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VA faces $940 million revenue collection crisis

September 19, 2024 | Veterans Affairs: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal


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VA faces $940 million revenue collection crisis
During a recent government meeting, officials from the Department of Veterans Affairs (VA) addressed significant concerns regarding revenue collection and budget shortfalls, particularly in light of a report from the Office of Inspector General (OIG) that highlighted a staggering $940 million in missed billings over an 18-month period.

Miss Laura Duke, a key VA official, confirmed the accuracy of the OIG's findings, which indicated that the VA had failed to bill for $665 million during the initial 13 months of the review and an additional $55 million each month thereafter. This raised questions about the VA's revenue collection strategies, especially in relation to the assertion by Mr. Del Bene that the agency had collected 100.7% of planned collections through February 2024.

Duke explained that the VA had utilized the downtime of the billing system to revisit older claims, which allowed them to recover some lost revenue. However, she acknowledged that while they expect to collect the outstanding amounts, the timeline for doing so remains uncertain, depending on the processing of claims and the readiness of their data systems.

The discussion also touched on the VA's responsibility to communicate effectively with veterans regarding their co-pays. Officials stated that they provide detailed information about billing and payment options, but concerns were raised about the potential for veterans to feel overwhelmed by multiple bills, especially those on fixed incomes.

In response to inquiries about the impact of delayed collections on the VA's budget, Duke clarified that the agency does not plan to request supplemental appropriations to cover these shortfalls. Instead, they anticipate that improved collection efforts in the upcoming fiscal year will help mitigate the financial gaps.

The meeting underscored the ongoing challenges the VA faces in managing its revenue collection processes and the implications for veterans' care funding. As the agency works to enhance its billing practices and address the backlog of claims, the focus remains on ensuring that veterans receive the benefits and services they are entitled to without unnecessary financial strain.

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