COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE HEALTH CARE COSTS AND COST-SAVING MEASURES.

SEC. 713. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE HEALTH CARE COSTS AND COST-SAVING MEASURES.(a) General Audit Required.—(1) In general.—The Comptroller General of the United States, in cooperation with the Director of the Congressional Budget Office, shall conduct an audit of the Department of Defense initiative to manage future medical benefits available through the Department known as “Sustain the Benefit”.(2) Elements.—The audit required by paragraph (1) shall examine the following:(A) The basis for the calculation by the Department of Defense of the portion of the costs of health care benefits provided by the Department to beneficiaries that were paid by such beneficiaries in each of 1995 and 2005, including—(i) a comparison of the cost to the Department of providing such benefits in each of 1995 and 2005;(ii) the explanation for any increases in the costs of the Department of providing such benefits between 1995 and 2005; and120 STAT. 2289(iii) a comparison of the amounts paid, by category of beneficiaries, for health care benefits in 1995 with the amounts paid, by category of beneficiaries, for such benefits in 2005.(B) The calculations and assumptions utilized by the Department in estimating the savings anticipated through the implementation of proposed increases in cost-sharing for health care benefits beginning in 2007.(C) The average annual rate of increase, based on inflation, of medical costs for the Department under the Defense Health Program.(D) The annual rate of growth in the cost of the Defense Health Program that is attributable to inflation in the cost of medical services over the last five years and how such rate of growth compares with annual rates of increases in health care premiums under the Federal Employee Health Benefit Program and other health care programs as well as rates of growth of other health care cost indices over that time.(E) The assumptions utilized by the Department in estimating savings associated with adjustments in copayments for pharmaceuticals.(F) The costs of the administration of the Defense Health Program and the TRICARE program for all categories of beneficiaries.(b) Audit of TRICARE Reserve Select Program.—(1) In general.—In addition to the audit required by subsection (a), the Comptroller General shall conduct an audit of the costs of the Department of Defense in implementing the TRICARE Reserve Select Program.(2) Elements.—The audit required by paragraph (1) shall include an examination of the following:(A) A comparison of the annual premium amounts established by the Department of Defense for the TRICARE Reserve Select Program with the actual costs of the Department in providing benefits under that program in fiscal years 2004 and 2005.(B) The rate of inflation of health care costs of the Department during fiscal years 2004 and 2005, and a comparison of that rate of inflation with the annual increase in premiums under the TRICARE Reserve Select Program in January 2006.(C) A comparison of the financial and health-care utilization assumptions utilized by the Department in establishing premiums under the TRICARE Reserve Select Program with actual experiences under that program in the first year of the implementation of that program.(3) TRICARE reserve select program defined.—In this section, the term “TRICARE Reserve Select Program” means the program carried out under section 1076d of title 10, United States Code.(c) Use of Independent Experts.—Notwithstanding any other provision of law, in conducting the audits required by this section, the Comptroller General may engage the services of appropriate independent experts, including actuaries.(d) Report.—Not later than June 1, 2007, the Comptroller General shall submit to the congressional defense committees a 120 STAT. 2290 report on the audits conducted under this section. The report shall include—(1) the findings of the Comptroller General as a result of the audits; and(2) such recommendations as the Comptroller General considers appropriate in light of such findings to ensure maximum efficiency in the administration of the health care benefits programs of the Department of Defense.