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WASHINGTON - Secretary of Veterans Affairs Anthony J. Principi today announced a record increase in the budget for Department of Veterans Affairs (VA) medical care, the annual decision required by law (PL 104-262) on health care enrollment and a new plan between VA and the Department of Health and Human Services for a program that will allow eligible veterans to use their Medicare benefits for VA care.

The President's FY 2004 Budget includes a total of $63.6 billion for VA -- $30.2 billion in discretionary funding (mostly for health care) and $33.4 billion for VA-administered entitlement programs (mostly disability compensation and pensions). The budget includes $225 million in new construction funding for VA's nationwide infrastructure initiative (CARES) to ensure that VA can put services where veterans live.

"VA is maintaining its focus on the health care needs of its core group of veterans - those with service-connected disabilities, the indigent and those with special health care needs," Principi said.

"We're able to do so because of the generous budget proposed by President Bush for fiscal year 2004, beginning Oct. 1, 2003. It will be 7.7 percent more for health care than the expected FY 2003 budget. This would be the largest requested increase in VA history,'' he said.

In order to ensure VA has capacity to care for veterans for whom our Nation has the greatest obligation ? military-related disabilities, lower-income veterans or those needing specialized care like veterans who are blind or have spinal cord injuries -- Principi has suspended additional enrollments for veterans with the lowest statutory priority. This category includes veterans who are not being compensated for a military-related disability and who have higher incomes.

The suspension of enrollment affects only veterans in Priority Group 8, the lowest group in VA's eight-level system for setting health care priorities, who have not enrolled in VA's health care system by January 17. Priority Group 8 veterans already enrolled will be "grandfathered" and allowed to continue in VA's health care system.

Work is underway with the Department of Health and Human Services to determine how to give Priority Group 8 veterans aged 65 or older who cannot enroll in VA's health care system access to the "VA+Choice Medicare" plan. The plan calls for VA to participate as a Medicare+Choice provider. Eligible veterans would be able to use their Medicare benefits to obtain care from VA.

In return, VA would receive payments from a private health plan contracting with Medicare that would cover costs. The "VA+Choice Medicare" plan would become effective later this year as details are finalized between VA and the Department of Health and Human Services.

"HHS is happy to join the Department of Veterans Affairs in developing this new option for veterans who might otherwise be unable to obtain health care through the VA," said HHS Secretary Tommy G. Thompson. "This is a creative marriage of our federal health programs to serve our veterans efficiently and effectively."

VA has been unable to provide all enrolled veterans with timely access to health care services because of the tremendous growth in the number of veterans seeking VA health care. More than half of all new enrollees have been in Priority Group 8. This demand for VA health care is expected to continue in the future.

Between October 2001 and September 2002, VA enrolled 830,000 additional veterans. Since 1996, VA enrollment has increased from 2.9 million to 6.8 million today. Non-service disabled, higher income veterans accounted for the majority of the rapid enrollment growth, hindering the ability of VA to care for the service-disabled, the indigent and those with special needs. Even with the suspension of new enrollments for Priority Group 8 veterans, another 380,000 veterans in Priority Groups 1 through 7 are projected to enroll by the end of FY 2003.

"Last year, VA treated 1.4 million more veterans with 20,000 fewer employees than in 1996," said Principi. "Nonetheless, VA leads the nation in many important areas like patient safety, computerized patient records, telemedicine, rehabilitation and research. I not only want to see this standard continue, I intend to see it get even better."

Congress mandated in 1996 that VA establish an enrollment system to manage hospital and outpatient care within budgetary limits and to provide quality care to those enrolled. By law, the VA secretary must decide annually whether to maintain enrollment for all veterans.

"With this record budget increase, I expect access to medical facilities for severely disabled veterans to improve, along with a reduction in waiting times for all veterans,'' Principi said.

The VA has a relatively new program to provide prescription drug coverage to surviving spouses of veterans who were completely disabled or who died in action. The Champva for Life program will pay 25% of prescription drug costs for qualifying beneficiaries. Previously, beneficiaries who were age 65 or older could not receive any coverage under the VA program, but that changed last October when presciption drug coverage was extended to Medicare beneficiaries.

A source of benefits that is often overlooked are benefits available to veterans and their surviving spouses. These benefits include pensions, payments for nursing home or home care, prescription drugs, reimbursement for the cost of adapting a home or car for a disability, and more.

If you are a veteran, or the surviving spouse of a veteran, you may be unaware that these types of benefits are available. However, figuring out what benefits you might be eligible for is best done by contacting the Veterans Benefits Administration because there are a confusing array of benefits which vary depending on income, time of service, whether or not the veteran has a service-related disability, and the type of disability they have. A sampling of benefits you might be eligible for include:

Veterans Pensions

A VA "Pension" is available to certain low-income veterans and a "Death Pension" is available to their widows/widowers. Unlike traditional pensions, these pensions are not automatic, but are "needs-based", or only available to those with incomes below certain levels. However, and this is extremely important, income included in the calculation is reduced by "unreimbursed medical expenses" in excess of 5% of the basic pension amount. This means that a veteran or surviving spouse with significant out-of-pocket medical expenses may qualify for a pension, even if they have a much higher income than the program limits. It also means that someone who discovered at one time that they were ineligible for a Veterans or Death Pension may want to re-apply if they start to incur a lot of medical expenses.

Any veteran or surviving spouse who pays a Medicare Part B premium will probably have medical expenses in excess of the 5% limit. Other unreimbursed medical expenses that reduce countable income include prescription drugs, home health care expenses, or nursing home expenses, to the extent those expenses have been paid for by the beneficiary. A surviving spouse may apply for and receive VA benefits from the VA even if his or her spouse did not receive veteran's benefits during the veteran's lifetime.

Medical Care Benefits

Veterans benefits include hospital and physician care, generally when provided in a VA facility. Outpatient prescription drugs are covered for free to low income veterans or those with service-related disabilities, and with a $7 co-payment in other cases. Unlike many other drug benefits programs, the VA program also covers some over-the-counter medications.

Long Term Care Benefits

Some veterans, or their surviving spouses, who need help at home may be eligible for extra payments through the "Aid and Assistance" and "Housebound Veterans" programs. Other VA Benefits programs provide reimbursement for physical modifications made to a home or car to adapt them to the physical disabilities of the beneficiary. Nursing home care may be covered in certain circumstances, generally for service-related disabilities. Veterans who are dying may also be able to receive accelerated benefits from their Veterans life insurance plans to help pay for the cost of care.

Burial Benefits

Veterans benefits include a variety of payments/programs for burial, plot, internment, cremation, flags, representation at a funeral, transportation and headstone costs.

War Time Periods

Certain benefits are limited to veterans who served during "war time", but for the most part this just means they need to have served during specified time periods, even if they spent the time behind a desk on the home front. It is estimated that 90%+ of elderly veterans have wartime service. These periods of time include:

• Mexican Border Period: May 9,1916 through April 5,1917 (Limited to veterans who served in Mexico, on its borders or in adjacent waters.)
• World War I: April 6,1917 through Nov.11,1918 (For veterans who served in Russia from April 6,1917 through April 1,1920, the end of the period is extended through July 1,1921.)
• World War II: Dec.7,1941 through Dec.31,1946.
• Korean War: June 27,1950 through Jan.31,1955.
• Vietnam War: Aug.5,1964 through May 7,1975 (Starts on Feb.28,1961, for veterans who served ?in country ? before Aug.5,1964).
• Gulf War: Aug.2,1990 through a date to be set by law or Presidential Proclamation.

Applying for Benefits

As mentioned earlier, figuring out what benefits you might be eligible for is best done by contacting the Veterans Benefits Administration. You can apply for benefits online, using the link below, or call 1-800-827-1000 for more information about VA benefits.

The Social Security Administration (SSA) wants veterans to know about an important prescription drug benefit available from the Department of Veterans Affairs (VA). A 30-day supply of prescription medications costs only $2 through the VA, and disabled or low-income veterans can receive medications for free. To take advantage of this benefit, a veteran must have been honorably discharged from the military, must enroll with the VA, and must be seen by a VA doctor. The VA may charge for a doctor visit, but your insurance may cover this charge (disabled or low-income veterans can visit doctors for free). If you would like to find out more about this and other health benefits through the VA, you can call, toll-free, 1-877-222-VETS (1-877-222-8387). For information about military service and Social Security, check out a SSA fact sheet.

>> SSA Fact Sheet

President Clinton has signed into law HR 4850, the Veterans' Compensation Cost-of-Living Adjustment Act of 2000. The Act directs the Secretary of Veterans Affairs to provide a cost-of-living adjustment (COLA) in benefits for service-disabled veterans and their surviving spouses and children, effective December 1, 2000. It provides for higher payments of disability compensation to veterans who suffer from service-connected disabilities and for higher payments of dependency and indemnity compensation for the surviving spouses and children of service members and veterans whose deaths were service-connected. The cost-of-living adjustment is to be the same percentage as the annual cost-of-living adjustment used in calculating Social Security benefits, 3.5% for this year.

The U.S. Department of Veterans Affairs (VA) has created an online application site. The VONAPP (Veterans On Line Applications) website is an official Department of Veterans Affairs (VA) website designed so U.S. military veterans and some service members within six months of separation or retirement can apply for compensation, pension, and vocational rehabilitation benefits through the Internet. This is a first step towards an fully-electronic VA. VONAPP will allow veterans, and in the future, dependents and other VA claimants, electronic access to file applications with us on-line.

When you use this site to complete and send an application to VA, your application will be sent directly to your local VA office. Processing will begin right away, and you will receive a response from the VA office letting you know the status of your application. The forms currently available are VA Form 21-526, Veteran?s Application for Compensation and/or Pension, and VA Form 28-1900, Disabled Veterans Application for Vocational Rehabilitation. The VA plans to add more forms soon.

President Clinton has signed into law H.R. 4864, the "Veterans Claims Assistance Act of 2000." The Act reaffirms and clarifies the duty of the Secretary of Veterans Affairs to assist claimants in developing evidence pertinent to their claims for VA benefits. It eliminates the previous requirement that a claim be well-grounded before VA's duty to assist arises. The Act requires the Secretary to make reasonable efforts to assist a claimant in obtaining evidence to substantiate his or her claim unless it is clear that no reasonable possibility exists that the Secretary's assistance would aid in substantiating the claim.

Lois Caliri of The Roanoke Times has written a series about problems miliary retirees are having in getting coverage for health benefits. Retirees talk of promises made when they enlisted of "lifetime health care" after 20 years of service. Instead, they find that they have access to free care only if they live within driving distance of a military hospital, and are otherwise subject to the limited coverage that Medicare provides, with its high co-payments and deductibles and lack of coverage for prescription drug benefits. The "space-available" care provided in military hospitals is also sometimes not available even if the retiree is able to get there, since the hospitals give first priority to active duty personnel. A number of bills are floating around Congress to address these concerns, but it is doubtful that any will pass in the short time remaining before Congress adjourns October 6.

President Clinton honored 22 Asian-American veterans of World War II this week. In honoring these brave men, he said, in part, "Immediately following Pearl Harbor, Japanese Americans in the United States military were forced to surrender their weapons. National Guardsmen were dismissed; volunteers were rejected; draft-age youth were classified as 'enemy aliens.' Executive Order 9066 authorized military commanders to force more than 100,000 Japanese Americans from their homes and farms and businesses onto trains and buses and into camps, where they were placed behind barbed wire in tar-paper barracks, in places like Manzanar, Heart Mountain, Topaz...

The astonishing fact is that young men of Japanese descent, both in Hawaii and on the mainland, were still willing, even eager, to take up arms to defend America. In 1942, a committee of the Army recommended against forming a combat unit of Japanese Americans, citing -- and I quote -- 'the universal distrust in which they are held.' Yet, Americans of Japanese ancestry, joined by others of good faith, pressed the issue, and a few months later President Roosevelt authorized a combat team of Japanese American volunteers...

They created a custom of reverse AWOL -- wounded soldiers left their hospital beds against doctor's order to return to battle. They were veterans of seven brutal campaigns. They fought in Italy to overwhelm entrenched German positions that blocked the path north. They fought in France and liberated towns that still remember them with memorials. They took 800 casualties in just five days of continuous combat in southern France, to rescue the lost battalion of Texas which had been surrounded by German troops...

Rarely has a nation been so well-served by a people it has so ill-treated. For their numbers and length of service, the Japanese Americans of the 442nd Regimental Combat Team, including the 100th Infantry Battalion, became the most decorated unit in American military history. By the end of the war, America's military leaders in Europe all wanted these men under their command. Their motto was 'Go or Broke.' They risked it all to win it all."

President Clinton announced that all executive agencies will recognize a "Moment of Remembrance" on Memorial Day. He signed an executive order to encourage individual department and agency personnel, and Americans everywhere, to pause for one minute at 3:00 p.m. (local time)on Memorial Day, to remember and reflect on the sacrifices made by so many to provide freedom for all.