(a) In general. Total potential economic damages calculated under this part are reduced by offsetting most of the compensation otherwise provided or expected to be provided by DoD or VA for the same harm that is the subject of the medical malpractice claim. DoD has the burden to establish the applicability and amount of any offsets.
(b) Eligibility for payments and benefits. In determining the offsets that are applied to a medical malpractice damages award under this part, DoD presumes that a claimant will receive all the payments and benefits for which the claimant is expected to be eligible, whether or not the claimant has taken steps to obtain the payment or benefit or ultimately receives such payment or benefit. A claimant may present evidence that he or she is not eligible for a payment or benefit to rebut the presumption.
(c) Present value of future payments and benefits. In determining offsets under this section from economic damages, DoD will use the present value of future payments and benefits. Many such payments and benefits in cases of disability or death are lifetime benefits for members or survivors. With respect to any lifetime payments or benefits that may terminate upon the remarriage of a surviving spouse, DoD will not assume a remarriage. Estimates will be based on actuarial information provided by the Chief Actuary, DoD Office of the Actuary, taking into consideration methods and assumptions approved by the DoD Board of Actuaries and DoD Medicare-Eligible Retiree Health Care Board of Actuaries, respectively, as of the recent actuarial valuation date.
(d) Information considered. In determining offsets under this section, DoD will consider all data available in DoD records or information systems, other U.S. Government records systems, and other information available to DoD. This data may include information on military pay and allowances, Disability Evaluation System outcomes, VA disability claims, marital status, number and ages of dependents, survivor benefits, and other information. Access to all such information will be in accordance with the Privacy Act, 5 U.S.C. 552a,and. Claimants must provide information not available to DoD, but requested by DoD, for the purpose of determining offsets.
(e) Benefits and payments that may be considered as potential offsets. The general rule is that potential damages calculated under this part may be offset only by DoD or VA payments and benefits that are primarily funded by Government appropriations. Potential damages calculated under this part are not offset by U.S. Government payments and benefits that are substantially funded by the military member. The following examples are provided for illustrative purposes only, are not all-inclusive, and are subject to adjustment as appropriate.
(1) The following DoD and VA payments and benefits are primarily funded from Government appropriations and will be offset:
(i) Disability retired pay in the case of retirement due to the disability caused by the alleged medical malpractice;
(ii) Disability severance pay in the case of non-retirement disability separation caused by the alleged medical malpractice.
(iii) Incapacitation pay.
(iv) Involuntary and voluntary separation pays and incentives.
(v) Death gratuity.
(vi) Housing allowance continuation.
(vii) Survivor Benefit Plan.
(viii) VA disability compensation, to include Special Monthly Compensation, attributable to the disability resulting from the malpractice.
(ix) VA Dependency and Indemnity Compensation, attributable to the disability resulting from the malpractice.
(x) Special Survivor Indemnity Allowance.
(xi) Special Compensation for Assistance with Activities of Daily Living.
(xii) Program of Comprehensive Assistance for Family Caregivers.
(xiii) Fry Scholarship.
(xiv) TRICARE coverage, including TRICARE-for-Life, for a disability retiree, family, or survivors. Future TRICARE coverage is part of the Government's compensation package for a disability retiree or survivor.
(2) The following U.S. Government payments and benefits are substantially funded by the military members or are otherwise generally not eligible for consideration as potential offsets:
(i) Servicemembers Group Life Insurance.
(ii) Traumatic Servicemembers Group Life Insurance.
(iii) Social Security disability benefits.
(iv) Social Security survivor benefits.
(v) Prior Government contributions to a Thrift Savings Plan.
(vi) Commissary, exchange, and morale, welfare, and recreation facility access.
(vii) Value of legal assistance and other services provided by DoD.
(viii) Medical care provided while in active service or in an active status prior to death, retirement, or separation.
[86 FR 32208, June 17, 2021; 86 FR 33885, June 28, 2021, as amended at 87 FR 52462, Aug. 26, 2022; 89 FR 40382, May 10, 2024]