Could Veterans Be Forced To Pay For Service-Related Care?

Earlier this week, reports in the Atlanta Journal Constitution and CNN, described an Administration proposal to force veterans to pay for service-related injury care using third-party funding (health insurance, etc.), instead of the VA system.

Wha????

Apparently, the Obama Administration believes that it can save $540 billion by cutting costs at the Veterans Administration, and passing those costs on to third-party care providers.

As ridiculous as this plan sounds (even Jon Stewart made fun of the plan on his show Tuesday night), apparently the executive intends to go forward with exploring the possibility of implementing it, according to Gen. Erik Shinseki, Secretary of the VA.

Here are some problems I see right off the bat:

1. This idea is outrageous. As many veterans organizations have put it, such a plan would violate the "sacred trust" between government and soldier, which assures veterans (as well current active duty personnel and prospective recruits) that any injury they incur while serving will be cared for at 100% government expense.

2. This plan is unworkable. So far, the insurance industry's trade association has released a statement saying only that they take no position on the matter; you better believe that if the idea ever makes it past the embryonic stages, industry lobbyists will work overtime in the halls of Congress to quash it there.

3. Having third-parties pay for service care is likely against the rules of 99.9% of insurance policies. An insurance company could simply treat any injury that produces a claim as "work-related", which would make it a workers' comp issue.

4. The plan is "dead on arrival". This, according to Sen. Patty Murray, D-WA. Of course, anyone in Congress who ever puts the stamp of approval on any such plan, can kiss his or her seat good-bye, as outraged voters would quickly remove such a person from office.

What's REALLY Going On?

Does President Obama really want to hurt military families by forcing them to find a way to pay for care of combat and other service-related injuries?

Of course not!

This fake "proposal", is a ruse, a ploy to get Congressional leaders on board for an 11% increase in VA funding, which the Administration is seeking. While the Bush Administration constantly sought to cut the budget of VA hospitals and rehab centers (ironic, considering that the same Administration created quite a few injured and disabled veterans), President Obama has vowed to dramatically increase the level of care at these institutions.

But President Obama needs Congressional approval for budget increases in the Veteran Administration, and this red-herring plan is a way of showing representatives and senators how dire the situation is, and that they need to act to avert further cuts in care, and possible funding shortfalls.

It's somewhat surprising to see veterans' organizations getting all up-in-arms about the matter, but one could suppose that they must recognize at least the possibility that the plan is a real one, and react accordingly to defend their constituency.

More instructive is the reaction of the insurance industry. If they really believed that they might be on the hook for over half a billion dollars in future annual care expenses, they would be working overtime to stop the plan in its tracks. But they are not, thus telling everyone that they do not deem it to be a realistic proposal.

As with every other question in Washington, follow the money.


Bonus: watch Jon Stewart make fun of this "idea":

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