But AMVETS director King said Emanuel didn't ask for suggestions in Wednesday's meeting.

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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.

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The AmVets service organization is "encouraged" by the VA's response to the situation, and pleased to see they caught the error, said spokesman Ryan Gallucci.

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"We stood firm on our stance that there is no way to support charging veterans' insurance companies for service-connected treatment, " said Jim King, executive director of AMVETS, a leading veterans' advocacy organization.

CNN: Obama dropping vets insurance proposal

Obama "has been very engaged with the veterans community and he's asked for counsel with the veterans organizations, including AmVets, all along the way, " said Ryan Galluci, an Army veteran who now works with AmVets -- a group that represents about 250, 000 military veterans and their families.

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