Takano Rejects GOP Push to Make Disabled Veterans Fund Others’ Benefits

WASHINGTON— Today, the House Veterans’ Affairs Committee held a Full Committee Hearing on two bills: H.R. 6047 - The Sharri Briley and Eric Edmundson Veterans Benefits Expansion Act of 2025 and H.R. 4077 - GUARD Veterans’ Health Care Act.

The Sharri Briley and Eric Edmundson Veterans Benefits Expansion Act of 2025, introduced by Congressman Tom Barrett (MI-07), would increase home loan fees on disabled veterans with a disability rating of 70 percent or less after their first use of VA home loans. The funds generated from these fees would provide for a modest increase in compensation benefits for veterans’ surviving spouses and catastrophically disabled veterans by increasing Dependency and Indemnity Compensation (DIC) and Special Monthly Compensation (SMC), respectively.

“An increase in SMC is long overdue. So too is an increase to the woefully low DIC, although I believe this limited increase doesn’t go far enough. But a veteran should never foot the bill for another veteran’s benefits, and that is what this bill is attempting to do. Veteran benefits are the responsibility of the American people—a responsibility that should never be placed on the backs of disabled veterans. Veterans can’t afford additional fees, especially at a time when they’re already facing rising costs in their day-to-day lives,” said Ranking Member Mark Takano.

“I am also deeply concerned by the Republicans’ choice to build barriers to benefits based on a veteran’s disability rating percentage. All disabled veterans stand to benefit from VA home loans as they pursue the American dream, a dream they put their lives on the line for,” continued Takano.“Republicans need to find a better way to achieve these benefit increases, and we know that they can. This Administration allocates funds to its priorities -- billions of dollars for tax breaks for the wealthy and border security. But still, they need disabled vets to pay for our most vulnerable veterans and survivors? The way this legislation was written gives me serious misgivings. I commit to finding a solution to get these families the benefits they have earned, but this bill, as written, is untenable.”

“I find it completely unacceptable that Republicans can find the money to pay for billionaire tax cuts but have now decided to increase costs on the brave men and women who have put themselves in harm's way to serve our country. The Republicans’ proposal will make life more expensive for disabled veterans,” said House Veterans’ Affairs Committee Member Congresswoman Kelly Morrison. “House Democrats are committed to finding a solution that ensures every one of our veterans gets the benefits and care they deserve.”

Alternatively, the bipartisan, bicameral GUARD Veterans’ Health Care Act, introduced by Congressman Lloyd Doggett (TX-37), gives VA the authority to seek reimbursement from veterans’ Medicare Advantage (MA) and Medicare Part D plans for any healthcare services veterans who are enrolled in these plans receive at VA. This legislation also strengthens VA’s ability to recover payments from all third-party payers for care it furnishes to veterans by establishing enforcement authority and the ability to collect civil monetary penalties from parties that fail to reimburse VA in a timely manner.

Currently, VA is statutorily prohibited from billing Medicare for the healthcare services it furnishes to veterans. For veterans who enroll in private Medicare Advantage and Part D plans, this leads to taxpayers paying twice for veterans’ healthcare—first, in the form of the capitated rates paid to Medicare plans, which the plans receive regardless of whether enrollees use any services—and second, in the form of appropriations for VA’s direct care system. For years, private insurers offering MA and Part D plans have marketed them to veterans by offering zero-dollar monthly premiums or cash-like monthly rebates to encourage enrollment. The MA plans collect capitated payments from CMS for their veteran enrollees, while the veterans themselves receive most or all of their healthcare at VA. This leads to more than $20 billion in duplicative spending each year.

Unlike the Sharri Briley and Eric Edmundson Veterans Benefits Expansion Act of 2025, the GUARD Veterans’ Health Care Act would not be paid for by veterans, but by the private health insurance companies that offer Medicare Advantage and Medicare Part D plans. Funds collected from the plans would be deposited into VA’s Medical Care Collections Fund and returned to funding veterans’ healthcare.

“Insurance companies are capitalizing on a loophole that allows them to make billions of dollars per year by enrolling veterans who never use their services. The longstanding prohibition on VA being able to recoup the cost of the services it provides to veterans enrolled in Medicare Advantage and Medicare Part D plans has created significant waste of taxpayer dollars to the benefit of large health insurance companies. We need to end this predatory practice and reinvest these funds into VA’s healthcare system,” said Ranking Member Takano.

“Big health insurers have found a nifty way to make an estimated?$100?billion profit off veterans and taxpayers: they collect premiums, but taxpayers cover the cost of care. These wasted double payments mean veterans are missing out on critical resources that could be reinvested in delivering more and better care at the VA, such as hiring more providers, purchasing medical equipment, surgical supplies, and devices, and expanding available services at VA clinics,”?said Congressman Doggett, the sponsor of the bill.?“To obtain genuine savings and improve veterans’ health, Congress and the Administration must tackle the insurance lobby. Taxpayers, our veterans, and those at the VA dedicated to serving them deserve better.”

The full recording of the hearing can be viewed here.

Click here for the Veterans of Foreign Wars' thoughts on H.R. 6047.

Click here for The American Legion’s thoughts on H.R. 6047.

Click here for the Disabled American Veterans’ thoughts on H.R. 6047.

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