Aumua and HVAC Question VA on Budget Shortfall
Washington, D.C. – Wednesday, Congresswoman Aumua Amata, The House Veterans Affairs Committee (HVAC) conducted a hearing today to, Receive the Secretary's Testimony regarding the Pending VA Health Care Budget Shortfall and System Shutdown. The hearing, which was just announced last week, was called to address recent revelations disclosed by VA officials regarding a budgetary shortfall for the year.
"The fact that the VA is coming to us halfway through the year, demanding more money to fix their mismanagement of the VA's healthcare system is unacceptable," said Amata. "And to top it off, they want to access the same account to cover this shortfall that was specifically put into place last year to provide flexibility in where our veterans can obtain care, should they meet certain federal requirements. I know that the Choice program is essential to the veterans who live in my home district of American Samoa and I am wary of allowing the VA to use the funds directed to that account for other purposes," continued Amata.
At the June 25th Full Committee hearing on the state of VA's fiscal year (FY) 2015 budget, Deputy Secretary Gibson confirmed a $2.6 billion budget shortfall in VA's Medical Services account, largely driven by higher than anticipated demand for non-VA care and expensive new Hepatitis C treatments.
On July 13th, the VA transmitted a legislative proposal to Congress to address the shortfall. The proposal would allow up to $3 billion of Choice program funds to be used for non-VA care with no more than $500 million allocated to Hepatitis C treatments. A letter to the Chairman from the Deputy Secretary that accompanied the proposal stated that, "it is essential that Congress pass legislation to provide the requested budget flexibility by the end of July 2015. If Congress does not take action by this date, VA will have no other option but to defer all remaining care in the community authorizations until October 1, 2015."
The VA has stated that the Department would have to begin shutting down Veterans Health Administration operations on August 20th, should Congress not provide budget flexibility by that point.
In response, the Chairman has drafted a bill that would require VA to submit a proposed plan to Congress outlining what a single standardized non-VA care would entail. Such a program to be called the "Veterans Choice Program" would incorporate the strengths of VA's current authorities, to include Choice. This bill would also provide VA with temporary authority to use Choice funds for other non-department care of which $500M may be specified for pharmaceutical expenses related to Hepatitis C treatments.
"While I am disappointed that the VA has returned to Congress this year to ask for more money during this time of budgetary restrictions, to fix their own shortfalls, we will never deny our veterans the services or care which they have so rightfully earned. That is why I am supporting the Chairman in his efforts to work with the VA in order to ensure the continued care for our veterans," concluded Amata.
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