Summary: GAO reviewed the Defense Enrollment Eligibility Reporting System (DEERS) to determine whether it would improve the eligibility determination process and provide accurate data on beneficiaries for use in military health resource planning. The DEERS was initiated specifically to accumulate accurate and timely data on all active duty and retired military sponsors, survivors, and dependents relating to their eligibility for health care benefits. This report discusses the problems experienced in the DEERS under the Uniformed Services Health Care System.
GAO learned that the DEERS will have an estimated beneficiary population of 11.5 million when the system is completed in 1985. When fully implemented, the estimated cost of this computer-based system is about $33 million, with an annual operating cost of $6 million. In its review, GAO noted that the system contains many errors, which cause inaccurate replies to users' eligibility queries, and result in a lack of confidence in the system's reliability. Although the Department of Defense has made progress, needed improvements include: (1) obtaining more complete and accurate beneficiary enrollment data; (2) entering more accurately beneficiary information into the system; and (3) prompt reporting of beneficiary changes to the system.