WASHINGTON – U.S. Rep. Benjamin L. Cardin today released a congressional report analyzing the possible impact of President Bush's FY 2007 budget proposals on veterans. According to the report, the Administration’s budget under-funds the Department of Veterans Administration’s health care programs by more than $1 billion, which would result in increased copays and drug costs and denial of care for hundreds of thousands of veterans.

The report -- The Impact of President Bush's Budget on Veterans Health Care in Maryland and the 3rd Congressional District – was prepared by the Committee on Government Reform minority staff.  The report found that proposed changes in the VA health care system could cause 25,000 Maryland veterans to be denied VA health care or to drop out of the VA system, while increasing costs for thousands. Specifically, the report found that:

• 18,000 Maryland veterans would be unable to pay the increased costs for VA health care proposed in the budget;

• Many Maryland veterans who remain in the VA health care system will face average annual cost increases of $510, with a total additional cost to Maryland veterans of close to $9.6 million annually; and,

• Budget cuts would result in the denial of care to approximately 6,500 veterans at VA facilities in Maryland.

In releasing the report, Rep. Cardin said: “It wrong for the Administration to try and deal with the federal budget deficit by cutting or limiting health care for our veterans.  This report shows that the Administration has failed to develop a long-term solution to the health care funding crisis that continues to plague the VA.  We need keep our promise to provide our veterans with the care they deserve.”
 
In 1996, Congress passed the Veterans Health Care Eligibility Reform Act, expanding VA eligibility.  Since 1996, enrollment in the VA health care system has increased from 2.9 million to approximately 7.5 million in 2003.  However, funding for the VA has not kept pace.

Instead, the Administration has sought to pass on more health care costs to veterans through co-payments and new fees. The FY 2007 budget calls for raising approximately $3 billion from veterans by denying care or increasing costs for Priority 7 and Priority 8 veterans.  Priority 7 and 8 veterans would be assessed an annual enrollment fee of $250 and prescription drug co-payments would increase from $7 to $15. In 2003, the Bush Administration ordered the VA to stop enrolling any new Priority 8 veterans in the health care system, adversely affecting some 6,500 Maryland veterans.  

Priority 7 veterans are veterans whose injuries are not service-related and whose income is more than $24,644 ($29,576 with a dependent) but less than 80% of the community’s median income.  Priority 8 veterans are veterans whose injuries are not service related and whose incomes are higher than Priority 7 veterans.

The Congressman is an original co-sponsor of Honor Our Commitment to Veterans Act, HR 3312, which would terminate the freeze on enrollment for Priority 8 veterans. “We didn’t ask to see the tax returns of those who enlisted in the military, and we should not ask to see the tax returns of those applying for veterans’ benefits,” he said.

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NOTE:  PDF of the report is attached.