White House to ask $2 billion more for VA health care

The White House is preparing as early as Wednesday to formally ask Congress for nearly $2 billion more to cover unanticipated veterans' health care costs, which is higher than earlier estimates yet still not enough to meet increased demands, according to critics.

Part of the amended fiscal 2006 budget submission would provide an additional $300 million to offset increased utilization of healthcare services for this fiscal year, while the rest would go toward filling gaps in coverage anticipated for next year.

The new aid request comes on top of a $975 million fiscal 2005 supplemental currently pending in the Senate. The House quickly approved the funds before adjourning for the July Fourth recess. At that time, House Democrats wrote to President Bush calling for a supplemental request of $1.3 billion, which they argued was necessary to cover the current year funding gap -- and which the White House now acknowledges is the correct target.

Nonetheless, the aid request for 2006, which comes to nearly $1.7 billion, does not factor in an estimated $600 million in costs VA officials have told congressional staff would be incurred if lawmakers do not accept White House proposals for new user fees to pay for health care services.

Since the White House proposals -- unpopular with lawmakers because veterans would be paying more out of pocket -- would essentially lower demand and thus long-term care and utilization costs, sources familiar with the discussions said the real 2006 funding gap is closer to $2.3 billion, since Congress will not go along with the increased user fees.

Senate Military Construction and Veterans Affairs Appropriations Subcommittee Chairwoman Kay Bailey Hutchison, R-Texas, said Tuesday the Senate should call up the House-passed bill and increase the amount to the $1.27 billion necessary for the 2005 shortfall while including the additional $1.7 billion or so for next year in the 2006 Military Construction measure her subcommittee will take up July 19.

Senate Majority Leader Bill Frist, R-Tenn., said the Senate would act on the matter this week, but he did not elaborate. On the floor, Democrats led by Sen. Patty Murray of Washington successfully added $1.5 billion to an unrelated Homeland Security spending measure on a 95-0 vote, as they did before the recess on the Interior spending bill. That money is intended to cover the 2005 shortfall and provide a cushion going into 2006.

"Now the Senate has an opportunity before us to tell our veterans we will do all we can and all we've promised and we should not be nickel and diming them," Murray said.