Reservists mobilized under federal authorities are covered by TRICARE,  DOD's health care system. According to DOD’s 2000 Survey of Reserve Component  Personnel, nearly 80 percent of reservists reported having health care  coverage. More than three-quarters of reservists were provided health care coverage  by their civilian employers’ health plans or their spouses’ health plans. 1.) Few Mobilized Reservists’ Dependents Experience Disruptions Because Most Reservists Maintain Civilian Coverage, Some at Additional Cost

Because most reservists maintained their civilian coverage when  mobilized, few dependents experienced disruptions in coverage. For 2003 through 2007, the estimated cost to DOD for providing reservists  and their dependents continuous health care coverage, regardless of  reservists’ mobilization status, would range from about $4 billion to   $19.7 billion for the 5-year period, depending on how the benefit was  provided. Finally, we interviewed officials in the offices of the Assistant Secretary of  Defense for Reserve Affairs and the Assistant Secretary of Defense for  Health Affairs; the TRICARE Management Activity; the National Guard  Bureau; the Department of Labor; representatives of the Army, Navy, and  Air Force Reserve Components; and reservist advocacy groups, including  the Enlisted Association of the National Guard of the United States, the  National Guard Association of the United States, the National Military  Family Association, the Ohio Air National Guard, the Reserve Officers  Association, the Retired Officers Association, and the Retired Enlisted  Association. The Congressional Budget Office (CBO) calculated costs associated with  options specified in the 2002 NDAA for providing coverage for reservists. The 14 percent of reservists who were federal employees were excluded  from the estimates because they presumably have health insurance  coverage under Employees Health Benefits Program (FEHBP). Ninety percent of reservists would use vouchers.
What GAO Found

To expand the capabilities of the nation's active duty forces, the Department of Defense (DOD) relies on the 1.2 million men and women of the Reserve and National Guard. Currently, reserve components constitute nearly half of the total armed forces. Although DOD requires reservists to use TRICARE DOD's health care system for their own health care, using TRICARE is an option for their dependents. Nearly 80 percent of reservists had health care coverage when they were not on active duty, according to a GAO survey. The most frequently cited sources of coverage were civilian employer health plans and spouses' employer health plans. Few dependents of mobilized reservists experience disruptions in their health coverage--primarily because most maintained civilian health coverage while reservists were mobilized. Ninety percent of the reservists with civilian health coverage maintained that coverage. The 5-year cost of the coverage options delineated in the 2002 National Defense Authorization Act range from $89 million, for expanding the transition benefit allowing mobilizations, to $19.7 billion, for continuous coverage under the Federal Employees Health Benefits Program, as estimated by the Congressional Budget Office.