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GAO-08-721R 1 (2008-05-28)

handle is hein.gao/gaobaanhx0001 and id is 1 raw text is: im T I IAccountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 May 28, 2008 The Honorable Daniel Inouye Chairman The Honorable Ted Stevens Ranking Member Subcommittee on Defense Committee on Appropriations United States Senate The Honorable John P. Murtha Chairman The Honorable C. W. Bill Young Ranking Member Subcommittee on Defense Committee on Appropriations House of Representatives Subject: Review of the President's Fiscal Year 2009 Budget Request for the Defense Health Program's Private Sector Care Budget Activity Group The President's budget request for the Department of Defense's (DOD) Defense Health Program has increased steadily in recent years. For example, from fiscal year 2005 to fiscal year 2009, the budget request for the program increased from about $17.6 billion to about $23.6 billion, an increase of about 34 percent. DOD has attributed a majority of this increase to growth in medical care, dental care, and pharmaceuticals provided in the private sector to active duty personnel and other eligible beneficiaries.2 These private sector expenses are funded through the Defense Health Program's Private Sector Care Budget Activity Group (BAG). From fiscal year 2005 to fiscal year 2009, the budget request for this BAG increased by about 36 percent-from about $9.0 billion to almost $12.2 billion. 'The Defense Health Program account is established under 10 U.S.C. Sec. 1100 and is funded by a separate Defense Health Program account appropriation every year in the Department of Defense Appropriations Act. In addition to appropriations, the Defense Health Program account contains other sources of spending authority, such as offsetting collections, which are funds collected by the government that are required by law to be credited directly to an expenditure account. 2DOD provides these health care services through its TRICARE program. 3Budget Activity Groups represent major programs within the Defense Health Program. GAO-08-721R Private Sector Care BAG

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