[Congressional Record Volume 143, Number 46 (Thursday, April 17, 1997)]
[Extensions of Remarks]
[Page E697]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      INTRODUCTION OF H.R. 1362--VETERANS MEDICARE REIMBURSEMENT 
                       DEMONSTRATION ACT OF 1997

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                            HON. LANE EVANS

                              of illinois

                    in the house of representatives

                        Thursday, April 17, 1997

  Mr. EVANS. Mr. Speaker, today I have joined with Congressman Stump, 
many of the Republican and all of the Democratic members of the 
Veterans' Affairs Committee to introduce the Veterans Medicare 
Reimbursement Demonstration Act of 1997. This strong show of support by 
so many members of the committee clearly indicates the high priority my 
colleagues and I give this legislation.
  For some time our committee has been exploring the intra-government 
transfer, or subvention, from Medicare to VA. This year the committee 
began the process at the urging of veterans and the Veterans Health 
Administration. Veterans wanted to gain access to the veterans health 
care system. VA felt it was in their best interest to explore 
nonappropriated funding as a growing part of their resource base.
  VA has submitted a budget during this session of Congress that 
identified VA collecting and keeping funding from the Medicare trust 
funds for treatment of certain Medicare-eligible veterans. This is a 
critical part of the strategy VA has outlined for its future. The 
Independent Budget, an assessment of veterans programs' resource needs 
written by four of the major veterans' service organizations and 
sponsored by many more, also endorses the concept of using Medicare 
funds in VA.
  I am convinced the Veterans Medicare Reimbursement Demonstration Act 
of 1997 we are introducing today offers the best and the most risk-free 
way of exploring the viability of this funding option for both VA and 
for Medicare. This bill does not propose VHA develop a new managed care 
system tailored to treating a new population of veterans. Instead, it 
provides VA the opportunity to offer the services it has available to 
treat aging veterans who might not otherwise receive this care. This 
will allow VA to limit its care responsibility for new veterans to the 
services and capabilities that it has available right now.
  In addition, the demonstration project authorized by this legislation 
is time- and site-limited. There are additional safeguards in place to 
ensure that the Medicare trust fund will not spend any additional 
funding for veterans who choose VA as a health care provider.
  The veterans that this bill will affect are lower and middle-income 
veterans--some of whom have lost access to VA health care services as 
constrained resources have compelled VA to stop treating so-called 
discretionary veterans. VA will receive no funding from Medicare for 
veterans who are receiving care in VA medical centers today.
  We believe that our bill creates opportunities for everyone involved 
to benefit. The Medicare trust funds have a chance to save money 
because VA will discount Medicare's rates for providing care to the new 
Medicare-eligible veterans it will treat. Specifically, Medicare would 
receive a mandatory 5-percent discount on its reimbursement for 
services provided to eligible veterans in VA. For this reason, it is 
our strong view that this bill will produce savings for the Medicare 
trust funds.
  VA will benefit by opening its doors to care for new veterans. Most 
importantly, veterans will benefit by having a new choice of health 
care provider.
  I hope that my colleagues will view this bill, not just as a bill 
good for veterans, but as an opportunity to help preserve Medicare for 
older Americans as well.

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