"I've been working very hard on this issue for the last year through the National Security Committee, and it's very gratifying to see this all happen," said Smith. "This demonstration project will allow military retirees to obtain accessible, high quality care through their military facility."

Under Medicare subvention, the Department of Defense will be able to enroll Medicare-eligible retirees into the Department's TRICARE Prime program and be reimbursed from Medicare. 

The Medicare subvention pilot program was introduced as HR 192 last year, which Smith co- sponsored. "We discussed this important issue in the National Security Committee and persuaded the President and House leadership to include it in last year's Balanced Budget Act," explained Smith.

The Balanced Budget Act authorized the pilot program to include two components. The first, TRICARE Senior Prime, will allow Medicare eligible retirees to enroll in TRICARE.

The second component, Medicare Partners, allows retirees enrolled in some Medicare+Choice plans to receive Medicare services through military health care facilities.

"Medicare subvention has great potential," explained Smith. "It's a good first step towards ending the practice of kicking Medicare-eligible retirees off their military health care plans, and at the same time it should be more cost-effective for both the Department of Defense and Health and Human Services."

Smith said that while specific details of the program are still being worked out, retirees can expect an intensive effort to educate them on the subvention program through public meetings and announcements. 

"Applications for the Medicare subvention program should be available by June," Smith said. "All applications will be accepted on a first-come, first-serve basis, and interested retirees can get applications at Madigan or by calling my office."

Participants must be in Madigan Hospital's "catchment area", which is defined as a forty-mile radius or thirty-minute drive time. Participants must also maintain Medicare Part B enrollment. 
There is no fee to enroll in the Medicare subvention demonstration project.

"Madigan Hospital deserves a lot of credit for making this happen," said Smith. "They've been working to enact Medicare subvention for years, and because of their dedication Madigan will be the first demonstration site to begin."