August 12, 1996
THE DAILY FED
Medicare May Reimburse VA
The Veterans Affairs Department's huge network of hospitals and related medical facilities could get a financial boost under a new proposal unveiled late last week by the Clinton Administration. The proposal would change current policy by allowing elderly veterans to use VA services even if they are neither poor nor suffering from service-connected disabilities. The cost of the care would be paid for from the Medicare trust fund. Under legislation sent to Congress by VA Secretary Jesse Brown last Thursday, demonstration projects would be undertaken at eight VA sites. The four-year demonstration project would show whether the program would save the Medicare trust funds money or cost the trust funds more than the present system does. Should the program prove popular with veterans, the VA could gain a steady stream of paying patients that would enable it to expand its medical services.
The Clinton Administration is working on a similar proposal which would authorize Medicare to reimburse military medical facilities for medical services provided to career military retirees.
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