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handle is hein.crs/govefqt0001 and id is 1 raw text is: Congressional Research Service

April 29, 2022

FY2023 Budget Request for the Military Health System

On March 28, 2022, President Biden submitted his Fiscal
Year (FY) 2023 budget request to Congress. Discretionary
funding in the Department of Defense (DOD) budget
request totals $773.0 billion, including $55.8 billion (7.2%)
to fund the Military Health System (MHS), which delivers
certain health entitlements under Chapter 55 of Title 10,
United States Code, to military personnel, retirees, and their
families. The MHS provides health care to 9.6 million
beneficiaries in DOD hospitals and clinics-known as
military treatment facilities (MTFs)-and through civilian
health care providers participating in TRICARE, a DOD-
administered health insurance-like program.
Congress traditionally appropriates discretionary funding
for the MHS in several accounts within the annual defense
appropriations bill. These accounts include Operation and
Maintenance (O&M), Military Personnel (MILPERS), and
Military Construction (MILCON). DOD refers to these
portions of the budget as the unified medical budget
(UMB). The request does not include a proposal to modify
statutory TRICARE cost-sharing requirements for
beneficiaries.
FY2023 MHS Budget Request
The FY2023 MHS budget request is 0.2% ($0.1 billion)
more than the FY2022 appropriation. Table 1 shows the

FY2023 request and previously enacted amounts for the
MHS.
Defense Health Program (DHP)
The DHP, a sub-account under the O&M account, funds the
following MHS functions: health care delivery in MTFs;
TRICARE; certain medical readiness activities and
expeditionary medical capabilities; education and training
programs; research, development, test, and evaluation
(RDT&E); management and headquarters activities;
facilities sustainment; procurement; and civilian and
contract personnel. The FY2023 request for the DHP
account is $36.9 billion, which is 1.3% ($0.5 billion) below
the appropriated amount for FY2022. Table 2 highlights
selected programs that DOD intends to create, maintain,
expand, reduce, or transfer to the military services.
Military Personnel (MILPERS)
Medical MILPERS funds military personnel operating the
MHS. This funding includes various pay and allowances,
such as basic, incentive, and special pays; subsistence for
enlisted personnel; permanent change of station travel; and
retirement contributions.

Table I. Military Health System       Funding, FY2018-FY2023 Request
($ in billions)
FY2018       FY2019        FY2020       FY2021        FY2022       FY2023
Enacted      Enacted       Enacted      Enacted       Enacted      Request
O&M (DHP)                                            $33.5        $34.4        $37.1         $34.1        $37.4        $36.9
DHP Operation & Maintenance        $30.8        $31.3         $33.0        $31.1        $34.0         $35.3
Research, Development, Testing, and Evaluation     $2.0          $2.2         $3.7          $2.4         $2.6         $0.9
Procurement       $0.7         $0.9          $0.5         $0.5         $0.8          $0.6
Software & Digital Technology Pilot Program       -             -            -             -            -          $0.1
MILPERS                                              $8.6         $8.4          $8.9         $8.3          $8.5         $8.7
MILCON                                               $0.9         $0.4          $0.3         $0.5          $0.5         $0.4
MERHCF Contributions                                 $8.1         $7.5          $7.8         $8.4          $9.3         $9.7
Grand Total                                          $51.1        $50.7        $51.4         $51.3        $55.7        $55.8
Sources: Department of Defense (DOD), Defense Budget Overview, April 2022, p. 4-27; DOD Defense Health Program Fiscal Year (FY) 2023
Budget Estimates, April 2022, p. 1; DOD Defense Budget Overview, May 2021, p. 5-5; DOD, Defense Health Program Fiscal Year (FY) 2022 Budget
Estimates, May 2021, p. 1; and CRS In Focus IF 11206, FY2020 Budget Request for the Military Health System, by Bryce H. P. Mendez.
Notes: Numbers may not add up due to rounding. For FY2018 through FY2021, DHP sub-totals include MHS funding for overseas contingency
operations (OCO) and direct war costs. The FY2023 request does not include funding that Congress has added to the DHP in the past, such as
unrequested medical research funding. The FY2020 and FY2021 enacted amounts include supplemental funding appropriated from the CARES Act. O&M
(DHP) refers to a DOD budget account, whereas DHP Operation & Maintenance refers to a subordinate budget activity. The Medicare-Eligible Retiree
Health Care Fund (MERHCF) refers to the accrual contributions that pay for future health care expenses of Medicare-eligible TRICARE beneficiaries.

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