News Release - Etheridge Fights Budget Cuts for N.C. Veterans

News Release
Congressman Bob Etheridge
North Carolina

March 31, 2003

Contact: Sara Lang
Phone: (202) 225-4531

Etheridge Fights Budget Cuts for
N.C. Veterans

27,000 Veterans Could Be Cut Out of Health Care

RALEIGH - As thousands of North Carolina soldiers fight in the Middle East for our nation and our freedom, U.S. Rep. Bob Etheridge (D-Lillington) today took a stand to fight for North Carolina's veterans. At a press conference in Raleigh, Etheridge and veterans denounced the budget passed on March 20th by the U.S. House of Representatives for cutting funding to veterans' programs by over $28 billion over the next ten years. Etheridge voted for an alternative budget that would have fully funded veterans' benefits and included additional funds for veterans' health care.

"Our troops fighting overseas today should know that when they come home the country that they have served will not turn its back on them," Etheridge said. "That's why it's absolutely outrageous that the majority in the U.S. House of Representatives pushed through a budget that severely cuts funding for our nation's veterans. That budget breaks the solemn promise made to the very men and women who fight for our freedom."

The House budget, which passed by just three votes, cut mandatory veterans' benefits, such as disability payments and pensions and the Montgomery GI Bill. The budget also cut $14.2 billion in discretionary veterans' services, such as the VA Health Care System. These cuts could mean that burial benefits for veterans are discontinued or that cost-of-living adjustments for disability benefits are delayed.

In addition, many North Carolina veterans will not be able to continue receiving VA health care due to a new $250 annual enrollment fee. The VA estimates that 1.25 million veterans nationwide who are already a part of the health care system may be forced out due to these steep new fees. In North Carolina this may translate into more than 27,000 veterans who can no longer afford VA health care.

For those who can afford to stay in the VA health care system, many will be forced to pay significant new costs. An estimated 22,000 North Carolina veterans will pay the new $250 enrollment fee, increased co-payments for physician benefits and prescription drug fees. These new fees may increase out-of-pocket expenses by $347 each year.

The budget passed by the House excludes 4,100 North Carolina veterans from enrolling in the VA health system. Priority 8 veterans, who were not injured in service and who fall in an income level above between $24,450 and $38,100 depending on location and situation, will be denied care.

Congress is expected to consider the final version of the budget next month.