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HEHS-95-84R 1 (1995-04-20)

handle is hein.gao/gaobackum0001 and id is 1 raw text is: United States (3 O General Accounting Office Washington, D.C. 20548 Health, Education and Human Services Division B-254664 April 20, 1995 The Honorable Lane Evans Ranking Minority Member Subcommittee on Compensation, Pension, Insurance, and Memorial Affairs Committee on Veterans' Affairs House of Representatives Dear Mr. Evans: The Department of Veterans Affairs' (VA) health care system faces an uncertain future in today's rapidly changing health care marketplace. Among the most significant changes that could affect VA is the rapid growth of managed care in both public and private health care programs. As part of last year's health care reform debate, you asked us to identify barriers that could impede VA's efforts to develop and market competitive managed care plans. We presented the preliminary results of our work at your June 29, 1994, hearing on the administration's proposed Health Security Act.' We reported that multiple barriers hinder VA's efforts to establish competitive health plans and that VA officials believe legislative action, such as the veterans health care provisions contained in the Health Security Act, would be necessary if the Congress wants VA to compete with private- sector health plans.2 However, many other barriers could, we reported, be addressed through administrative actions. Enclosure 1 contains a listing of these barriers. Following the demise of health care reform legislation near the end of the 103rd Congress, we agreed with your office to refocus our efforts on determining what VA is doing to address barriers to managed care through administrative actions. To identify VA's efforts to address barriers through such actions, we provided VA officials with a list of the 33 'See Veterans' Health Care: Efforts to Make VA Competitive May Create Significant Risks (GAO/T-HEHS-94-197, June 29, 1994). 2The Health Security Act would have authorized VA to restructure its health care facilities into a series of managed care plans to compete with private-sector plans. GAO/HEHS-95-84R Barriers to VA Managed Care /j, ()- ,Y

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