The dependents of active-duty personnel and members of military retirees' families receive health care from Military Treatment Facilities (MTFs) and from civilian providers under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS). Like other health insurance programs, CHAMPUS has experienced rapidly increasing costs. In addition, beneficiaries have expressed dissatisfaction with aspects of both CHAMPUS and the MTFs, including access to care, continuity of care, and CHAMPUS benefits and paperwork. Before implementing a nationwide program of reforms designed to correct these problems, the Assistant Secretary of Defense for Health Affairs will conduct a demonstration. This Note describes a plan for evaluating this demonstration. The evaluation will describe the methods followed by each contractor in implementing the CHAMPUS Reform Initiative (CRI), identify problems uncovered by the demonstration, estimate the effectiveness of CRI in achieving its goals, and recommend changes in the program to enhance its effectiveness.