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Defense Health Program: Reporting of Funding Adjustments Would Assist Congressional Oversight

HEHS-99-79 Published: Apr 29, 1999. Publicly Released: Jun 01, 1999.
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Highlights

Pursuant to a congressional request, GAO reviewed the apparent discrepancies between the Department of Defense's (DOD) budget allocations and the actual obligations for direct and purchased care, focusing on: (1) the extent to which the Defense Health Program (DHP) obligations have differed from DOD's budget allocations; (2) the reasons for any such differences; and (3) whether congressional oversight of DHP funding changes could be enhanced if DOD provided notification or budget execution data.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress may wish to consider requiring DOD, consistent with current notification standards and procedures, to notify the congressional defense committees of its intent to shift funds among subactivities (such as direct care, purchased care, and base operations). Such notification, while not requiring congressional approval of the funding shift itself, could be initiated whenever the amount of the funding shift exceeded a certain threshold to be determined by Congress. The notification would specify where funds are being deducted and where they are being added, and the justification for such reallocation. Also, or alternatively, Congress may wish to consider requiring DOD to provide congressional defense committees with quarterly budget execution data on DHP O&M accounts. These data could be provided in the same manner and under the same timeframes as DOD provides data for non-DHP O&M accounts.
Closed – Not Implemented
With the legislative enactment of major expansions in military health care benefits for active duty families and retirees, other, more critical Defense Health Program funding and budgetary issues have emerged. For example, congressional, GAO, and other external and internal DOD investigations continue to scrutinize the adequacy of Defense Health Program financing and budgeting procedures. Although still valid, GAO is closing this recommendation. GAO is unaware of any intention by Congress to implement the recommendation in the foreseeable future.

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Topics

Budget administrationCongressional oversightDefense budgetsEmployee medical benefitsHealth care cost controlHealth care programsHealth services administrationManaged health careMilitary personnelReprogramming of appropriated funds