WASHINGTON -- Department of Veterans Affairs (VA) collections from insurance companies that reimburse the government for some veterans' health care reached record levels in recent months as the number of veterans seeking care at VA facilities continued to climb.
In each of the last five months, collections topped $100 million. In May, VA received a record $123 million. Since 1997, VA has collected $3.8 billion, all of it retained by VA to enhance medical care.
"Because of the hard work of VA staff nationwide, as well as their use of improved technology, we are sending more accurate claims to insurance carriers and getting better returns on our medical expenditures," said Secretary of Veterans Affairs Anthony J. Principi. "Veterans and other taxpayers can be assured that we are getting as much reimbursement as we can, as efficiently as possible, and it's all put back into medical care."
Since VA gained authority in 1986 to seek reimbursement from third-party insurers and assess copayments for furnished care to certain veterans with annual incomes above an amount set by law, collections have increased from $24 million to an estimated $1.2 billion this fiscal year. Before 1997, collected funds were deposited with the U.S. Treasury. Since then, VA has been able to keep the money to enhance patient care.
VA does not make collections for the treatment of service-connected conditions.
VA facilities have begun sending bills electronically to insurance firms through a national clearinghouse. These electronic data exchanges result in faster claims to insurers and faster payment to VA because the software edits the claims for errors, often eliminating time-consuming reworking.
VA plans to replace its current billing and receivables software systems with a commercial off-the-shelf software package that will streamline processes at medical centers by removing the potential for human error. As a result, medical centers will be able to generate more accurate claims to health insurance companies.
"These technological improvements and some new processing methods should result in even greater reimbursements to VA, and ultimately improved health care services for veterans," Principi said.
