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H.R. 1005, a Bill to Amend Title 38, United States Code, to Improve the Provision of Adult Day Health Care Services for Veterans 1 (May 22, 2017)

handle is hein.congrec/cbo3560 and id is 1 raw text is: 




                 CONGRESSIONAL BUDGET OFFICE
                            COST ESTIMATE

                                                                   May  22, 2017


                                 H.R.   1005
        A bill to amend  title 38, United States Code,  to improve   the
          provision  of adult day  health care services  for veterans

   As ordered reported by the House Committee on Veterans' Affairs on May 17, 2017


H.R. 1005 would require the Department of Veterans Affairs (VA) to enter into provider
agreements or contracts with State Veterans Homes (SVHs) to provide adult day health
care (ADHC)  to veterans with severe service-connected disabilities (SCD) at rates above
VA's current per-diem rates; per-diem rates cover not more than half of the cost of the care.
SVHs  are facilities operated by state governments that offer nursing home care,
domiciliary care, or ADHC primarily to veterans and receive some of their funding from
the federal government. Under the bill, VA would pay for ADHC at a higher rate equal to
65 percent of the prevailing rate for nursing home care in that region.

Under current law, VA is required to comply with the Federal Acquisition Regulation
(FAR) for agreements and contracts with SVHs. The FAR is an extensive and complex set
of rules governing the federal government's purchasing processes. VA has been unable to
secure agreements or contracts with any SVH because of the contractual requirements
under the FAR (mostly related to reporting, compensation, and fringe benefits). As a result,
VA  would face challenges in entering into agreements or contracts under the bill and CBO
expects that VA would continue to pay the SVHs at the current per-diem rate. Therefore,
CBO  estimates that implementing the bill would have no budgetary effects.

Enacting the legislation would not affect direct spending or revenues; therefore,
pay-as-you-go procedures do not apply. CBO estimates that enacting H.R. 1005 would not
increase net direct spending or on-budget deficits in any of the four consecutive 10-year
periods beginning in 2028.

H.R. 1005 contains no intergovernmental or private-sector mandates as defined in the
Unfunded Mandates  Reform Act, and would not affect the budgets of state, local, or tribal
governments.

The CBO  staff contact for this estimate is Ann E. Futrell. The estimate was approved by
H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis

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