Cost-Estimating Methodology and Additional Analysis of an Option to Replace TRICARE With Private Insurance: Supplemental Material for Approaches to Changing Military Health Care

In this document, the Congressional Budget Office highlights some of the key aspects of the methodology it used to estimate the budgetary effects of replacing the Department of Defense’s TRICARE health benefit with private insurance—Option 2 in the report titled Approaches to Changing Military Health Care.1 Because of the complexity of Option 2, estimates of its budgetary effects are subject to a large degree of uncertainty. For that reason, CBO has chosen to provide additional details about its cost-estimating methodology for that option.