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Stump: Veterans Ignored in President's Budget--
Veterans' Health Care to Suffer

Sent in by Veterans News and Information Services

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. - President Clinton's budget shortchanges veterans and is based on faulty assumptions, House Veterans' Affairs Committee Chairman Bob Stump (R-AZ) said today.

"The Administration's proposed funding level for VA health care is a slap in the face of every veteran," Stump said, "It ignores the increasing cost of caring for veterans, especially the aging veterans of World War II who depend on VA health care."

Stump noted the President recited a detailed wish list for more than 70 other programs in his January 19th State of the Union address while hardly mentioning veterans.

Stump said the Administration's proposal for meeting increased health care needs depends on exaggerating potential savings and overprojecting collections from insurance companies. He also said the Administration's budget doesn't provide for inflation, increased costs, and the need to fund treatment of new diseases.

Stump said the 1997 balanced budget agreement no longer freezes veterans' health care, his greatest concern as committee chairman. He said funds could be switched from other accounts to cover the rising health care needs of veterans.

"Our preliminary analysis tells us that inflation alone will take a bite of at least $700 million out of the VA budget," said Stump, "and there is no adjustment for inflation in the President's package."

Committee staff also have learned that the Administration rejected the VA's request for $963 million in new health care funds in the year 2000, $700 million of that just to meet the new threat of hepatitis C.

Stump warned that Congress has to be skeptical about the VA's claim that it can achieve $1.4 billion million in potential savings through "management efficiencies."

"The VA has never achieved that level of savings in one year," Stump said, "Based on history, I doubt the VA could save that much money without a serious disruption in services."

He said the Department of Veterans Affairs (VA) has already cut 20,000 medical care employees, eliminated half of its acute care hospital beds, and merged many neighboring hospitals since the end of 1994. While Stump praised the VA for achieving these results, he said these past successes didn't take away the need for additional funding.


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