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Monday, August 8, 2011

Veterans’ Medical Care: FY2012 Appropriations


Sidath Viranga Panangala
Specialist in Veterans Policy

The Department of Veterans Affairs (VA) provides benefits to veterans who meet certain eligibility criteria. Benefits to veterans range from disability compensation and pensions to hospital and medical care. The VA provides these benefits through three major operating units: the Veterans Health Administration (VHA), the Veterans Benefits Administration (VBA), and the National Cemetery Administration (NCA).

This report focuses on the VHA. The VHA is primarily a direct service provider of primary care, specialized care, and related medical and social support services to veterans through the nation’s largest integrated health care system. Veterans generally must enroll in the VA health care system to receive medical care. Eligibility for enrollment is based primarily on previous military service, disability, and income. VA provides free inpatient and outpatient medical care to veterans for service-connected conditions and to low-income veterans for nonservice-connected conditions.

The President submitted his FY2012 budget request to Congress on February 14, 2011. The Administration’s FY2012 budget request for VHA (medical services, medical support and compliance, medical facilities, and medical and prosthetic research) is $51.4 billion. The President’s budget is proposing to set up a $953 million contingency fund that would provide additional funds up to $953 million to become available for obligation if the Administration determines that additional funds are required due to changes in economic conditions in 2012. Furthermore, as required by the Veterans Health Care Budget Reform and Transparency Act of 2009 (P.L. 111-81), the President’s budget is requesting $52.5 billion in advance appropriations for the three medical care appropriations (medical services, medical support and compliance, and medical facilities) for FY2013.

On June 14, the House passed the Military Construction and Veterans Affairs and Related Agencies Appropriations bill (MILCON-VA appropriations bill) for FY2012 (H.R. 2055; H.Rept. 112-94). The House-passed measure provides $51.1 billion for VHA for FY2012. This is an increase of 5.2 % over the FY2011-enacted amount and $218 million less than the President’s request. Additionally, H.R. 2055, as passed by the House, provides $52.5 billion in advance appropriations for FY2013 for three of the four accounts—medical services, medical support and compliance, and medical facilities—that make up VHA, same as the Administration’s request. The bill provides $531 million for the medical and prosthetic research account. This is a 4.3% increase over the President’s request of $509 million.

The Senate passed its version of the MILCON-VA Appropriations bill for FY2012 (H.R. 2055; S.Rept. 112-29) on July 20. The Senate-passed version of H.R. 2055 provides a total of $51.2 billion for VHA. This is a 5.3% increase over the FY2011-enacted amount and $168 million less than the President’s request. Similar to the House-passed version, the Senate-passed version of the MILCON-VA appropriations bill for FY2012 provides $52.5 billion in advance appropriations for FY2013. The measure provides $581 million of the medical and prosthetic research account. This is a 14.1% increase over the President’s request and a 9.4% increase over the House-passed amount for this account. Both the House and Senate versions of the MILCON-VA appropriations bill for FY2012 (H.Rept. 112-94; S.Rept. 112-29) did not approve the President’s proposal to set up a $953 million contingency fund.



Date of Report: August 1, 2011
Number of Pages: 23
Order Number: R41944
Price: $29.95

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