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IntrodCongressional Research Service

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Introduction to Veterans Health Care


The federal government's role in providing health care to
the nation's veterans can be traced back to World War I.
The veterans' health care system was first developed in
1919 with the enactment of P.L. 65-326, which authorized
the Public Health Service to provide needed care to
veterans injured or sick as a result of military service-
having a disability that is incurred or aggravated during
active military, naval, or air service (today known as a
service-connected disability). In 1924, with the enactment
of the World War Veterans Act (P.L. 68-242), veterans with
no service-connected disability but who were financially
unable to pay for care were also given access to
Department of Veterans Affairs (VA) health care, thus
creating a safety net mission. Congress has enlarged the
scope of VA's health care mission, and it has enacted
legislation to create new programs and expand benefits and
services. This In Focus briefly outlines the mission,
eligibility and enrollment requirements, health care delivery
system, and funding for veterans health care. Selected
trends in enrollment and budget are provided as well.

Mission of the VA Health Care System
The VA provides health care and health-related services
through the Veterans Health Administration (VHA). VHA's
primary mission is to provide health care services to
eligible veterans and some family members. The VHA is
also statutorily required to conduct medical research, to
train health care professionals, to serve as a contingency
backup to the Department of Defense (DOD) medical
system during a national security emergency, and to
provide support to the National Disaster Medical System
and the Department of Health and Human Services (HHS)
as necessary (38 U.S.C. §§7301-7303; §8111A; §1785).

Eligibility and Enrollment for Care
Not all veterans are eligible to receive care, and not every
eligible veteran is automatically entitled to medical care
from the VHA. The system is neither designed nor funded
to care for all living veterans (The Journal of Law,
Medicine & Ethics, Volume 36, Issue 4, Figure 1, Winter
2008). Eligibility for veterans health care has evolved over
time, and laws governing eligibility have been amended by
Congress many times. The last major eligibility
amendments occurred in 1996 with enactment of the
Veterans' Health Care Eligibility Reform Act of 1996 (P.L.
104-262). This law established two broad eligibility
categories and required the VHA to manage the provision
of hospital care and medical services through a priority
enrollment system.

The first eligibility category includes veterans with service-
connected disabilities, Medal of Honor recipients, Purple
Heart recipients, former prisoners of war, veterans exposed
to toxic substances and environmental hazards such as
Agent Orange, and veterans whose attributable income is


Updated October 24, 2019


not greater than an amount established by a means test.
Veterans who do not meet any of the criteria in the first
category compose the second eligibility category and may
be eligible to receive care through the VHA to the extent
resources permit. Once veterans are determined to be
eligible for care in VHA, most veterans are required to
formally enroll in the VHA health care system to receive
services. Once a veteran is enrolled, the veteran remains in
the system and does not have to reapply for enrollment
annually. Veterans are placed in one of eight priority
enrollment categories. Veterans in some priority enrollment
categories are required to pay co-payments for certain
benefits. Enrolled veterans do not pay any premiums,
deductibles, or coinsurance for their care. This is in contrast
to major medical insurance plans, which typically have
premiums, deductibles, and co-payments.

Trends in Enrollment
As required by the Veterans' Health Care Eligibility
Reform Act of 1996, VHA began formally enrolling
veterans for the first time in FY1999. As shown in Figure
1, just over 4.9 million veterans (18% of all living veterans)
were enrolled in the VHA in FY2000; by FY2019, that
number was estimated to have increased to 9.2 million
enrollees (48% of all living veterans). This increase is due,
in part, to factors such as enrollment of newer veterans
from Operation Enduring Freedom/Operation Iraqi
Freedom/Operation New Dawn (OEF/OIF/OND), a larger
number of female veterans, and economic conditions,
among other factors.

Figure I. VHA Enrolled Veterans, FY2000 to FY2019
      10

      7.5


      5


      2.5

      0   ..
        2000 2002 2004  2006  2008  2010  2012  2014  2016  2018

Source: Chart prepared by CRS based on VA enrollee numbers in
the Department of Veterans Affairs budget justifications.
Note: The FY2019 number is an estimate.
In a given year, not all enrolled veterans receive their care
from the VA-either because they do not need services or
because they have other forms of health coverage, such as
Medicare, Medicaid, or private health insurance. Figure 2
shows the percentage of enrollees who used the VHA per
year since FY2000. Generally, around two-thirds of


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