TRICARE SOUTH RESERVE/GUARD ADVISORY COMMITTEE MEETING

1. TRICARE SOUTH RESERVE/GUARD ADVISORY COMMITTEE MEETING July 29, 2010

2. Overview • Opening Comments • Items From Last Meeting • TRICARE Reserve Select and TRICARE Retired Reserve • What T-3 Contracts Mean to You • TRICARE Pharmacy Home Delivery • Extension of the TRICARE Early Eligibility Program • Feedback from the Field • Closing Comments 2

3. Item(s) From Last Meeting (21 Jan 2010) Ms. Sherry Steindel, RC BCACTRICARE Regional Office-South 3

4. TRICARE Reserve Select and TRICARE Retired Reserve Program Overview Mr. Mac Sanders Ms. Sherry Steindel RC BCAC TRICARE Regional Office-South 4

5. South Region TRS Enrollment Trends: By Reserve Component http://www.tricare.mil/trosouth/Reserve-Guard_Education.cfm Source: DEERS Data as of July 20,2010

6. POC TRICARE Regional Office South, Sherry Steindel, 210-292-3216, sherry.steindel@tros.tma.osd.mil South Region TRS Enrollment Trends: National Guard by State http://www.tricare.mil/trosouth/Reserve-Guard_Education.cfm Source: DEERS Data as of July 20,2010

7. TRICARE Retired Reserve (TRR)(Gray-Area Retirees) • Contrasted with TRICARE Reserve Select (TRS) • Retired Reservists may qualify to purchase TRICARE coverage • Qualified for non-regular retirement at age 60, but is not yet age 60 • Commonly called gray-area retirees • Not enrolled or eligible to enroll in Federal Health Employees Benefits (FEHB) program • TRR premiums equal full cost of premium by law - TRR – premiums are not subsidized - TRS – premium rates reflect 28% of total TRS premium costs • TRICARE Standard/Extra comprehensive coverage for a) member-only or b) member and immediate family - TRR: retiree cost shares, deductibles, and catastrophic cap apply - TRS: active duty family member cost shares, deductibles, and catastrophic cap apply • Statute requires DoD to prescribe federal regulations Section 705, NDAA for FY 2010 7

8. Issues With Current Contingencies • Deep Water Horizon Operations Weekly Contact With Key Players Problematic “Less Than 30 Days” Orders Working “Behind the Scene” on Family Member Enrollments Title 10 vs Title 32 Orders • Re-enrollment in TRS If member elects to have TRS the member must re-enroll 8

9. New TRICARE Contract and What It Means to You (Update on T-3) Ms. Martha Lupo, Chief Operating Officer TRICARE Regional Office-South 9

10. TRICARE PHARMACYHOME DELIVERY Hector Morales Deputy Director TMA Pharmacy Operations Center 10

11. TOTAL PHARMACY EXPENDITUREFY09 11

12. TOTAL AVERAGE COST PER RX 12

13. POS Expenditures and UtilizationApril 09 – May 10 Expenditures in millions 30 day equiv in millions Not VARR corrected Source: PDTS 13

14. ESI’S MEMBER CHOICE CENTER 877-363-1433 • CONVENIENT • SAVINGS ($3, $9 & $22 per 90 days) • EASY START UP • 10-14 DAYS FOR ARRIVAL • Not available if member has other health insurance 14

15. ACCESS • Talk to a pharmacist 24 hours a day, • 7 days a week • Access to prescriptions, even when traveling 15

16. REFILL PROCESS • 66% Utilization Rule http://tricare.mil/mybenefit/home/Prescriptions/FillingPrescriptions/TMOP/Register? • Sign up for automatic refills • Online access to mail order account, • with ability to order refills 16

17. Formulary Search Tool COPAY’S AT MAIL ORDER • $3 Generics • $9 Formulary Brand • $22 Non-Formulary Drugs 17

18. DRUG LOOK UP 18

19. PEC WEBSITE/DPP FORSERVICE MEMBERS

20. Questions? 20

21. Early Identification for TRICARE Eligibility (EID) Mr. Mike Boyle Mr. Dave Percich OSD Reserve Affairs

22. Early Identification for TRICARE Eligibility (EID) Initial EID Section 1116 of Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004, amended section 1074 of 10 U.S.C. establishing early TRICARE eligibility for RC members issued delayed-effective-date active-duty orders for more that 30 days in support of a contingency operation Initially authorized up to 90 days of early TRICARE coverage for RC members, and their families Effective November 6, 2003, subsequent amendments make this benefit permanent EID Reporting by Reserve Components Reserve components identify eligibility in the Reserve Components Common Personnel Data System (“RCCPDS”) DMDC processing of EID transactions from RCCPDS to DEERS Expanded EID Section 702 of 2010 NDAA expanded early TRICARE coverage for up to 180 days Effective October 28, 2009 Retroactive TRICARE coverage for EID authorized for members notified of mobilization (issued delayed-effective-date active-duty order) by October 28, 2009 Expanded EID coverage will take effect upon publication on the WHS Directive Web site

23. Early Identification for TRICARE Eligibility (EID) Delayed-Effective-Date Active-Duty Order An official document prescribing the order to active duty of a RC member or members on a specified date after the date of issuance of the order for a period of more than 30 days in support of a contingency operation as defined in section 101(a)(13)(B) of Reference (e)). Such an order may be either an individual mobilization order or a unit mobilization order provided it specifies an order authority, a start date, and the duration of the activation. To qualify, the unit mobilization order shall apply to all unit members or have an annex, approved by a senior authorized individual for the unit or higher headquarters, identifying all individuals to whom individual mobilization orders will be issued.

24. Open Discussion Feedback From the Field 24

25. Mr. William Thresher, Director TRICARE Regional Office-South Mr. Larry Burchfield, Senior Executive Humana Military Healthcare Services Closing Comments 25