“Delivering exceptional health care to my fellow service members, retirees and their families is essential in supporting the mission of our military and has been a personal focus of mine since joining CareSource,” said Ted Painter, associate vice president of market operations of CareSource Military & Veterans.
The organization is a fairly new subsidiary of CareSource, a Dayton-based insurance agency, created about two years ago with the goal of improving health care access, delivery and outcomes for service members, veterans and their families. In November 2022, it announced its plans to submit a bid to the U.S. Department of Defense to provide clinical services to the military.
“I have witnessed firsthand the power of the CareSource mission and how we transform the lives of our members, and I cannot wait to deliver a new level of care and quality of life to those we have the privilege and honor to serve,” said Painter, who is also a TRICARE beneficiary and member of the Selected Marine Corps Reserve.
Starting on Jan. 1, 2026, this demonstration enables the Defense Health Agency to test a new model that provides comprehensive health, medical and administrative support services through a managed care plan for families of active-duty service members, military retirees and their families.
“While we wouldn’t be the first managed care contractor, we are first to offer this new model,” Painter said. “This demonstration enables the Defense Health Agency to test a new model that provides comprehensive health, medical and administrative support services through a managed care plan for families of active-duty service members, military retirees and their families.”
During TRICARE’s 2025 Open Season, approximately 146,000 eligible TRICARE beneficiaries will have the choice to select a managed care plan for their TRICARE benefits, CareSource Military & Veterans.
This is the first time that is being offered, and the beneficiaries will have the option to participate in the demonstration through CareSource Military & Veterans’ managed care model. This is intended to increase access to care, while providing personalized support and engagement, to improve health outcomes and quality of life, CareSource said.
“We are honored to be entrusted with this vital responsibility,” said Erhardt Preitauer, chief executive officer of CareSource. “Our team is dedicated to delivering a health plan that will provide military families with access to high quality care that is uniquely tailored to their needs. We look forward to working closely with DHA to achieve the goals of the demonstration and believe that together we can transform the future of TRICARE.”
As part of CareSource, a managed care organization with more than 2 million members, CareSource Military & Veterans draws on its operational experience and health care solutions, with the organization saying it channels resources back to members, providers, communities and employees.
Implementation of the CareSource Military & Veterans contract is anticipated to begin Jan. 1, 2025, with a go-live date of Jan. 1, 2026. It’s unclear on if this program could be made available in other areas after this test demonstration, but CareSource officials are focused on making it a successful resource for the military, they said.
“Right now, we’re focused on achieving the goals of this pilot program and ensuring eligible participants receive the care and support they deserve,” Painter said.
CareSource has about 4,700 total employees with more than 1,000 in the Dayton region, boasting a revenue of more than $11 billion in 2023. It also awarded $32 million in grants last year.
When CareSource enters a new state, it typically hires about 115 new people in that state, according to Larry Smart, chief financial officer for CareSource. The company ends up supporting about 170 resources through the economic impact of jobs in the area, and an estimated $34 million is added to the economy annually, he said in June.
Other states with CareSource include Indiana, Kentucky, Michigan, North Carolina and West Virginia. CareSource also covers Medicaid members with complex behavioral health, developmental or intellectual disabilities in Arkansas.
CareSource, over the last couple of years, has made bids to service Medicaid members in Mississippi, Kansas, and Texas. The Kansas and Texas bids through the CareSource HealthAlliance and CareSource Bayou Health, respectively, did not receive the sought after contract awards, according to those states.
CareSource received notice from the Mississippi Division of Medicaid that it was an intended contract awardee to serve Medicaid members in Mississippi, but the company has not started serving members yet following an ongoing protest from other companies that had sought contracts.
Earlier this year, CareSource announced a partnership to pursue servicing Marketplace members in Wisconsin.
For more information, visit caresourcemilitary.com.
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