Think about it. Why do we have veterans' hospitals? Are not private sector hospitals good enough? Why not simply enroll veterans in the AHA? Depending on a means test, all veterans could be entitled to an "X" subsidy, resulting in many of them receiving it completely free.
Why not?
Because the majority of Veterans get only a selected level of care.
Generally, at the top you have those retired, either from completing 20+ years of service, or those medically retired. They are eligible to full care from the VA.
Then you have students and the indigent. They are also entitled to full VA care, but only during the time they are in school, or until they get back on their feet and can get regular health care.
Then finally you have those with Service Connected disabilities. This includes people like me, where we are only entitled to treatment of the medical condition that we got while in the military,
and nothing else. I can go to a VA facility and get treatment for my Right Knee, or hearing aids if my hearing degrades any more, or for my sleep apnea. But I can't go in for any other reason. Period.
And the main reason the VA exists is to cover that last class of veterans. People who were injured in the service of their country, and therefore are entitled to lifelong treatment for their medical condition. A "subsidy" would not cut it, why would I have to pay copays and other money out of my pocket to pay for something they are responsible for taking care of?
Now granted, I do not use the VA, have not for well over a decade. I found the frustration and bullcrap to much, so simply bought my own Motrin (4 200 mg tablets is the same as the single 800 mg tablet I got from the VA). But if my injury was much more severe, I would probably use the VA because it would not be affordable to do otherwise.
But once again, the problem is not really the medical care, it is the administration. The non-medical personnel in the VA who have the bureaucratic mindset and love to tell people "no", or make them wait simply because they have the power to do so.
And the people of this mindset who are not able to get jobs in the VA telling people no and ignoring them all end up working at the state level for the local DMV.