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Defense Health Care: Observations on Proposed Benefit Expansion and Overcoming TRICARE Obstacles

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Report Type Reports and Testimonies
Report Date March 15, 2000
Report No. T-HEHS/NSIAD-00-129
Subject
Summary:

The beneficiaries' benefit enhancements to the military health system proposed in current legislation and the Department of Defense fiscal year 2001 budget request would have limited impact on retention. Those that would improve access or pharmacy coverage for older retirees should be fully assessed for cost and operational concerns. Regarding those that would eliminate cost sharing for active-duty dependents who obtain care from civilian providers, GAO notes that the lack of cost sharing for health benefits leads to unnecessary utilization and higher costs. In the long term, the size and structure of the military health system need to be reassessed in terms of how best to achieve its readiness mission. If the system can be made significantly smaller and provide even better training for wartime needs, savings from downsizing could pay for expanded health care benefits. GAO also finds room for improvement in TRICARE's appointment scheduling and claims processing and in the pharmacy program.

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