I want to thank Chairman Michaud for holding this hearing to discuss H.R. 4241, a bill he introduced to allow for an increase in flexibility regarding payments to State veterans homes.

The partnership between the Federal Government and States to provide nursing home care to a broad range of veterans is a long-standing and honored tradition of cost sharing. 

To my understanding, the intent of H.R. 4241 is to provide a remedy for problems certain State homes are experiencing with the implementation of what is known as “the 70 Percent Program.”  The program, established under Public Law 109-461, requires VA to reimburse State homes at a higher rate for the cost of care provided to veterans with a 70 percent or higher service-connected condition.

The 70 Percent Program was meant to provide equity of access to VA resources for service-connected veterans residing in State Homes.  However, despite our best intentions, this initiative has regrettably resulted in unintentional consequences.

The 70 Percent Program was meant to assist State Veterans Homes in providing the highest quality nursing home care to veterans.  And, if the 70 Percent Program is in fact doing the opposite and making it harder to meet that worthiest of goals, then it is a problem I am anxious to correct.

I look forward to hearing from our panelists as we examine this issue and am very hopeful that as a result of this hearing, we will be able to find a way to resolve this issue without the need of a legislative remedy.  

I thank our witnesses for their time and participation.