Veterans Issues in the 107th Congress

Publication Date: March 2002

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Military and defense

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Abstract:

VA Budget and Appropriations. The Administration has requested $57.2 billion for Department of Veterans Affairs (VA) programs for FY2003. Congress appropriated $52.7 billion for FY2002, and $47.9 billion for FY2001.

The Administration proposes legislation to establish a $1,500 per year deductible for veterans seeking VA medical services, and who do not have a service-connected condition or whose incomes are above VA's means-test for free care. On February 4, 2002, the copayment portion of cost-sharing had declined for most medical care outpatient visits to $15, from its previous $50, while raising the copayment for prescription drugs to $7 per monthly prescription from $2. The change, if enacted, would make the average copayment for outpatient visits around $95 until the $1,500 deductible limit is met.

Cost-of-Living Adjustment (COLA). Congress gave a 2.6% increase to VA compensation payments, matching the automatic increases received by most federal benefit programs.

Other Veterans Issues for the 107th Congress. President Bush signed H.R. 801 (P.L. 107-14), which improves Montgomery GI benefits for special categories of beneficiaries, increases burial and funeral benefits, provides greater amounts for adaptive equipment for the severely disabled, and excludes family farmland from the VA medical care means test. P.L. 107-11 has been enacted to expedite the completion of the World War II memorial on the Mall in Washington.

P.L. 107-103 made numerous changes, among which are ones which increase the monthly benefit under the Montgomery GI Bill education program to $800 per month (as of January, 2002) for a 3-year enlistment, and raises it to $900 per month on October 1, 2002, and $985 per month, October 1, 2003. Two-year enlistment benefits rise from $650, to $732, to $800 per month, over the same period.

Legislation to establish projects to demonstrate the feasibility of reimbursing VA for medical costs incurred by some veterans with Medicare (called Medicare "subvention") was supported by many Members in both Houses during the 106th Congress, but final work on the bill was not completed. Subvention remains an issue during the 107th Congress.