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<classification authority="sudocs">GA 1.13:GGD/HEHS-99-161</classification>
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 <subject>Health insurance</subject>
 <subject>Redundancy</subject>
 <subject>Health insurance cost control</subject>
 <subject>Health care programs</subject>
 <subject>Interagency relations</subject>
 <subject>Veterans benefits</subject>
 <subject>Retired military personnel</subject>
 <identifier>DOD Senior Prime Program</identifier>
 <identifier>DOD TRICARE Program</identifier>
 <identifier>DOD Medicare Subvention Demonstration Program</identifier>
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<titleInfo>
 <title>Medicare Subvention Demonstration: DOD Start-Up Overcame</title>
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<abstract>Pursuant to a legislative requirement, GAO provided information on the
Department of Defense&apos;s (DOD) implementation of its Medicare Subvention
Demonstration, focusing on: (1) progress in establishing the ground
rules for program operation, receiving Health Care Financing
Administration (HCFA) approval, attracting enrollment, and starting to
deliver health services; (2) the useful practices and operational
difficulties that emerged during program start-up; and (3) issues for
the future.&lt;p/&gt;GAO noted that: (1) the start-up period of the Medicare Subvention
demonstration was successful; (2) despite unanticipated delays, the six
demonstration sites met the requirements for Medicare managed care
plans, enrolled substantial numbers of beneficiaries, and began delivery
of health care services by January 1, 1999; (3) the sites&apos; experience in
dealing with the difficulties that arose along the way has yielded
valuable lessons and has also pinpointed issues that remain to be
resolved; (4) while the successful start-up of the demonstration is
encouraging, it will be some time before the results of its mature
operation can be assessed; (5) establishing the ground rules for the
demonstration took longer and the HCFA approval process was more
demanding than anticipated; (6) as a result, the demonstration will
cover 24 to 28 months of service rather than 3 years; (7) the initial
demand for enrollment overall was not as great as expected, in part
because retirees were wary of a temporary program and feared that they
might be unable to obtain affordable supplementary insurance at the
demonstration&apos;s end; (8) enrollment also reflected site-specific
factors, such as prospects for getting space-available care at a
military treatment facility (MTF) without joining Senior Prime, the
breadth of services available at the MTF, and options for care elsewhere
in the community; (9) preparing for the start-up of the demonstration
brought some useful new senior health care and management practices to
the MTFs, but also revealed operational difficulties; (10) the fact that
this demonstration program operates within two bureacracies--DOD and
HCFA caused--some points of strain; (11) being new to Medicare,
demonstration sites had to devote substantial DOD staff and consultant
time learning HCFA requirements; (12) the dual organizational structures
within DOD carry with them the potential for conflict; (13)
additionally, dual DOD and HCFA procedures may result in duplication of
effort; (14) experience in the start-up phase of this demonstration
raises issues for the future of this or other similar demonstrations;
and (15) enrollees will need to know several months in advance of the
end of this demonstration whether service will continue so that they can
plan for their continued health care.</abstract>
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<identifier type="preferred citation">GAO/GGD/HEHS-99-161</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/GGD/HEHS-99-161; Medicare Subvention Demonstration: DOD Start-Up Overcame;
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<subject>
 <topic>Health insurance</topic>
 <topic>Redundancy</topic>
 <topic>Health insurance cost control</topic>
 <topic>Health care programs</topic>
 <topic>Interagency relations</topic>
 <topic>Veterans benefits</topic>
 <topic>Retired military personnel</topic>
 <topic>DOD Senior Prime Program</topic>
 <topic>DOD TRICARE Program</topic>
 <topic>DOD Medicare Subvention Demonstration Program</topic>
</subject>
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 <titleInfo>
  <title>United States Public Law 33 (105th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 105-33</identifier>
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