THE VA FUNDING PIE - SMALLER PIES MEAN
SMALLER PIECES
IT'S THE SIZE OF THE PIE…NOT HOW YOU SLICE IT!

Dear Colleague:

Over the last couple of years, I have had many inquiries about the Department of Veterans Affairs' new allocation model, Veterans Equitable Resource Allocation (VERA). Unfortunately, the new funding model was put in place at the same time the VA health care budget was effectively frozen for five years. Not surprisingly, VA medical centers all over the country have begun to feel the pinch and VERA has become the unwitting scapegoat.

Congress directed VA to develop a new funding methodology to better ensure that veterans with the same eligibility priorities had equal access to VA health care regardless of where they lived. The resulting model was based on the number of unique veterans VA served in each area, rather than how much the facilities spent on health care delivery.

My own network, Central Plains, Veterans Integrated Service Network 14, was a "loser" under the Veterans Equitable Resources Allocation model. The network took an initial "hit", and since then, its funding has eroded as a result of inflation. Its management has had to consider a number of difficult options to prepare for the even more austere years ahead. I'm sure many of you could share similar stories.

Is this VERA's fault? The simple answer is NO!

While the Veterans Equitable Resource Allocation (VERA) model is often cited as the cause of the shortfall in funding for VA facilities, VERA is not the only, or even the primary, cause of funding shortfalls being experienced throughout VA. In fact, while VERA is not perfect, both the General Accounting Office and Price-Waterhouse view VERA as a considerable improvement over VA's old allocation model.

The unavoidable fact is that there are just not enough resources to go around. If the funding "pie" was larger, and especially if it was adequate, I believe concerns about VERA would be greatly diminished. If you have concerns about funding for the VA Medical Care facilities that serve your veterans, I urge you to join me in supporting a decent budget for veterans' health care in fiscal year 2000 and beyond.

Many Democrats on the VA Committee recommended more that $2 billion over the President's budget. With my encouragement, Senator Wellstone introduced and passed a $2 billion "add-on" for VA health care in FYs 2000-2004

in the Senate. Unfortunately the conference agreement accepted a smaller increase for FY 2000 and decreased funding in FY 2001 and later years which will have devastating effects on the VA health care system. Could you operate a business on a budget that offered you a 10% increase one year then cut funding below current services levels the next?

I encourage you to raise your concerns about funding, as opposed to the allocation model, with members of the Appropriations Committee. They must understand that adequate funding for VA health care is one of Members' highest priorities and we must work together to obtain the funding the system requires to fix the problems with access to quality health care services that is besetting the system everywhere. I hope you will join me in raising your concerns with the Appropriations Committee.

Sincerely,

LANE EVANS
Ranking Democratic Member
Committee on Veterans Affairs