The War Department delivers one of the most comprehensive health benefits, through TRICARE, including an exceptional prescription drug benefit program, said David J. Smith, Defense Health Agency deputy director, during a Senate Armed Services Committee's personnel subcommittee hearing in Washington yesterday.
TRICARE covers most prescription drugs approved by the U.S. Food and Drug Administration. Those eligible for coverage include active duty, military retirees, their families, and National Guard and reserve component service members. Eligibility for TRICARE is determined by the sponsor's uniformed service and reported in the Defense Enrollment Eligibility Reporting System.
"DHA is proud of the comprehensive worldwide pharmacy benefit it offers to our 9.5 million beneficiaries," Smith said.
TRICARE currently offers at least one network pharmacy within a 15-minute drive for more than 98% of beneficiaries, and more than 99% are within a 30-minute drive of one of the network's thousands of pharmacies.
"The department is effectively managing this important health benefit that helps support force readiness, recruitment, retention and the health of our service members and their families," Smith said. "A resilient pharmacy program supports both beneficiary health and military readiness by ensuring reliable access to essential medications wherever the force operates."
Smith also said that clinical effectiveness remains the primary determinant of TRICARE decisions. Comparative cost-effectiveness and lifecycle affordability are also evaluated to ensure that finite military health resources are used efficiently while maintaining high-quality care.
Taxpayer savings were achieved through negotiated discounts for prescriptions. These savings help offset increasing pharmaceutical expenditures and preserve funding capability across the broader military health system enterprise.
Pharmaceutical spending represents one of the fastest-growing components of the department's health expenditures. Continued growth in specialty pharmaceuticals, biologics and chronic disease therapies will require ongoing efforts to preserve affordability while maintaining high-quality care for beneficiaries, Smith added.
The department also considers supply chain continuity and the ability to reliably support military requirements when evaluating long-term pharmaceutical management strategies.