Legislative Update - 07/21/2008 (Plain Text Version) View Graphical Version Congress Overrides Veto of Medicare Bill The Medicare Bill became law last week after the House and Senate rejected the President’s veto of it. The veto override means that Medicare resumed paying claims at the current rate, retroactive to July 1; TRICARE payments will continue at the current rate; and Medicare and TRICARE rates will be increased 1.1 percent as of Jan. 1, 2009. While Congress may pat itself on the back for “fixing” the impending cuts to the Medicare reimbursement rates, it has done nothing to fix the fundamental problem that caused the cuts and will leave the problem for the next president and Congress to address.  By the end of 2009, we’ll be facing a 21 percent cut in Medicare and TRICARE payments.  Both sides of the aisle agree that the formula for paying doctors is broken; however, fixing it would be phenomenally expensive.  The Congressional Budget Office determined that if Congress repeals the current formula and allowed payments to doctors to grow by the rate of medical inflation, it would cost $65 billion the first five years and nearly $200 billion the next five years.  Lawmakers are urging physicians' groups to come forward with a comprehensive proposal. House VA Panel Approves Bills Several bills aimed at improving protections for veterans and current service members were voted out of the House Veterans’ Affairs (VA) Committee last week.  Introduced by Rep. Jerry Moran, R-Kan., the Rural Veterans Access to Care Act, would institute a three-year pilot program designed to permit veterans who live in rural areas to receive treatment covered by the VA at a non-VA facility.  The bill defines a rural veteran as one who lives at least 60 miles from a VA facility providing primary care services, more than 120 miles from one providing acute care or more than 240 miles from one providing tertiary care.  The legislation also includes any veteran who cannot travel to a VA facility without adverse health effects because of his or her condition.  (H.R. 1527) The Veterans Health Care Policy Enhancement Act of 2008, introduced by Rep. Don Cazayoux, D-La., would exempt veterans labeled “catastrophically disabled” from hospital or nursing home co-payments, even if that disability is not service-related. (H.R. 6445) Legislation that would establish an Office of the Ombudsman in the Veterans Health Administration was introduced by Rep. Paul Hodes, D-N.H.  The ombudsman would be responsible for overseeing patient advocates’ work, identifying trends in patient issues and maintaining a public Web site, among other things. (H.R. 2192) Rep. Stephanie Herseth Sandlin, D-S.D., sponsored the Improving SCRA and USERRA Protections Act of 2008.  The legislation would require that courts use their powers when necessary to ensure equitable relief from a state or private employer.  Courts currently have that power but are not obligated to use it under law. (H.R. 6225) Introduced by Rep. Susan Davis, D-Calif., the Veterans Education Tuition Support Act, would require any service member called up for active duty to be reimbursed by his or her institution of higher education for any tuition payments made that would not result in academic credit because of the active duty.  The legislation includes similar provisions for student-loan providers. (H.R. 2910) The 21st Century Servicemembers Protection Act, sponsored by Rep. Patrick Murphy, D-Pa., would exempt service members called into active duty from any utility service contract, as long as it has been active for at least 90 days.  The bill would penalize any service provider that levies fees against a service member who lawfully terminated a contract or charges that service member more than the maximum 6 percent interest rate during military service. (H.R. 3298) Rep. John Carter, R-Texas sponsored the Military Spouses Residency Relief Act that would require the VA to guarantee and provide housing for the spouses of deceased service members.  A bill sponsored by Veterans’ Affairs Chairman Bob Filner, D-Calif., would authorize the VA to make grants to the U.S. Olympic Committee to “plan, develop, manage and implement” a program for disabled American veterans. (H.R. 4255).  The committee’s ranking member Rep. Steve Buyer, R-Ind., fully supports the program.  “The healing and sense of self worth that comes from this is amazing,” said Buyer. “This is a worthy program [and] it is very meaningful to many disabled athletes.” These bills will now go to the full House for a vote.  [return to top] Military Construction/VA Spending Bill Approved by Senate Appropropriations Committee The Senate Appropriations Committee approved the fiscal 2009 Military Construction and Veterans Affairs spending bill last week.  The legislation provides funding for military construction and family housing, services for women veterans, and increased mileage reimbursements for veterans who must travel long distances to access VA Medical Centers. Overall, the bill provides $73 billion in discretionary funding, which is $3.65 billion above the President’s budget request. Major funding programs and initiatives in the bill include: --VA Rural Health Initiative –The bill includes $250 million to initiate a new health outreach program for veterans in rural America.  --VA Major Construction – The bill more than doubles funding for VA hospital and clinic construction, increasing the budget request by $636 million for a total of $1.2 billion.  --Upkeep and Repair -- The latest Facilities Condition Assessment issued by the VA indentified almost $6 billion worth of code violations at existing VA facilities. To assist in correcting these deficiencies, the bill includes $1.1 billion, $300 million above the President’s budget request, in maintenance funding to assist the Department in correcting these violations.  The bill also includes an additional $400 million in minor construction to update and modernize hospitals and clinics. --Priority 8 veterans – In recognition of the severe hardships caused by the current economic downturn, the recommendation provides $350 million for the VA to incrementally increase the current income threshold for Priority 8 veterans to allow more veterans to use the VA health care system. --Mileage Reimbursement – Many veterans must travel long distances to VA medical centers to receive treatment, yet the mileage reimbursement for VA beneficiaries has been held artificially low. The bill provides sufficient funding ($138 million) to allow the VA to raise the mileage reimburse for veterans to 50.5 cents per mile, the GSA approved rate. --Medical and Prosthetic Research – The bill increases the budget for VA research to $526.8 million, $84 million above the President’s budget request.  This funding is used for a wide range of research activities targeted to the veteran population, including mental health, post traumatic stress disorder, traumatic brain injury, polytraumatic physical injuries, and sensory disabilities, including hearing and vision loss. Much of the research funded by this account is focused on the new types of physical and emotional wounds suffered by combat veterans from the Iraq and Afghanistan wars. --Services for Women Veterans – The number of women veterans receiving care from the VA is expected to double in the next five years, with women combat veterans expected to make up a large portion of the increase. The bill, therefore, provides an additional $5 million for outreach and transitional assistance to women veterans.   [return to top]