GyBill
07-15-2005, 08:41
New Worries About VA Budget Shortfall
Associated Press | July 15, 2005
WASHINGTON - A budget proposal that could push thousands of military veterans out of state nursing homes is causing new worries in light of recently disclosed shortfalls in the Veterans Affairs budget.
The proposal, which would set new eligibility rules for veterans to use state nursing homes, was originally viewed with skepticism by lawmakers when President Bush sent his fiscal 2006 budget to Congress in February. But nursing home operators fear it may find new support now that the VA is facing a $1.5 billion budget shortfall this year and an even larger one next year.
"The homes in the state won't survive if they go through with this," said Bob Shaw, legislative director of the National Association of State Veterans Homes.
Just before July Fourth, the House approved $975 million to meet the veterans health care shortfall this year, and the Senate approved $1.5 billion. The two are expected to work out the difference by the end of the month.
"We're concerned that the VA budget, as the VA presents it, even if they get $1.5 billion or $975 million, is probably still vastly understating what their need is," Shaw said.
Sen. Larry Craig, R-Idaho, chairman of the Senate Veterans Affairs Committee, said Tuesday that the White House is poised to ask Congress for $300 million more. He expressed frustration at the VA's shifting budget estimates.
"The numbers keep going up," Craig said. "It is getting old."
Bush had proposed restricting the VA's long-term care services to those veterans injured or disabled while on active duty, those with severe disabilities, those in need of care after a hospital stay and those requiring hospice or respite care.
That proposal would apply to federally run or contracted facilities and could deny eligibility to 14,000 veterans now in state nursing homes, Shaw said.
The VA pays states $59.36 per day, per veteran for nursing home care. The amount is updated annually, but cannot exceed 50 percent of the cost of care of the veteran. The tighter eligibility rules would mean fewer veterans to subsidize.
The administration also proposed a one-year suspension of construction grants for states to build new veterans nursing homes. That proposal would have the most impact on Texas, which has bids to build two new homes and is considered to have the greatest need for additional veterans nursing homes.
VA Secretary Jim Nicholson told a Senate committee in February that the proposed eligibility limits would save about $496 million in long-term care costs that would be redirected to veteran health care services.
The proposed cuts come as the nation is experiencing a swell in aging veterans and increased demand for long-term care.
The VA estimates the population of veterans 85 years or older enrolling for VA services will total about 681,400 in 2012, up from about 278,400 last year.
House appropriators have said they disagree with the administration's proposed restrictions. They included a provision in spending legislation for next year directing the VA secretary to work with state nursing home officials to come up with "solutions that will give our veterans the best options for quality long-term care at the most reasonable cost to the taxpayer."
But the state nursing home officials want lawmakers to require the VA to get congressional approval before imposing any restrictions on long-term care eligibility.
State-operated veterans nursing homes date back to the Civil War, when states established the first homes to care for returning troops. Congress authorized payments to help maintain homes - about 30 cents per day, per resident - in 1888.
Associated Press | July 15, 2005
WASHINGTON - A budget proposal that could push thousands of military veterans out of state nursing homes is causing new worries in light of recently disclosed shortfalls in the Veterans Affairs budget.
The proposal, which would set new eligibility rules for veterans to use state nursing homes, was originally viewed with skepticism by lawmakers when President Bush sent his fiscal 2006 budget to Congress in February. But nursing home operators fear it may find new support now that the VA is facing a $1.5 billion budget shortfall this year and an even larger one next year.
"The homes in the state won't survive if they go through with this," said Bob Shaw, legislative director of the National Association of State Veterans Homes.
Just before July Fourth, the House approved $975 million to meet the veterans health care shortfall this year, and the Senate approved $1.5 billion. The two are expected to work out the difference by the end of the month.
"We're concerned that the VA budget, as the VA presents it, even if they get $1.5 billion or $975 million, is probably still vastly understating what their need is," Shaw said.
Sen. Larry Craig, R-Idaho, chairman of the Senate Veterans Affairs Committee, said Tuesday that the White House is poised to ask Congress for $300 million more. He expressed frustration at the VA's shifting budget estimates.
"The numbers keep going up," Craig said. "It is getting old."
Bush had proposed restricting the VA's long-term care services to those veterans injured or disabled while on active duty, those with severe disabilities, those in need of care after a hospital stay and those requiring hospice or respite care.
That proposal would apply to federally run or contracted facilities and could deny eligibility to 14,000 veterans now in state nursing homes, Shaw said.
The VA pays states $59.36 per day, per veteran for nursing home care. The amount is updated annually, but cannot exceed 50 percent of the cost of care of the veteran. The tighter eligibility rules would mean fewer veterans to subsidize.
The administration also proposed a one-year suspension of construction grants for states to build new veterans nursing homes. That proposal would have the most impact on Texas, which has bids to build two new homes and is considered to have the greatest need for additional veterans nursing homes.
VA Secretary Jim Nicholson told a Senate committee in February that the proposed eligibility limits would save about $496 million in long-term care costs that would be redirected to veteran health care services.
The proposed cuts come as the nation is experiencing a swell in aging veterans and increased demand for long-term care.
The VA estimates the population of veterans 85 years or older enrolling for VA services will total about 681,400 in 2012, up from about 278,400 last year.
House appropriators have said they disagree with the administration's proposed restrictions. They included a provision in spending legislation for next year directing the VA secretary to work with state nursing home officials to come up with "solutions that will give our veterans the best options for quality long-term care at the most reasonable cost to the taxpayer."
But the state nursing home officials want lawmakers to require the VA to get congressional approval before imposing any restrictions on long-term care eligibility.
State-operated veterans nursing homes date back to the Civil War, when states established the first homes to care for returning troops. Congress authorized payments to help maintain homes - about 30 cents per day, per resident - in 1888.