Legislative Update

COL Robert Schlegel, USA (Ret), Legislative Affairs Chair

MOAA Action Alerts


What the FY 2024 NDAA Means for Your TRICARE Benefit

 Karen Ruedisueli, MOAA’s Director of Government Relations for Health Affairs.

Abridged Article, March 27, 2024.


The FY 2025 DoD budget proposal includes no mention of TRICARE cost-sharing requirements or other fee increases – good news for beneficiaries, as past TRICARE fee increase proposals have originated with the annual budget request.


The White House budget released March 11, includes a Unified Medical Budget (UMB) request of $61.4 billion, up 4.6% from the FY 2024 budget request. The UMB is made up of several accounts within the annual defense appropriations bill including Operations and Maintenance (O&M), MILPERS (funding for military personnel operating the MHS), and MILCON, which funds Military Health System (MHS) construction projects.


The request for the Defense Health Program (DHP) sits at $40.3 billion, up from $38.4 billion in the FY 2024 request. DHP, a sub-account of O&M, funds MHS functions such as health care delivery in military treatment facilities (MTFs); TRICARE; certain medical readiness activities and expeditionary medical capabilities; and education and training programs.  


DHP spending growth is driven predominantly by MTF investment designed to sustain direct care capabilities and modernize electronic health records/digital health. Within the FY 2025 DHP request, $20.6 billion, or 51%, is for purchased care via TRICARE.


The budget narrative underscores the updated MHS strategy to restore MTF capacity, reattract beneficiaries to the direct care system of military hospitals and clinics and increase opportunities to sustain uniformed medical provider clinical readiness.


“We recognize a strategic imperative to rebuild our military and civilian medical workforce and resource the MHS,” The budget overview states. DoD leadership determined the most effective way to take care of our people, support the National Defense Strategy, increase clinical readiness, mitigate risks to requirements, and reduce long-term cost growth in private sector care is to reattract beneficiaries to Military Treatment Facilities (MTFs) and maximize medical education and training pipelines.”

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