Summary

Reforming eligibility for health care benefits offered by the Department of Veterans Affairs (VA) would pose a major challenge even with unlimited resources. But with Congress and VA facing mounting pressure to limit VA health care spending as part of governmentwide efforts to reduce the deficit, this challenge has become even greater. This testimony discusses (1) the problems that VA's current eligibility and contracting provisions create for veterans and providers, (2) the relationship between inappropriate admissions to VA hospitals and VA eligibility provisions, (3) proposals to reform VA eligibility and contracting rules and their potential impact on the deficit, and (4) options to achieving budget-neutral eligibility reform.