Third Party Collection Program

United States Code, title 10, sec. 1095, allows DoD to collect from health insurance plans reasonable inpatient hospital costs incurred on behalf of insured military retirees and military dependants. The statute allows the military health treatment facilities to collect from an insurance company, a medical service, or a health plan for reasonable inpatient hospital care costs. The program, designed to collect from third party payers, is known as the Third Party Collection Program (the Program). From January 1 through June 30, 1992, the 3 Military Departments collected about $32.3 million of the $86.8 million billed by their 108 medical treatment facilities. We audited the Program as implemented in the Navy and Air Force. The Army Audit Agency audited the Army Program. The Army Audit Agency results were not available in time to be included in this report.