Veterans' Medical Care Appropriations and Funding Process (CRS Report for Congress)
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| Release Date |
Revised Dec. 27, 2004 |
| Report Number |
RL32548 |
| Report Type |
Report |
| Authors |
Sidath Viranga Panangaia, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
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. Veterans are enrolled in priority groups that determine payments for service and
nonservice-connected medical conditions. In FY2004, Congress appropriated $28.4 billion for VHA
to be spent through an account structure composed of four new accounts: medical services, medical
administration, medical facilities, and medical and prosthetic research.
For FY2005, the Administration submitted its budget request to Congress using a new account
structure that consolidated several accounts into two "business lines": medical care, and medical and
prosthetic research. The Administration requested $29.1 billion for VHA for FY2005.
On September 9, 2004, the House Committee on Appropriations reported the FY2005
appropriations bill for the Departments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies for FY2005 ( H.R. 5041 ) ( H.Rept. 108-674 ). The Committee
rejected the alternative appropriations structure recommended by the Administration and
recommended $30.3 billion for VA medical programs for FY2005. This is an increase of $1.2 billion
over the President's request and $1.9 billion over FY2004. On September 21, 2004, the Senate
Committee on Appropriations reported its version of the FY2005 VA-HUD appropriations bill,
S. 2825 ( S.Rept. 108-353 ). Under S. 2825, as reported, VHA would have
received $30.4 billion in FY2005. This is a $2 billion increase from FY2004, and $1.2 billion more
than the President's request. On November 20, 2004, both the House and Senate adopted the
conference agreement to accompany the Consolidated Appropriations Act, 2005 ( H.R. 4818 , P.L. 108-447 ). The bill was signed into law on December 8, 2004. Under P.L.108-447 , VHA
would receive $30.3 billion in FY2005 -- an increase of $1.2 billion over the FY2005 appropriation
request, and $1.9 billion over FY2004.
In its budget submission to Congress, the Administration also proposed several legislative and
regulatory changes to increase certain copayments and other cost- sharing charges for lower-priority
veterans and to reduce copays for certain veterans. The House and Senate Committees on
Appropriations, and the final conference agreement did not accept any of the Administration's
cost-sharing proposals for VHA. This report will not be updated.
