In October, Tricare — which insures active-duty military members and their families — changed the way it sets payments to children’s hospitals, tying them to what Medicare would pay for the same se…
Children’s Hospital Colorado is warning it may shut down the cancer treatment center at its Colorado Springs hospital and make other cuts in key departments this year because of a change in how military families’ insurance pays for care.
The system estimated about 16,000 kids insured by Tricare receive care at Children’s Hospital Colorado facilities, and about one in five children who receive care at the Colorado Springs hospital and clinics have military coverage. Children’s lawsuit against the Defense Department argued the agency didn’t have the authority to change its payments that way, because Medicare isn’t set up for kids’ health needs. Federal Judge Nina Wang ruled in favor of the department in April, finding that the change was within its rights.
On May 13, the Children’s Hospital Association sent a letter to leading members of the House and Senate armed services committees, asking them to work with affected hospitals on a solution. A group of organizations representing veterans and active-duty members also wrote a letter saying that the change would threaten access to care for families.
Children’s said the high number of military facilities in the Colorado Springs area, plus a lack of other pediatric care options that accept Tricare, meant its hospital and clinics there got hit harder than many others. The Colorado Springs location lost money most years even before the change, which will cut outpatient revenue by about 40%, Roche said.
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