Estimating the Military Retirement Health Care Liability
LOGISTICS MANAGEMENT INST MCLEAN VA
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The Department of Defense provides health care to retired military service members and their dependents and survivors. This care is provided directly at military medical treatment facilities MTFs and by care purchased from civilian providers in the Tricare program. DoD funds the benefit when it is delivered. The Chief Financial Officers Act of 1990 requires DoD to report the liability that has accrued for future benefits on the Departments annual financial statements. This liability is calculated by extrapolating current retired health care costs to the future retired population. Determining current costs is complicated by the fact that MTF accounting systems do not directly attribute a cost to each episode of care. This report describes the methodology used to identify the current exposed population and attribute annual total costs of care in each category to each eligible individual.
- Personnel Management and Labor Relations
- Medicine and Medical Research