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In recent years, the Congress has sought to improve health care benefits for Medicare-eligible military retirees. In the past, these retirees 1 were not eligible for the Department of Defense's (DOD) TRICARE health care program and were able to get care from military treatment facilities (MTF) only when space was available. By law, DOD was not responsible for providing a full range of services to these Medicare-eligible retirees and could not receive payments from Medicare for those services that it provided them. The DOD Medicare subvention demonstration, 2 established by the Balanced Budget Act of 1997 (BBA), 3 was designed to test an alternate way of providing health care coverage to retirees through DOD.
Medicare Subvention Demonstration: Pilot Satisfies Enrollees, Raises Cost and Management Issues for DOD Health Care