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CBO: Pentagon Could Get $90B in Health Savings Through Cost-Sharing Options

PentagonThe Congressional Budget Office has said the Defense Department could save between $18 billion and $90 billion over 10 years if it pursues cost-sharing options and other efforts to reduce military healthcare expenditures.

CBO said Wednesday the Pentagon could achieve the savings if it imposes annual fees for military retirees who are under Tricare Standard and Extra plans, increases cost sharing for retirees who are not yet qualified for Medicare and requires non-reimbursable expenses for Tricare for Life coverage.

DoD has proposed to combine the three TriCare plans into a single coverage, while the Military Compensation and Retirement Modernization Commission has suggested a plan to non-active duty members a choice of private insurance plans.

CBO predicts the expansion of disease management initiatives to result in about $23 million in annual savings.

CBO also cited the hiring of additional fraud-detection auditors, consolidation of military health facilities and closure of the Uniformed Services University of the Health Sciences as some of the other ways in which DoD could realize nearly $200 million in annual savings.

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