You are generally correct.
Veterans who served on active duty are eligible for VA Healthcare. There IS a limit of income, but it is very steep. Roughly $42K for a single veteran and it rises with dependent total. That is for free healthcare. There is a copay that starts from $42K up to something like $75K at which point, yes, there is a cutoff. If treatment is for a service connected condition, there is no cutoff.
If a veteran qualifies for some disability level (this has ALWAYS been badly worded, it’s not disability; it is injury) that is active duty connected, then there is zero income threshold and all such veterans for all illness are covered.
It’s complicated. In a very general way, this new announcement involves almost no one who did not already qualify anyway. It’s an election year.
Veterans are currently 8% of the US population, and falling rapidly as Vietnam war draftees die off. It is the one agency of the US govt with bipartisan support.
Thank you for explaining