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         SCongressional Research Service

             Inforring the legislative debate since 1914



Introduction to Veterans Health Care


December  16, 2016


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 when
Congress passed P.L. 65-326 in 1919 and authorized the
Public Health Service to provide needed care to veterans
injured or sick as a result of military service (today known
as a service-connected disability)-a disability that is
incurred or aggravated during active military, naval, or air
service. In 1924, with the passage of the World War
Veterans Act (P.L.68-242), veterans with no service-
connected disability 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 has enacted legislation expanding benefits, new
programs, 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). Its
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
back up 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
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, p.680, 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 passage of the Veterans' Health Care Eligibility
Reform  Act of 1996 (P.L. 104-262). This law established
two eligibility categories and required the VHA to manage
the provision of hospital care and medical services through
an enrollment system based on a system of priorities.

The first eligibility category is 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 are
equal to or below an established means test. The second


eligibility category is veterans with no service-connected
disabilities but who also have attributable incomes above an
established means test. Once veterans are determined to be
eligible for care in VHA, veterans are required to formally
enroll in the VHA health care system in order to receive
services and are placed in one of eight priority groups based
on the first or second eligibility category. Once a veteran is
enrolled, the veteran remains in the system and does not
have to reapply for enrollment annually. Enrolled veterans
do not pay any premiums, deductibles, or coinsurance for
their care. Some veterans are required to pay co-payments.
In contrast, major medical insurance plans 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 (19% of all veterans) were
enrolled in the VHA in FY2000; by FY2016,  that number
was estimated to have increased 86%, to 9.1 million
enrollees. 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 FY20 16
MIMONS
                                      S.***
                                    `  ° 9.7S     illilon
             7.5   _. .. +~_ .._ enrollees
   5 -
     4.9 million
     enrollees
  2.5  2000

  0
  2000   2002  2004  2006  2605  2010  2032  2014 2016
Source: Chart prepared by CRS based on VA enrollee numbers in
the Department of Veterans Affairs budget justifications
Note: FY2000-FY2015 numbers are actual; the FY20 16 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 are unique patients
in a given year. Generally, around two-thirds of enrollees in
a given year are VHA patients and receive some or all of
their health services from VHA.


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