Penny Wise and Disgusting

We weren’t going to say a word about bank, automaker or insurance company bailouts with taxpayer dollars; economics are not really our thing. But an administration plan to save $540 million by forcing civilian insurance companies to cover claims by military veterans for service-related injuries is beyond the pale. For our government to propose such a scheme at the same time it is spending BILLIONS with not much accountability is disgusting.

We weren’t going to say a word about bank, automaker or insurance company bailouts with taxpayer dollars; economics are not really our thing. But an administration plan to save $540 million by forcing civilian insurance companies to cover claims by military veterans for service-related injuries is beyond the pale. For our government to propose such a scheme at the same time it is spending BILLIONS with not much accountability is disgusting.

The idea surfaced in testimony by Veterans Affairs Secretary Eric Shinseki – a retired Army general who should know better. He told a Senate committee that the plan was “a consideration,” and that “the VA’s proposed budget for next year included it” as a way to increase revenue. But “a final decision hasn’t been made yet.”

President Obama, Secretary Shinseki and Chief of Staff Rahm Emanuel met with a group of veterans’ organization leaders yesterday. The American Legion commander said he was “deeply disappointed and concerned” when the President reiterated the plan. The Legion points to several practical problems for the soldiers inherent in forcing their private insurance companies (which are supposed to pay for civilian-related medical care) to pay:

• Depending on the severity of the medical conditions, maximum insurance coverage limits could be reached through treatment of the veteran’s condition alone…leaving the rest of the family without health care benefits.

• Many insurance companies require deductibles to be paid before any benefits are covered.

• Private insurance premiums could be elevated to cover service-connected disabled veterans and their families, especially if the veterans are self-employed or employed in small businesses unable to negotiate more favorable pricing.

• Some employers, especially small businesses, would be reluctant to hire veterans with service-connected disabilities due to the negative impact their employment might have on obtaining and financing company health care benefits.

But the real problem is not practical – it is moral, and the Obama Administration appears willing to sell out its moral obligation to our armed forces for $540 million.

Words fail us – and regular readers know that words almost never fail us.

If there can be $750 BILLION in the TARP program, including $50 BILLION for mortgage bailouts and $85 BILLION for AIG; if the government can spend $25 BILLION bailing out automakers; if Congress can think of EIGHT THOUSAND pet projects on which it wants to spend taxpayer dollars, how is it possible that the White House and VA think wounded soldiers, sailors, airmen and Marines should be asked for additional personal financial sacrifice?

Senator Grassley, speaking of AIG and others spending government funds on employee bonuses, said, “The first thing that would make me feel a little bit better toward them if they’d follow the Japanese example and come before the American people and take that deep bow and say, I’m sorry, and then either do one of two things: resign or go commit suicide.”

He later said he didn’t mean that they should actually kill themselves, but rather show some of the shame that the Japanese traditionally show when they have done something egregious. A little of the Japanese example would serve the President and the VA well, too.