Veterans and Congressional leaders — including many fellow and powerful Democrats — have taken up arms against President Obama‘s proposed new law that would have private insurers pay for the medical care of veterans who have received war wounds that result in amputations and post-traumatic stress disorder, including those that come as a result of service in areas such as Iraq and Afghanistan.

Republicans and Democrats have launched a barrage of criticism against the president for what some call “insensitive” treatment of war heroes, while the White House says it will move forward with its proposal.

“It’s unconscionable and it is an insult to our veterans who have been hurt overseas,” said Rep. Mike Michaud (D-Maine) during a committee hearing last week on a proposed budget that contained the legislation.

The bill is intended to save the Veterans Administration $530 million a year by charging the wounded veterans’ private insurance for care rendered for war wounds. Currently, the VA pursues reimbursement from third party carriers for non-war related services.

Sen. Patty Murry (D-Wash.), a senior member of the Veterans’ Affairs and Budget committees, was quoted by the Washington Post as saying, “the VA has an obligation to pay for service-related care, and they should not be nickel-and-diming vets in the process.”

She added, ”This proposal means that family members will be hurt because, if a vet meets the maximum [benefit amount] for their insurance, their wife and kids would not be able to get insurance [benefits] anymore. . . . God forbid a wounded vet from Iraq has a wife who gets breast cancer.”

Sen. Jim Webb, a Virginia Democrat who was wounded in the Vietnam War, said that implementation of such a law would present enormous hurdles, unless federal mandates are enacted that force insurers to pay for pre-existing conditions, including those suffered on the battlefield.

The commander of the American Legion, the nation’s largest veterans organization, met with Obama to discuss his concerns about the proposal, but left the meeting with little consolation, according to The Hill.

Legion Commander David Rehbein said he was “clearly angered by the meeting,” during which it “became apparent … that the president intends to move forward with this unreasonable plan,” The Hill wrote.

White House spokesman said President Obama ”understands any concerns” the veterans groups have but also told them that his budget increases overall spending for veterans by 11 percent, as was reported in the Washington Times.

The American Legion leaders who met with the president contend that they were told by Mr. Obama that he was committed to slashing the VA budget, and suggested that if they didn’t like his plan they should come up with an alternative approach that would save more than $540 million.