Number: RS22402
Title: Increases in Tricare Costs: Background and Options for Congress
Authors: Don J. Jansen, Foreign Affairs, Defense & Trade Division 
Abstract: In its FY2007, FY2008, and FY2009 budget submissions, the Department of Defense (DOD) proposed increases in Tricare enrollment fees, deductibles, and pharmacy co-payments for retired beneficiaries not yet eligible for Medicare. These actions were justified by DOD as necessary to constrain the growth of health care spending as an increasing proportion of the overall defense budget in the next decade. Congress has passed legislation each year to prohibit the proposed fee increases. In passing the FY2009 National Defense Authorization Act (P.L. 110-417), however, Congress included measures establishing demonstration projects intended to find ways to contain costs through increased use of preventive care services by TRICARE beneficiaries. The scope of these measures are limited. Defense health care spending will likely remain an issue for the DOD in the next Administration, and Congress can anticipate being asked to consider new proposals to constrain costs.
Pages: 6
Date: October 23, 2008