Defense Health Care. CHAMPUS (Civil Health and Medical Program of the Uniformed Services) Reform Initiative: Resolved Issues.
GENERAL ACCOUNTING OFFICE WASHINGTON DC HUMAN RESOURCES DIV
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In December 1985, the Department of Defense DOD proposed a major restructuring of the Civilian Health and Medical Program of the Uniformed Services CHAMPUS. CHAMPUS costs have risen from about 1.2 billion in fiscal year 1984 to about 1.8 billion in fiscal year 1986. In addition to contracting for the processing and payment of claims for medical care, the new program, called the CHAMPUS Reform Initiative, would use fixed-price contracts with private sector health providers for the provision of medical care to beneficiaries. CHAMPUS pays for much of the medical care provided by civilian hospitals, physicians, and other civilian providers to dependents of deceased members of the uniformed services.1 The approximately 6.2 million beneficiaries may also receive medical care on a space-available basis in the 168 military hospitals and hundreds of military clinics worldwide, and in the other uniformed services treatment facilities. Under CHAMPUS, however, beneficiaries must pay deductibles and cost-shares, 2 whereas care in uniformed services facilities is essentially free.
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