Inflation in DoD Medical Care.
Abstract
The Defense Health Program (DHP) is appropriated funds to provide medical care to active-duty military personnel and their family members, military retirees and their family members, and other eligible beneficiaries. A variety of inflation indices are used in updating the DHP budget requirement. This paper evaluates the appropriateness of those indices, and identifies alternative indices that are theoretically superior to those currently in use. In fact, inflation is only one of several factors that determine annual updates to the DHP budget requirement. This paper also develops estimates of an intensity/technology factor, which drives additional funding growth over and above inflation, demographic, and other adjustments already applied under current DHP methodology. Finally, we estimate the impact on the DHP budget if the alternative inflation indices were applied and, simultaneously, the intensity/technology factor introduced.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1997
- Accession Number
- ADA332631
Entities
People
- Matthew S Goldberg
- Ravi Sharma
Organizations
- Institute for Defense Analyses