VA Might Cut Enrollment in Health Programs if Administration’s $1,500 Deductible Not Approved, Principi Tells Senate

Secretary of Veterans Affairs Anthony Principi on March 6 told lawmakers that he might be "forced" to limit enrollment in VA-sponsored health care programs if Congress fails to approve a proposal requiring some veterans to pay a $1,500 deductible, the AP/Philadelphia Inquirer reports. The deductible, included in President Bush's fiscal year 2003 budget proposal, would require "priority 7" veterans -- those who have no service-related disabilities and have annual incomes of more than $24,500 for an individual and $28,800 for a couple -- or their insurers to pay 45% of their medical bills until they reach a $1,500 annual limit. Principi, speaking to the Senate Appropriations Veterans Affairs subcommittee, said the plan was necessary because his agency's finances were "getting to crisis proportions." According to Principi, the VA expects a $400 million shortfall in revenues for fiscal year 2002, which began Oct. 1. Principi said that refusal by Congress to approve the plan would create a $1.1 billion "hole" in the VA budget. Principi said he would probably choose to reduce enrollments over "reduc[ing] the quality of services." The AP/Inquirer reports that Principi also plans to ask for $142 million as part of an "emergency spending package," which could allow the VA to "get through 2002" without cutting enrollments. According to the AP/Inquirer, members of the Senate subcommittee were "united in criticizing the idea of a deductible." Sen. Barbara Mikulski (D-Md.) said, "I am very concerned that a $1,500 deductible will leave some veterans without any health care at all." Some veterans service organizations have joined the senators in their opposition. According to Richard Weidman of the Vietnam Veterans of America, the plan "can most charitably be described as a form of Darwinian class warfare, an attempt to force out of the VA system some of the most economically and socially disadvantaged members of the veteran community" (Abrams, AP/Philadelphia Inquirer, 3/7).