An official website of the United States government
Here's how you know
A .mil website belongs to an official U.S. Department of Defense organization in the United States.
A lock (lock ) or https:// means you’ve safely connected to the .mil website. Share sensitive information only on official, secure websites.

News | March 10, 2023

The New TRICARE Pharmacy Contract: Delivering Value for Military Families and Taxpayers

By Gilbert Cisneros Jr., Under Secretary of Defense for Personnel and Readiness

I’m proud of the work of our team at the Defense Department to negotiate and implement a new TRICARE pharmacy contract. The improvements that were made will not only establish stronger access standards and deliver exceptional value for military families, they will also improve efficiency and stewardship of taxpayer funds.
 
During my time in public service—from Congress to the Pentagon, where I now serve as under secretary of defense for personnel and readiness—I have always worked to put military families first. The new TRICARE pharmacy contract has attracted criticism in another Military.com op-ed, and I want to respond and correct the record.
 
The previous contract had two major problems. First, it measured access by the straight-line distance from a beneficiary’s home to a retail pharmacy, so it failed to consider traffic, road conditions, or topography—such as the need to cross a body of water or go around a mountain—that could make for an unacceptably long journey. Second, the retail network was overly costly and, in some cases, inefficient. The network included pharmacies that were filling few or no prescriptions for our beneficiaries, resulting in unnecessarily high costs. We saw an opportunity to improve service for beneficiaries while saving money for military families and taxpayers by creating a more efficient, competitively priced network.
 
Under the new contract, 98% of TRICARE beneficiaries live within 15 minutes’ driving time of a network retail pharmacy, and more than 99% live within a 30-minute drive. This improved standard for TRICARE is comparable to the Veterans Health Administration standard and exceeds the Medicare pharmacy-access standard. By paying competitive fees to pharmacies, we will save an estimated $2 billion in taxpayer funds over the seven-year life of the contract, and beneficiaries are projected to save $100 million through lower out-of-pocket costs. These savings are notable, given long-term trends in the cost of health care: Medicare projects that annual growth in health spending will average 5.1% through 2030. Some beneficiaries have found that their pharmacy is no longer in-network, but the new contract provides other options within a 15-minute drive for nearly all beneficiaries, in addition to mail-order access.
 
Furthermore, we made these changes while maintaining among the lowest cost-sharing of any health plan. Service members, retirees, and their families can fill prescriptions at military hospitals and clinics, via mail order, or at network retail pharmacies. TRICARE beneficiaries can fill generic and name-brand prescriptions for $0 copays—that’s right, no out-of-pocket cost—at a military pharmacy. At a retail pharmacy, a 30-day fill costs no more than $14 for generics (TRICARE beneficiaries pay the lower of the actual cost or $14) and $38 for name-brand drugs. Compare this to one of the most popular health plans for federal employees, the Service Benefit Plan Basic Option, which charges a $15 copay for a 30-day supply of generic drugs, $60 for preferred name-brand drugs, and $90 or more for non-preferred name-brand drugs. And TRICARE beneficiaries can pay even less and receive a 90-day supply from a mail-order pharmacy.
 
I acknowledge that our communication with beneficiaries and pharmacies about the upcoming changes has generated feedback, and I am committed to improving our communication process. After hearing from both beneficiaries and independent pharmacies, we asked the contractor to offer additional time for pharmacies to opt into the contract. As a result, more than 4,000 of the roughly 15,000 independent pharmacies that had left re-joined as a result of the re-solicitation, bringing the total number of independent pharmacies in the network to more than 11,000—over half of all independents in the United States. With these additions, TRICARE’s current network includes more than 42,500 participating retail pharmacies.
 
The new TRICARE pharmacy contract is more efficient and does right by beneficiaries and taxpayers. That’s exactly what Americans should expect of their government.

Mr. Cisneros serves as the principal staff assistant and adviser to the secretary of defense for force readiness; force management; health affairs; National Guard and Reserve component affairs; education and training; and military and civilian personnel requirements and management, including equal opportunity, morale, welfare, recreation, and quality of life matters.
Tourists depart boat via ramp, with buildings and trees on a hill in the background.

Your TRICARE Guide to Overseas Travel

News
Jul. 25, 2024

Planning a trip overseas? Whether you’re traveling for work or leisure, it’s a good idea to know how your...
Read More
Uniformed service member reaches for prescription bottle in pharmacy.

MHS GENESIS Patient Portal Makes Refilling Presc...

News
Jul. 23, 2024

Do you get prescriptions at a military pharmacy? If you need to request a refill or a renewal for your...
Read More
Two men wearing suits sit at a desk and look at a document.

Does TRICARE For Life Work With Other Insurance?...

News
Jul. 18, 2024

Medicare and TRICARE For Life work together to minimize your out-of-pocket expenses. But if you also have...
Read More
Image of hand holding smartphone showing the options available in the Express Scripts Pharmacy mobile app.

Easily Manage TRICARE Prescriptions With the Exp...

News
Jul. 11, 2024

Looking for a convenient way to keep track of your TRICARE prescriptions? Download the free Express Scripts...
Read More
Elderly man wearing glasses sits on couch and looks at smartphone.

See Test Results and Clinical Notes in Your MHS ...

News
Jul. 09, 2024

If you’ve recently had a blood draw or X-ray, you’re likely interested in seeing the results once they’re...
Read More
Woman wearing white headband looks in mirror while brushing teeth.

TRICARE Tips for Managing Diabetes and Your Oral...

News
Jul. 03, 2024

According to the Centers for Disease Control and Prevention, more than 38 million American adults currently...
Read More
The 6th MSS laboratory oversees the shipment of more than 200 healthcare diagnostic tests per day. The new Air Force generation model (AFFORGEN) is designed for Airmen to train together and deploy together; services across MacDill AFB have adjusted their capacities to support mission requirements. (U.S. Air Force photo by Senior Airman Zachary Foster)

Learn How To Prevent Sexually Transmitted Infect...

News
Jun. 27, 2024

Rates of sexually transmitted infections have increased among active duty service members in recent years. If...
Read More
A Marine looks at his laptop

MHS GENESIS Secure Messaging: A Direct Line to Y...

News
Jun. 25, 2024

The MHS GENESIS Patient Portal lets you speak to your military health care team at your military hospital or...
Read More

July 25, 2024

Your TRICARE Guide to Overseas Travel

Planning a trip overseas? Whether you’re traveling for work or leisure, it’s a good idea to know how your TRICARE plan works outside the United States.  

July 23, 2024

MHS GENESIS Patient Portal Makes Refilling Prescriptions Easier

Do you get prescriptions at a military pharmacy? If you need to request a refill or a renewal for your prescription, the MHS GENESIS Patient Portal makes it easy.

July 18, 2024

Does TRICARE For Life Work With Other Insurance? Here’s What You Should Know

Medicare and TRICARE For Life work together to minimize your out-of-pocket expenses. But if you also have other health insurance, you may have to submit a claim in order to receive reimbursement under TRICARE.

July 11, 2024

Easily Manage TRICARE Prescriptions With the Express Scripts Pharmacy Mobile App

Looking for a convenient way to keep track of your TRICARE prescriptions? Download the free Express Scripts Pharmacy mobile app to securely manage your medications anytime, anywhere.

July 9, 2024

See Test Results and Clinical Notes in Your MHS GENESIS Patient Portal

If you’ve recently had a blood draw or X-ray, you’re likely interested in seeing the results once they’re available. Or perhaps you want to review what you discussed with your health care team at your last appointment. If you visited a military hospital or clinic for your recent test or appointment, you can access this information in the MHS GENESIS Patient Portal.

July 3, 2024

TRICARE Tips for Managing Diabetes and Your Oral Health

According to the Centers for Disease Control and Prevention, more than 38 million American adults currently have diabetes. Even though diabetes is common, many people don’t know about its connection to oral health.

June 27, 2024

Learn How To Prevent Sexually Transmitted Infections

Rates of sexually transmitted infections have increased among active duty service members in recent years. If you're sexually active, there are steps you can take to your lower your risk.

June 25, 2024

MHS GENESIS Secure Messaging: A Direct Line to Your Military Health Care Team

The MHS GENESIS Patient Portal lets you speak to your military health care team at your military hospital or clinic through secure messaging. Learn how and when to use secure messaging.

June 20, 2024

Get Your TRICARE For Life Answers at June 27 Facebook Event

Will you or a family member be eligible for Medicare soon? Do you already have TRICARE For Life (TFL), or will you be eligible soon? Join us Thursday, June 27, at 1 p.m. ET on TRICARE’s Facebook page for a live event to learn about TFL.

June 17, 2024

Studies Show Military Eye Injuries Can Cause Cataracts, Vision Loss

Cataracts are the leading cause of blindness worldwide and in the United States, with an estimated 24 million Americans who have been diagnosed with cataracts, according to the National Institutes of Health.