Acknowledging Defense Secretary Robert Gates’ recent remark that healthcare costs are “eating the Defense Department alive,” Air Force Chief of Staff Gen. Norton Schwartz said Tuesday it’s probable that servicemembers will have to contribute more toward their own healthcare expenses. “If we’re not careful . . . these unbounded costs can force out military content elsewhere in the Department of Defense portfolio,” said Schwartz in response to a question after his speech at the National Press Club in Washington, D.C. He continued, “That is something we will have to address. We’ll do it compassionately [and] rationally, but it needs to be addressed.” Gates made the “eating alive” comment in a May 8 speech at the Eisenhower Presidential Library in Abilene, Kan., that introduced the Pentagon’s efficiency initiative. Gates noted that healthcare costs have shot up from $19 billion a decade ago to roughly $50 billion annually today.
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.