IMMEDIATE RELEASE
CONTACT: Dan Amon
February 1, 1999
(202) 225-3664
For mor info, visit the
House Committe on Veterans Affairs Website
WASHINGTON, D.C. - The Administration's medical care budget for veterans falsely promises expanded services, but relies on "smoke and mirrors" to pay for them, Rep. Cliff Stearns, (R. - FL) Chairman of the VA Health Subcommittee charged today.
"The architects of this budget have signaled that veterans are not a priority for this Administration", Stearns said. "Not only has this President failed to request any increase in funding for veterans' health care, but his budget substantially understates how deep VA will have to cut just to stand still, let alone to pay for any new initiatives."
As it is, the budget calls for the largest cut - more than $1 billion -- the VA health care system has ever faced. VA budget experts could not identify how a cut of that magnitude could be made without reducing needed programs, requiring veterans to endure longer waits for care, and threatening the quality of their care. In fact, however, the budget significantly understates such costs as pharmaceuticals and VA's own estimates of the costs of screening and treatment of hepatitis C among veterans, while overestimating anticipated revenues.
"The real shortfall under this budget could actually be closer to $2 billion," Stearns projected.
Congress last year increased VA health care appropriations to $17.3 billion. The President's budget for Fiscal Year 2000 would freeze that funding level. In doing so, the budget would require VA to absorb fixed cost increases and inflation, totaling some $830 million
"We have pushed VA for the last few years to become more efficient, Stearns observed. "They have shifted much care from a costly inpatient setting to efficient outpatient clinics, merged hospitals, and streamlined administrative activities. In making these and other changes, they have eliminated about 20,000 jobs. But VA just can't keep cutting at the same rate without doing harm to their mission and to the veterans who rely on the system."
"In my view, the President can't have it both ways. He can't send up a budget that requires VA to cut thousands more doctors and nurses, and claim he's providing a plan under which VA can serve more veterans and provide new services. I intend to have a hearing on this budget," Stearns stated.
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