We want to thank the committee for its long standing interest in military retirees and their health care. We also want to thank you for the opportunity to discuss the demonstration project for the Federal Employees Health Benefits Program for military retirees. General Medical care, including an adequate prescription drug program is a top concern of the military community. They were recruited and retained based on promises of a lifetime medical benefit which they have seen eroding year by year. Dissatisfaction with the failure of the US government to keep the medical care promise is having a serious impact on recruiting and retaining the current force.
Retirees are a major part of the recruiting effort.
Without their active support, recruiting suffers. In fact, the situation will clearly get worse as additional hospitals are converted to clinics and medical personnel downsizing continues. Furthermore, each year the Secretary of Defense proposes additional rounds of base closures. Sooner or later, more closures will occur. This means hospitals will close and additional thousands of retirees will lose their health care benefit.