House VA Panel Addresses
Medicare Subvention
July 19, 2002 - The House Veterans Affairs Committee
July 16 held a hearing
on legislation (H.R.
4939) that would authorize the transfer of Medicare Part
B premium payments to the Department of Veterans Affairs for
Medicare-eligible veterans who seek outpatient care at a VA
health care facility. Under the proposed legislation, sponsored
by Chairman Nick Smith (R-N.J.) and Ranking Member Lane Evans
(D-Ill.), the federally-paid portion of the Part B coverage,
as well as all Part A payments, would be retained by the Medicare
program. Both VA Under Secretary for Health Robert Roswell,
M.D., and Centers for Medicare and Medicaid Services (CMS)
Center for Medicare Services Director Tom Grissom opposed
implementation of the proposal in their written statements.
In his testimony, Dr. Roswell supported the concept of coordinating
federal health care benefits, but stopped short of supporting
the approach taken in H.R. 4939. He stated that the Administration
is concerned that "this transfer of funds would significantly
increase mandatory spending with no identified offset."
Additionally, Dr. Roswell noted that "the bill would
require transfers of funds to VA on behalf of veterans who
receive care for a service-connected disability," thereby
changing the "the historic practice of having VA shoulder
the responsibility for providing and funding such care."
Mr. Grissom's opposition to the proposal focused on the potential
for such a program to "undermine the long-term financial
security of the [Medicare] Trust Funds." Several veterans'
service organizations testified in favor of the concept of
subvention, but preferred an approach based on reimbursement
for services rendered for veterans' non-service related conditions.
Jonathan Fishburn, Director, Research, Education and Veterans' Legislative Affairs
AAMC Office of Governmental Relations
jfishburn@aamc.org
(202) 828-0525
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