Summary: Demand for inpatient services offered by the Department of Veterans Affairs (VA) could drop by about 18 percent if employers nationwide were required to either provide health insurance for their workers or pay a tax that would be used to obtain coverage. Similarly, demand for VA outpatient services could drop by about nine percent. Demand for VA-sponsored nursing home care, however, would be largely unaffected because most reform proposals provide limited long-term care coverage. Under a nationwide universal health plan, the impact could be even greater, with demand for VA inpatient care plummeting by about 47 percent. Likewise, use of VA outpatient care could drop by about 41 percent. The actual decrease, including the impact on nursing home usage, could vary significantly depending on the type of universal coverage program adopted. Although many veterans would continue to seek VA treatment, the magnitude of the likely decrease in demand for VA-sponsored health care--should either employer mandates or universal coverage be enacted--suggests that the VA health system should be included in any debate on American health care reform.
