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The cost per service member has nearly tripled since 1980, according to a recent report.
A recent Congressional Budget Office (CBO) report shows that the average cost to maintain an active duty soldier is now $158,000 a year, a 50 percent jump since 2001. Military personnel costs per service member are expected to continue to increase by approximately $4,700 a year for the foreseeable future.
The Department of Defense has been scrambling to cut costs, but the report predicts that it’s not going to be enough. In fact, per-person costs are expected to rise as the drawdown continues.
The CBO is predicting $170,000 per person by 2017, up to $215,000 by 2030.
Pay has been the majority of the problem, according to the report. Military pay raises are tied to the Bureau of Labor Statistics’ employment cost index (ECI), a measurement of the cost of goods and services. The last few years, lawmakers have been granting raises above the ECI in an effort to reduce the pay gap between civilian and military jobs.
Pentagon officials have submitted a plan to reduce military pay raises starting in 2015, but the CBO report predicts that Congress will ignore this and continue to give raises at least equal to the ECI. The cost of military pay and benefits is expected to rise from $201 billion in 2013 to $211 billion by 2017, up to $258 billion by 2030.
The other part of the problem is the cost of health care. An estimated 10 million people qualify for subsidized care through either military treatment facilities or civilian providers under contract with TRICARE. The DOD has budgeted $47 billion for health care in 2013, but the CBO report is projecting a cost of $51 billion. Health care costs are expected to continue to climb from $65 billion by 2017 to $95 billion by 2030.
The DoD intended to increase TRICARE fees to help pay for the rising cost of care, but as of last month, four different subcommittees have rejected the plan. Given the circumstances and with sequestration still looming, the current military budget restrictions look unrealistic and are unlikely to be met.
Photo courtesy of The U.S. Army.
One Comment
Sir
My name is Corporal Daniel Vermette. I am a United States Marine from 2nd Intelligence Battalion. On October 31, 2012 I was the victim of an armed robbery. Later I was questioned as being involved but have since been proven innocent. Shortly after the incident I had a breakdown possibly from PTSD and drove for 2 days unaware of my actions and ended up in Mexico. I was stranded and lost for 13 days. During this time I was in contact with the FBI, my family, and my command. I witnessed crime that directly effects the United States and how the US Border Patrol is involved. I was kidnapped and nearly killed by the Mexican drug cartel. I have information about families being held hostage and forced to transport drugs and information of a murder. No one has yet to hear my story. Lance Corporal David Reynolds went trough this with me. Upon our return after escaping our kidnappers we ended up in Donna Texas. We were brought back to North Carolina and I was held in the brig for 30 days charged with a crime I did not commit. I have an agreement to be separated in lieu of court martial which I am ok with. But my story needs to be heard and these families need to be helped and border patrol needs to be held accountable. I don’t know if you can help me but I want to talk. Thank you in advance.