WASHINGTON, March 16 /PRNewswire-USNewswire/ -- The leader of the nation's largest veterans organization says he is "deeply disappointed and concerned" after a meeting with President Obama today to discuss a proposal to force private insurance companies to pay for the treatment of military veterans who have suffered service-connected disabilities and injuries. The Obama administration recently revealed a plan to require private insurance carriers to reimburse the Department of Veterans Affairs (VA) in such cases.

"It became apparent during our discussion today that the President intends to move forward with this unreasonable plan," said Commander David K. Rehbein of The American Legion. "He says he is looking to generate $540-million by this method, but refused to hear arguments about the moral and government-avowed obligations that would be compromised by it."

The Commander, clearly angered as he emerged from the session said, "This reimbursement plan would be inconsistent with the mandate ' to care for him who shall have borne the battle' given that the United States government sent members of the armed forces into harm's way, and not private insurance companies. I say again that The American Legion does not and will not support any plan that seeks to bill a veteran for treatment of a service connected disability at the very agency that was created to treat the unique need of America's veterans!"

Commander Rehbein was among a group of senior officials from veterans service organizations joining the President, White House Chief of Staff Rahm Emmanuel, Secretary of Veterans Affairs Eric Shinseki and Steven Kosiak, the overseer of defense spending at the Office of Management and Budget (OMB). The group's early afternoon conversation at The White House was precipitated by a letter of protest presented to the President earlier this month. The letter, co-signed by Commander Rehbein and the heads of ten colleague organizations, read, in part, " There is simply no logical explanation for billing a veteran's personal insurance for care that the VA has a responsibility to provide. While we understand the fiscal difficulties this country faces right now, placing the burden of those fiscal problems on the men and women who have already sacrificed a great deal for this country is unconscionable."

Commander Rehbein reiterated points made last week in testimony to both House and Senate Veterans' Affairs Committees. It was stated then that The American Legion believes that the reimbursement plan would be inconsistent with the mandate that VA treat service-connected injuries and disabilities given that the United States government sends members of the armed forces into harm's way, and not private insurance companies. The proposed requirement for these companies to reimburse the VA would not only be unfair, says the Legion, but would have an adverse impact on service-connected disabled veterans and their families. The Legion argues that, depending on the severity of the medical conditions involved, maximum insurance coverage limits could be reached through treatment of the veteran's condition alone. That would leave the rest of the family without health care benefits. The Legion also points out that many health insurance companies require deductibles to be paid before any benefits are covered. Additionally, the Legion is concerned that private insurance premiums would be elevated to cover service-connected disabled veterans and their families, especially if the veterans are self-employed or employed in small businesses unable to negotiate more favorable across-the-board insurance policy pricing. The American Legion also believes that some employers, especially small businesses, would be reluctant to hire veterans with service-connected disabilities due to the negative impact their employment might have on obtaining and financing company health care benefits.

"I got the distinct impression that the only hope of this plan not being enacted," said Commander Rehbein, "is for an alternative plan to be developed that would generate the desired $540-million in revenue. The American Legion has long advocated for Medicare reimbursement to VA for the treatment of veterans. This, we believe, would more easily meet the President's financial goal. We will present that idea in an anticipated conference call with White House Chief of Staff Rahm Emmanuel in the near future.

"I only hope the administration will really listen to us then. This matter has far more serious ramifications than the President is imagining," concluded the Commander.

This seems either very poorly thought through, or we're missing some key information.

This seems either very poorly thought through, or we're missing some key information.

we should keep in mind that it appears to be a press release from the american legion, a veterans organization -- not a news story.

Veterans groups irate at Obama's private insurance budget proposal

Story Highlights
-Obama plan would charge veterans' private health care for service-related injuries
-Veterans groups expected to develop alternative if unhappy, said Cmdr. Rehbein
-Groups say government has moral obligation to pay for service-connected injuries
-Obama says plan will generate $540 million for Department of Veterans Affairs

WASHINGTON (CNN) -- Veterans groups are angry after President Barack Obama told them Monday that he is still considering a proposal to have treatment for service-connected injuries charged to veterans' private insurance plans.

Leaders of the country's most prominent veterans groups met Monday at the White House with Obama, Veterans Affairs Secretary Eric Shinseki, White House Chief of Staff Rahm Emanuel and Steven Kosiak, the director in charge of defense spending for the Office of Management and Budget.

Some of the veterans groups were caught off guard when the president said the administration is still thinking about the idea as a way of generating $540 million for the Department of Veterans Affairs in 2010.

The groups and some members of Congress have been very vocal in opposing the idea. The message, according to some of the people in the room, was that if the groups do not like this idea, they need to come back with another way of saving or raising revenues for the VA.

"I got the distinct impression that the only hope of this plan not being enacted is for an alternative plan to be developed that would generate the desired $540 million in revenue," said Cmdr. David Rehbein of the American Legion, in a written statement.

Obama did most of the talking for the administration, with Emanuel speaking, too, meeting participants said. Shinseki did not speak much in the meeting, which was described as "professional" by David Gorman, executive director of Disabled American Veterans.

The president was sympathetic to the needs of veterans, Gorman said, but insisted the insurance companies are getting away with not paying for anything.

"This flies in the face of the VA's covenant to cover all service-related health-care expenses," said Jay Agg, a spokesman for AMVETS.

The groups also say that the cost of treating service-connected injuries could lead to veterans quickly maxing out their benefits in third-party insurance, risking coverage for not just them, but their families who are also covered under the plans. In addition, they foresee premiums rising to cover the cost of treating the service-connected injuries.

"We are going to go back in and fight this thing tooth and nail," Gorman said.

He said the president complained that instead of commending the significant budget increase for the VA -- an 11 percent increase in 2010 and $25 billion over five years -- the groups are complaining about this proposal. But Gorman said the issue of third-party billing is fundamental to the VA and it is a "distraction" from discussing the budget increases.

Another group, the Iraq and Afghanistan Veterans of America, said that while they are encouraged by the increase in money for veterans' health care, the billing proposal is not acceptable.

"Veterans of all generations agree that this proposal is bad for the country and bad for veterans. If the president and the OMB want to cut costs, they can start at AIG, not the VA," said Paul Rieckhoff, the group's executive director, in a written statement.

The opposition is not a surprise to the White House. The groups had sent a letter opposing the idea when it was just a rumor. Last week, Congress weighed in when members of both the House and Senate Veterans Affairs committees told Shinseki at separate meetings that they objected to the plan.

Shinseki was told by Sen. Patty Murray, D-Washington, that it would be "dead on arrival." Rep. Mike Michaud, D-Maine, said that if it was presented he would oppose the entire budget.

"It is unconscionable and it is an insult to our veterans who have been hurt overseas," Michaud said. "It is just unbelievable that anyone would ever think of doing that in this budget."

At the time, Shinseki would say only that the idea was under consideration but no decision had been made.

The groups have another meeting with the White House on Thursday to suggest other options. Both AMVETS and Disabled American Veterans believe that the VA could raise more revenue by being more aggressive about pursuing billings for non-service-connected treatments. Increasing third-party billing for non-service related injuries by 10 percent, suggested Agg, would free up more money to help service-related injuries.

Another idea that will be presented would be to bill Medicare.

"This we believe, would more easily meet the president's financial goal," said Rehbein of the American Legion.

Gorman said his group is willing to concede some money in the VA budget to avoid the insurance proposal.

"If it comes down to this issue, which is fundamental to the VA and what it should do, we are willing to give up a couple billion to salvage this issue," Gorman said.

A VA spokesman deferred all questions to the White House. White House officials were not immediately available for comment.

This seems very poorly thought through.

we should keep in mind that it appears to be a press release from the american legion, a veterans organization -- not a news story.

Just because it's not from a mass media outlet doesn't mean it's not "officially" news. I don't like obtaining info from a single source. Google it out, it's all over the place and it's certainly news.

i agree, sunny, but when punkdavid mentioned missing information, i just wanted to point out we're getting a one-sided story when it's a presser from an involved organization.

This seems either very poorly thought through, or we're missing some key information.

I can't believe this plan shifts any cost onto Veterans. I agree, something is missing.

And this would surprise you because?

I would be surprised if this saw he light of day but I'm not at all surprised to see the idea floated. It's pretty obvious how the Obama creq feels about private health insurers. I don't think he has any idealogical qualms with trying to stick it to them, especially if it helps bring about public healthcare by downloading what should be government costs to private business.

Dear Mr. Obama.

What business is going to hire a veteran with a service connected disability.

Sincerely,
LittleWing

Come on. This administration goes out of its way to destroy its dissenters.

If you didn't exist, I'd find it hard to believe that people like you actually existed. You are a ridiculous person.

FYI, Jon Stewart opened his show tonight by ripping this plan.