Should Veterans be Eligible for Premium Assistance Tax Credits If They’re Not Enrolled in VA Healthcare? (H.R. 2372)

What is H.R. 2372?

(Updated October 31, 2019)

This bill would allow veterans who are eligible for medical services through the Dept. of Veterans Affairs (VA) but aren’t enrolled to receive premium assistance tax credits. It would codify the Internal Revenue Service’s (IRS) current policy into law, and would also apply to the modified premium assistance tax credit under the American Health Care Act after 2019 (if it’s enacted).

Argument in favor

In light of the issues at the VA, veterans should be able to get healthcare from other sources and be eligible for tax credits if they’d rather buy private insurance.

Argument opposed

A technical fix to the American Health Care Act isn’t a good enough solution for improving care and coverage for America’s veterans.

Impact

Veterans who choose not to enroll in VA healthcare and buy private insurance instead; and the IRS.

Cost of H.R. 2372

The CBO estimates that enacting this bill would have no effect on spending or revenues, but that could change if the American Health Care Act is enacted.

Additional Info

In-Depth: Sponsoring Rep. Sam Johnson (R-TX) introduced this bill to ensure that veterans who choose not to enroll in VA healthcare are eligible to receive premium assistance tax credits for private insurance:

“Our veterans have put their lives on the line to defend freedom and our individual liberties, and they are promised affordable access to access to health care through the VA when they return home. However, some veterans choose to forgo this health care option. That’s where my VETERAN Act comes into play. This bill would provide veterans the certainty that they will continue to have access to health care if they decide the VA isn’t the best fit for their health care needs.”

Democrats on the House Ways and Means Committee opposed this legislation, which had been included in initial drafts of the American Health Care Act but were removed in order to comply with the Senate’s Byrd Rule. In the bill’s committee report they said it “masquerades as help for veterans, but fails to address underlying flaws in the Republican health care bill that harm veterans” through loss of coverage and higher costs.

This legislation passed the Ways and Means Committee on a party-line 23-15 vote, and has the support of 38 Republican cosponsors in the House.

Media:

• Sponsoring Rep. Sam Johnson (R-TX) Press Release
  
• CBO Cost Estimate
  
• Military Times