to $1.131 billion (H94002-09-C-0003).

Oct 1/08: Martin’s Point Health Care in Portland, Maine won a fixed-price contract for the TRICARE USFHP. The performance period includes a base year worth $206.7 million from Oct 1/08 – Sept 29/09, and 4 one-year option periods which could raise the contract’s value to $1.033 billion (H94002-09-C-0004).

Oct 1/08: Pacific Medical Centers in Seattle, WA won a fixed-price contract for the TRICARE USFHP. The performance period includes a base year worth $126.3 million from Oct 1/08 – Sept 29/09, and 4 one-year option periods which could raise the contract’s value to $631.3 million (H94002-09-C-0005).

Oct 1/08: Saint Vincent Catholic Medical Centers in New York, NY won a fixed-price contract for the TRICARE USFHP. The performance period includes a base year worth $104.2 million from Oct 1/08 – Sept 29/09, and 4 one-year option periods which could raise the contract’s value to $520.8 million (H94002-09-C-0006).