The Nation - News from Dec. 15, 1985

The Pentagon’s top health official proposed dramatic changes in the way the Defense Department pays civilian physicians for the medical care of military dependents and retirees. Dr. William Mayer, assistant secretary of defense for health affairs, outlined the change to top officials of the Defense Department and military services last week. It would involve a single, nationwide contract with a private insurer that would provide care at a fixed cost and place the insurer “at risk” if the cost of such care exceeded the set price.