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Today, Rep. Joseph Heck (R-NV), Chairman of the House Armed Services Subcommittee on Military Personnel, made the following remarks on the hearing titled "Defense Health Agency: Budgeting and Structure:"

"Today the Subcommittee meets to continue our discussions on the Military Health System to help inform our efforts to reform military health care. I know the timing of our hearing is a little unusual for the Military Personnel Subcommittee and I appreciate everyone’s participation even at this late hour.

The Defense Health Agency was established in October 2013 to manage the activities of the Military Health System, which includes integrating clinical and business processes across DOD and the military services. A key element was establishing shared services to eliminate the need for each of the military medical services to manage functions that are common across the MHS. At the time the DHA stood up, DOD estimated that the shared services would generate significant savings by eliminating redundancy and variability. I am interested in hearing how much the DHA has saved DOD since 2013.

I’m also interested in hearing about the DHA’s role in medical readiness and in particular, how the DHA assists the Army, Navy, and Air Force medical services to provide a medically ready force and ready medical personnel to Combatant Commands.

In the FY 17 budget, the Department of Defense has proposed several measures aimed at reducing the cost of the Defense Health Program by reforming TRICARE. While I appreciate the Department’s efforts to simplify the health benefit, the proposals still shift the cost burden, through TRICARE fee and cost share increases, to our active duty family members and our retirees. What is not clear from the Department’s proposals is how this reform addresses the concerns we have heard from our beneficiaries. Does it improve access to care and reduce the hassles of the referral process? Will the anticipated savings generated by the reforms be used to improve the beneficiary’s experience?

Lastly, I am interested to hear your views on the MHS structure and function, especially as it compares and contrasts with civilian hospital systems.

I hope that our witnesses will address these important issues as directly as possible in their oral statements and in response to Member questions.

Let me welcome the panel:

The Honorable Dr. Jonathan Woodson, M.D.

Assistant Secretary of Defense for Health Affairs

Vice Admiral Raquel C. Bono, Medical Corps, USN

Director, Defense Health Agency

Before we begin I’d like to recognize Admiral Bono and extend a special welcome as this is her first appearance before the subcommittee."