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Congress scrambles to close VA health care budget gap.


Congress has provided the VA with an additional S 1.5 billion to cover a major shortfall Shortfall

The amount by which the capital required to fulfill a financial obligation exceeds available capital.

Notes:
Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual.
 in veterans health care. The extra money is on top of $28 billion lawmakers provided last December for health care as part of the VA's regular appropriation The designation by the government or an individual of the use to which a fund of money is to be applied. The selection and setting apart of privately owned land by the government for public use, such as a military reservation or public building.  for the current fiscal year which ends Sept. 30.

The VA admitted in June that it faced a critical budget shortage, although officials told Congress they had known about the problem since April. That sent lawmakers scrambling See scramble.  to come up with money to close the gap and demanding answers about what caused the funding crisis.

"The need for additional funding was obvious long before the Administration's revelations;" said National Commander James E. Sursely. "As early as December 2004, news reports began appearing that some VA medical facilities were running out of money and faced huge deficits. This latest funding crisis provides further evidence that the current budget and appropriations process simply does not provide an adequate, reliable source of funding for veterans medical care."

Part of the Shortfall. VA officials said, stemmed stemmed  
adj.
1. Having the stems removed.

2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses.
 from an unanticipated increase in the number of patients, including returning Iraq and Afghanistan veterans, but the rising cost of long-term care long-term care (LTC),
n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders.
 also was to blame. And to make up for that short-age, the Bush Administration asked Congress for an extra 5975 million for the current fiscal year.

The Senate reacted swiftly by attaching SI.5 billion in emergency funds for veterans health care to the fiscal 2006 Interior-Environment spending bill (H.R. 2361). And for good measure the amendment was added to the Senate version of the Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security
Department of Homeland Security

executive department - a federal department in the executive branch of the government of the United States
 appropriations bill (H.R.2360).

The House, on the other hand, passed a 5975 million 2005 supplemental appropriation (H.R. 3130) based on the Administration's initial request.

Then the Administration asked Congress for another $300 million for veterans health care in 2005.

With the size of the problem growing, lawmakers agreed on the Senate's S1.5 billion add-on A purchase of additional goods before payment is made for goods already purchased.

An add-on may be covered by a clause in an installment payment contract that allows the seller to hold a security interest in the earlier goods until full payment is made on the later goods.
 to the Interior-Environment spending bill.

In addition to meeting the 2005 shortfall, the Administration also said veterans health care would need S2 billion more than the President originally requested for the new fiscal year that begins Oct. 1.

At this writing, the Senate Appropriations Committee In the United States government, the Appropriations Committee can refer to either:
  • the United States House Committee on Appropriations
  • the United States Senate Committee on Appropriations
 had included the additional funds in its version of the fiscal 2006 Military Construction and Veterans Affairs Veterans Affairs is a term of the business that deals with the relation between a government and its veteran communities, usually administered by the designated government agency.  spending bill (H.R. 2528).

The House-passed version of H.R. 2528 does not contain any additional funds for 2005, but provides S21 billion for veterans medical services for 2006. The more generous Senate version provides $23.3 billion for veterans health care.

Differences between the House and Senate versions of the bill must be resolved before it is sent to the President.

"As this latest funding crisis in veterans health care has unfolded, it has become even more apparent that the current budgeting and appropriations process simply does not work." said Washington Headquarters Executive Director David W. Gorman. "The VA must have an adequate, reliable source of funding for veterans medical care."

The DAV See WebDAV.  and other members of the Partnership for Veterans Health Care Budget Reform believe that the best solution is to enact legislation that will provide a reliable, predictable funding stream for veterans health care. Assured funding will enable the VA to efficiently and effectively plan for and meet the growing needs of our nation's sick and disabled veterans, especially as thousands of Americans returning from the wars in Iraq and Afghanistan will need VA health care for decades to come."
COPYRIGHT 2005 Disabled American Veterans
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:Veteran Affairs
Author:Autry, Dave
Publication:DAV Magazine
Geographic Code:1USA
Date:Sep 1, 2005
Words:580
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