To amend title 10, United States Code, to modify the rate of pay for care or services provided under the TRICARE program based on the location at which such care or services were provided.

This bill changes how TRICARE pays doctors and hospitals. It sets payment rates based on where the care happens, like in a hospital, an outpatient department, an ambulatory surgery center, or a doctor’s office. If more than one payment rate could apply, TRICARE must use the lowest allowed rate. Claims must include a location-specific provider code so TRICARE can tell exactly where the care was given.

Key points:

• Who is affected: TRICARE patients and the health care providers who treat them.
• What changes: Payment rates will be specific to the care setting (inpatient hospital, on-campus or off-campus hospital outpatient department, ambulatory surgical center, or doctor’s office), and claims must include a geographically specific provider identifier. When multiple rates could apply, TRICARE pays the lowest rate.
• When: These changes take effect January 1, 2026.

What this could mean in daily life: Providers may be paid differently depending on where you get care, and your bills to TRICARE will be tied to the exact location of service. The bill does not change who is eligible for TRICARE or the types of services covered; it focuses on how providers are paid and how claims are documented.