COUNTERING MILITARY RECRUITMENT
Articles: Leaving Military: General
VA Budget Shortfall
By SUZANNE GAMBOA, Associated Press
Tue. Jul 12, 2005
WASHINGTON - A budget proposal that could push
thousands of military veterans out of state nursing
homes is causing new worries in light of recently
disclosed shortfalls in the Veterans Affairs budget.
The proposal, which would set new eligibility rules
for veterans to use state nursing homes, was
originally viewed with skepticism by lawmakers when
President Bush sent his fiscal 2006 budget to
Congress in February. But nursing home operators fear
it may find new support now that the VA is facing a
$1.5 billion budget shortfall this year and an even
larger one next year.
"The homes in the state won't survive if they go
through with this," said Bob Shaw, legislative
director of the National Association of State Veterans
Homes.
Just before July Fourth, the House approved $975
million to meet the veterans health care shortfall
this year, and the Senate approved $1.5 billion. The
two are expected to work out the difference by the end
of the month.
"We're concerned that the VA budget, as the VA
presents it, even if they get $1.5 billion or $975
million, is probably still vastly understating what
their need is," Shaw said.
Bush proposed restricting the VA's long-term care
services to those veterans injured or disabled while
on active duty, those with severe disabilities, those
in need of care after a hospital stay and those
requiring hospice or respite care.
That proposal would apply to federally run or
contracted facilities and could deny eligibility to
14,000 veterans now in state nursing homes, Shaw said.
The VA pays states $59.36 per day, per veteran for
nursing home care. The amount is updated annually, but
cannot exceed 50 percent of the cost of care of the
veteran. The tighter eligibility rules would mean
fewer veterans to subsidize.
The administration also proposed a one-year suspension
of construction grants for states to build new
veterans nursing homes. That proposal would have the
most impact on Texas, which has bids to build two new
homes and is considered to have the greatest need for
additional veterans nursing homes.
VA Secretary Jim Nicholson told a Senate committee in
February that the proposed eligibility limits would
save about $496 million in long-term care costs that
would be redirected to veteran health care services.
The proposed cuts come as the nation is experiencing a
swell in aging veterans and increased demand for
long-term care.
The VA estimates the population of veterans 85 years
or older enrolling for VA services will total about
681,400 in 2012, up from about 278,400 last year.
House appropriators have said they disagree with the
administration's proposed restrictions. They included
a provision in spending legislation for next year
directing the VA secretary to work with state nursing
home officials to come up with "solutions that will
give our veterans the best options for quality
long-term care at the most reasonable cost to the
taxpayer."
But the state nursing home officials want lawmakers to
require the VA to get congressional approval before
imposing any restrictions on long-term care
eligibility.
State-operated veterans nursing homes date back to the
Civil War, when states established the first homes to
care for returning troops. Congress authorized
payments to help maintain homes — about 30 cents per
day, per resident — in 1888.
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