Utilization and Costs in the CHAMPUS Reform Initiative: Preliminary Results for April-September 1989
RAND CORP SANTA MONICA CA
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In an attempt to improve health care delivery and contain cost growth, the Department of Defense DoD in 1987 proposed the CHAMPUS Reform Initiative CRI. Before the CRI could be implemented nationwide, however, Congress required that a demonstration be performed to test the initiatives feasibility and cost-effectiveness. In February 1988, the DoD awarded a contract to Foundation Health Corporation FHC to conduct the demonstration in California and Hawaii. In authorizing the demonstration, Congress also mandated an independent evaluation of the CRI, which RAND was asked to perform. This Note presents preliminary utilization and cost estimates for a six-month period during the demonstration. It is the second preliminary report prepared to support a DoD report to Congress on the demonstration. The first, S. Hosek et al., Preliminary Results from an Evaluation of the CHAMPUS Reform Initiative, N- 3069-HA, January 1990, described the operations of the major CRI programs and presented more limited cost estimates for the program than the estimates provided here. The evaluation of the CHAMPUS demonstration programs project is being conducted for the Assistant Secretary of Defense Health Affairs by RANDs Health Sciences Program and Defense Manpower Research Center the latter is part of the National Defense Research Institute, a federally funded research and development center sponsored by the Office of the Secretary of Defense and the Joint Staff.
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