Lindsey Graham

I think he asked a really good question about retention.

Well, if that is true, then our military members and their families and our retirees are going to have less choice because that is an unsustainable system.

I promise them that you are not going to pay more and get less, and to the Guard and Reserve. You are going to get a better deal.

If you have earned your retirement, if you have your retirement, you can keep your retirement.

They have to opt in. If they do nothing, they stay in the current system. Is that correct?

I'm not going to go to John McCain and say we are going to take your retirement away.

If I did the Strom thing, it's possible, but I better get started.

So no one is being required to give up the current system?

Well, do you agree with me that the reason there are fewer providers in the TRICARE network is that we are paying below Medicare reimbursement rates?

When it comes to percent of Active Duty servicemembers who prefer the current or proposed compensation system, if that chart is remotely right, 80 percent prefer the new proposed system when they are told how to compare the two?

Because you have a situation where you have to deal with retiree health care at the expense of readiness to fight the war of today and tomorrow, and that is a choice we don't want to make.

It seems to me that the jury is in, that the people on Active Duty like what you are proposing.

I don't want to lose ground on the major functions.

You just don't want to have too much so that it loses the whole advantage of being able to get more people to participate.

What do they think about the proposed changes? Because the health care changes are not grandfathered, is that correct?

But we are not going to play the demagoguery game, because change is afoot, and it is necessary.

To those who want to suggest alternatives, you are welcome. We will take any new good idea to make this better.

We have to fix sequestration, because Senator King has raised a great point. How do you retain people?

I think you are going to get more money at the end of the day.

I don't know of any system in the world that 5 percent is the number, so we are going to have to adjust that number.

Now, if those numbers hold, I will have to ask myself why would I stop a choice that 80 percent seem to want?

Every retiree, they are going to keep what they have, right?

If I were trying to run a healthcare company, the last people I'd pick would be the DOD.

We think there's considerable risk with this.

At the end of the day, your recommendations on health care are driven by the fact that we think we can provide better choice, more efficient for the patient, more efficient for DOD, and actually get more choice and better coverage.