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<classification authority="sudocs">GA 1.13:HEHS-99-142</classification>
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 <subject>Health care programs</subject>
 <subject>Managed health care</subject>
 <subject>Fraud</subject>
 <subject>Program abuses</subject>
 <subject>Department of Defense contractors</subject>
 <subject>Internal controls</subject>
 <subject>Contract oversight</subject>
 <identifier>DOD TRICARE Program</identifier>
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<titleInfo>
 <title>Defense Health Care: Improvements Needed to Reduce</title>
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<abstract>Pursuant to a legislative requirement, GAO reviewed the Department of
Defense&apos;s (DOD) health care system, focusing on: (1) DOD&apos;s estimates of
the extent of health care fraud and abuse; (2) DOD&apos;s efforts to reduce
health care fraud and abuse in civilian settings; and (3) initiatives
and incentives that could improve DOD&apos;s antifraud efforts.&lt;p/&gt;GAO noted that: (1) it is impossible to precisely quantify the amount
lost to health care fraud and abuse given the nature of such activities,
but there is general consensus in DOD and the health care industry that
fraud and abuse could account for 10 to 20 percent of all health care
costs; (2) given TRICARE managed care contract expenditures of $5.7
billion between 1996 and 1998, DOD could have lost over $1 billion to
fraud and abuse during this period; (3) in addition to the financial
loss, health care fraud and abuse can also adversely affect the quality
of care provided and may cause serious harm to patients&apos; health; (4) DOD
and its contractors have had limited success in identifying TRICARE
fraud and abuse; (5) for example, contractors have identified a
negligible number of potential fraud cases; (6) this low level of fraud
identification has occurred, in part, because DOD contracts do not
require contractors to aggressively identify and prevent fraud and
abuse; (7) during this same period, DOD recovered about $14 million in
fraudulent payments out of the $5.7 billion spent; (8) to its credit,
DOD recognizes the need to reduce its vulnerability to fraud and abuse
and has identified a number of revisions it could make to its antifraud
policies and requirements; (9) however, it has been slow to implement
these policy revisions, which collectively would require contractors to
put into place a more aggressive fraud and abuse identification program;
(10) once these revisions are implemented, existing contracts can be
modified to include specific results-oriented goals and performance
measures, thus putting DOD in a better position to evaluate contractors&apos;
progress in identifying and reducing fraud and abuse; (11) given the
magnitude of potential financial loss and harm to patients&apos; health, it
is important that DOD place a high priority on, and establish a
concerted strategy for, reining in health care fraud; and (12) DOD&apos;s
strategic plan for the military health system, prepared in response to
the Government Performance and Results Act of 1993, provides an
appropriate vehicle for articulating DOD&apos;s strategy and establishing how
the agency will identify and prevent TRICARE fraud and abuse.</abstract>
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<note>Letter Report</note>
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<subject>
 <topic>Health care programs</topic>
 <topic>Managed health care</topic>
 <topic>Fraud</topic>
 <topic>Program abuses</topic>
 <topic>Department of Defense contractors</topic>
 <topic>Internal controls</topic>
 <topic>Contract oversight</topic>
 <topic>DOD TRICARE Program</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 62 (103rd Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 103-62</identifier>
</relatedItem>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Senate Report 189 (105th Congress)</title>
</titleInfo>
 <identifier type="congressional report citation">S. Rept. 105-189</identifier>
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