The Department of Defense will provide health care services to Medicare-eligible military retirees in a managed care demonstration project called the Tricare Senior Project and receive reimbursement through Medicare. The goal is to provide cost-effective, high-quality care to military retirees and their families through military treatment facilities.... Implementation of the Health Insurance Portability and Accountability Act of 1996 is suffering because the Health Care Financing Administration lacks the resources needed to ensure compliance, says a GAO report. HCFA has been forced to reassign staff who "generally had no previous experience in health insurance," the GAO said. At a Senate Labor Committee meeting last March, HCFA Administrator Nancy-Ann DeParle warned that her agency would need additional personnel to carry out effective HIPAA enforcement.

— Michael Levin-Epstein