WASHINGTON ( CNN ) -- Veterans groups are angry after President Obama told them Monday that he is still considering a proposal to have treatment for service-connected injuries charged to veterans ' private insurance plans . President Obama , with Veterans Affairs Secretary Eric Shineski , spoke with leaders of veterans groups Monday . Leaders of the country 's most prominent veterans groups met Monday at the White House with Obama , Veterans Affairs Secretary Eric Shinseki , White House Chief of Staff Rahm Emanuel and Steven Kosiak , the director in charge of defense spending for the Office of Management and Budget . Some of the veterans groups were caught off guard when the president said the administration is still thinking about the idea as a way of generating $ 540 million for the Department of Veterans Affairs in 2010 . The groups and some members of Congress have been very vocal in opposing the idea . The message , according to some of the people in the room , was that if the groups do not like this idea , they need to come back with another way of saving or raising revenue for the VA. `` I got the distinct impression that the only hope of this plan not being enacted is for an alternative plan to be developed that would generate the desired $ 540 million in revenue , '' Cmdr . David Rehbein of the American Legion said in a written statement . But the chairman of the Senate Committee on Veterans ' Affairs vowed Tuesday that the plan would never gain the panel 's approval . `` VA 's sacred duty is to care for veterans injured in honorable service to our nation , and the department should not turn to wounded warriors ' private insurance to pay for combat injures , '' said Sen. Daniel Akaka , D-Hawaii . `` Under my chairmanship , the Veterans ' Affairs Committee will not advance any such legislation . '' White House spokesman Robert Gibbs said no decision has been made . `` The president and the [ veterans service organizations ] had a good conversation , and veterans can be assured that the president understands any concerns that they would have , '' Gibbs said . `` The budget the president has proposed represents an historic increase in discretionary spending to take care of our wounded warriors : those that have been sent off to war , have protected our freedom and have come back wounded . '' He added , `` this president takes very seriously the needs of our wounded warriors that have given so much to protect our freedom on the battlefields throughout the world . '' Obama did most of the talking for the administration in the session with veterans representatives , participants said . Shinseki did not speak much in the meeting , which was described as `` professional '' by David Gorman , executive director of Disabled American Veterans . The president was sympathetic to the needs of veterans , Gorman said , but insisted that the insurance companies are getting away with not paying for anything . `` The vets are paying premiums to insurance companies , and that is a free ride that needs to stop , '' Gorman said in describing the president 's message to the group . The groups oppose the idea because they believe that the government has a moral obligation to pay for service-connected injuries for the men and women who risked their lives serving the country . `` This flies in the face of the VA 's covenant to cover all service-related health-care expenses , '' said Jay Agg , a spokesman for AMVETS . The groups also say that the cost of treating service-connected injuries could lead to veterans quickly maxing out their benefits in third-party insurance , risking coverage for not just them but their families , who are also covered under the plans . In addition , they foresee premiums rising to cover the cost of treating the service-connected injuries . `` We are going to go back in and fight this thing tooth and nail , '' Gorman said . He said the president complained that instead of commending the significant budget increase for the VA -- an 11 percent increase in 2010 and $ 25 billion over five years -- the groups are complaining about this proposal . But Gorman said that the issue of third-party billing is fundamental to the VA and that it is a `` distraction '' from discussing the budget increases . Another group , the Iraq and Afghanistan Veterans of America , said that although it is encouraged by the increase in money for veterans ' health care , the billing proposal is not acceptable . `` Veterans of all generations agree that this proposal is bad for the country and bad for veterans . If the president and the OMB want to cut costs , they can start at AIG , not the VA , '' said Paul Rieckhoff , the group 's executive director , in a written statement . The opposition is not a surprise to the White House . The groups had sent a letter opposing the idea when it was just a rumor . Last week , Congress weighed in when members of both the House and Senate Veterans Affairs committees told Shinseki at separate meetings that they objected to the plan . Shinseki was told by Sen. Patty Murray , D-Washington , that it would be `` dead on arrival . '' Rep. Mike Michaud , D- Maine , said that if it were presented , he would oppose the entire budget . It is unconscionable , and it is an insult to our veterans who have been hurt overseas , '' Michaud said . `` It is just unbelievable that anyone would ever think of doing that in this budget . '' At the time , Shinseki would say only that the idea was under consideration but no decision had been made . The groups have another meeting with the White House on Thursday to suggest other options . Both AMVETS and Disabled American Veterans believe that the VA could raise more revenue by being more aggressive about pursuing billings for non-service-connected treatments . Increasing third-party billing for non-service related injuries by 10 percent , suggested Agg , would free up more money to help service-related injuries . Another idea that will be presented would be to bill Medicare . `` This , we believe , would more easily meet the president 's financial goal , '' said Rehbein , of the American Legion . Gorman said his group is willing to concede some money in the VA budget to avoid the insurance proposal . `` If it comes down to this issue , which is fundamental to the VA and what it should do , we are willing to give up a couple billion to salvage this issue , '' Gorman said . A VA spokesman deferred all questions to the White House . White House officials were not immediately available for comment . CNN 's Rachel Streitfeld contributed to this report .
Obama plan would charge veterans ' private health care for service-related injuries . Groups say government has moral obligation to pay for service-connected injuries . Comment: