From: Nigel.Allen@bbs.oit.unc.edu (Nigel Allen)
Subject: Hill Veterans Argue for Medicare Reimbursements to VA
Organization: Echo Beach
Date: Thu, 13 Aug 1992 09:55:53 GMT

Here is a press release from Jim Holley of the House Veterans Affairs
Committee.
 
 Hill Veterans Argue for Medicare Reimbursements to VA 
 To: National Desk, Health Care Writers 
 Contact: Jim Holley of House Veterans Affairs Committee, 
          202-225-3527 
 
   WASHINGTON, Aug. 11 /U.S. Newswire/ -- Rep. Sonny Montgomery 
(D-Miss.) believes that more veterans and military retirees can be 
treated in the nation's veterans' hospitals at less cost to the 
government, and he and other senior lawmakers have a plan to pull it 
off.  But it is not going unopposed. 
   Speaking before a House health care panel today, Montgomery said 
that he had been contacted by military personnel and veterans who 
expressed "grave concern" about the closing of military hospitals, 
which will leave many military retirees without access to medical 
care.  He and other prominent veterans' advocates in the House argue 
that military retirees ought to have expanded alternatives to health 
care. 
   Rep. John Paul Hammerschmidt (R-Ark.) joined with Montgomery in 
pressing the Ways and Means Subcommittee on Health for swift action 
on a measure which would enable the Department of Veterans Affairs 
(VA) to take care of Medicare-eligible military retirees as well as 
many Medicare-eligible veterans who are being turned away from VA 
facilities due to dwindling health care resources.  "We want to give 
them another shot at getting in the VA door," said Hammerschmidt. 
   "Though military retirees are eligible for health care through 
three federal programs -- the Department of Defense (DOD), VA and 
Medicare -- two of their options have been effectively cut off due to 
closures and underfunding," said Hammerschmidt.  "We're simply trying 
to return one of their alternatives -- VA.  Considering that these 
individuals have dedicated a significant portion of their lives to 
the nation's freedom and security, I'd say this effort in their 
behalf is more than appropriate," he added. 
   The House Veterans' Affairs Committee, chaired by Montgomery, has 
already approved the initiative, which would establish a three-year 
test at up to seven VA hospitals.  At these sites, to be chosen upon 
consultation with veterans' service organizations, Medicare would 
reimburse VA for the care of certain military retirees as well as 
veterans who are just above the income cutoff for VA eligibility at a 
cost to be agreed upon by the Department of Health and Human Services 
(HHS) and VA. 
   Montgomery has consistently noted that VA is "forced to subsidize 
Medicare at the expense of thousands of ailing veterans with incomes 
not far above the poverty level.  Thirty-two percent of the hospital 
patients VA is treating this very day are eligible for Medicare, yet 
VA does not get a nickel for taking care of them," he said. 
   Rep. J.J. Pickle (D-Texas), a cosponsor of the bill and a member 
of the Ways and Means Committee, noted that "the cost of care 
provided by the VA would be reimbursed by Medicare at a reduced rate. 
Because many of the veterans who will no longer be served by military 
medical facilities due to base closures would utilize Medicare 
anyway, serving them at a reduced rate should save Medicare money in 
the long run," Pickle added.  "It is also important to note that 
while these veterans have been receiving care at DOD medical 
facilities, they have been paying Medicare taxes over the years." 
   Advocates of the legislation challenged the statement of the 
American Association of Retired Persons (AARP), which also testified 
at the hearing, in which AARP claimed the proposed changes "merely 
create the illusion of improving the health care system by shifting 
costs from one program to another." 
   "That position simply has no validity," said Montgomery.  "An 
illusion would be the pretense of doing something while sticking with 
the status quo, content to let the nation's health care system 
deteriorate in our fear of innovation and experimentation.  You 
simply cannot advocate improved health care without advocating 
change.  I find it puzzling, even a bit hypocritical, that this 
reputable organization would object to a pilot program which would 
give more of our older citizens access to health care at a lower cost 
to the individual veteran and the taxpayer," he said. 
   Montgomery claimed there is "no question" that VA can treat the 
targeted individuals at a "much more reasonable rate" than Medicare 
is paying private sector health care providers.  He pointed out that 
VA is a not-for-profit system in which physicians and other health 
care professionals are salaried.  He also noted that the majority of 
VA hospitals are affiliated with universities and that VA has a 
massive volunteer network, "all of which denotes a system in which 
the dollar is not the objective." 
   Montgomery warns that, unless the VA health care system, the 
nation's largest, looks beyond its primary patient population, "it 
cannot survive and, if that happens, we all will be adversely 
affected, veteran and non-veteran alike."  He told members of the 
Ways and Means Subcommittee that, as the nation's largest health care 
provider, VA "cannot be ignored" and must have a prominent role in 
national health care reform. 
   The bill, H.R. 5263, which is supported by most of the national 
veterans' service organizations, must be approved by the Ways and 
Means Committee before it can be considered by the House.  Montgomery 
urged veterans to express their support of the measure to the 
committee in an effort to expedite its passage. 
 -0- 

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