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1 1 (December 13, 2018)

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Defense Primer: Military Health System

The Department  of Defense (DOD) operates a health care    provide a met
delivery system that in fiscal year (FY) 2019 will serve an to combatant
estimated 9.4 million beneficiaries. In the President's 2019
budget request of $50.6 billion, DOD's unified medical  Beneficia
program represents about 8% of DOD's total budget.     In FY2017, th
Beneficiaries may obtain care from DOD-operated and    beneficiaries.
staffed medical and dental facilities (referred to collectively
as military treatment facilities) or through care from  Figure 1.   MF
civilian providers purchased through an insurance-like
program known  as TRICARE.   Purchased care accounts for
approximately 60%  of the total cost of care delivered
through the Military Health System (MHS).

Purpose
The fundamental reason for an MHS is to support medical
readiness. The medical readiness mission involves
promoting a healthy and fit fighting force that is medically
prepared to provide the Military Departments with the
maximum   ability to accomplish their deployment missions
throughout the spectrum of military operations. The MHS
also serves to create and maintain high morale in the
uniformed services by providing an improved and uniform
program of medical and dental care for members and
certain former members of those services, and for their
dependents (10 U.S.C. § 1071). In addition, the resources
of the MHS  may be used to provide humanitarian assistance
(10 U.S.C. §401) and to perform medical research (10   Source: Defen
U.S.C. §2358).                                             Fiscal Year 2018
                                                           Note: Number
Organization
The Under  Secretary of Defense for Personnel and       Military T
Readiness (USD(P&R))   is the principal staff assistant and On October 1
advisor to the Secretary and Deputy Secretary of Defense   MTFs  began
for Total Force Management as it relates to readiness issues the DHA. Mo
including health affairs (see 10 U.S.C. §136).         respective   Sei
                                                          range of clinli
Key  MHS  Organizations                                    and level of c
                                                           outpatient me
     *   Office of the Assistant Secretary of Defense for  The  ailit
         Health Affairs (OASD (HA))                        and aeltics
     *   Defense Health Agency (DHA)                       contract persc
     *   Surgeons General of the Army, Navy, and Air
         Force                                             TRICARE
                                                           With the exce
The Assistant Secretary of Defense for Health Affairs  are assigned   t
(ASD(HA))   reports to the USD(P&R). The ASD(HA)  is the   of-pocket cos
principal advisor to the Secretary of Defense on all DOD  beneficiaries
health policies, programs and activities and has primary  depending up
responsibility for the MHS (see Department of Defense  member, retir
Directive 5136.01). Reporting to the USD(P&R) through  family covera
the ASD(HA),  the Defense Health Agency (DHA)  is a        location. Eact
joint, integrated combat support agency whose purpose is to sharing featur
enable the Army, Navy, and Air Force medical services to   enrollment fe
                                                           copayments,


Updated December  13, 2018


lically ready force and a ready medical force
commands  in both peacetime and wartime.

ries
ere were 9.42 million total MHS


S  Beneficiaries, FY201 7


















                    Total Beneffmiles = 9A4  million
se Health Agency, Evaluation of the TRICARE Pro gram:
Report to Congress, Washington, DC, 2018, p. I8.
smay not add up to total because of rounding.

reatment Faciities (MTFs)
2018,  administration and management of te
to transfer from each Military Department to
st MTFs are currently administered by each
rvice Surgeon General and provide a wide
cal services depending on its size, mission,
apabilities. These include inpatient and
dical care, dental, and veterinary services.
tal of 681 MTFs, with 126 located overseas.
are generally on or near a U.S. military base
lly staffed by military, civil service, and
innel.

Options
ption of active duty service members (who
o te TRICARE   Prime option and pay no out-
ts for TRICARE coverage), MHS
may have a choice of TRICARE  plan options
on their status (e.g., active duty family
ee, reservist, child under age 26 ineligible for
ge, Medicare-eligible, etc.) and geographic
plan  option has different beneficiary cost-
es. Cost sharing may include an annual
e, annual deductible, montly premiums,
mad an annual catastrophic cap. Pharmacy

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