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AFMD-82-2 1 (1981-12-16)

handle is hein.gao/gaobabcsp0001 and id is 1 raw text is: BY THE COMPTROLLER GENERAL Report To The Congress OF THE UNITED STATES Government Loses Revenue Because Of Low Medical Care Charges To Liable Third Parties The Government provides free medical care to eligible beneficiaries, such as service members and veterans. When a beneficiary requires treatment because of injuries caused by the negligence of another, the Government is au- thorized by law to recover the cost of medical care from the negligent party. From October 1, 1978, to September 30, 1980, the Government failed to recover an estimated $4 million because the rates charged were set significantly below the rates estimated by the Department of Defense and Veterans Administration to reflect the actual cost of care in their hospitals. At GAO's urging, the Office of Management and Budget adopted the use of the Defense and VA budg- eted rates which are much closer to actual cost and should result in significant increases in revenues. Even so, these rates are still too low and unless they are periodically adjusted to more accurately reflect the full cost of care provided in Defense and VA hospitals, the Government may continue to lose about $2 million a year. 00 AFMD-82-2 eCCOL7' DECEMBER 16, 1981

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