Warren Questions DoD on Failures to Prevent Overpayments and Price Gouging in TRICARE Health Program

Press Release

Date: July 26, 2023
Location: Washington, DC

"TRICARE is the DoD's administered health-insurance program for servicemembers, retirees, and their families in the U.S. and overseas… DHA partners with private contractors to provide health services and care "beyond what's available at military hospitals and clinics.' … Two separate DoD IG reports highlighted DHA's failure to prevent provider and contractor-claims processor price gouging in 2016 and 2017."

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"In addition to wasting taxpayer dollars, these overpayments harm beneficiaries… It is especially troubling that in an era when reproductive health care is under attack, the products and services most at-risk for price-gouging are those that can help with family planning (e.g., pumps for nursing mothers and contraceptives).

As a result of these audits, DoD IG recommended multiple actions by DHA, including confirming all claims are paid using the maximum rate, and recouping overpayments when they are not. However, according to DoD IG, DHA still has not yet sought a refund of the $16.2 and $3.9 million in overpayments for standard and electrical breast pumps and replacement parts and vaccines and IUDs, respectively."

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"DHA also has not fully implemented the recommendation to "conduct annual reviews (where)… TRICARE paid higher prices,' nor to "establish and implement new TRICARE maximum allowable reimbursement rates.' It is unacceptable that DHA is not doing the bare minimum to ensure taxpayer dollars are protected… DoD and DHA need to improve internal controls and strengthen efforts to prevent overpayment and price gouging. I have and will continue to take action to protect taxpayers and end contractors' rip-offs of DoD."


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