Legion Leader Says Proposed Budget Reaches Deep Into Veterans' Pockets

WASHINGTON, February 07, 2005  -  The leader of the nation's largest
military veterans organization reacted strongly to the effects that
President Bush's budget plan will have on veterans. He called it a smoke
screen to raise revenue at the expense of veterans.

"This is not acceptable," said Thomas P. Cadmus, national commander of the
2.7 million-member American Legion. "It's nothing more than a health care
tax designed to increase revenue at the expense of veterans who served their
country."

Cadmus was referring to the portion of the proposed budget that would double
the co-payment charge to many veterans for prescription drugs and would
require some to pay a new fee of $250 a year to use their own their own
health care system.

"Is the goal of these legislative initiatives to drive those veterans paying
for their health care away from the system designed to serve veterans?"
Cadmus asked. "The President is asking Congress to make 'health care
poaching' legal in the world's largest health care delivery system."

"When the President first came to Washington, among his first official acts
was to triple the prescription co-payment from $2 to $7," Cadmus said. "Once
again, the President wants to double the co-payment and fortunately,
Congress has wisely rejected that proposal. Making veterans pay for timely
access to quality health care is wrong."

This is the third year in a row the President has attempted to establish an
enrollment fee for those veterans making co-payments and third-party
reimbursements to the VA.

"Many of these veterans are Medicare-eligible and already paying the federal
government for their part A and B coverage, so why should they have to pay
an additional enrollment fee? VA can't even bill Medicare," Cadmus said.
"Other veterans with private health insurance make co-payments and then VA
is reimbursed for services. Again, why should they be forced to pay an
additional $250 to go to VA medical facilities?"

"During my visits to VA hospitals, I have not run into Bill Gates, Donald
Trump, or Ross Perot seeking care. I see mostly veterans - many on small
fixed incomes - trying to make ends meet and exercising their very best
health care option." Cadmus observed.

"Veterans' health care is an ongoing expense of war," he added. "You don't
thank veterans for serving their country and then tell them, 'By the way,
better not get wounded or you'll have to pay extra for your health care.'
This is offensive to every veteran in America. That is why this government
must move VA health care out from under the umbrella of discretionary
spending to mandatory spending," Cadmus stressed.

The American Legion has requested a $3.5 billion increase in health care
spending in FY 2006. The President is proposing $9.5 billion in foreign aid,
about $2.1 billion more than the current level.

"As young Americans in uniform battle terrorism in Iraq and Afghanistan, as
well as 119 other countries, it is incomprehensible that our veterans will
pay for the shortfall in VA health care funding from their own pockets as
tax dollars flow out the back door of America," Cadmus said.

"We reminded the President of our position on veterans' health care needs
during his campaign and I personally testified on the issue on Capitol Hill
last September," Cadmus added. "Our budget request is very realistic when
you consider the Secretary has slammed the door in the face of hundreds of
thousands of veterans eligible, but currently forbidden from seeking quality
care from VA."

"The current appropriations process is broken and is not adequately funding
VA medical care," Cadmus said. "President George W. Bush's Task Force to
Improve Health Care Delivery for Our Nation's Veterans on May 26, 2003,
identified the mismatch between demand and funding as a major obstacle in
meeting the nation's commitment to veterans. The American Legion and nine
other veterans' organizations believe the answer lies in changing VA health
care funding from discretionary to mandatory appropriation."

"No active-duty service member in harm's way should ever have to question
the nation's commitment to veterans. This is the wrong message at the wrong
time to the wrong constituency."