Robert Gates Says Healthcare Costs Hurt Defense Budget

February 24, 2011 RSS Feed Print
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Secretary of Defense Robert Gates is not afraid to say it: “Healthcare costs are eating the Defense Department alive.”

But many in Congress are ignoring the elephant in the room. No politician, after all, wants any part of “going after” our veterans. The amount of sacrifice, especially during two wars, coming home severely wounded, physically and mentally, putting their lives on the line--this deserves not only parades but pay and benefits. No one should question the importance of taking care of our wounded veterans. [See photos of U.S. troops in Afghanistan.]

But that is not what Secretary Gates is talking about.

Healthcare costs as part of the defense budget have gone from $19 billion in 2001 to about $55 billion now, about a tenth of the total. And the possibilities for more rapid increases are truly frightening to Gates and others.

Right now, the over two million families enrolled in the lifetime health insurance system, Tricare, pay $460 per family per year for health insurance. An individual pays $230 per year. These fees have not been raised in 15 years. Active duty military, of course, get healthcare at no cost, so these are the fees for retirees only. [Read more about national security and the military.]

It should be pointed out, too, that copays for prescription drugs are extremely generous as well, $3 for generics and $9 for brand drugs. And, of course, Veterans Affairs hospital services for wounded veterans are without charge, as they should be. But, at a time when states and localities are going after public employees with a vengeance it seems odd that policy makers and politicians would not want to take up the costs of military healthcare. [See photos of the protests in Madison, Wisconsin.]

Secretary Gates proposes modest increases in the yearly Tricare fee from $1,260 to $2,460 depending on income. There is a proposal to increase the copays by a few dollars. Some would require that members of the military go on Medicare at 65. For many of the military who retired in their late 30s, 40s or even 50s and have moved into the civilian work force, it seems a pretty nice perk to only pay $460 a year in medical insurance.

Unless we tackle this problem, we will be putting a severe strain on the military budget and ballooning the deficit to a much greater extent than any of the myriad of programs the Tea Party is intent on cutting. Isn’t it time we paid attention to at least one of the major elephants in the room?

Tags:
Robert Gates,
veterans,
healthcare,
national security terrorism and the military,
healthcare reform

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We earned those benefits and paid for them with the service we already provided. To shift cost to us is cutting the budget by cutting the benefits you are obligated to pay because that was the compensation package we signed up under. If you can do this then why not just cut retiree pay 20%? Or cutting SPB 30%? AND none of these benefits are "free." They were bought as part of the compensation and retirement package we signed up under and earned! AND I'm totally against means testing or basing it on rank. Be all paid the same 20+ years for the same benefit. And finally, not everybody has a second career or a second career that has health insurance.

Jim Johnson of KS 7:56PM February 27, 2012

Folks in Congress and folks like Gates talk about taking money from elderly and military or increasing fees. What about their pay and benefits? While I was in the military it was hammered in that I would have free medical care for the rest of my life if I retired. Folks in Congress and the President are taken care of for life. And here they are trying to take from the deserving without offering up a slice ofn their own pie.

DTK of MO 10:17PM February 25, 2011

COLA increases for medical benefits make sense.

If that isn't satisfactory, then have costs tied to your retired rank (like hotel costs at Hale Koa, or base billeting at transit quarters).

If you don't like those ideas, then establish a base plan for people to use Express-scripts and generics and increase the fees for drugs which are selected (but have generic substitutes) and for using local pharmacies instead of the mail.

You also could have a higher fee for drugs like Viagra, which might give a better quality of life, but which aren't in the life saving mode.

Having said that - another way to (fairly) keep retirement costs in check would be to have your first retirement calculation be your base for life. COLAs would be calculated on that base and added each year, but would not be compounded. Doesn't make a big difference in the retiree's pay, but the overall savings over 20, 30 or 40 years would be huge.

Mike Kauffman of CA 4:14PM February 25, 2011

Peter Fenn

Peter Fenn

Peter Fenn is a Democratic political strategist and head of Fenn Communications, one of the nation's leading political and public affairs media firms. Fenn Communications has worked in over 300 campaigns, from presidential to mayoral, and has represented a number of Fortune 500 companies. Fenn is also an adjunct professor at George Washington University's Graduate School of Political Management. Follow him on Twitter @peterhfenn.

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