Young recruits were told the benefits would be covered if they stayed in the service 20 years.

Those promises, made by military recruiters, were not backed up by law, a lower court ruled late last year.

The high court refused to consider overturning that decision, which would have helped up to 1.5 million people, but could have cost the government as much as $15 billion.

"It is not enough to hold parades or tie yellow ribbons," the court was told by the Military Officers Association of America, one of the groups supporting veterans in the case. "We must honor their commitment and sacrifice by assuring that the government honors its commitments to them."

Veterans received free benefits until 1995, when the Pentagon ended coverage for veterans over 65 because they were eligible for Medicare. Many of them had to purchase supplemental policies.

The government had been sued by Air Force and Navy veteran William Schism and Army and Air Force veteran Robert Reinlie. Schism died earlier this year.

Their lawyer, George "Bud" Day of Ft. Walton Beach, Fla., said the war in Iraq shows the importance of taking care of soldiers.

"Kids are going for five days with no sleep, getting shot at, having to shoot at people. It gives people a realistic understanding of why you make those kinds of promises to make up for the low pay," said Day, a retired Air Force colonel who was a prisoner of war in Vietnam with Sen. John McCain, R-Ariz.

In ruling against the veterans, the U.S. Court of Appeals for the Federal Circuit was sympathetic. The judges said that they "can do no more than hope Congress will make good on the promises made in good faith" to soldiers entering the service between 1941 and 1956.

Congress agreed to pay free health care for the older veterans beginning last year. The Supreme Court case involved reimbursement to veterans for their out-of-pocket expenses for private insurance coverage or supplements. The case is Schism vs. United States, 02-1226.