IMMEDIATE RELEASE
HOUSE PASSES AMENDED BENEFITS BILL EXPANDING HEALTH, INSURANCE
COVERAGE

May 25, 2001


Bill headed to White House for President's signature

WASHINGTON, D.C. - Just before Memorial Day was a fitting time for the House to pass a "family-friendly" benefits bill expanding health and insurance coverage for surviving dependents
of veterans and servicemembers, House VA Committee Chairman Chris Smith (NJ-4) said Thursday.

"This bill is a reminder of what is owed to the survivors of our servicemen and women, and although much remains to be done by this Congress, it is a harbinger of what we can accomplish
to keep our commitment to veterans," he said after passage of the Senate-amended H.R. 801, the Veterans' Survivor Benefits Improvements Act of 2001.

The amended H.R. 801, now on its way to the White House for the President's signature, would:

· Expand health coverage under the Civilian Health and Medical
Program-Veterans Affairs (CHAMPVA) for
survivors of veterans who died from a service-connected disability.
Under this measure, CHAMPVA beneficiaries
who are Medicare-eligible would receive coverage similar to "TRICARE
for Life" improvements Congress gave to
Department of Defense beneficiaries last year. Such coverage
would be automatic for CHAMPVA beneficiaries
already eligible for Medicare on the date of enactment. Future
Medicare-eligible CHAMPVA beneficiaries would
have to obtain Medicare Part B coverage before receiving the
new benefit.

· Expand the Servicemembers Group Life Insurance (SGLI) program
to include spouses and children. Spousal
coverage could not exceed $100,000 and child coverage could not
exceed $10,000. Upon termination of SGLI, the
spouse's policy could be converted to a private life insurance
policy.

· Make the effective date of increased maximum SGLI coverage
from $200,000 to $250,000 retroactive to October
1, 2000. This would provide increased benefits to survivors of
servicemembers who died in recent training accidents
or acts of terrorism while on duty.

· Require the VA to make eligible dependents aware of VA services
through the media and other outreach efforts

"Memorial Day is a day of national remembrance for the sacrifices made by our veterans to keep this nation free," Chairman Smith said. "The enactment of HR 801 will not only help the thousands
of families who need our compassion and assistance; it is part of a growing recognition by our country that our veterans are not forgotten, and that we need to remember and pay tribute to their service 365 days a year, not just on holidays and celebrations."

"I want to thank Ranking Member Lane Evans (IL-17) for all of his work and support for this legislation," Smith added. "Bipartisanship is alive and well on the House Veterans' Affairs
Committee."

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