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1 1 (March 2, 2020)

handle is hein.crs/govcanu0001 and id is 1 raw text is: 01;0i E.$~ & March 2, 2020 FY2021 Budget Request for the Military Health System On February 10, 2020, President Donald Trump submitted his Fiscal Year (FY) 2012 budget request to Congress. The Department of Defense (DOD) budget request totals $705.4 billion, including $50.8 billion (7.2%) to fund the Military Health System (MHS). DOD refers to this latter portion of the DOD budget request as the unified medical budget (UMB). The MHS delivers certain health entitlements under Chapter 55 of Title 10, U.S. Code, to military personnel, retirees, and their families. The MHS provides health care to approximately 9.6 million beneficiaries in DOD hospitals and clinics known as military treatment facilities (MTFs) and through civilian health care providers participating in TRICARE. Congress traditionally appropriates mandatory and discretionary funding for the MHS in several accounts within the annual defense appropriations bill. These include the Defense Health Program (DHP), Military Personnel (MILPERS), and Military Construction (MILCON). Funding is typically appropriated to both DOD's base and overseas contingency operations (OCO) budgets. The FY2021 MHS budget request is 1.2% ($0.6 billion) below the FY2020 appropriation. The request, as shown in Table 1, includes the following: * $33.1 billion for DHP; * $8.9 billion for medical MILPERS; * $0.5 billion for medical MILCON; and * $8.4 billion for health care accrual contributions to the Medicare Eligible Retiree Health Care Fund (MERHCF). The DHP funds numerous MHS functions, such as health care delivery in MTFs, TRICARE, certain medical readiness activities and expeditionary medical capabilities, education and training programs, medical research, management and headquarters activities, facilities sustainment, procurement, and civilian personnel. The FY2021 request for the DHP account is $33.1 billion, which is 3.8% ($1.3 billion) below the appropriated amount for FY2020. Table 2 highlights selected programs that DOD intends to create, expand, reduce, or transfer to the military services. Medical MILPERS funds military personnel within the MHS. This includes various pay and allowances, such as basic, incentive, and special pays; subsistence for enlisted personnel; permanent change of station travel; and retirement contributions. Table I. Military Health System Funding, FY2018-FY2021 Request ($ in billions) FY2018 FY2019 FY2020 FY2021 Enacted Enacted Enacted Request Defense Health Program $33.5 $34.4 $34.4 $33.1 Operations and Maintenance $30.4 $31.0 $31.3 $31.3 Research, Development, Testing, and Evaluation $2.0 $2.2 $2.3 $0.5 Software & Digital Technology Pilot Program - - - $0.1 Procurement $0.7 $0.9 $0.4 $0.6 Overseas Contingency Operations $0.4 $0.4 $0.3 $0.3 MILPERS $8.6 $8.4 $8.9 $8.9 MILCON $0.9 $0.4 $0.3 $0.5 MERHCF Contributions $8.1 $7.5 $7.8 $8.4 Grand Total $51.1 $50.7 $51.4 $50.8 Sources: Department of Defense (DOD), Defense Budget Overview, February 2020, p. 2-4; DOD, Defense Health Program Fiscal Year (FY) 2021 Budget Estimates, February 2020, p. DHP-15; DOD, Defense Health Program Fiscal Year (FY) 2020 Budget Estimates, March 2019, p. DHP-13; DOD, Defense Health Program Fiscal Year (FY) 2019 Budget Estimates, February 2018, p. DHP-15. Notes: Numbers may not add up due to rounding. Not included in the FY2021 request is Congress's typical add-ons to the DHP, such as unrequested medical research funding. The Software & Digital Technology Pilot Program is a new DHP budget activity realigned from Operations and Maintenance in FY2021. Congress appropriates discretionary funding for the DHP, MILPERS, and MILCON accounts and mandatory funding for MERHCF contributions. ~fl:O~ - , gnom g-o , q 'S SL IN ILIULANJILiN,

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