FederalDaily - February 20, 2007
Future VA Medical Spending to Rise Steeply
Medical spending by the Department of Veterans Affairs (VA) could jump by 88 percent by 2025, according
to new government figures that project a much higher rate of spending than previous VA forecasts. Allison
Percy, a senior Congressional Budget Office (CBO) analyst, told a House Appropriations subcommittee
on Feb. 15 that the cost of meeting the demand for VA’s medical services may grow 3.6 percent
annually in real terms, increasing from $35 billion in 2007 to $66 billion in 2025. That growth rate
is faster than the VA’s own projections, but slower than the recent growth of government appropriations
for the program administered by the Veterans Health Administration (VHA), which oversees a network
of 155 hospitals. Percy urged caution when interpreting the CBO projections, which are about 50 percent
higher than those developed by the VA. The VA’s analysis did not address some services included
in the CBO model, including long-term care, dental care and care for non-veterans, Percy said. “Those
(CBO) projections do not incorporate some costs for recent combat veterans,” Percy said. “The
cost of meeting the demand for VA’s medical care could grow faster if more eligible veterans
choose to enroll.” To see more, go to: www.cbo.gov/ftpdocs/78xx/doc7811/02-15-Veterans.pdf
:: Back to Top ::
USPS Abandons Consolidation Studies for Nine Locations
The U.S. Postal Service abandoned studies on consolidation of area mail processing at nine locations,
mostly in the West and Southwest. The move to cancel the Area Mail Processing (AMP) studies was welcomed
by the American Postal Workers Union (APWU). In a statement, the Postal Service told the APWU that “it
has been determined that there are currently no significant opportunities to improve efficiency or
service through consolidation of mail processing operations” for the nine locations. They are:
Carroll, Iowa, Glenwood Springs, Colo., Hutchinson, Kan., McCook, Neb., Sheridan and Wheatland, Wyo.,
Fox Valley, Ill., and Bryan and McAllen, Texas. The Postal Service has canceled a total of 12 AMPs
this year, and of the 55 AMPs initiated since October 2005, 23 have been halted or placed on indefinite
hold, APWU President William Burrus said on Feb. 12. “We are pleased that so many of these ill-advised
studies have been abandoned,” Burrus said. To see more, go to: www.apwu.org/news/webart/2007/webart-0711-9consolidations_xld-070212.htm
:: Back to Top ::
Bill Would Blunt Military Health Fee Hike
A bipartisan bill would offer some relief to about 6 million active-duty soldiers, National Guard
members, military reservists and their families who are facing dramatic increases in their health insurance
costs. The bill, co-sponsored by Sens. Frank Lautenberg, D-N.J., and Chuck Hagel, R-Neb., would impose “reasonable
and affordable caps” on those proposed increases. For military retirees, for example, the bill
would limit healthcare fee increases to no more than the percentage rise in the cost-of-living adjustments
(COLAs) in military retired pay. The bill, filed Feb. 15, is supported by a coalition of veterans groups,
including the Military Officers Association of America. To see more, go to: www.moaa.org/about/about_newsctr/about_newsctr_moaa/about_newsctr_moaa_070215.htm
:: Back to Top ::
|
