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U.S. SENATOR PATRICK LEAHY

CONTACT: Office of Senator Leahy, 202-224-4242

VERMONT


VETERANS AFFAIRS ANNOUNCES CHANGES IN RULES
GOVERNING VA BENEFITS;
RESULT IS SIGNIFICANT INCREASE IN VETERANS FUNDING
FOR
NEW ENGLAND

WASHINGTON (Nov. 21) -- The New England Senate delegation today lauded the decision by the U.S. Department of Veterans Affairs to modify its rules concerning reimbursement rates to VA hospitals by the federal government.  The changes announced by the VA could mean an additional $25 million in funding for VA hospitals in Veterans Integrated Service Network 1, which covers New England.  Previously, the Department of Veterans Affairs had identified three broad categories of reimbursement to VA hospitals.  The announced changes broaden the reimbursement categories, or Veterans Equitable Resource Allocation, to ten, more specific areas of reimbursement, creating the possibility of the additional $25 million.  VISN 1 recently received an additional $6.8 million in funding in the Fiscal Year 2002 Supplemental Appropriations bill passed by Congress earlier this year and is anticipating an additional 7.4% increase in the Fiscal Year 2003 Veterans Affairs measure pending in Congress.  

            In May of this year, the entire New England Senatorial delegation called on Secretary of Veterans Affairs Anthony Principi to request additional funds in the FY02 Supplemental, and to examine the broad, non-specific reimbursement rates which were detrimental to VA hospitals in New England.

            Senator Judd Gregg (R-NH) stated, “The announcement that the Veterans Department has modified its reimbursement rules is fantastic news for Veterans throughout New England.  This new system will make reimbursement payments from the federal government more fair and equitable, and to more accurately reflect the needs of individual hospitals in specific areas of the country.  These are important changes that will make a significant difference for our veterans hospitals that provide a crucial service to the men and women who have put their lives on the line to serve our country.” 

            Senator Jack Reed (D-RI) stated, “Rhode Island and New England veterans’ health care system are in a unique and difficult situation because of the funding formula and each year, despite their best efforts, they face major financial shortfall.  I am grateful for the Administration's formula decision.  It will provide vital assistance to our veterans who committed themselves to protecting this country.” 

            Senator Bob Smith (R-NH), a Vietnam Veteran, said, “I’m excited about this great news, which will help our veterans immensely. We have had a tremendous shortfall in VISN 1 funding, especially in New Hampshire, which contributed greatly to the enormous backlog in patient care, especially in our outpatient facilities. During our meeting with VA Secretary Principi last spring, he assured us of his ongoing efforts to tackle the backlog of veterans claims and improve the quality of care throughout the network.  Today's announcement goes a long way toward achieving that goal.”  

            “This change in patient coding will lead to budgets that more accurately reflect the needs of veterans in Vermont and across New England,” said Sen. Patrick Leahy (D-VT).  “Over the long-term, the New England veterans health care network will receive increased funding.  The entire New England Senate delegation has worked closely with VA in developing this superior, fairer budgeting tool.  It's good to know that these efforts will lead to real improvements in veterans health care.”  

            “This announcement is outstanding news for Veterans in Maine and throughout New England, and it takes a step toward more equitable funding for our region.  I hope that VA Secretary Principi’s visit to the Togus VA Hospital in Maine this fall helped convince him of the importance of providing strong funding to meet both client needs, and eliminate the backlog in treatment that has plagued VA health care in Maine and across the region,” said U.S. Senator Olympia J. Snowe (R-ME).    “Now, we must remain vigilant to assure VA health care receives the federal funding support it needs to sustain these services in the long term.”

            Senator Jim Jeffords (I-VT), a member of the Senate Veterans Affairs Committee, said, “We’ve long felt that the reimbursement system has been unfair to New England and I applaud the VA’s decision.  With the additional funds, I am hopeful that we can reduce the long lines that have plagued the VA in recent months.  This is good news for Veterans in Vermont and across New England.”

            Senator Susan Collins (R-ME) stated, “I’m pleased that Secretary Principi took to heart the message we in the New England delegation delivered to him, which is that increased funding and a change in rules regarding reimbursements are vital to maintaining quality care for veterans in the New England region. This is an important step in keeping our promises to our veterans.”

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