Defense Health Programs: Savings Available by Using Two Medicare Cost-Containment Techniques
HRD-86-115
Published: Aug 25, 1986. Publicly Released: Aug 25, 1986.
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Highlights
GAO reviewed the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) to determine whether it could better contain costs for professional services if it adopted two cost-containment techniques used in the Medicare program, including: (1) a fee schedule for outpatient laboratory services; and (2) an economic index for physician services.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of the Assistant Secretary of Defense (Health Affairs) | The Assistant Secretary of Defense (Health Affairs) should take the necessary action to adopt the Medicare: (1) laboratory fee schedule and associated reimbursement practices as the basis for reimbursing providers for laboratory services under CHAMPUS; and (2) economic index method of limiting increases in allowed charges for physician services. |
Closed – Not Implemented
The Department of Defense (DOD) did not concur with part one of this recommendation. It concurred with part two of this recommendation and stated that it would seek a legislative change to do this. DOD took action after completion of field work, before the report was issued, that would partially accomplish this recommendation.
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