Potential Expansion of the CHAMPUS Reform Initiative

Gao ID: T-HRD-90-17 March 15, 1990

GAO discussed its examination of the Department of Defense's (DOD) Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) Reform Initiative demonstration project, focusing on DOD: (1) progress in overcoming implementation problems; and (2) plans for expanding the project. GAO noted that the DOD prime contractor's: (1) financial condition had improved since April 1989 because of its divestitures of unprofitable subsidiaries, better concentration and management, and favorable bank loan refinancing; (2) claims processing efforts were meeting contract standards; and (3) use of resource-sharing agreements increased. GAO also noted that: (1) CHAMPUS claims costs were lower than DOD estimated; (2) DOD needed to perform more research to determine the linkage between historical trends and CHAMPUS cost increases; (3) DOD contracted for more detailed analysis of CHAMPUS claims; and (4) through January 1990, DOD had paid the prime contractor about $742 million for the project.


Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: David P. Baine Team: General Accounting Office: Human Resources Division Phone: (202) 512-7101

The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.