Veterans' Medical Care: FY2006 Appropriations

Publication Date: January 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Health; Military and defense

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Abstract:

The Department of Veterans Affairs (VA) provides benefits to veterans who meet certain eligibility rules. Benefits to veterans range from disability compensation and pensions to hospital and medical care. VA provides these benefits to veterans through three major operating units: the Veterans Health Administration (VHA), the Veterans Benefits Administration (VBA) and the National Cemetery Administration (NCA). VHA is primarily a direct service provider of primary care, specialized care, and related medical and social support services to veterans through an integrated health care system.

The President's FY2006 budget requested $30.4 billion for VHA: $20.0 billion for medical services, $4.5 billion for medical administration, $3.3 billion for medical facilities, and $393 million for medical and prosthetic research. VHA medical care collections (e.g., copays, third-party insurance payments) for FY2006 are expected to be $2.2 billion.

On May 26, 2005, the House passed its version of H.R. 2528, the Military Quality of Life and Veterans Affairs and Related Agencies appropriations bill for FY2006. This bill provided $28.8 billion for VHA. On June 23, 2005, VA announced a budget shortfall of more than $1 billion from its FY2005 enacted level for veterans health programs. On August 2, 2005, the Department of the Interior, Environment, and Related Agencies Appropriations Act (P.L. 109-54) was signed into law, providing $1.5 billion in supplemental appropriations for veterans medical services for FY2005.

On September 22, 2005, the Senate passed its version of H.R. 2528, the Military Construction and Veterans Affairs and Related Agencies appropriations bill for FY2006. The Senate appropriated a total of $31.3 billion for VHA.

On November 30, 2005, the Military Construction, Military Quality of Life and Veterans Affairs Appropriations Act, 2006 (P.L.109-114) was signed into law. This act provided $22.5 billion for medical services, of which $1.2 billion was designated as an emergency appropriation. P.L. 109-114 also appropriated $2.9 billion for medical administration, $3.3 billion for medical facilities, and $412 million for medical and prosthetic research. On December 30, 2005, the Department of Defense Appropriations Act, 2006 (P.L.109-148, H.Rept. 109-359) was signed into law, providing an additional $225 million for VHA for FY2006 and excluding VA programs from a 1% across-the-board rescission for all non-emergency discretionary programs. The total amount of funds appropriated for VHA for FY2006 is $29.3 billion. The total amount of funds available for VHA is $31.5 billion, including $2.2 billion in collections.

In its FY2006 budget submission to Congress, the Administration proposed several legislative and regulatory changes to increase certain copayments and other cost-sharing charges for certain veterans. P.L.109-114 did not include any of the Administration's cost-sharing proposals for VHA. This report will be not be updated.