V.E.T.S. News Bulletin 9-26-24

🦅 VA NEWS

VA Reclaims $2.5 Billion in Separation Pay from Veterans, Sparking Controversy

In the last 12 years, the Department of Veterans Affairs has reclaimed nearly $3 billion in separation pay from veterans who were incentivized to leave the military. This money, intended to ease their transition out of active service, is being recouped by the VA due to an obscure law prohibiting veterans from receiving both separation pay and disability benefits.

Since fiscal year 2013, around 122,000 veterans have been required to repay these funds, and about $364 million is still pending, according to data shared by the VA. Disabled veterans like Army veteran Damon Bird, who received $74,000 in separation pay, were later told they must return the money to receive VA disability compensation. Bird’s monthly disability payments were withheld until he repaid the incentive, forcing him and his wife to move in with their daughter to make ends meet.

The federal law requiring this recoupment was established in 1949 and has remained largely unchanged, leaving veterans to face significant financial challenges when they are forced to return money they thought was rightfully theirs. Advocates argue that the separation incentives and disability payments serve two different purposes and should not be linked financially, while veterans like Bird say the process feels like a betrayal of their service.

Despite efforts to challenge this law, legal battles have largely upheld the VA’s right to reclaim these funds. Veterans continue to fight in court, with some, like Navy veteran John Colage, arguing that the VA is misapplying the law. However, the VA maintains that it is legally bound to recoup separation pay before granting disability compensation.

As Congress considers changes to the law, veterans affected by this policy continue to face significant financial hardship. Army veteran Salahudin Majeed, who received a $30,000 payout in 1992, describes the emotional toll of the recoupment as “being used and abused.” Efforts to reform the law are ongoing, but progress has been slow due to the high financial costs involved.

For veterans like Bird, who served 18 years and completed two tours in Iraq, the recoupment of separation pay feels like a harsh penalty after years of dedicated service.

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🗺️ EVENTS

VA to Resume Pharmacy Co-Pays for Thousands of Veterans in Ohio and Washington

Starting in October 2024, the Department of Veterans Affairs (VA) will begin collecting pharmacy co-payments for thousands of veterans at hospitals in Ohio and Washington. The affected veterans are those receiving care at facilities using the VA’s new electronic health record system, which includes the White City, Roseburg, Mann-Grandstaff, and Jonathan M. Wainwright VA Medical Centers, as well as the Chalmers P. Wylie Veterans Ambulatory Care Center in Columbus, Ohio.

These co-payments had been paused for several years due to complications with the implementation of the new medical records system and the COVID-19 pandemic. Veterans have been notified of the upcoming changes, and the first co-pays will appear on November 2024 statements.

While co-pays will resume, VA officials have yet to decide whether they will collect retroactive payments for the paused period. Discussions with Congress and veterans service organizations are ongoing to potentially provide relief for veterans affected by the change. VA caps yearly co-payments at $700 and offers financial aid assistance for those in need.

For additional questions or to see if you qualify for assistance, veterans are encouraged to reach out to the VA or their local Veterans Service Organization (VSO).

🔎TRENDS

87,000 Vietnam Veterans May Be Owed $844 Million in Benefits—But Many Have Not Been Notified

According to a recent report by the Department of Veterans Affairs' (VA) Office of Inspector General, up to 87,000 Vietnam War veterans and their surviving family members may qualify for over $844 million in retroactive compensation due to exposure to toxic herbicides like Agent Orange. Despite the significant sum, the VA has failed to notify these veterans about their potential eligibility, leaving many unaware of the benefits owed to them.

Veterans advocate Marc McCabe, who has been helping Vietnam veterans file for disability compensation, believes that the VA is “leaving them behind.” McCabe and others in the veterans' legal community argue that while the VA should notify veterans, bureaucratic hurdles have led to a failure in communication.

The report highlights that veterans affected by Agent Orange could be missing out on an average of $372 a month in benefits. Furthermore, new presumptive conditions related to Agent Orange exposure have been added in recent years, expanding the pool of veterans who could qualify for compensation.

Despite the expanded benefits, the VA faces a significant budget shortfall of $15 billion, raising concerns about how it will continue to fund these claims. While advocates stress the importance of fulfilling promises to veterans, they also acknowledge the financial challenges posed by the PACT Act and other recent legislative expansions.

In light of these issues, McCabe continues to travel and host town halls to help veterans and survivors understand their eligibility. For those who may qualify for Agent Orange-related benefits, it’s crucial to determine eligibility, file claims, and seek assistance from Veterans Service Organizations if needed.

For more information, veterans and their families are encouraged to contact their local VA office or visit the National Veterans Legal Services Program for support.

🏆SUPPORT

VA Hospitals Outperform Non-VA Hospitals in Quality and Patient Satisfaction Reviews

Department of Veterans Affairs (VA) hospitals have surpassed non-VA hospitals in two independent, nationwide reviews for patient satisfaction and care quality. According to Undersecretary for Health, Dr. Shereef Elnahal, 79% of VA facilities earned 4 or 5-star ratings in the Centers for Medicare & Medicaid Services (CMS) Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) reviews, compared to 40% of non-VA hospitals. This reflects significant strides in VA healthcare services.

Dr. Elnahal emphasized that VA is delivering more care to veterans than ever before, with nearly 740,000 new enrollees since the PACT Act was enacted, representing a 33% increase over the previous two years. In 2024, VA expects to provide 127 million healthcare appointments, exceeding last year’s record of 120 million.

The CMS star ratings help veterans and other patients make educated healthcare decisions. VA hospitals also performed well in the CMS Overall Hospital Quality Star Rating, with 58% earning 4 or 5-star ratings compared to 40% of non-VA hospitals. The survey measures various factors, including mortality, patient safety, readmission rates, and the effectiveness of care.

Dr. Elnahal acknowledged that while VA facilities are improving, there is still work to be done, with some hospitals earning 1 or 2-star ratings. VA's National Improvement Office is supporting these facilities in their efforts to improve.

Overall, 92% of patients in VA outpatient surveys expressed trust in the care they receive. VA Secretary Denis McDonough reinforced the commitment to providing world-class care, ensuring that all veterans, especially those newly eligible under the PACT Act, receive timely, high-quality healthcare.

For more information or to access VA healthcare, visit the VA website.