$1,500 DEDUCTIBLE ON PRIORITY 7 VETERANS

We received the following Press Release from the House Committee on Veterans' Affairs on 3/11/02 about a controversial $1,500 deductible on priority 7 veterans, National DAV's Position on this and a press release dated 3/20/02 from Chairman of the House Committee on Veterans' Affairs Congressman Chris Smith pertaining to the $1,500 deductible on priority 7 veterans.

PRESS RELEASE: VA IMPROVES BENEFITS FOR FILIPINO VETERANS

Per the press release below from January, 2002, for those Filipinos who would have qualified continuously since the time of the law's enactment and during the period the implementing regulations were developed, benefits will be paid retroactively to Oct. 27, 2000. VA will notify eligible veterans and automatically increase their payments appropriately.

WASHINGTON - More than a thousand Filipinos who served alongside U.S. forces in World War II and who live in the United States today as citizens or permanent resident aliens will see their disability payments double under a new policy providing equality in veterans compensation. For these Filipinos meeting specific criteria, compensation for service-connected disabilities from the U.S. Department of Veterans Affairs (VA) previously was limited to half the rate of that paid to U.S. veterans. Under an interim final regulation published Dec. 27, their compensation doubles and in death, survivors of the service-connected Filipino veterans covered by the rule or certain lower-income veterans now will receive burial or plot allowances at the full rate rather than the half rate. "The new policy recognizes that Filipinos residing in the U.S. have a higher cost of living -- or cost of burial -- than those living in the Philippines," VA Secretary Anthony J. Principi said. "This recognizes the service and sacrifice of our Philippine comrades while providing this higher compensation while they are residing in the U.S."

Many Filipinos were ordered into World War II service when the Philippines was a U.S. commonwealth, but various limitations on their eligibility for U.S. benefits evolved from the two governments' determination of mutual responsibilities as the Philippines became a sovereign nation in 1946, enacting its own broad range of veterans benefits. The new regulation already is in effect but could be amended following a comment period that extends through February 25.

For those Filipinos who would have qualified continuously since the time of the law's enactment and during the period the implementing regulations were developed, benefits will be paid retroactively to Oct. 27, 2000. VA will notify eligible veterans and automatically increase their payments appropriately. The new regulation defines U.S. residence for these veterans as requiring an actual dwelling place and not just a post office box. The veteran must be present in the U.S. for at least the majority of each year and not outside the country for more than 60 consecutive days.

The new benefits are available only to those who acquire U.S. citizenship or who are lawfully admitted for permanent residence. VA will rely on Immigration and Naturalization Service verification of status as a permanent resident alien.

Filipino veterans affected by the new policies are those who served before July 1, 1946, in the organized military forces of the government of the Commonwealth of the Philippines while under the military order of President Roosevelt. That includes organized guerrilla forces under commanders designated by the U.S. military.

Payment of full-rate burial benefits is limited to the survivors of similarly eligible Filipino veterans who were residing in the U.S. at the time of death and either were a U.S. citizen or lawfully admitted for pemanent residence in the U.S. Burial allowances are available only to veterans who at the time of death had a service-connected disability or whose limited means met income and net worth requirements.

Information about these and other veterans benefits is available from the VA toll-free at 1-800-827-1000 or at the VA Web site at www.va.gov.

VETERANS COMMITTEE CALLS FOR $3.2 BILLION BOOST FOR VA HEALTH CARE: Recommends $1.8 Billion More Than Administration

The House Committee on Veterans' Affairs recommended on March 11th, 2001 increasing spending on veterans health care by $3.2 billion to $24.5 billion in next year's budget. In their Views and Estimates Report transmitted to the Budget Committee by Chairman Chris Smith (NJ-4) and Ranking Democratic Member Lane Evans (IL-17), the Veterans' Affairs Committee called for VA health care funding to be increased more than $1.8 billion above the Administration's budget request for fiscal year 2003.

"While the Administration has proposed a significant increase in health care funding for veterans, it is simply not enough to meet the need they themselves have identified," said Smith. "Their proposal to push away almost half a million veterans through a new $1,500 deductible was an unrealistic and unworkable attempt to plug a growing hole in their budget. Now, we have to fill that hole with real dollars," he said.

"The budget for veterans medical care proposed by the Administration for next year is simply inadequate. It fails far short of providing the amount of funding VA needs if veterans are to receive timely and quality care from VA," Evans said.

The Administration's budget proposal included a controversial $1,500 deductible to be levied upon Priority 7 veterans, those who have no service connected disability and whose incomes are above poverty levels. As a result of this proposal, the VA estimated 471,000 veterans would have health care services diminished or eliminated. Relying upon this assumption, the Administration reduced its request for health care spending by $1.1 billion for fiscal year 2003.

Smith and Evans said that the $1,500 deductible proposal, "has no chance of approval in this Congress."

"While the President's budget does contain a record increase in funding for veterans benefits and services, it is not adequate to meet the documented needs," wrote Smith and Evans. "If we are to fulfill our obligations to care for America's veterans and their families, we must be willing to provide the needed resources," they said.

"The VA now estimates that 700,000 more veterans will be turning to the VA for health care services next year; we should not be turning them away," said Smith. "We need to stop trying to provide care on the cheap. If we want world class health care for veterans, we need a world class budget," he said.

"If this Administration is truly committed to meeting the medical care needs of those who have served our nation in uniform, VA must provide veterans timely and quality care. When a veteran enrolls in VA health care and then must wait as long as a year to obtain a medical care appointment, VA is on the verge of deceptive practices and failing to provide veterans the medical care services they have earned and deserve," Evans said.

The Veterans' Affairs Committee recommended increasing health care and other discretionary spending more than $3.6 billion over FY 2002 appropriations, including almost $1 billion requested by the Administration to cover increased payroll costs and medical inflation. In addition, the major recommendations of the Committee for increases over and above the budget proposal from the Administration were:

Priority 7 veterans increased demand: $1.1 billion (replaces $1,500 deductible proposal) Unmet budget shortfall from FY 2002: $300 million (also needed in FY 2002 supplemental) Medical infrastructure: $194 million (hospital construction, rehabilitation) Statutory health care enhancements: $150 million (long term care, homeless vets) Emergency preparedness: $200 million (backup to DoD, bio-terrorism)

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