DoD Health Benefits Forecast. Transition Topic
DEFENSE BUSINESS BOARD WASHINGTON DC
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ISSUE Defense healthcare costs are eating up the Defense budget and represent an existential threat to the Department Only the Secretary can lead the Department and its uniformed leadership Service Chiefs and Chairman Joint Chiefs of Staff to a solution. IMPORTANCE Defense Health is a 93 billion program plus an additional 488 billion in unfunded liability FY 2007 Congressional mandates for increased healthcare benefits are likely to continue, which will force DoD to make tough funding trade-off decisions Overall Defense healthcare spending has grown 25.1B billion from FY 2000 to FY 2008 a 144 increase Defense healthcare spending has grown faster than DoD discretionary spending since FY 2000 Defense healthcare programs are facing an imminent head-on financial train wreck with other critical Defense acquisition and operational programs.
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