Editore"s Note
Tilting at Windmills

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March 18, 2009

WHITE HOUSE BACKS AWAY FROM VA PROPOSAL.... Following up on an item from last week, the Obama administration was reportedly weighing a change in how military veterans' healthcare would be paid for. Under existing policy, private insurance companies help pay for veterans' care that is not service related. Administration officials considered the possibility of charging insurance companies for service-related injuries, too, at a savings to the VA of a half-billion dollars annually.

To put it mildly, the idea, which the White House never fully embraced, was not well received. Democratic lawmakers balked at the very suggestion. Veterans' groups issued strong denunciations. Even Jon Stewart expressed outrage at the mere possibility.

Today, the administration reportedly abandoned the idea altogether.

The White House on Wednesday backed off a controversial plan that would have dramatically altered the way the Department of Veterans Affairs (VA) handles insurance claims, after veterans groups staged an all-out fight against such a proposal.

President Obama will not pursue a proposal that would have allowed the VA to charge private insurance companies for the treatment of veterans with service- and war-related injuries. The proposal raised the ire of prominent Democrats on the House and Senate Veterans Affairs panels. House Speaker Nancy Pelosi (D-Calif.) was the first to publicly announce Wednesday afternoon that the president won't pursue such proposal.

The announcement came shortly after the second White House meeting between presidential aides and prominent veterans' organization leaders.

At yesterday's White House press briefing, Robert Gibbs kept emphasizing Obama's 11% increase in discretionary spending in the VA budget, which invariably led to "yes, but" questions regarding the possible shift in insurance.

It appears Obama's team has resolved the problem. Good move.

Steve Benen 4:20 PM Permalink | Trackbacks | Comments (12)
 
Comments

One of the more annoying aspects of the discussion was the rapidity with which conservatives spun this as proof that "Obama hates the troops."

The proposal was not to force veterans to buy private insurance. The proposal was not to deny any veteran any needed care for service-related injuries or illnesses.

The point of the proposal was to find more money for the VA and the services it provides.

That said, the reports I have read about the objections raised by veterans' groups seem very reasonable. The vets' groups proposed some alternatives that, if feasible, will produce the same result--more money from insurance companies to help the VA provide good care.

Posted by: Quaker in a Basement on March 18, 2009 at 4:22 PM | PERMALINK

What the hell were they thinking in the first place?

Posted by: Dan on March 18, 2009 at 4:29 PM | PERMALINK

The Obama administration got caught this time, but give them time; they'll eventually figure out how to soak the troops for money, while the blood of these patriots are soaking into Iraqi soil.

Very shameful.

-A

Posted by: A\ on March 18, 2009 at 4:33 PM | PERMALINK

A - that's a good one.

Naw, this was poker.
I guess we're going to have to raise the top marginal rates a little higher instead.
After all, don't rich folks support the troops too?

Posted by: kenga on March 18, 2009 at 4:38 PM | PERMALINK

As I said earlier today:

I have to agree that the American Legion story, if half accurate represents a big tone-deaf blunder within the Obama administration.
.
Having said that though, the fact that Conservatives are latching on to it and screaming loudly in defense of a government-run socialized medicine program and AGAINST the possibility of privatization strikes me as too rich for words!

Posted by: Paul Dirks on March 18, 2009 at 4:42 PM | PERMALINK

Aw, I dunno -- was this something they tossed out there to make a point about how THE GOVERNMENT CAN TOO RUN A HEALTHCARE SYSTEM?

Just askin' ...

Posted by: K on March 18, 2009 at 4:49 PM | PERMALINK

A terrible idea, and good to see it go. That said, anyone else amused that TDS hits it yesterday and it gets dropped today?

Jon Stewart, the scourge of evil ideas.

Posted by: JoshA on March 18, 2009 at 5:28 PM | PERMALINK

The "Make Wounded Vets use their own Private Families Insurance pay for their combat Injuries" Movement's Scandal, will not be over until those Social Darwinist Fascist-Communists who originated the Idea Resign. They must be hunted Down and Removed from Office. Not even the George W.Bush Administration was so Bad. Some People in the Obama Administration are Communists, who Hate U.S. Veterans. See Ludwig von Mises 1943 b00k, "Omnipotent Government,"for an explanation of why and how Fascism is Identical

to Communism, ultimately.

Posted by: Xeno77777, ST. Petersburg, FL, USA. on March 18, 2009 at 5:44 PM | PERMALINK

The VA is a Military Style System; Also a US Government Payee Style System, the World's Most efficient, is the U.S. Medicaid/Medicare System. The Obama Administration made No mention of giving Veterans any access to Medicaid/Medicare; No mention of any Rational Substitute, Just a Taking Away of Traditional Benefits.

Posted by: Xeno77777, ST. Petersburg, FL, USA. on March 18, 2009 at 6:02 PM | PERMALINK
... the fact that Conservatives are latching on to it and screaming loudly in defense of a government-run socialized medicine program and AGAINST the possibility of privatization strikes me as too rich for words!

Posted by: Paul Dirks on March 18, 2009

ditto

Posted by: MarkH on March 18, 2009 at 7:34 PM | PERMALINK

Who proposed this idea? That's what's been bothering me about this. I swear to the FSM that is sounds like a policy guy who lives in a bubble came up with a random idea to save money at the VA, and the white paper got out without being vetted by the communications office. Seriously. Who originated the idea?

Posted by: Byrd on March 18, 2009 at 7:47 PM | PERMALINK

This has been an interesting story. Are you all aware that this policy (in fact I think it is Public Law) has been standard for active duty personnel and retirees for years? We ( I am a retired Army officer) are covered by what is called Tricare (retirees pay a yearly fee/premium for this benefit) If you go to a military treatment facility or use an approved physician you are required to declare Other Health Insurance and it is billed first. This is not new to Mr Obama or his administration. That said I did not think it was a smart policy for the VA to begin using this method because it would be perceived by some wrongly and it really doesn't bring in a lot of money especially at a time of war but it is not unprecedented.
How TRICARE Works with Other Health Insurance

Other Health Insurance (OHI) is any health insurance coverage available to a TRICARE beneficiary. OHI may be available through an employer, an association, a private insurer, school health care coverage for students, or an entitlement program. (Health care through an auto insurance plan is also considered OHI when services are related to an auto accident.) TRICARE is secondary to all other health insurance except Medicaid, State Victims of Crime Compensation Programs, and policies specifically designated as TRICARE Supplements. The following are required for TRICARE coverage with other health insurance:
• The beneficiary must follow all requirements of the other health insurance such as authorizations or the use of network providers.
• Care must be rendered by a TRICARE authorized provider
• Beneficiaries must first obtain payment from their other health insurance
• A TRICARE claim must be submitted with the following information:
o Beneficiary Claim Form DD 2642 or provider claim form CMS 1500*
o Itemized provider bill if a CMS 1500 is not included
o Explanation of Benefits (EOB) from the other health insurance plan(s)
*Formerly known as the HCFA-1500, the Centers for Medicare & Medicaid Services (CMS) has changed the name of its claim form to CMS-1500. Providers may continue to use HCFA-1500 forms they already have in stock, but will be required to order CMS-1500 forms when their supplies are exhausted. The form itself has not changed.


http://www.health.mil/tmablog/Article.aspx?ID=481

Posted by: dcwash on March 19, 2009 at 12:22 AM | PERMALINK




 

 
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