Military Benefits Offer Great Savings... If You Take Advantage
By Julie Dawson
Winter 2004-05
Go ahead, admit it! At one time or another, each of us probably has grumbled as we stood in line at the commissary on a payday or waited at the pharmacy window of the base hospital.
Sometimes it is easy to take for granted some of the benefits that come along with the rigors of military service. But ask your civilian friends and family how much they pay for groceries, vacations, medical care and life insurance. The differences may prove shocking.
Though it may be better to avoid the commissary just before big holidays and on paydays, you can save a bundle on your food budget by shopping there. Since commissaries sell products at cost plus a five percent surcharge, the average savings is estimated at 30 percent compared with civilian grocery store prices. For a family of four, those yearly savings can easily total $2,500 or more.
When it's time for some fun, the military offers opportunities to enjoy travel at prices dramatically lower than typical civilian costs. Space Available travel on military aircraft is offered to active duty and retired military members and their immediate family. Flying Space-A requires patience, flexibility and a backup plan (for lodging in case of delays and for finances in case the flight has to be completed on a commercial airline). Certain flights may cost a few dollars in airport tax, but otherwise there is no charge to fly. For more specific details on Space-A travel, contact your base's travel office.
Once a Space-A flight gets you to your destination, the military network of lodging options can save you even more. For a bargain getaway, choose from temporary lodging facilities, condos, cottages, campgrounds, RV parks, golf courses, marinas and other recreation areas operated by the military. Whether stateside or overseas, these facilities usually offer world-class amenities for a fraction of what civilians would pay – and without sales tax.
For comparison, a room at the Hale Koa hotel in Hawaii, a resort for the exclusive use of retired and current members of the U.S. armed forces, Reserves, National Guard and civilian DoD employees, will cost at least 50 percent less than a room at hotels with comparable amenities just down the road. And guests at the Hale Koa won't pay the 11.4 percent Hawaii sales tax on rooms – easily $20 a day at a civilian hotel.
Although military healthcare facilities spark all sorts of grumbling and gossip, the fact is that the military healthcare system provides high quality care for millions of active duty service members, retirees and their families each year. The National Coalition on Health Care cites statistics that the average civilian family pays more than $9,000 annually for health insurance. Even when health coverage is obtained through a civilian employer, the premiums cost workers an average of $200 a month.
For seniors and anyone with a chronic condition, the military's pharmacy benefit alone can save thousands of dollars a year. Depending on where care is received and how much the pharmacy benefit is used, active duty and retirees pay only a fraction of their civilian counterparts. Tricare for Life enables military beneficiaries eligible for Medicare to retain Tricare as second payer to Medicare. The combination of Medicare and Tricare for Life virtually eliminates any costs for services covered by Medicare.
Those savings, combined with low co-pays at non-military providers and a $3,000 annual catastrophic cap (which limits the total amount a person will pay out of pocket on covered services), make military healthcare benefits an outstanding value.
The Servicemembers' Group Life Insurance (SGLI) plan also offers hard-to-beat rates to military and other related groups. Consider what your family would need to survive financially if you were gone, then decide whether paying a few dollars a month is worth up to $250,000 in life insurance - it's a no-brainer. Family members may be included for separate coverage at very reasonable rates, and these policies can be converted to other plans when a person leaves the military.
For active duty families who pay more for services outside the military system, discover how much you can save by using the military benefits that are rightfully yours. And for the service member who must decide whether to continue a military career or begin a new stage of life, do not let the prospect of a slightly higher-paying civilian job distract you from the long-term benefits of a military retirement.
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Julie Dawson is an editor for WordCrafters and teaches the Navy-Marine Corps Relief Society's "Budget for Baby" program at the Mountain Warfare Training Center, Bridgeport, CA.
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Military Benefits Resource List
Groceries:
Commissary Shopping Privileges for the Guard and Reserve
Vacations:
Hale Koa Hotel, Honolulu, Hawaii - Resort for the Military (1-800-367-6027)
Medical Care:
Life Insurance:
Servicemembers' Group Life Insurance (SGLI)
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