I don't know that it has ever been proposed. Though I think it would be impossible to keep up with every idea that gets proposed by our government. I do think it is a fairly radical idea on solving this problem, but that doesn't mean it won't work or wouldn't get support. I don't know who would oppose it either. Everybody wants better care for our Vets and the right side wants less/smaller government usually. Sounds like a winner to me. Draft up a good letter describing the idea and spread it around. Start getting people to send that letter or similar letters to their representatives. Perhaps a "grass roots" effort could get something like this at least discussed in DC. Obviously the employees of the VA would be against this, the loss of jobs would be a huge hurdle. I don't know if the VA workers are part of a union or not, but unions in general would likely speak out against this. Some research would be helpful. Find out how much money the VA gets, the number of Vets receiving care, the number not getting care, the average cost of good health insurance policies. The idea appears to make sense. Even if it gets legs in DC, the ever popular amendments that have nothing to do with the original bill have the ability to kill it too. The timing for such an idea is good with so many vets coming back from Iraq and Afghanistan.