There is a story that the VA, with the support of the Obama administration, is considering a plan to change VA care to be provided via private insurers -- the plan has been met with a lot of resistance. Senators described the plan as DOA: "dead on arrival."
Veterans in this country, despite all of the problems that have been reported in recent years -- experience health care in a way that no other American can hope for. A veteran makes an appointment for medical care (and there have been some reported long wait times, although to be fair, I often have to wait several weeks to see a doctor on my employer's insurance) and arrive on the day to see the doctor. When they are done, they walk out the door. No payment necessary. No insurance checks, no waiting to see if procedures are covered by their insurance.
In the end, veterans in this country, despite the problems, have health care that any American would love to have. I'm not sure if this is a plan to work everyone into this public/private hybrid that Obama envisioned during the election, but to mess with VA care by switching to private insurers is political suicide. Veterans like their care. They deserve it. It's been around for decades. The only thing they want is for it to be better, and they definitely don't want to change it.