Some claim military health costs are out of line or unaffordable. MOAA responds: "Hogwash."
An objective look at the numbers shows Pentagon spending on the average military family's health care is in line with what corporate employers spend (Table 1).
And those who complain about the health cost share of the Defense budget need to take a peek at the rest of the American economy (Table 2).
Military retirement benefits - including health coverage - are the primary career retention incentive for military service and the primary offset to the extraordinarily arduous demands and sacrifices inherent in serving 20 to 30 years in uniform. Retired military families pay about $1200 a year less in cash than the average corporate employee - but they pre-paid far more than that modest differential in the form of huge, "up-front" premiums in service and sacrifice to earn their military coverage.
The Defense Department and the country are getting a bargain -- reaping huge returns on their investment -- in military health care.
Table 1: Military vs. Corporate Health Costs (2005 data per family)
| |
Avg. Employer Share |
Avg. Employee Share |
| TRICARE Prime* |
$9,819 |
$1,021 |
| TRICARE Standard* |
$7,938 |
$1,533 |
| |
|
|
| Corporate America** |
$8,143 |
$2,585 |
*Source: Department of Defense (retiree cost share)
**Source: US Dept. of Health and Human Services, Agency for Healthcare Research and Quality July 2007 Medical Expenditure Panel Survey
Table 2: Military vs. US Health Care Spending (2006)
| Health Spending % of DoD Budget* |
8% |
| Health Spending % of National Economy (GDP)** |
16% |
*Source: Dept. of Defense
**Source: US Dept. of Commerce