Approved unanimously by committee members, the legislation would establish thisopportunity for the next three years by way of demonstration projects throughout the country. Grassley said that if the demonstrations prove successful and a Medicare subvention program ismade permanent, "both our veterans and our veterans medical facilities would benefit."
Grassley emphasized the need to recognize the value of VA medical facilities in Iowa andnationwide. "In Iowa, these hospitals are under great budgetary pressures. We constantly hear ofcontingency plans being made by the network to close and consolidate facilities. But if any of ourfacilities close, it is unlikely those services can be replaced," he said. Most of Iowa is part of theDepartment of Veterans Affairs Network 14, which has lost 2 percent in VA funding between 1996and 1999.
Grassley said the Medicare Demonstration for Veterans Act of 1999 approved todayincorporated a fee-for-service component in the demonstration project that is "good for rural areas,where veterans may have difficulty traveling long distances to the nearest veterans medical center."
Subvention is a program under which Medicare-eligible military retirees or veterans canreceive care at a military or veterans health care facility and Medicare reimburses the appropriatedepartment for the care received.
In 1997, Congress passed legislation that led to the establishment of demonstrations in sixstates for 25,000 Medicare-eligible military retirees. At that time, Congress also directed the VAto develop a similar plan for veterans. Approximately 4 million veterans nationwide are eligible forsuch a Medicare demonstration. Prior to 1997, Medicare was generally prohibited by law fromreimbursing for health services provided by a federal health care facility not open to the public.
Grassley is a senior member of the Finance Committee.