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Federal Court Says Some Vets Owed Lifetime Medical Care

A federal appeals court has ruled that the government owes free medical care for life to certain veterans of World War II and the Korean War because recruiters promised them such care if they served a minimum of 20 years. A three judge panel unanimously ruled that the government had broken a contractual obligation to military retirees in 1956 when Congress changed the rules making health care for military retirees available only on a `space available` basis and further restricted it in 1966. Under the 1966 law, retired members of the armed forces and their dependents had to rely on health care benefits provided through Medicare which charges a premium of $50 a month and generally does not cover prescription drugs.

The lawsuit was filed by two retired Air Force lieutenant colonels from Fort Walton Beach, Florida, seeking compensation for the Medicare premiums and thousands of dollars in other costs they were forced to pay after they were denied free health care services at military installations. Their lawyer, George E. `Bud` Day has filed a motion to extend the court ruling to the entire class of retirees who served 20 years and entered the military before the enactment of the 1956 law, when the free lifetime benefit promise ended. Approximately three million retired veterans and their spouses could collect as much as $10,000 each if the appeals court panel ruling is upheld. A Justice department spokesman said the government has not decided whether to appeal the ruling.

Congress passed legislation last October to expand a managed care military health care system known as TRICARE to provide lifetime benefits beyond age 65 for 20-year vets and their dependents. The plan is to go into effect October 2001. About 1.4 million Medicare-eligible military retirees and their family members are also now eligible for prescription drugs as of April 1, 2001.

Sources: `Fed Court Rules on Veterans Care,` David Ho, The Associated Press, February 21, 2001. `Court Says Some Veterans Owed Lifetime Medical Care,` Robert Pear, The New York Times, February 21, 2001. `Retired Officers Fight Health Care Denial,` Edward Walsh, The Washington Post, February 19, 2001.


This article first appeared in Volume 6, Issue 6 of "The Social Security and Medicare Advisor" newsletter (May/2001).  To receive future editions of "The Advisor" in its special, free e-mail version, please click here.


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