Newsbytes August 22, 2025 
 

In this issue: 
VA IT Modernization Improves Services for Veterans
FRA Attends Express Scripts Meeting
New TRICARE Prime Option Coming to Atlanta and Tampa 
DOD Civilians Await Decision on Commissary

VA IT Modernization Improves Services for Veterans
The Department of Veterans Affairs’ Office of Information and Technology (OIT) is modernizing IT systems to enhance services, reduce costs, and improve the overall experience for Veterans across benefits, insurance, and healthcare programs. Since January 2025, VA has retired 29 outdated IT systems, with nine more scheduled for decommissioning by the end of the fiscal year. These updates free up funds for critical technology improvements, including real-time monitoring tools and stronger identity verification with multi-factor authentication to protect Veterans’ data.

Processing of VA Form 674, used to request approval for school attendance, has become significantly faster. The new Rules Based Processing System (RBPS) has cut an average of 58 days from approval wait times. In the first month, more than 1,400 requests were processed under the upgraded system, giving Veterans quicker access to education benefits.

VA also introduced a modern web-based tool in April to streamline life insurance applications, claims, and beneficiary updates. Replacing a 30-year-old platform, the new system allows faster bulk uploads and better integration with the VA’s central Claim Evidence storage. Veterans can expect quicker claim processing, while VA reduces storage costs and cuts retrieval times in half.

To support the return to in-person work, VA upgraded IT infrastructure at over 195 sites, boosting network bandwidth and ensuring staff can operate smoothly. These improvements help maintain uninterrupted services for Veterans while supporting day-to-day operations.

The Fleet Reserve Association (FRA) welcomed these modernization efforts, noting their potential to address concerns raised in a recent FRA survey on VA quality of care. FRA will continue monitoring the progress to ensure Veterans receive timely access to the benefits, services, and support they have earned.

FRA Attends Express Scripts Meeting
The Fleet Reserve Association (FRA) Legislative Team recently attended Express Scripts’ quarterly briefing with Military and Veterans Service Organizations. The meeting provided updates on TRICARE’s pharmacy contractor landscape, independent pharmacy access, beneficiary services, cost-share changes, and ongoing legislative considerations.

Express Scripts highlighted that its retail network includes more than 44,000 pharmacies nationwide, including over 14,000 independent locations. The company is developing solutions to support members who rely on local pharmacies, expanding pharmacist roles in patient care, and improving engagement through independent advisory committees. Attendees were reminded that all TRICARE formulary and coverage decisions are made by the federal government, with recent changes including termination of certain weight-loss medications and the first-time application of selective drug coverage.

Updates on the TRICARE Mail Order Pharmacy (TMOP) were also shared. Enhancements include a new digital landing page to streamline registration, improved tools for prescription status and medication information, and a better prescriber experience through the My Accredo platform. These changes aim to improve both patient and provider access to pharmacy services.

Express Scripts outlined TRICARE pharmacy cost-share increases scheduled for FY26. Key changes include:

• Retail formulary prescriptions (30-day supply) – $46 in FY25 → $48 in FY26
• Mail-order formulary prescriptions (90-day supply) – $42 in FY25 → $44 in FY26
• Mail-order non-formulary prescriptions (90-day supply) – $76 in FY25 → $85 in FY26

Express Scripts encouraged MSOs and VSOs to share issues raised by their membership regarding pharmacy access or service problems. By surfacing these concerns, the company hopes to identify and address challenges more effectively.

The FRA Legislative Team values these quarterly updates as a way to ensure TRICARE pharmacy services remain efficient, accessible, and responsive to the needs of service members, retirees, and their families. The Association will continue working with Express Scripts and other partners to protect access to high-quality, affordable pharmacy care.

DOD Civilians Await Decision on Commissary
Defense Department officials have not yet made a final decision on expanding commissary shopping privileges to all DOD civilians. A pilot program launched in December 2024 at 16 commissaries across seven states will continue through the end of this year. Early results show sales at these stores have increased nearly 5% ($11.4 million), with strong participation at locations such as Naval Air Weapons Station China Lake, CA, where civilian purchases account for nearly a quarter of all sales. 

Under the program, eligible DOD civilians, both appropriated and non-appropriated fund employees with DOD identification, can shop in the designated commissaries. Family members, retirees, and former DOD civilians are excluded, and purchases of alcohol, tobacco, and online commissary privileges remain off-limits. Officials are monitoring the program closely to ensure that expanded access does not create product shortages for military families, who remain the commissary system’s top priority. 

Commissary Director and CEO John E. Hall noted that the program is being reported monthly to the Assistant Secretary of Defense for Manpower and Reserve Affairs. He emphasized that the agency remains focused on “delivering the highest savings possible for our priority patrons, our service members in uniform and their families.” 

This pilot comes as the DOD considers broader restructuring initiatives, including potential privatization of functions “not inherently governmental,” such as retail and recreation. While exchanges operate largely on sales revenue, commissaries depend on about $1.5 billion in annual taxpayer funding to provide discounted groceries for the military community. 

The Fleet Reserve Association is closely monitoring these developments. FRA recognizes that expanded access could increase sales volume and lead to lower prices through more supplier promotions, but insists the commissary’s primary mission must remain supporting service members and their families. 

New TRICARE Prime Option Coming to Atlanta and Tampa 
Starting in January 2026, about 150,000 TRICARE beneficiaries in the Atlanta, Georgia, and Tampa, Florida, metro areas will have access to a new TRICARE Prime option through a three-year demonstration project. The Defense Health Agency (DHA) awarded CareSource Military and Veterans Co. a $110 million contract to run the project, aimed at expanding access to primary and specialty care. 

Eligible beneficiaries include active-duty family members, family members of activated Guard or Reserve members, retirees and their families not eligible for Medicare, survivors, and those enrolled in the Transitional Compensation Program. Enrollment will be available during TRICARE Open Season, running Nov. 10–Dec. 9, 2025. CareSource is contacting eligible participants by phone, email, and mail, and more information is available at caresourcemilitary.com and TRICARE.mil. 

For the first year, enrollment fees will be waived for retirees, their families, and survivors. Base TRICARE Prime benefits and copays remain unchanged, though those who go outside the CareSource network will pay higher copays. Unlike standard Prime, the demo eliminates the need for in-network specialty referrals, a major change beneficiaries have welcomed. CareSource will also provide case management, care coordination, disease management programs, virtual health, and a 24/7 nurse advice line. 

DHA officials noted that the project will be especially valuable in Atlanta, which lacks a military treatment facility, and in Tampa, where heavy traffic can make access to the local MTF difficult. Beneficiaries in surrounding rural communities may also qualify, with a geographic eligibility tool to be added on TRICARE.mil ahead of the open season. 

The demonstration is designed to test new ways to improve access and outcomes. “The TRICARE Prime Demo represents an innovative approach to advance access to care, enhance the patient experience, and strive for better health outcomes,” said Dr. David Krulak, Director, TRICARE Health Plan, at the Defense Health Agency. “The data we get from this demonstration will inform future TRICARE innovations nationwide.”

The Fleet Reserve Association welcomes this expansion of access to healthcare, and we'll continue to provide DHA with insights from our membership.