[Congressional Record Volume 144, Number 59 (Tuesday, May 12, 1998)]
[Senate]
[Page S4742]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       VETERANS' EQUALITY FOR TREATMENT AND SERVICES ACT OF 1998

 Mr. SPECTER. Mr. President, as Chairman of the Veterans' 
Affairs Committee, I have sought recognition to express my support for 
the Medicare subvention demonstration project legislation which has 
been introduced by Senator Jeffords. This important legislation was 
approved by the Senate last year as part of the Balanced Budget Act, 
but the measure was stricken from the final version of that legislation 
in conference. I hope that this year, the House will recede from its 
objections, and we can send this legislation, which is supported by the 
Administration, to the President for his signature.
  This bill would begin the process of opening a new--and vitally 
needed--source of funding for the provision of health care services by 
the Department of Veterans Affairs (VA). It would grant to VA, on a 
demonstration project basis, the authority to collect and retain funds 
from Medicare--just as VA collects reimbursement funds from veterans' 
private insurance carriers--for the costs associated with treating 
Medicare-eligible veterans' non-service-connected illnesses and 
injuries.
  The Balanced Budget Act specifies that appropriated funding for the 
provision of health care services by VA will be flat over the next five 
fiscal years. At the same time, 7.7 million World War II veterans and 
4.5 million Korean War veterans--veterans who are eligible for Medicare 
benefits--will require extensive heath care assistance as they age. It 
is critical that these veterans be allowed to bring their Medicare 
benefits to VA so that VA might be better able to meet their needs.
  This legislation will surely assist VA by providing a new revenue 
stream. But it will also benefit Medicare. Under the plan set out in 
this legislation, VA would be reimbursed at a level not to exceed 95% 
of the rate Medicare would otherwise pay a private hospital for care 
supplied to a Medicare-eligible veterans. In summary, under this 
legislation Medicare would receive care for its veteran beneficiaries 
at a discount, and VA would receive a vitally needed new source of 
funding.
  Medicare subvention legislation is supported by all of the members of 
the Veterans Affairs Committee. It is supported by the Administration. 
All of the major veterans' service organizations have urged enactment 
of this legislation. And, as I previously noted, the Senate approved 
this legislation last year as part of the Senate-approved Balanced 
Budget Act.
  I am pleased to add my name to this bill as a cosponsor, and I urge 
my colleagues to support this legislation.

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