The Pentagon has also begun a reimbursement program for soldiers who buy necessary combat equipment for themselves.
There will be no reimbursement program, he said.
And the company operates in states that have better reimbursement programs than others.
The two parts cover employee medical reimbursement programs and various benefit programs that affect only a limited number of employees.
The Government operated a good cost-effective reimbursement program from 1965 through mid-1981.
Pentagon officials contended that the reimbursement program would be a strain on its budget.
The agency had set up the box to handle applications for a major reimbursement program.
"Many people would qualify for the reimbursement program, but because of funding, the state cannot service any more people."
Officials said they were worried about future financing of the reimbursement program.
"I think this is a first step and the state is going to get rid of the reimbursement program all together."