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The Nation

September 29, 1987

The Defense Department's medical insurance program ran out of money earlier this month for the second time this year, creating a backlog of payments to patients, doctors and hospitals estimated at more than $100 million, officials said. David Newhall, the deputy assistant defense secretary for health affairs, said the Pentagon's CHAMPUS system has continued to process claims, but they will not be paid until after the start of the new fiscal year Thursday. CHAMPUS--the Civilian Health and Medical Program of the Uniformed Services--provides insurance coverage to an estimated 6.2 million military dependents and retirees when they use civilian facilities because space is not available in military hospitals.

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