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GAO-06-359R 1 (2006-02-01)

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        Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548



          February 1, 2006

          The Honorable Daniel K. Akaka
          Ranking Member
          Committee on Veterans' Affairs
          United States Senate

          The Honorable Lane Evans
          Ranking Member
          Committee on Veterans' Affairs
          House of Representatives

          Subject: Veterans Affairs: Limited Support for Reported Health Care Management
          Efficiency Savings

          The Department of Veterans Affairs (VA) provides a uniform set of health care
          services to eligible veterans who enroll to receive such care and seek it from VA.
          These services include preventive and primary health care, a full range of outpatient
          and inpatient services, and prescription drugs. VA provides additional services, such
          as nursing home and dental care and other services, as required by law for some
          veterans and makes these services available to other veterans on a discretionary
          basis as resources permit. Most of the nation's 24 million veterans are eligible for
          some aspect of VA's health care services if they choose to enroll. In fiscal year 2005,
          about 7 million veterans were enrolled to receive VA health care services. In that
          year, VA planned to provide health care services to about 5 million veterans based on
          its initial budget request of $ 30.2 billion.' Funding for VA's health care program has
          increased substantially in recent years.

          Congress appropriates funds annually for VA to provide health care services to
          eligible veterans. Congressional budget deliberations start when the President

          1For fiscal year 2005, the President requested $27.8 billion in appropriations and $2.4 billion in estimated
          collections, together amounting to a request for $30.2 billion in discretionary budget authority to the Veterans
          Health Administration (VHA) for providing health care. See Budget of the United States Government-Appendix,
          Fiscal Year 2005, at 869-70, 873. In the Departments of Veterans Affairs and Housing and Urban Development,
          and Independent Agencies Appropriations Act, 2005, Pub. L. No. 108-447, div. 1, 118 Stat. 3285, 3287-89 (Dec. 8,
          2004), Congress ultimately appropriated $28.3 billion for health care. Later in fiscal year 2005, in response to the
          President's request for $975 million in supplemental appropriations, Congress provided an additional $1.5 billion
          in supplemental appropriations for veterans' health care to be available through fiscal year 2006. See the
          Department of the Interior, Environment, and Related Agencies Appropriations Act, 2006, Pub. L. No. 109-54, title
          VI, 119 Stat. 499, 563-64 (Aug. 2, 2005). Finally, in the Budget of the United States Government-Appendix, Fiscal
          Year 2006, the President reported that VA's estimated collections for fiscal year 2005 would be $1.95 billion. Id. at
          893.


GAO-06-359R Limited Support for VA's Efficiency Savings

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