Growth in Medical Spending by the Department of Defense
A CBO Study. Examines reasons for the increase in spending on medical care by the Department of Defense from fiscal years 1998-2003. Also considers directions in future medical spending.
From fiscal year 1988 to 2003, the Department of Defense’s (DoD’s) spending on medical care almost doubled in real terms. That growth occurred despite large reductions in the size of the active-duty military force and a substantial reduction in the size of the military’s own hospital system. This Congressional Budget Office (CBO) study—prepared at the request of the Chairman of the Senate Budget Committee—examines the reasons for those increases and considers directions for the future. Already, DoD’s total spending on health care is more than half as large as its cash compensation. Looking forward, CBO’s analysis examines how overall growth of health care costs in the economy could affect DoD’s health care costs through 2020, as well how changes in benefits could do so.
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Historical Growth in the Department of Defenses
Medical Spending per Dollar of Cash Compensation for Service