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Before the House Veterans Affairs Committee Subcommittee on Health Regarding The Department of Veterans Affairs Fiscal Year 07 Budget Request for the Veterans Health Administration February 14, 2006

GAO Report 06-359R on “Management Efficiencies” indicated that the VA essentially “manufactured” management efficiencies to fit into the “bottom line” of the approved funding level in fiscal year 2003 and 2004. VVA believes the current system used to determine the amount of funding for veterans’ health care each year is fatally flawed. The current system does not factor in veterans’ demand for services or medical inflation, instead the budget is based on funds that the Office of Management & Budget along with the VA, have determined are available and can be provided. VVA urges the committee to hold hearings on alternative means to fund veterans’ health care and to consider an assured funding bill that bases annual increments on growth in the veteran beneficiary of services population as well as health care inflation.

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