By U.S. Rep. Mike Michaud(D-Maine)
Given the state of our economy and record budget deficits, I understand the need to look for savings and to strictly analyze our budgets. I appreciate steps President Barack Obama took to accomplish this in his recent budget recommendations. However, there was one proposal I simply couldn’t agree with: charging a combat wounded veteran’s insurance for service connected medical care. We cannot back away from the U.S. government’s solemn pledge to provide health care to veterans for their military service rendered on behalf of a grateful nation. The implementation of a third party collection policy would be a violation of our nation’s legal and moral obligation to its veterans, servicemembers and their families.
I told VA Secretary Eric Shinseki that I opposed the proposal to charge third party insurance companies for service-connected medical treatment at a hearing on March 10th. I also sent a letter to the VA expressing my concern that the implementation of such a policy has extensive consequences for veterans. In that letter I raised a number concerns, including that a third party collections plan would discourage companies from hiring disabled veterans, especially those who are severely disabled, if an employer-provided insurance policy is charged for the care and treatment of service-related conditions. Businesses will be reluctant to hire disabled veterans if there is an increased cost associated with their employment.
The proposed policy would also increase the likelihood of insurance companies enacting or enforcing provisions which refuse coverage to veterans with pre-existing conditions, specifically conditions caused by combat. The impact of a third party reimbursement policy would also likely result in increased insurance premiums for veterans. In order to absorb the increased cost of providing care, private insurance companies will raise rates across the board, for both veterans and standard policyholders.
The majority of veterans’ service organizations joined me to express their shared outrage for any proposed change that would release the government’s responsibility to care for veterans facing disabilities as a result of honorable service. We believed that the VA must continue to fully adhere to its mission and fulfill its responsibilities to our most honored heroes.
The administration ended up hearing us loud and clear. After letters, conversations and calls, I am pleased to report that on March 18th the administration dropped its plan to bill veterans’ insurance for service connected medical care. This was a victory for all veterans and I appreciate President Obama’s willingness to listen to everyone on this issue, especially the groups who so admirably represent out nation’s veterans.
I look forward to working with the administration to increase access to quality care for all our veterans. I also believe that it is time to move forward on a more constructive plan for the VA, like supporting advanced appropriations so that the VA can plan ahead and avoid budget shortfalls.
Earlier this year, I helped introduce the Veterans Health Care Budget Reform and Transparency Act, which would secure timely funding for veterans’ health care through the “advance appropriations” process. It is needed because too often in recent years, VA has been funded after the beginning of the fiscal year. In one case, it was so underfunded that they required supplemental funding. As a result, maintenance of facilities, cost saving investments in technology, and ultimately care for veterans was delayed or put in jeopardy. This cannot be allowed to occur when we are dealing with the health care of our veterans. There must be a timely, sufficient, and predictable funding stream.
I am confident that we can work together to live up to our shared commitment to our nation’s veterans.
