The following is the Aug. 22, 2024, Congressional Research Service In Focus report, FY2025 Budget Request for the Military Health System.
From the report
On March 11, 2024, President Joseph R. Biden submitted his Fiscal Year (FY) 2025 budget request to Congress. Discretionary funding in the Department of Defense (DOD) budget request totals $849.8 billion, including $61.4 billion (7.2%) to fund the Military Health System (MHS), which delivers certain health entitlements under Title 10, Chapter 55, of the U.S. Code, to servicemembers, military retirees, and their families. The MHS provides health care to 9.6 million beneficiaries in DOD hospitals and clinics—known as military treatment facilities (MTFs)—and through civilian health care providers participating in TRICARE, DOD’s health-insurance-like program.
Congress traditionally appropriates discretionary funding for the MHS in several types of accounts within the annual defense appropriations bill. These types of accounts include Operation and Maintenance (O&M), Military Personnel (MILPERS), and Military Construction (MILCON). DOD refers to these portions of the budget as the unified medical budget (UMB). The request does not include a proposal to modify statutory TRICARE cost-sharing requirements for beneficiaries.
FY2025 MHS Budget Request
The FY2025 MHS budget request is 1.8% ($1.1 billion) more than the FY2024 appropriation. Table 1 shows the FY2025 request and previously enacted amounts for the MHS.
Defense Health Program (DHP)
The DHP, resourced by O&M funds, performs the following MHS functions: health care delivery in MTFs; TRICARE; certain medical readiness activities and expeditionary medical capabilities; education and training programs; research, development, test, and evaluation (RDT&E); management and headquarters activities; facilities sustainment; procurement; and civilian and contract personnel. The FY2025 request for the DHP account is $40.3 billion, which is 1.0% ($0.4 billion) more than the appropriated amount for FY2024. Table 2 highlights selected programs that DOD intends to create, maintain, expand, reduce, or transfer to other accounts.
Military Personnel (MILPERS)
The medical MILPERS account funds military personnel operating the MHS. This funding includes various pay and allowances, such as basic, incentive, and special pays; subsistence allowance; permanent change of station travel; and retirement contributions. DOD requested $9.5 billion for medical MILPERS for FY2025 but does not identify personnel costs related to the MHS at more detailed levels (e.g., budget activity group, program element, or line item). This request is nearly the same as the FY2024 request, reflecting a 0.02% increase in military medical end strength (+17 positions).
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