BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AJR 71
                                                                  Page  1

          ASSEMBLY THIRD READING
          AJR 71 (Wolk)
          As Amended May 5, 2004
          Majority vote 

           VETERANS AFFAIRS    10-0                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Parra, Dutton, Kehoe,     |     |                          |
          |     |Matthews, Mountjoy,       |     |                          |
          |     |Nakano, Runner, Salinas,  |     |                          |
          |     |Wiggins, Wyland           |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Urges the federal government to guarantee funding for  
          veterans health care.   Specifically,  this bill  :  

          1)Makes a series of findings regarding federal health care  
            programs for veterans.

          2)Urges Congress and the President to provide a guaranteed level  
            of funding for veterans health care.

          3)Urges the United States (U.S.) Department of Veterans Affairs  
            (DVA) to restore the benefits to all priority groups of  
            veterans. 

          4)Urges DVA to seek out veterans eligible for benefits and  
            informed them and their families of the programs and benefits  
            available.

           EXISTING LAW  provides for federally funded health care benefits  
          for veterans of the U.S. armed forces.  Law and regulations  
          establish eligibility criteria and priority categories for  
          veterans based on income and on the cause and severity of the  
          veterans injury or illness.  DVA has established eight levels of  
          priority for receipt of DVA health services.  Currently,  
          veterans in Priority Group 8 are not eligible for DVA health  
          care benefits.

           FISCAL EFFECT  :  None

           COMMENTS  :  DVA provides health care to veterans based upon  
          various eligibility criteria and the amount of funding provided  
          by Congress.  As rising health care costs have caused more  








                                                                  AJR 71
                                                                  Page  2

          veterans to seek DVA health care, funding limits have forced DVA  
          to ration care for veterans. Rationing has taken the form of an  
          eight-level priority group system, patient co-pays and a  
          comprehensive assessment of DVA health facilities.

          DVA is not currently providing care to veterans in Priority  
          Group 8, the lowest group.  Priority Group 8 includes veterans  
          ". . . who agree to pay specified copayments with income and/or  
          net worth above the VA Means Test threshold and the HUD  
          geographic index."

          Critics argue that veterans earned, through their service to the  
          nation, the health care they were implicitly or explicitly  
          promised.  Congress, therefore, should fully fund the health  
          care costs of veterans.  DVA asserts that it is providing  
          quality health care to those veterans who need it within the  
          constraints of the funding made available by Congress.

           Analysis Prepared by  :    Burt McChesney / V.A. / (916) 319-3550  
          FN: 0005173