Next, I will talk about S. 1576. The VFW supports this bill to amend Section 1710 of Title 38 to extend the eligibility for health care of veterans who served in Southwest Asia during the Persian Gulf War to December 31, 2011. The cause and cures for the disabilities collectively known as Persian Gulf Illness have yet to be found. The termination of health care for those veterans suffering from this affliction would be both premature and wrong.

S. 1680, the VFW also strongly supports this legislation that would extend the protection afforded by the Soldiers' and Sailors' Civil Relief Act to those National Guard members who are called to service by their State Governors at the request of the President. This is the right thing to do.

S. 2003. The VFW supports the Veterans Benefits and Pension Protection Act that would prohibit unscrupulous companies from taking advantage of veterans by bilking them out of their compensation pension or DIC, in return for a so-called lump-sum payment.

Next, S. 2025. The VFW strongly supports this bill, the Living American Hero Appreciation Act, that would increase the amount of the special pension that Medal of Honor recipients receive from $600 per month to $1,000. I emphasize our view that this legislation does not attempt to quantify their honor, but is a sign of the deep respect that all Americans have for these, the very bravest of us all.

Next under consideration, S. 2043. The VFW strongly supports this bill that extends through December 2008 certain long-term care provisions in the Veterans' Millennium Health Care Act. I would share with you or deep disappointment that the provisions of this act have not been properly acted upon some 3 years after they were put into law.

Mr. Chairman, I see that my time is about to expire. I, once again, express our sincere appreciation for inviting our testimony. Thank you.

[The prepared statement of Mr. Cullinan follows:]

PREPARED STATEMENT OF DENNIS CULLINAN, DIRECTOR, NATIONAL LEGISLATIVE SERVICE, VETERANS OF FOREIGN WARS

Mr. Chairman and members of the committee:

On behalf of the 2.7 million men and women of the Veterans of Foreign Wars of the United States and our Ladies Auxiliary, I wish to express our sincere appreciation for inviting us to testify here today. The activities of this committee are paramount to the proper and timely provision of care, benefits and services delivered to this nation's veterans by the Department of Veterans Affairs (VA). Today's extensive legislative hearing reflects yet another example of your long and proud tradition of service to this nation's defenders in a strong, directed and bipartisan manner.

S. 984

The first bill under discussion today is S. 984, the Veterans Road to Health Care Act of 2001. This bill directs the Secretary of Veterans Affairs to pay the travel expenses of a veteran whose travel is in connection with treatment or care for a nonservice-connected disability at a non-Department of Veterans Affairs facility if the treatment or care: (1) is provided upon the recommendation of Department medical personnel; and (2) is not available at the Department facility at which the recommendation is made.

It also requires the Secretary, in calculating travel expenses under the Veterans Beneficiary Travel Program, to utilize the current Federal mileage reimbursement rates for use on official business of privately owned vehicles.

The VFW supports this measure in that it would ensure access to care for nonservice connected veterans needing VA care and that it would bring the VA rate into conformance with Federal mileage standards. These adjustments are clearly the right thing to do for our veterans. Many must travel long distances just to receive the most basic of services at VA facilities. Right now, they receive just a fraction of the full amount. And in many cases, after the $6 roundtrip deductible is subtracted, veterans receive nothing for their expenses. Although the amount of money this entails may seem small, to our veterans, many of whom are on fixed or limited incomes, it is invaluable. Additionally, we urge the adoption of language as called for by VFW Resolution No. 666 asking the Congress to repeal sections 111(c)(1) and (2) of 38 U.S.C. authorizing deductibles from portions of travel pay made to VA patients.

S.1408

The VFW strongly supports S. 1408, the Veterans' Copayment Adjustment Act. This bill amends veterans' health care program provisions to conform income thresholds for copayment for outpatient medications to those in effect for hospital and nursing home care and medical treatment. Increases in such co-payments are contingent upon the collection of co-payments for outpatient visits for medical services for certain veterans. Viewed by the VFW as being essential toward providing access to low income veterans to VA medications, it is supported by VFW Resolution 635 calling for equity in VA Health Care Copayments. It should also be noted that the VFW sent a letter to the Secretary last year calling for this action. The VFW would also urge consideration of VFW Resolution 639 calling on Congress to exempt all enrollment priority category 5 veterans from having to make medication co-payments.

S. 1517

The VFW supports S. 1517, the Montgomery GI Bill Improvements Act of 2001. This bill acts upon the long-sought VFW objective of amending the basic educational assistance provisions of the Montgomery GI Bill to eliminate the $1,200 pay reduction currently required of service members as a precondition to eligibility for benefits. It also permits certain service members to transfer their entitlement to benefits to their spouses or dependent children. Both VFW Resolution 661 and VFW Resolution 687 support these provisions.

This legislation also extends the period after discharge during which former service members may utilize their benefits and increases benefits available to members of the Selected Reserve called to active duty as part of a contingency operation. This legislation provides for some of the MGIB enhancements called for in VFW Resolution 650, “A GI Bill For The 21st Century.”

S. 1561

While supportive of this bill to strengthen the preparedness of health care providers within the Department of Veterans Affairs and community hospitals to respond to bioterrorism, we strongly recommend that $250 million be authorized for this purpose in place of the $2 million specified in this measure. The VFW recommended funding level represents our and the Independent Budget's projection as to the actual need in this critical area. Additionally, it is the amount that was called for by Secretary Principi when speaking before the House Veterans' Affairs Committee last fall.

S. 1576

The VFW supports this bill to amend section 1710 of Title 38, U.S.C., to extend the eligibility for health care of veterans who served in Southwest Asia during the Persian Gulf War to December 31, 2011. The cause and cures for the disabilities collectively known as Persian Gulf Illness have yet to be found. The termination of access to VA health care for those veterans suffering from this affliction would be both premature and wrong. VFW Resolution 625 urges support for all Gulf War Vet

erans.

S. 1680

The VFW also strongly supports S. 1680, legislation that would extend the protections afforded by the Soldiers' and Sailor's Civil Relief Act (SSCRA) to those National Guard members who are called to service by their state governors at the request of the President.

The SSCRA was passed in 1940 to help alleviate some of the financial burdens that being called to active duty military service places on the service members. The SSCRA, among other things, temporarily places an interest rate cap on the debts incurred by an individual, including their mortgage, car loans and credit card debt. In addition, it prevents them from being removed from their house or apartment, and from suffering undue consequences from non-payment of taxes while on active duty.

Currently, National Guard members called to service at the request of the President are eligible for SSCRA's protections. Those members of the National Guard called up in support of Operation Enduring Freedom and the Homeland Defense mission, however, were called up by each of the governors at the President's request and, as a result, are not eligible for protection under the SSCRA.

It simply is not fair that these Guardsmen do not receive the same protections. The men and women protecting and securing our airports, nuclear facilities, and other important locations are tasked with the same responsibilities whether they were called to active duty by the governors at the President's request, or by the President himself. These men and women, whose role is so vital, are given every other general benefit of an active duty service member including VA veteran status and Tricare family health insurance.

Extending the financial protections of the SSCRA to these brave men and women corrects the fundamental inequity and oversight in the law. It is clearly the proper and equitable thing to do.

S. 2003

The VFW also supports this bill, the Veterans Benefits and Pensions Protection Act that would prohibit unscrupulous companies from taking advantage of veterans by bilking them out of their compensation, pension, or dependency and indemnity compensation in return for services, securities, or other agreements. Currently, veterans may not directly assign their benefits to a third party. These companies have found a loophole that they unjustly use to defraud veterans wherein they offer a large lump sum payment in return for the veteran's benefits for a period of time. Unfortunately for the veteran, they receive pennies on the dollar for their benefits and compensation. This legislation would close the loophole and prevent these companies from taking advantage of our veterans.

We also applaud the inclusion of this bill's outreach provisions. Informing veterans and their families of the deceitful practices these companies and individuals use can only lessen the chances that these companies will continue to take advantage of our veterans.

S. 2025

The VFW strongly supports this legislation, the Living American Hero Appreciation Act, that would increase the amount of the special pension that Medal of Honor recipients receive from $600 per month to $1,000 per month. In addition, this legislation would automatically enact a cost-of-living adjustment for the special pension in the future.

This legislation also authorizes the VA Secretary to provide a lump sum payment to all special pension recipients for the period between their actions that warranted the Medal of Honor and the actual date they began receiving their special pension. We believe that this provision is especially important to prevent the singling out of individual Medal of Honor winners. This ensures that all these brave men and women are treated equally and fairly.

The provisions of this legislation are much deserved. Nothing can be said to accurately sum up their important and heroic contributions. This legislation does not quantify their honor; it is a sign of the deep respect that all Americans have for these, the very bravest of us all.

S. 2043

The VFW strongly supports this bill that extends through December 31, 2008, the period during which: (1) noninstitutional extended care services will be considered to be medical services required to be provided by the Secretary of Veterans Affairs to eligible veterans; and (2) the Secretary shall be required to provide nursing home care to veterans with service-connected disabilities. The VFW is deeply disappointed that these services, as provided for in the Millennium Health Care Act almost three years ago, have yet to be properly implemented by VA.

S. 2044

The VFW supports this legislation that amends the Veterans Millennium Health Care and Benefits Act to increase the authorization of appropriations for a program to expand and improve the provision of specialized mental health services to veterans. It also requires the Secretary of Veterans Affairs to allocate specified amounts of such funds among programs: (1) identified by the Mental Health Strategic Health Care Group and the Committee on Care of Severely Chronically Mentally Ill Veterans; (2) on post-traumatic stress disorder; and (3) on substance abuse disorder. The VFW places special emphasis on the plight of our homeless veterans and those suffering from PTSD and substance abuse as providing ample evidence of the need for enhancing VA mental health programs.

S. 2074

The VFW also is pleased to offer our support for this important legislation, the Veterans' Compensation Cost-of-Living Adjustment Act, to provide the annual costof-living adjustment to compensation, the clothing allowance, and DIC rates for veterans and their families. It greatly benefits those who are least able to adjust their incomes to keep pace with inflation and is vital to many of our veterans and retirees, many of whom have limited or fixed incomes. VFW Resolution 621 urges the Congress to approve an annual cost-of-living adjustment.

As in past years, we must also point out the inequity of the current rounding provisions. The practice of rounding veterans' compensation down to the nearest whole dollar started as a way of meeting balanced budget goals. Veterans, both in and out of uniform, have done more than their fair share with respect to keeping this nation's fiscal house in order. Although the few dollars savings our veterans would receive each year may not seem like much to you or I, to those on fixed incomes, it could bring some welcome relief. VFW Resolution 620 urges the Committee to end the practice of rounding down veterans' compensation.

S. 2186

The VFW has no objection to this bill, the Department of Veterans Affairs Reorganization Act of 2002, that would increase from six to seven the number of authorized Assistant Secretaries of the Department of Veterans Affairs and would also add Department operations, preparedness, security, and law enforcement to their required functions.

S. 2187

This legislative initiative, the Department of Veterans Affairs Emergency Medical Care Act of 2002, enjoys VFW support. It authorizes the Secretary of Veterans Affairs, during, and immediately following, a disaster or emergency declared by the President, or in which the National Disaster Medical System is activated, to furnish hospital care and medical services to individuals responding to, involved in, or otherwise affected by such disaster or emergency. It also authorizes the Secretary, during such period, to: (1) furnish care and services to veterans without regard to their enrollment in the Department of Veterans Affairs annual patient enrollment system; and (2) give a higher priority to the care of individuals involved in or affected by the disaster or emergency over all other eligible groups except service-connected disabled veterans and active-duty military personnel responding to or involved in such disaster or emergency.

The Secretary is further authorized, during and immediately following such a disaster or emergency, to furnish hospital care and medical services to active-duty military personnel responding to or involved in such disaster or emergency. It provides a priority for such personnel over all other eligible groups except service-connected disabled veterans. It is the VFW's position that the Department be provided with all requisite funding to carry out these actions while continuing to fully provide for the veteran patient workload.

S. 2205

The VFW supports this initiative to clarify the entitlement to disability compensation of women veterans who have service-connected mastectomies and to provide permanent authority for counseling and treatment for sexual trauma.

According to VA statistics, women veterans now make up about 5 percent of enrolled veterans, a percentage that is expected to double over the next two decades. The VFW is committed toward ensuring that women veterans receive all VA compensation that is their due and that they enjoy access to the best possible health care, including for gender-specific medical conditions, in the most appropriate set

ting. The VFW would also urge that such compensation and services also be provided to all male veterans requiring such services. This provision is supported by VFW Resolution 603, which calls for sexual trauma treatment for all veterans.

S. 2209

The VFW is pleased to offer our support for this legislation, the Robert Carey Service Disabled Veterans' Insurance Act, that would make many much-needed changes to the Service-Disabled Veterans' Insurance program (SDVI). SDVI was created to provide insurance for those veterans whose service-connected disability prevents them from receiving commercial life insurance. A recent VA report, Program Evaluation of Benefits for Survivors, studied the various VA insurance programs and determined several problems with SDVI that this legislation addresses.

First, it would increase the maximum coverage to $50,000. The current program has an initial benefit of only $10,000 with the option to purchase $20,000 in supplemental life insurance. Increasing this amount is essential. As VA's report notes, over half of SDVI beneficiaries receive less than $15,000 from all insurance sources—an amount that is far below the recommended insurance level of two to three times the insured's annual income. As SDVI frequently represents the sole, or largest, source of life insurance, the VFW believes that it is imperative that the amount of coverage be increased if VA is to truly meet the intent of the SDVI program.

Second, this legislation changes the actuarial table used to determine premiums for the program. Currently, VA uses an actuarial table from 1941 that does not accurately reflect the improved health and life span all Americans lead due to the developments in medicine and health care over the last 60 years. This outdated table results in veterans paying significantly higher life insurance premiums. Under the current mortality table, for example, a 60-year-old veteran would pay $31.20 per $1,000 of coverage for SDVI. Using the more modern 1980 mortality table, that amount halves to $15.60. Additionally, the outdated table places veterans at an even greater disadvantage when you compare SDVI coverage to what is available on the commercial market. Under a term life insurance plan, that same 60-year-old veteran could pay as little as $4.41 per $1,000 of coverage. The premium rates are unnecessarily high. If VA is to provide insurance at rates comparable to the commercial market, it is essential that the more modern table be used.

This legislation goes a long way towards improving the benefits provided under the SDVI program. The improvements made by this program will greatly aid those veterans who have the greatest difficulty obtaining private insurance coverage. Further, it will encourage more eligible veterans to participate in this worthwhile program. Bringing SDVI's benefits in-line with the private sector is simply the right thing to do for those who have defended our country.

S. 2228

The VFW supports this bill to amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to operate up to 15 centers for mental illness research, education, and clinical activities. Contingent upon the provision of requisite funding, we view this as a valuable initiative toward better serving those whose wounds of war are not physical in nature and whose suffering is often not readily apparent.

S. 2230

The VFW is happy to support this legislation that would make permanent the authority to provide increased financing opportunities to veterans under the VA Home Loan Program by allowing VA to offer conventional and hybrid Adjustable Rate Mortgages (ARMs). Under P.L. 102-547, the VA secretary was authorized to begin a demonstration project to begin offering adjustable rate mortgages through the VA Home Loan program that are similar to the Department of Housing and Urban Development's (HUD) programs.

ARMS allow the mortgagee to periodically adjust the interest rate in accordance with the provisions of the mortgage. ARMS have proven to be very popular alternatives to conventional home financing. They typically offer a lower-than-normal initial interest rate, which may make it easier for our veterans to obtain affordable financing. And, if interest rates drop, the homebuyer can save thousands of dollars above what they would pay using a conventional mortgage.

Despite these advantages, there are some drawbacks. If the interest rates increase, the homebuyer may end up paying more than they normally would, even with the reduced initial interest rate.