The military is worried about medical costs causing undue pressure on
its budget and the need to cut back on what it offers to the troops:

Shanker, Thom and Christopher Drew. 2011. "Gates Sees Crisis in
Current Spending." New York Times (14 February).
http://www.nytimes.com/2011/02/15/us/politics/15pentagon.html

All six members of the Joint Chiefs of Staff also weighed in to the
coming budget debate on Monday, signing a letter expressing support
for what they described as “modest and manageable” increases in fees
for working-age military retirees who have chosen to remain on the
Defense Department’s Tricare medical insurance program.
        
Total health care costs for the Pentagon, which is the nation’s single
largest employer, top $50 billion a year, one-tenth of its budget. A
decade ago, health care cost the Pentagon $19 billion; five years from
now, without changes, it is projected to cost $65 billion. Tricare
fees have not increased since 1995.

“We will continue to provide the finest health care benefits in the
country for our active and retired military service members and their
families while continuing to serve as responsible financial stewards
of the taxpayers’ investment in our military,” the letter said.

All six members of the Joint Chiefs of Staff, each a four-star
officer, have not signed such a correspondence, known as a “24-star
letter,” since 2006. Congress has voted down other plans to increase
Tricare fees, which veterans groups oppose.

-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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