Obama Nixes Plan to Charge Veterans For Service-Related Health Care
TPMDC first reported last week on the Obama administration's plans to consider charging veterans' private health insurance for injuries suffered during their service. The proposed move ignited a firestorm on the right in recent days, with the Drudge Report picking up on a critical press release from the American Legion and sparking a letter of protest to the administration this morning from 61 House members.
The scandal abruptly cooled this afternoon, however, when House Speaker Nancy Pelosi (D-CA) told a gathering of veterans' groups that the White House had agreed to kill the idea of charging third parties for service-related veterans' health care. Pelosi said:
I'm pleased to announce that we have some good news. Over the past several days, President Obama has listened to the genuine concerns expressed by veterans' leaders and veterans' service organizations regarding the option of billing service connected to veterans' insurance companies.Based on the respect that President Obama has for our nation's veterans and the principled concerns expressed by veterans' leaders, the President has made the decision that the combat-wounded veterans should not be billed through their insurance policies for combat-related injuries.
And here's the official word from White House spokesman Robert Gibbs:
The President has consistently stated that he is committed to working with veterans on the details of the 2010 VA Budget Proposal. The President demonstrated his deep commitment to veterans by proposing the largest increase in the VA budget in 30 years and calling VSO and MSO leaders into the White House for an unprecedented meeting to discuss various aspects of the budget proposal. In considering the third party billing issue, the administration was seeking to maximize the resources available for veterans; however, the President listened to concerns raised by the VSOs that this might, under certain circumstances, affect veterans and their families' ability to access health care. Therefore, the President has instructed that its consideration be dropped. The President wants to continue a constructive partnership with the VSOs and MSOs and is grateful to those VSOs and MSOs who have worked in good faith with him on the budget proposal.


















Hate to nit pic, but isn't the word "scandal" a bit strong to describe what was going on? I would suggest controversy might be more appropriate. All they were thinking of doing was trying to get back some of the ill gotten wealth out of criminal insurance enterprises. How is that a scandal?
March 18, 2009 5:46 PM | Reply | Permalink
I don't know if I'd call it scandal. But it would be putting battle injuries into the same rating pool as civilian health. The way insurance is rated today, that means that any civilians in the same pool would see their premiums skyrocket - because that's how it works.
Additionally, it's difficult to fathom that these wouldn't be considered preexisting conditions. The result would be that vets having insurance wouldn't be able to switch policies - and those without would never qualify to get it.
Until the health care system is systemically overhauled, it is an insult to subject our veterans to the same crap we civilians have to deal with in order to get their battle injuries treated. Almost scandalous.
March 18, 2009 6:00 PM | Reply | Permalink
Oh, I don't think the plan was ever to require the vets to do anything. The government would fill out and submit the claims, like doctors used to do before they got tired of dealing with the insurance carrier bs.
You do make a good point on the premium issue. That's why we need medicare for all and get rid of the criminal enterprises known as insurance companies.
March 18, 2009 6:10 PM | Reply | Permalink
Correct. And many policies also have a lifetime maximum which could be exhausted by something like treating traumatic brain injuries. If they got sick with something else later on, their insurance might be depleted.
Glad this was dropped. It was such a turkey I can't believe it was ever considered.
March 18, 2009 8:07 PM | Reply | Permalink
This might not have ever been something they intended to do at all. I wouldn't be surprised if this was floated to help bolster the administration's case for public health care.
Thoughts anyone?
March 18, 2009 5:52 PM | Reply | Permalink
Interesting theory. Obama always seems to be three jumps ahead of everyone, so you may be right. The guy never ceases to amaze me. It does seem like they may be stearing toward medicare for all in baby steps. This might have been one of those steps.
March 18, 2009 6:11 PM | Reply | Permalink
It never ceases to amaze me that when Obama blunders, his worshippers say it's because he's so smart he's ahead of everyone else.
He's not the fricking messiah. He's a good president and a good politician but he's still human and sometimes he's going to screw up like anyone else. Floating this idea was a mistake. Accept it and we can all move on.
March 19, 2009 1:54 PM | Reply | Permalink
holyhandgrenaid: interesting theory, though it treads into the whole set of 'secret, uber-progressive Obama ninja' theories.
I mean, it was such horrible, sub-Bush idea that I can't believe they entertained it for a moment.
But on your theory, it certainly does cast the debate into pretty stark terms: the GOP would be forced to confront the predatory awfulness of private insurance and the high-quality care that our 'single-payer' VA system currently offers.
Hell, it might even get people asking, "wait, so we DO have commie-healthcare already? And it works? And our commie-killing soldiers use it?"
March 18, 2009 6:13 PM | Reply | Permalink
Politically and feasibly it is a nonstarter. Time to find another way.
March 18, 2009 6:46 PM | Reply | Permalink
The important thing here is that we have a President who listens. He met with various vets organizations and they let him know it was not going to fly with them. He's not a stupid man as we all know - exactly the opposite - and he is reasonable.
To me it shows us what a good President we really have here. He's the real deal.
I love him and I applaud him
March 18, 2009 7:01 PM | Reply | Permalink
As a disabled vet, I can say this was never going to fly, cause most of us can't afford the premiums the private insurers would charge if they carried the bills for our service related disability.
March 18, 2009 7:07 PM | Reply | Permalink
If we had to, we would have just lost our insurance, and the VA would be in the same place they are right now.
March 18, 2009 7:08 PM | Reply | Permalink
I'm curious. What you think about the idea of the Government promising FULL FREE HEALTH CARE to a soldier if they join up; then that FREE health care is removed after you get discharged simply because you were lucky enough NOT to get hurt or killed?
This idea of forcing private insurance to pay part of the VET's bill is in place NOW for non-combat related issues.
I understand how you might think, well, you didn't get hurt so why should "I" pay for your health care; however, OUR Government promised (verbal contract) to provide free medical care for life to vets from the Vietnam era on back --- yet now these vets have to pay for their own with their own ins policies.....simply because they LUCKILY SURVIVED injury during their service to this nation.
Is THAT fair? Where is the UPROAR about THAT?
March 18, 2009 8:36 PM | Reply | Permalink
I am glad thisn is being quahed right upfront. There are starting to be a lot of LTEs down here calling Obama a traitor to our vets because of this. They assume, incorrectly, that this has been adopted as a policy already.
March 19, 2009 8:29 AM | Reply | Permalink
That's the problem when crazy ideas like this get floated. Most people don't pay as much attention to details as TPM readers do. People hear something like this in passing and they don't realize it's only being considered and they probably don't hear when the plan gets dropped. So it registers as a mark against Obama in their minds. Veterans and current service members and their families are pissed off; non-vets who foresee their own insurance premiums going up because of it are pissed off. Pissed off people either stop listening or turn to loud mouths like Limbaugh.
March 19, 2009 2:01 PM | Reply | Permalink
Watch for an increase in the number of vets turned down by the VA for attempting to change their disability status from "non-service connected" to "service-connected". This still stinks.
March 19, 2009 2:54 PM | Reply | Permalink
If Obama wants to save us all some money then why doesn't he..
#1 Demand that all of of senators & congressmen/women take a large cut in pay(they get paid to much in my opinion)
#2 Reduce their retirement pay(WAY TOO MUCH also) heck lots of folks lost thier retirement money due to their companies closing & the banks failing & NOTHING was done for those folks. A friend of the family lost over $500,000 because of that.
#3 Stop the double & triple dipping into their retirement payment. They get one check for one set amount not several check because they retired & then was given a new job elsewhere in the goverment.
#4 Take away all their FREE vehicles along w/their credit cards that we pay for. Heck we have to pay for our own fuel & vehicles to go to & from work so why can't they since they make a heck of a lot more then us.
#5 Make them pay for their own insurance like 99% of us regular folks have to. My wife & I paid out over $15,000 in medical bill last year && we could NOT deduct from our taxes. I would bet the senators & congressmen/women get theirs paid at 100%.
#6 Stop all of the damn PORK there is in our national budget.
I could go on but why.......
May 15, 2009 12:17 AM | Reply | Permalink