The legislation would give certain Medicare-eligible veterans access to the VA system at five demonstration sites. Sometimes called "subvention," the bill would allow Medicare to reimburse the VA for health care services provided to these veterans. At another 5 sites, veterans can use the VA as a second-payer to their Medicare Plus Choice plan. The bill is supported by New Jersey veteran leaders and has been endorsed by the New Jersey and national VFW and the American Legion.

"This bill would give more choices to vets who are covered under Medicare, but who may not have access to VA care," Saxton said. "They can continue to use their Medicare benefits at their private caregivers, or have the option to use VA facilities."

Congressman Rob Andrews (NJ-1st), a Democrat and member of the Armed Services Committee, is an original cosponsor.

Currently, vets designated as "priority group 7" (the lowest priority group in the VA health care system) are allowed to receive care at VA medical centers and clinics, but only on a space-available or resource-available basis. This group, which has Medicare coverage, often cannot utilize VA services. The bill allows veterans in group 7 to use their Medicare insurance at VA facilities. Additionally, the bill helps the poorest veterans by allowing subvention for those who meet low-income thresholds.

The 2001 Defense Authorization Bill already extended Medicare subvention to certain military retirees through a similar demonstration program, but Saxton's bill takes the first step in providing subvention for Medicare-eligible veterans in the VA health care system.

Vets in VA Priority Groups 5, 6 and 7 usually can access VA facilities, but in tight budgetary seasons, these lower-priority groups may be turned away by the VA and be forced to go to other health care providers who accept their Medicare.

"By allowing veterans to use their Medicare at the VA, this legislation would ensure all veterans access to VA services, expands