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                                                                                             Updated July 12, 2017

Implementation of the Veterans Choice Program (VCP)


In response to wait time manipulation allegations and
access issues at many Department of Veterans Affairs (VA)
hospitals across the country, Congress passed the Veterans
Access, Choice and Accountability Act of 2014 (VACAA).
On August 7, 2014, the bill was signed into law (P.L. 113-
146, as amended).

               Background Resources
 *    For wait time issues, see VA Office of Inspector General
      (0IG), Administrative Summaries of Investigation Regarding
      Wait Time (http://bit.ly/2gLEnAr)
 *    For a detailed provision-by-provision explanation of the
      act, see CRS Report R43704, Veterans Access, Choice, and
      Accountability Act of 2014 (HR. 3230; P.L 113-146)
 *    For a more in-depth discussion on implementation of the
     VCP see CRS Report R44562, The Veterans Choice
     Program (VCP): Program Implementation

Section 101 of VACAA authorized the Veterans Choice
Program (VCP) -a temporary program that provides
veterans the flexibility to receive medical care in the
community if that is their preference. The VCP generally
covers all medical care services, including diagnostic and
laboratory tests, among others. Emergency care, dialysis
care, and long-term nursing home care are not covered.
The VCP is in addition to several existing statutory
authorities that allow the VA to provide care outside of its
health care system. Generally, these statutory authorities
fall into three broad categories: (1) contracts to purchase
care, (2) non-contracted medical care purchased on a fee for
service basis from providers in the community, and (3)
emergency care when delays may be hazardous to a
veteran's life or health.


The VCP was to end either when the $10 billion in
mandatory funding included in VACAA was fully obligated
or no later than August 7, 2017. Enacted on April 19, 2017,
P.L. 115-26 eliminated the sunset date of August 7 and
authorized the VA to continue the VCP until the $10 billion
was fully obligated. At the time of enactment of P.L. 115-
26, the VA had indicated to Congress that about $1 billion
of the funding for VCP could remain unobligated by
August 7. However, in mid-June 2017, VA notified
Congress that due to the increased authorization of
appointments, there had been higher rate of usage of VCP
funds, and VCP would not be able to continue past August
15, 2017, since all the remaining funds for VCP would be
fully obligated by then. As of June 9, 2017, $9.2 billion of
VCP funds had been obligated and $7.1 billion had been
expended. According to the VA, at least $3.5 billion in new
mandatory budget authority would be needed to continue
VCP through FY2018. (The VA estimates that
approximately $252 million per month is obligated for
VCP.)


To% prons t fud  shortf u1
To prolong the funds for VCP, on June 12, 2017, the VA
provided guidance to VA medical facilities on optimizing
funding for VA community care. Among other things:
* Veterans who are eligible based on statutory criteria (see
   below) will continue to be eligible to use VCP.
* Choice First criteria-that is, care not offered at the
   veteran's primary VA medical facility-will no longer
   apply. In May 2015, the VA provided guidance to VA
   medical facilities that VCP should be the primary
   program to be used when patients are waiting for care or
   need care that cannot be provided at the veterans'
   primary facility.
* Veterans who do not qualify for VCP because their
   required care is not offered at the veteran's primary VA
   medical facility will be referred to another VA medical
   facility or a federal facility such as a Department of
   Defense medical facility, Indian Health Service (IHS),
   or Tribal Health Facility, or to other community care
   providers not participating in VCP.

VCP     igi,.,i i, ',
To participate in the VCP, a veteran must be enrolled in the
VA health care system and meet one of the following
criteria:
* the veteran cannot schedule an appointment within 30
   days of the veteran's preferred date or a date determined
   clinically appropriate by a VA provider; or
* the veteran resides more than 40 miles from his or her
   closest VA medical facility with a full-time primary care
   provider; or
* the veteran resides 40 miles or less from a VA medical
   facility and faces an unusual or excessive burden in
   accessing such a facility due to geographical challenges;
   or
* the veteran resides in a state without a full-service VA
   medical facility that provides hospital care, emergency
   services, and surgical care and resides more than 20
   miles from such a facility (this criterion applies only to
   veterans residing in three states: Alaska, Hawaii, and
   New Hampshire).

w , VCP                Adr', s:
The VACAA provided 90 days from the date of enactment
to establish the temporary VCP. VA awarded contracts to
two existing VA contractors-Health Net Federal Services,
LLC and TriWest Healthcare Alliance Corporation-to
serve as third-party administrators (TPA) of the VCP. In
their TPA role, TriWest serves the western United States
and mid-South regions; Health Net serves the remainder of
the country.


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