The Defense Health Agency has assumed responsibility for Tricare, pharmacy benefits, medical information technology and other military-related health programs, Military Times reports.
Patricia Kime writes the Pentagon started the new agency as part of a reorganization aimed to streamline operations and eliminate duplicative services.
Jonathan Woodson, assistant defense secretary for health affairs, estimates the move will generate at least $50 million in annual savings, according to the report.
Woodson’s office increased the number of its full-time workers from 43 to 128 to support the transition, Kime reports.
A launching event at the DHA headquarters in Falls Church, Va. was cancelled because of the government shutdown, Kime writes.
Air Force Lt. Gen. Douglas Robb will lead the agency as director and serve an adviser both to Woodson and to the defense undersecretary for personnel and readiness on military health issues.