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U.S. Department of Defense
Purchaser: U.S. Department of Defense
Program: Health insurance expenditures for military personnel and their families

Description: Rising health care costs and the closure of military bases and hospitals forced the U.S. Department of Defense (DOD) to explore different programs to provide health care to military personnel and their families. In June 1998, DOD implemented Tricare, a medical program for active-duty members of the U.S. military, qualified family members, retirees and their family members and survivors.

Tricare offers three different options–Prime, Extra or Standard. The Prime option resembles civilian health maintenance organization plans. The Extra option gives patients the freedom to select a civilian physician of their choice, but the patient pays the highest fees for deductibles and co-payments and may have to file and submit claims. The Standard option provides the broadest choice of providers, but requires individuals to pay deductibles and co-payments.

The military also operates and maintains numerous hospitals and medical centers throughout Texas. In fiscal 1998, the Air Force, Army and Navy had 12 military medical facilities in Texas.

In federal fiscal 1998, DOD paid more than $2.1 billion for health care in Texas.

Texas Total, Fiscal 1998
Amount Spent: $ 222,731,783 Military Health Insurance*
  $1,068,307,683 Military Hospitals and Centers
  $1,291,039,466 Total

*Some hospitalization data may have been included in the health insurance data.

Type of Funding: Federal
Number of recipients: 515,140

Source: U.S. Department of Defense