New DRG Classification System

Medicare has adopted a Medicare Severity Diagnosis-Related Group (MS-DRG) classification system for FY08, which begins on October 1, 2007. This new system created 745 new severity-adjusted DRGs to replace the 538 that were in place for FY07. TRICARE will not be adopting the MS-DRG for FY08 and will continue to use its prior DRGs.

TriWest will accept the new DRGs, but will process them under the old DRGs.