Defense Health Care

Challenges Facing DOD in Implementing Nationwide Managed Care Gao ID: T-HEHS-94-145 April 19, 1994

The Defense Department (DOD) has made great strides in implementing TRICARE, its nationwide managed health care program. GAO commends DOD for tackling this ambitious but necessary undertaking. TRICARE embodies many of the lessons learned from DOD's managed health care demonstration projects over the last several years. GAO believes that it has the potential to improve beneficiary access to care, maintain high-quality care, and gain control of health care costs. Yet some analyses suggest that it is uncertain whether TRICARE will be more cost effective than other health care options available to DOD. Much will depend on TRICARE's benefit and cost-sharing packages, which DOD still needs to finalize. Also, several implementation and contracting issues remain unresolved.



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