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So veterans can be refused care at the VA?
According to the VA press secretary, Peter Kasperowicz, who is quoted in the article in the OP, the answer to your question, is that doctors can refuse to treat people for these reasons.
"refused care" seems to imply that the entire VA is refusing treatment.
Whereas in reality, the VA is attempting to dodge the appearance of responsibility by creating a policy which allows individual doctors to choose to create an issue.
But, the VA Still retains responsibility for the actions of their agents who are acting under the policies the VA enact.
That will be an issue, if it ever happens.
If something can go wrong, it will go wrong.
A policy which creates situation which will cause an issue to occur is also an issue.
imho.
ymmv