UPDATE 1-New military electronic records to be model for US

* Obama says existing system poses hardship for many vets

* Says new program would cut red tape, reduce mistakes

* Stimulus plan includes $19 billion for such technology

* Unclear whether private sector would help design system (Updates with comments from Obama)

By Jeff Mason

WASHINGTON, April 9 (Reuters) - President Barack Obama on Thursday said the government would create a national electronic medical records system for the military that will serve as a model for broad reform of U.S. healthcare administration.

The system, organized by the Department of Defense and the Department of Veterans Affairs, would follow military personnel from active duty through retirement, keeping records organized and complete.

Obama said the agencies were moving to create a system for military members "that will contain their administrative and medical information -- from the day they first enlist to the day that they are laid to rest."

"Currently, there is no comprehensive system in place that allows for a streamlined transition of health records between DOD and the VA," he said.