Figure 1: Actual and Projected Costs of DOD’s Plans for Its Military Health System
This image is excerpted from a U.S. GAO report:
www.gao.gov/products/GAO-12-224
DEFENSE HEALTH CARE: Applying Key Management Practices Should Help Achieve Efficiencies within the Military Health System
Notes: Definitions of cost categories: Military medical personnel includes funds for pay and benefits for uniformed personnel assigned to work in the MHS. Direct care and other includes funds for the operation of military medical facilities and other activities. It includes pay and benefits for civilian personnel assigned to work in those facilities but excludes the pay and benefits of military personnel. Purchased care and contracts covers medical care delivered to military beneficiaries by providers in the private sector, both inside and outside the network. Pharmaceuticals covers purchases of medicines dispensed at military medical facilities, at pharmacies inside and outside DOD’s network, and through DOD’s mail-order pharmacy program. TRICARE for Life accrual payments covers funds deducted from DOD’s appropriation and credited to the Medicare-Eligible Retiree Health Care Fund. Outlays from that fund are used to reimburse military treatment facilities for care provided to military retirees and their family members who are also eligible for Medicare and to cover most of the out-of-pocket costs those beneficiaries would otherwise incur when seeking care from private-sector providers.
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