Impact of Medicaid Cuts on TRICARE Beneficiaries' Hospital Access

A recent analysis by the Harvard T.H. Chan School of Public Health highlights potential financial instability in hospitals serving military personnel, veterans, and their families, primarily due to reductions in Medicaid funding. This study, conducted by the Healthcare Quality and Outcomes Lab researchers including Josh Calianos, Jessica Phelan, Jose Figueroa, and Thomas Tsai, was reported by ABC News on March 11.

The research focused on TRICARE, the military's health insurance program, which covers service members and their families when they require urgent or specialized care at civilian hospitals. Changes from federal legislation H.R.1, also known as the “One Big Beautiful Bill,” may financially strain hospitals dependent on Medicaid reimbursements, adversely affecting care quality for all patients, including those insured by TRICARE.

Jose Figueroa noted, “Military active-duty service members on TRICARE and their families, even when living on a military base, are increasingly reliant on civilian hospitals.” Researchers assessed nationwide hospitals to determine financial risk, taking into account their Medicaid dependence and safety net hospital status, aiming to identify impacts on military families.

The study identified approximately 3.5 million TRICARE beneficiaries close to hospitals facing moderate to high financial risk. Thomas Tsai remarked, “A significant number of TRICARE beneficiaries rely on hospitals at risk of financial distress, with over 724,000 military personnel and families on military installations living near hospitals with multiple financial risk factors.”

These findings present crucial considerations for policymakers to ensure ongoing access to quality hospital care for military families. The analysis has drawn the attention of federal officials evaluating H.R.1's impact on military communities.

Emphasizing the need to protect healthcare for those who serve, Jose Figueroa stated, “As a country, we should do our best to take care of the people protecting us. Military personnel and their family members should be protected to ensure that cuts impacting our healthcare delivery system do not also affect active military personnel and their families.”