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113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-236
======================================================================
TO ESTABLISH A COMMISSION OR TASK FORCE TO EVALUATE THE BACKLOG OF
DISABILITY CLAIMS OF THE DEPARTMENT OF VETERANS AFFAIRS
_______
September 27, 2013.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 2189]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 2189) to establish a commission or task force to
evaluate the backlog of disability claims of the Department of
Veterans Affairs, having considered the same, report favorably
thereon with amendments and recommend that the bill as amended
do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 20
Background and Need for Legislation.............................. 21
Hearings......................................................... 34
Subcommittee Consideration....................................... 34
Committee Consideration.......................................... 35
Committee Votes.................................................. 36
Committee Oversight Findings..................................... 36
Statement of General Performance Goals and Objectives............ 36
New Budget Authority, Entitlement Authority, and Tax Expenditures 36
Earmarks and Tax and Tariff Benefits............................. 36
Committee Cost Estimate.......................................... 36
Congressional Budget Office Estimate............................. 37
Federal Mandates Statement....................................... 45
Advisory Committee Statement..................................... 45
Constitutional Authority Statement............................... 45
Applicability to Legislative Branch.............................. 45
Statement on Duplication of Federal Programs..................... 45
Disclosure of Directed Rulemaking................................ 46
Section-by-Section Analysis of the Legislation................... 46
Changes in Existing Law Made by the Bill as Reported............. 51
Amendment
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
Sec. 2. Scoring of budgetary effects.
TITLE I--IMPROVEMENT OF CLAIMS PROCESSING
Sec. 101. Evaluation of backlog of disability claims and appeals of
claims of Department of Veterans Affairs.
Sec. 102. Supplemental reports to the Strategic Plan to Eliminate the
Compensation Claims Backlog.
Sec. 103. Expedition of transfer of certain records.
Sec. 104. Claims processors training.
Sec. 105. Report by Comptroller General of the United States.
Sec. 106. Priority for processing claims of the Department of Veterans
Affairs.
Sec. 107. Public availability of certain information about pending and
completed claims for compensation under the laws administered by the
Secretary of Veterans Affairs.
Sec. 108. Annual report on processing of claims.
Sec. 109. Department of Veterans Affairs notice of average times for
processing claims and percentage of claims approved.
Sec. 110. Claim defined.
TITLE II--COMPENSATION AND PENSIONS
Sec. 201. Improvements to authority for performance of medical
disabilities examinations by contract physicians.
Sec. 202. Consideration by Secretary of Veterans Affairs of resources
disposed of for less than fair market value by individuals applying for
pension.
Sec. 203. Bifurcated payments of compensation benefits under laws
administered by the Secretary of Veterans Affairs.
Sec. 204. Pension for certain veterans covered by Medicaid plans for
services furnished by nursing facilities.
TITLE III--OTHER MATTERS
Sec. 301. Review of operation of certain ships during the Vietnam Era.
Sec. 302. Methods for validating certain service considered to be
active service by the Secretary of Veterans Affairs.
Sec. 303. Designation of American World War II Cities.
Sec. 304. Observance of Veterans Day.
SEC. 2. SCORING OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying with
the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
TITLE I--IMPROVEMENT OF CLAIMS PROCESSING
SEC. 101. EVALUATION OF BACKLOG OF DISABILITY CLAIMS AND APPEALS OF
CLAIMS OF DEPARTMENT OF VETERANS AFFAIRS.
(a) In General.--There is established a commission or task force to
evaluate the backlog of claims within the Department of Veterans
Affairs and the appeals process of claims.
(b) Studies.--
(1) Backlog study.--
(A) In general.--The Commission or Task Force, acting
through the subcommittee described in subsection
(d)(2)(A), shall carry out a study on the backlog of
claims, including the current process the Secretary of
Veterans Affairs uses to evaluate claims and appeals
and the laws and regulations applicable to such claims
and appeals. Such study shall be a comprehensive
evaluation and assessment of the backlog of claims, an
analysis of possible improvements to the procedures
used to process such claims, and any related issues
that the Commission or Task Force considers relevant.
(B) Matters included.--In carrying out the study
under subparagraph (A), the Commission or Task Force
shall examine the following:
(i) The backlog of claims, including an
analysis of--
(I) the most effective means to
quickly and accurately resolve all
claims pending as of the date of the
study; and
(II) with respect to the Department,
the annual funding, number of full-time
employees, workload management
practices, and the progress, as of the
date of the study, of the strategic
plan.
(ii) Possible improvements to the claims
process, including an evaluation and
recommendations with respect to whether
substantive and structural changes to the
overall claims process are required.
(iii) In carrying out the evaluation and
recommendations under subparagraph (B), an
examination of--
(I) options that make no major
substantive changes to the claims
process;
(II) options that maintain the
process but make minor changes; and
(III) options that make broad changes
to the process.
(2) Appeals process study.--
(A) In general.--The Commission or Task Force, acting
through the subcommittee described in subsection
(d)(2)(B), shall carry out a study on the anticipated
increase of appeals of claims, including the current
appeals process and the laws and regulations applicable
to such appeals. Such study shall be a comprehensive
evaluation and assessment of such anticipated increase
of appeals claims, an analysis of possible improvements
to the procedures used to process such appeals, and any
related issues that the Commission or Task Force
considers relevant.
(B) Matters included.--In carrying out the study
under subparagraph (A), the Commission or Task Force
shall examine the following:
(i) The anticipated surge in appeals of
claims, including an analysis of--
(I) the most effective means to
quickly and accurately resolve pending
appeals and future appeals;
(II) with respect to both the Board
and the Court of Appeals for Veterans
Claims, the annual funding, number of
full-time employees, workload
management practices, and the progress,
as of the date of the study, of the
strategic plan; and
(III) the efficiency, effectiveness,
and utility of the Veterans Benefits
Management System with respect to
appeals operations, including an
identification of key changes that may
need to be implemented to such system.
(ii) Possible improvements to the appeals
process, including an evaluation and
recommendations with respect to whether
substantive and structural changes to the
overall appeals process are required.
(iii) In carrying out the evaluation and
recommendations under clause (ii), an
examination of--
(I) options that make no major
substantive changes to the appeals
process;
(II) options that maintain the
process but make minor changes;
(III) options that make broad changes
to the process;
(IV) the necessity of the multi-
tiered levels of appeals at the
regional office level, including filing
a notice of disagreement, receipt of a
statement of the case, supplemental
statement of the case (if applicable),
and substantive appeal (VA Form 9);
(V) the role of the Board and the
Appeals Management Center, including--
(aa) the effectiveness of the
workload management of the
Board and the Center;
(bb) whether the Board and
Center should be regionalized
or maintain the centralized
structure in the District of
Columbia;
(cc) whether Board members
should be required to pass the
administrative law judges
certification examination; and
(dd) whether the Board should
continue to require de novo
review of appeals; and
(VI) the role of the Court of Appeals
for Veterans Claims and the United
States Court of Appeals for the Federal
Circuit, including--
(aa) the continued
effectiveness and necessity of
a multi-tiered structure of
judicial review;
(bb) whether the Court of
Appeals for Veterans Claims
should have Article I or
Article III status;
(cc) expansion of either the
Court of Appeals for Veterans
Claims or the United States
Court of Appeals for the
Federal Circuit jurisdiction,
including by allowing such
courts to hear class action
lawsuits with respect to
claims; and
(dd) the possibility of
expanding judicial review of
claims to all Federal circuit
courts of appeals or allowing
judicial review beyond the
Court of Appeals for Veterans
Claims only by the Supreme
Court.
(3) Consideration.--In carrying out the studies under
paragraph (1)(A) and (2)(A) and making any recommendations
under this section, the Commission or Task Force shall consider
the following:
(A) The interests of veterans, including with respect
to accuracy, fairness, and transparency in the claims
process of the Department.
(B) The values and requirements of the Constitution,
including with respect to compliance with procedural
and substantive due process.
(C) The public interest, including with respect to
the responsible use of available resources.
(D) With respect to the study conducted under
paragraph (1)(A), the importance of the claimant
friendly, nonadversarial nature of the claims process.
(E) With respect to the study conducted under
paragraph (2)(A), the importance of an appeals process
that is efficient and easily understandable by a
claimant.
(4) Role of secretary, chairman of the board, and chief
judge.--
(A) Information.--In carrying out each study under
paragraph (1)(A) and (2)(A), at times that the
Commission or Task Force determines appropriate, the
Commission or Task Force shall submit to the Secretary
of Veterans Affairs, the Chairman of the Board, and the
Chief Judge of the Court of Appeals for Veterans
Claims, as the case may be, information with respect to
remedies and solutions that the Commission or Task
Force identifies pursuant to such a study.
(B) Implementation.--The Secretary, the Chairman of
the Board, and the Chief Judge shall each--
(i) fully consider the remedies and solutions
submitted to the Secretary, the Chairman, or
the Chief Judge, as the case may be, under
subparagraph (A);
(ii) implement such remedies and solutions as
the Secretary, the Chairman, or the Chief
Judge, respectively, determines appropriate;
and
(iii) submit to Congress justification for
failing to implement any such remedy or
solution.
(C) Plan.--The Commission or Task Force shall submit
to the Secretary, the Chairman of the Board, and the
Chief Judge a feasible, timely, and cost-effective plan
to eliminate the backlog of appeals of claims based on
the remedies and solutions identified pursuant to the
study under paragraph (2)(A) and the information
submitted under subparagraph (A).
(c) Comprehensive Reports.--
(1) Initial comprehensive report.--Not later than 60 days
after the date on which the Commission or Task Force first
meets, the Commission or Task Force shall submit to the
President and Congress an initial comprehensive report on the
studies conducted under paragraphs (1)(A) and (2)(A) of
subsection (b), including--
(A) the findings of the causes of the backlog of
claims;
(B) a proposed plan to handle the anticipated surge
in appeals of claims; and
(C) the level of cooperation the Commission or Task
Force has received from the Secretary and the heads of
other departments or agencies of the Federal
Government.
(2) Interim comprehensive reports.--Not later than 90 days
after the date on which the Commission or Task Force first
meets, and each 30-day period thereafter ending on the date on
which the Commission or Task Force submits the final
comprehensive report under paragraph (3), the Commission or
Task Force shall submit to the President and Congress a
comprehensive report on--
(A) the progress of the Secretary with respect to
implementing solutions to expedite the elimination of
the backlog of claims pursuant to subsection
(b)(4)(B)(ii);
(B) the progress of the Secretary, the Chairman of
the Board, and the Chief Judge of the Court of Appeals
for Veterans Claims with respect to implementing
solutions to complete appeals of claims in a timely
manner in a timely manner pursuant to such subsection;
and
(C) the level of cooperation the Commission or Task
Force has received from the Secretary and the heads of
other departments or agencies of the Federal
Government.
(3) Final comprehensive report.--Not later than 180 days
after the date on which the Commission or Task Force first
meets, the Commission or Task Force shall submit to the
President and Congress a comprehensive report on the following:
(A) With respect to the study conducted under
subsection (b)(1)(A)--
(i) The findings, conclusions, and
recommendations of the Commission or Task Force
with respect to the matters referred to in such
subsection.
(ii) The recommendations of the Commission or
Task Force for revising and improving the
backlog of claims and the procedures used to
process claims.
(iii) The progress of the Secretary with
respect to implementing solutions to expedite
the elimination of the backlog of claims
pursuant to subsection (b)(4)(B)(ii).
(iv) Other information and recommendations
with respect to claims as the Commission or
Task Force considers appropriate.
(B) With respect to the study conducted under
subsection (b)(2)(A)--
(i) The findings, conclusions, and
recommendations of the Commission or Task Force
with respect to the matters referred to in such
subsection.
(ii) The recommendations of the Commission or
Task Force for revising and improving the
appeals process;
(iii) The information described in subsection
(b)(4)(A).
(iv) The feasible, timely, and cost effective
plan described in subsection (b)(4)(C).
(v) The progress of the Secretary, the
Chairman of the Board, and the Chief Judge of
the Court of Appeals for Veterans Claims with
respect to implementing solutions to provide
timely appeals of claims.
(vi) Other information and recommendations
with respect to the appeals process as the
Commission or Task Force considers appropriate.
(d) Membership.--
(1) Number and appointment.--The Commission or Task Force
shall be composed of 15 members, appointed as follows:
(A) Two members appointed by the Speaker of the House
of Representatives, one of whom shall be designated to
serve upon the Subcommittee on the Backlog of Claims
and one of whom shall be designated to serve upon the
Subcommittee on Appeals.
(B) Two members appointed by the minority leader of
the House of Representatives, one of whom shall be
designated to serve upon the Subcommittee on the
Backlog of Claims and one of whom shall be designated
to serve upon the Subcommittee on Appeals.
(C) Two members appointed by the majority leader of
the Senate, one of whom shall be designated to serve
upon the Subcommittee on the Backlog of Claims and one
of whom shall be designated to serve upon the
Subcommittee on Appeals.
(D) Two members appointed by the minority leader of
the Senate, one of whom shall be designated to serve
upon the Subcommittee on the Backlog of Claims and one
of whom shall be designated to serve upon the
Subcommittee on Appeals.
(E) Three members appointed by the President, two of
whom shall be designated to serve upon the Subcommittee
on the Backlog of Claims and one of whom shall be
designated to serve upon the Subcommittee on Appeals.
(F) One member appointed by the Secretary of Defense,
whom shall be designated to serve upon the Subcommittee
on the Backlog of Claims.
(G) Two members appointed by the Secretary of
Veterans Affairs, one of whom shall be designated to
serve upon the Subcommittee on the Backlog of Claims
and one of whom shall be designated to serve upon the
Subcommittee on Appeals.
(H) One member appointed by the Chief Judge of the
Court of Appeals for Veterans Claims, whom shall be
designated to serve upon the Subcommittee on Appeals.
(2) Subcommittees.--The Commission or Task Force shall have
two subcommittees as follows:
(A) A Subcommittee on the Backlog of Claims
consisting of the eight members designated in
accordance with paragraph (1).
(B) A Subcommittee on Appeals consisting of the seven
members designated in accordance with paragraph (1).
(3) Qualifications.--Each member appointed under paragraph
(1) shall be appointed based on the experience of the member as
a veteran or on the subject matter expertise or other relevant
experience of the member.
(4) Advisors.--
(A) In general.--In addition to the 15 members
appointed under paragraph (1), the Commission or Task
Force shall--
(i) have five nonvoting, nonmember advisors,
appointed by a majority of the Commission or
Task Force, each from a different organization
that represents the interests of veterans; and
(ii) seek advice from experts from
nongovernmental organizations (including
veterans service organizations and military
organizations), the Internet technology
industry, and the insurance industry.
(B) Advice.--Individuals described in clause (i) and
(ii) of subparagraph (A) shall provide advice to both
subcommittees described in paragraph (2).
(5) Chairman.--The President shall designate a member of the
Commission or Task Force who is appointed by the President and
designated to serve upon the Subcommittee on the Backlog of
Claims to serve as the chairman of the Commission or Task
Force. The chairman may designate a member to serve as the
chairman of the Subcommittee on the Backlog of Claims and a
member to serve as the chairman of the Subcommittee on Appeals
to chair such subcommittees as the designee of the chairman of
the Commission or Task Force.
(6) Period of appointment.--Members of the Commission or Task
Force shall be appointed for the life of the Commission or Task
Force. A vacancy shall not affect its powers.
(7) Vacancy.--A vacancy on the Commission or Task Force shall
be filled in the manner in which the original appointment was
made.
(8) Appointment deadline.--The appointment of members of the
Commission or Task Force established in this section shall be
made not later than 15 days after the date of the enactment of
this Act.
(e) Meetings.--
(1) Initial meeting.--The Commission or Task Force shall hold
its first meeting not later than 15 days after the date on
which a majority of the members are appointed.
(2) Meetings.--The Commission or Task Force shall meet at the
call of the chairman.
(3) Quorum.--A majority of the members of the Commission or
Task Force shall constitute a quorum, but a lesser number may
hold hearings.
(f) Powers of the Commission or Task Force.--
(1) Hearings.--The Commission or Task Force may hold such
hearings, sit and act at such times and places, take such
testimony, and receive such evidence as the Commission or Task
Force considers advisable to carry out the purposes of this
section.
(2) Information from federal agencies.--The Commission or
Task Force may secure directly from any department or agency of
the Federal Government such information as the Commission or
Task Force considers necessary to carry out the provisions of
this section. Upon request of the chairman, the head of such
department or agency shall furnish such information to the
Commission or Task Force.
(3) Postal services.--The Commission or Task Force may use
the United States mails in the same manner and under the same
conditions as other departments and agencies of the Federal
Government.
(4) Gifts.--The Commission or Task Force may accept, use, and
dispose of gifts or donations of service or property.
(g) Personnel Matters.--
(1) Compensation of members.--Each member of the Commission
or Task Force who is not an officer or employee of the United
States shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for level
IV of the Executive Schedule under section 5315 of title 5,
United States Code, for each day (including travel time) during
which the member is engaged in the performance of the duties of
the Commission or Task Force. All members of the Commission or
Task Force who are officers or employees of the United States
shall serve without compensation in addition to that received
for their services as officers or employees of the United
States.
(2) Travel expenses.--The members of the Commission or Task
Force shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular places of
business in the performance of service of the Commission or
Task Force.
(3) Staff.--
(A) Appointment.--The chairman of the Commission or
Task Force may, without regard to the civil service
laws and regulations, appoint an executive director and
such other personnel as may be necessary to enable the
Commission or Task Force to perform its duties. The
appointment of an executive director shall be subject
to the approval of the Commission or Task Force.
(B) Compensation.--The chairman of the Commission or
Task Force may fix the compensation of the executive
director and other personnel without regard to the
provisions of chapter 51 and subchapter III of chapter
53 of title 5, United States Code, relating to
classification of positions and General Schedule pay
rates, except that the rate of pay for the executive
director and other personnel may not exceed the rate
payable for level V of the Executive Schedule under
section 5316 of such title.
(4) Detail of government employees.--Upon request of the
chairman of the Commission or Task Force, the head of any
department or agency of the Federal Government may detail, on a
nonreimbursable basis, any personnel of that department or
agency to the Commission or Task Force to assist it in carrying
out its duties.
(5) Procurement of temporary and intermittent services.--The
chairman of the Commission or Task Force may procure temporary
and intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under section
5316 of such title.
(h) Termination of Commission or Task Force.--The Commission or Task
Force shall terminate 60 days after the date on which the Commission or
Task Force submits the final comprehensive report under subsection
(c)(3).
(i) Funding.--
(1) In general.--The Secretary shall, upon the request of the
chairman of the Commission or Task Force, make available to the
Commission or Task Force such amounts as the Commission or Task
Force may require to carry out the duties of the Commission or
Task Force under this section.
(2) Availability.--Any sums made available to the Commission
or Task Force shall remain available, without fiscal year
limitation, until the termination of the Commission or Task
Force.
(j) Definitions.--In this section:
(1) The term ``appeals process'' means the process to appeal
the determination by the Secretary of a claim beginning with
the notice of disagreement filed pursuant to section 7105 of
title 38, United States Code, and ending with the review of a
decision by the Supreme Court pursuant to section 7292(c) of
such title.
(2) The term ``Board'' means the Board of Veterans' Appeals.
(3) The term ``strategic plan'' means the Strategic Plan to
Eliminate the Compensation Claims Backlog, published by the
Secretary of Veterans Affairs on January 25, 2013.
SEC. 102. SUPPLEMENTAL REPORTS TO THE STRATEGIC PLAN TO ELIMINATE THE
COMPENSATION CLAIMS BACKLOG.
Not later than 60 days after the date of the enactment of this Act,
and every 120 days thereafter until Memorial Day (May 25), 2015, the
Secretary of Veterans Affairs shall submit to Congress a supplemental
report on the implementation by the Department of Veterans Affairs of
the Strategic Plan to Eliminate the Compensation Claims Backlog. Each
such report shall include--
(1) verification that during the period covered by the
report, each claim was approved or denied by not later than 125
days after the date on which the claim is submitted with an
accuracy rate of 98 percent, as specified in the Strategic
Plan;
(2) a description of the specific measures, procedures, and
metrics used to assess the implementation of the Strategic Plan
for purposes of the supplemental report; and
(3) a detailed timeline for the implementation of each
initiative contained in the Strategic Plan.
SEC. 103. EXPEDITION OF TRANSFER OF CERTAIN RECORDS.
(a) SSA Records.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall enter
into an agreement with the Commissioner of the Social Security
Administration to ensure that the Commissioner transfers to the
Secretary disability or medical records of the Commissioner that the
Secretary will use to evaluate a claim by not later than 30 days after
the Secretary requests such records.
(b) DOD Records.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall enter
into an agreement with the Secretary of Defense to ensure that the
Secretary of Defense transfers to the Secretary of Veterans Affairs
medical records of members or former members of the Armed Forces that
the Secretary will use to evaluate a claim by not later than 30 days
after the Secretary requests such records.
(c) National Guard Records.--Not later than 60 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs and the
Secretary of Defense shall jointly--
(1) submit to Congress a plan to reduce to 30 days the amount
of time needed to provide members of the National Guard and the
Secretary of Veterans Affairs with the medical records of such
members, including by partnering with appropriate officials of
Federal or State departments or agencies; and
(2) implement such plan.
(d) Effective Date.--This section shall take effect on the date that
is one year after the date of the enactment of this Act.
SEC. 104. CLAIMS PROCESSORS TRAINING.
(a) Establishment.--The Secretary of Veterans Affairs shall establish
a training program to provide newly hired claims processors of the
Department of Veterans Affairs with training for a period of not less
than two years. In carrying out such program, the Secretary shall
identify successful claims processors of the Department who can assist
in the training of newly hired claims processors.
(b) Ability to Process Claims.--The Secretary shall carry out the
training program established under subsection (a) without increasing
the amount of time in which claims are processed by the Department.
(c) Effective Date.--This section shall take effect on the date that
is one year after the date of the enactment of this Act.
SEC. 105. REPORT BY COMPTROLLER GENERAL OF THE UNITED STATES.
Not later than one year after the date of the enactment of this Act,
the Comptroller General of the United States shall submit to Congress a
report on the progress of the Secretary of Veterans Affairs in
improving the timeliness of claims processing and eliminating the
backlog of claims. The report shall include any recommendations of the
Comptroller General with respect to improving the ability of the
Secretary to make such progress.
SEC. 106. PRIORITY FOR PROCESSING CLAIMS OF THE DEPARTMENT OF VETERANS
AFFAIRS.
(a) In General.--Subchapter I of chapter 51 of title 38, United
States Code, is amended by adding at the end the following new section:
``Sec. 5109C. Priority for processing claims
``(a) Priority.--In processing claims for compensation under this
chapter, the Secretary shall provide the following claimants with
priority over other claimants:
``(1) Veterans who have attained the age of 70.
``(2) Veterans who are terminally ill.
``(3) Veterans with life-threatening illnesses.
``(4) Homeless veterans (as defined in section 2002 of this
title).
``(5) Veterans who were awarded the Medal of Honor.
``(6) Veterans who are former prisoners of war.
``(7) Veterans whose claims are being reviewed again in
relation to a previously denied claim relating to military
sexual trauma.
``(8) Veterans whom the Secretary determines, on a case-by-
case basis, are seriously or very seriously injured.
``(9) Veterans whom the Secretary determines, on a case-by-
case basis, should be given priority under this section based
on an application for good cause established by the Secretary.
``(b) Regulations.--The Secretary shall prescribe regulations to
carry out subsection (a).''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
5109B the following new item:
``5109C. Priority for processing claims.''.
SEC. 107. PUBLIC AVAILABILITY OF CERTAIN INFORMATION ABOUT PENDING AND
COMPLETED CLAIMS FOR COMPENSATION UNDER THE LAWS
ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.
(a) In General.--Subchapter I of chapter 51 of title 38, United
States Code, is amended by adding after section 5109C, as added by
section 106, the following new section:
``Sec. 5109D. Information about pending and completed claims
``(a) Availability of Information.--The Secretary shall maintain on
the Internet website of the Department publicly accessible information
about pending and completed claims for compensation under chapter 11 of
this title. Such information shall include each of the following:
``(1) For each regional office and for the Department as a
whole--
``(A) the average number of days between the date of
the submittal of a claim and the date of the decision
with respect to the claim for each of the preceding
three-month and one-year period;
``(B) the average number of days such a claim is
pending during the preceding three-month and one-year
periods;
``(C) the quality and accuracy rating of the claims
adjudication process during the preceding three-month
and one-year periods;
``(D) the number of claims pending;
``(E) the number of pending claims that have been
pending for more than 125 days; and
``(F) the number of claims completed during--
``(i) the current month, to date;
``(ii) the month preceding the current month;
``(iii) the current calendar year, to date;
and
``(iv) the calendar year preceding the
current calendar year.
``(2) For each medical condition for which a claim for
compensation is submitted, for each regional office and for the
Department as a whole--
``(A) the average number of days between the date of
the submittal of a claim relating to such medical
condition and the date of the decision with respect to
the claim for each of the preceding three-month and
one-year period;
``(B) the average number of days such a claim is
pending during the preceding three-month and one-year
periods;
``(C) the quality and accuracy rating of the claims
adjudication process as applied to claims relating to
such medical condition during the preceding three-month
and one-year periods;
``(D) the number of pending claims relating to such
condition;
``(E) the number of such pending claims that have
been pending for more than 125 days; and
``(F) the number of claims relating to such medical
condition completed during--
``(i) the current month, to date;
``(ii) the month preceding current month;
``(iii) the current calendar year, to date;
and
``(iv) the calendar year preceding the
current calendar year.
``(b) Updates.--The Secretary shall update the information on the
website under subsection (a) not less frequently than once every seven
days.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the item relating to section
5109C, as added by section 106, the following new item:
``5109D. Information about pending and completed claims.''.
SEC. 108. ANNUAL REPORT ON PROCESSING OF CLAIMS.
(a) In General.--Subchapter I of chapter 51 of title 38, United
States Code, is amended by adding after section 5109D, as added by
section 107, the following new section:
``Sec. 5109E. Annual report on processing of claims
``(a) Annual Report.--The Secretary shall include in the annual
report to Congress required under section 529 of this title information
on the following:
``(1) The automatic processing of claims for compensation.
``(2) The performance of any regional office that fails to
meet the administrative goals of the regional office with
respect to timeliness and accuracy in processing claims for
compensation.
``(3) The timeliness of receiving information pursuant to a
request by the Secretary to the head of another department or
agency of the United States for information required by the
Secretary in adjudicating a claim for compensation under
chapter 11 of this title.
``(b) Matters Included.--In carrying out subsection (a) to include
information in the report required under section 529 of this title, the
Secretary shall include the following:
``(1) With respect to the information required by subsection
(a)(1)--
``(A) each medical condition for which claims
relating to such condition were processed in an
electronic automated fashion during the fiscal year
covered by the report;
``(B) the feasibility of processing any additional
medical conditions in an electronic automated fashion
and any barriers to such processing, including any such
barriers relating to the schedule for rating
disabilities under section 1155 of this title;
``(C) the number of claims for compensation relating
to each medical condition submitted during such fiscal
year; and
``(D) for each medical condition, the percentage of
claims denied and the percentage of claims approved
during such fiscal year.
``(2) With respect to the information required by subsection
(a)(2), in the case of any regional office that, for the fiscal
year covered by the report, did not meet the administrative
goal of having no claim pending for more than 125 days and
achieving an accuracy rating of 98 percent--
``(A) a signed statement prepared by the individual
serving as director of the regional office as of the
date of the submittal of the report containing--
``(i) an explanation for why the regional
office did not meet the goal;
``(ii) a description of the additional
resources needed to enable the regional office
to reach the goal; and
``(iii) a description of any additional
actions planned for the subsequent fiscal year
that are proposed to enable the regional office
to meet the goal; and
``(B) a statement prepared by the Under Secretary for
Benefits explaining how the failure of the regional
office to meet the goal affected the performance
evaluation of the director of the regional office.
``(3) With respect to the information required by subsection
(a)(3)--
``(A) the number of requests described in such
paragraph made during the fiscal year covered by the
report; and
``(B) the average response time for such requests
made during each month of such fiscal year, as
determined based on the period beginning on the date on
which the Secretary made the request and ending on the
date on which the Secretary determines that the request
is completed.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the item relating to section
5109D, as added by section 107, the following new item:
``5109E. Annual report on processing of claims.''.
(c) Effective Date.--Section 5109E of title 38, United States Code,
as added by subsection (a) shall take effect on the date that is one
year after the date of the enactment of this Act.
SEC. 109. DEPARTMENT OF VETERANS AFFAIRS NOTICE OF AVERAGE TIMES FOR
PROCESSING CLAIMS AND PERCENTAGE OF CLAIMS
APPROVED.
(a) Public Notice.--The Secretary of Veterans Affairs shall post the
information described in subsection (c)--
(1) in a conspicuous place in each regional office and claims
intake facilities of the Department of Veterans Affairs; and
(2) on the Internet website of the Department.
(b) Notice to Applicants.--
(1) In general.--The Secretary shall provide to each person
who submits a claim for benefits under the laws administered by
the Secretary before the person submits such claim--
(A) notice of the information described in subsection
(c); and
(B) notice that, during the period ending on August
6, 2015, the person is eligible to receive up to an
extra year of benefits payments if the person files an
original claim that is fully developed.
(2) Acknowledgment of receipt of notice.--Each person who
submits a claim for benefits under the laws administered by the
Secretary shall include in such application a signed form
acknowledging that the person received the information
described in subsection (c).
(c) Information Described.--
(1) In general.--The information described in this subsection
is the following:
(A) The average processing time of the claims
described in paragraph (2) and the percentage of such
submitted claims for which benefits are awarded.
(B) The percentage of each of the following types of
submitted claims for benefits under the laws
administered by the Secretary of Veterans Affairs for
which benefits are awarded:
(i) Claims filed by veterans who authorized a
veterans service organization to act on the
veterans' behalf under a durable power of
attorney.
(ii) Claims filed by veterans who authorized
a person other than a veterans service
organization to act on the veterans' behalf
under a durable power of attorney.
(iii) Claims filed by veterans who did not
authorize a person to act on the veterans'
behalf under a durable power of attorney.
(2) Claims described.--The claims described in this paragraph
are each of the following types of claims for benefits under
the laws administered by the Secretary of Veterans Affairs:
(A) A fully developed claim that is submitted in
standard electronic form.
(B) A fully developed claim that is submitted in
standard paper form.
(C) A claim that is not fully developed that is
submitted in standard electronic form.
(D) A claim that is not fully developed that is
submitted in standard paper form.
(E) A claim that is not fully developed that is
submitted in nonstandard paper form.
(3) Update of information.--The information described in this
subsection shall be updated not less frequently than once each
fiscal quarter.
(d) Effective Date.--This section shall take effect on the date that
is one year after the date of the enactment of this Act.
SEC. 110. CLAIM DEFINED.
Except as otherwise provided, in this title, the term ``claim'' means
a claim for disability compensation under the laws administered by the
Secretary of Veterans Affairs.
TITLE II--COMPENSATION AND PENSIONS
SEC. 201. IMPROVEMENTS TO AUTHORITY FOR PERFORMANCE OF MEDICAL
DISABILITIES EXAMINATIONS BY CONTRACT PHYSICIANS.
(a) Extension of Temporary Authority.--Subsection (c) of section 704
of the Veterans Benefits Act of 2003 (38 U.S.C. 5101 note) is amended
by striking ``December 31, 2013'' and inserting ``December 31, 2016''.
(b) Licensure of Contract Physicians.--
(1) Temporary authority.--Such section 704 is further
amended--
(A) by redesignating subsection (d) as subsection
(e); and
(B) by inserting after subsection (c) the following
new subsection (d):
``(d) Licensure of Contract Physicians.--
``(1) In general.--Notwithstanding any law regarding the
licensure of physicians, a physician described in paragraph (2)
may conduct an examination pursuant to a contract entered into
under subsection (b) at any location in any State, the District
of Columbia, or a Commonwealth, territory, or possession of the
United States, so long as the examination is within the scope
of the authorized duties under such contract.
``(2) Physician described.--A physician described in this
paragraph is a physician who--
``(A) has a current license to practice the health
care profession of the physician; and
``(B) is performing authorized duties for the
Department of Veterans Affairs pursuant to a contract
entered into under subsection (b).''.
(2) Pilot program.--Section 504 of the Veterans' Benefits
Improvement Act of 1996 (38 U.S.C. 5101 note) is amended--
(A) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(B) by inserting after subsection (b) the following
new subsection (c):
``(c) Licensure of Contract Physicians.--
``(1) In general.--Notwithstanding any law regarding the
licensure of physicians, a physician described in paragraph (2)
may conduct an examination pursuant to a contract entered into
under subsection (a) at any location in any State, the District
of Columbia, or a Commonwealth, territory, or possession of the
United States, so long as the examination is within the scope
of the authorized duties under such contract.
``(2) Physician described.--A physician described in this
paragraph is a physician who--
``(A) has a current license to practice the health
care profession of the physician; and
``(B) is performing authorized duties for the
Department of Veterans Affairs pursuant to a contract
entered into under subsection (a).''.
(c) Expansion of Pilot Program.--Subsection (b) of such section 504
is amended to read as follows:
``(b) Locations.--
``(1) Number.--The Secretary may carry out the pilot program
under this section through not more than 15 regional offices of
the Department of Veterans Affairs.
``(2) Selection.--The Secretary shall select the regional
offices under paragraph (1) by analyzing appropriate data to
determine the regional offices that require support. Such
appropriate data shall include--
``(A) the number of backlogged claims;
``(B) the total pending case workload;
``(C) the length of time cases have been pending;
``(D) the accuracy of completed cases;
``(E) the overall timeliness of completed cases;
``(F) the availability and workload of the
examination units and physicians of the medical centers
in the regional office; and
``(G) any other data the Secretary determines
appropriate.
``(3) Annual analysis.--The Secretary shall carry out the
data analysis of the regional offices under paragraph (2)
during each year in which the program under this section is
carried out to determine the regional offices selected under
paragraph (1) for such year.''.
(d) Effective Date.--This section and the amendment made by this
section shall take effect on the date that is one year after the date
of the enactment of this Act.
SEC. 202. CONSIDERATION BY SECRETARY OF VETERANS AFFAIRS OF RESOURCES
DISPOSED OF FOR LESS THAN FAIR MARKET VALUE BY
INDIVIDUALS APPLYING FOR PENSION.
(a) Veterans.--Section 1522 of title 38, United States Code, is
amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' before ``The Secretary'';
and
(B) by adding at the end the following new paragraph:
``(2)(A) If a veteran otherwise eligible for payment of pension under
section 1513 or 1521 of this title or the spouse of such veteran
disposes of covered resources for less than fair market value on or
after the look-back date described in subparagraph (C)(i), the
Secretary shall deny or discontinue the payment of pension to such
veteran under section 1513 or 1521 of this title, as the case may be,
for months during the period beginning on the date described in
subparagraph (D) and equal to the number of months calculated as
provided in subparagraph (E).
``(B)(i) For purposes of this paragraph, a covered resource is any
resource that was a part of the corpus of the estate of the veteran or,
if the veteran has a spouse, the corpus of the estates of the veteran
and of the veteran's spouse, that the Secretary considers that under
all the circumstances, if the veteran or spouse had not disposed of
such resource, it would be reasonable that the resource (or some
portion of the resource) be consumed for the veteran's maintenance.
``(ii) For purposes of this paragraph, the Secretary may consider, in
accordance with regulations the Secretary shall prescribe, a transfer
of an asset (including a transfer of an asset to an annuity, trust, or
other financial instrument or investment) a disposal of a covered
resource for less than fair market value if such transfer reduces the
amount in the corpus of the estate of the veteran or, if the veteran
has a spouse, the corpus of the estates of the veteran and of the
veteran's spouse, that the Secretary considers, under all the
circumstances, would be reasonable to be consumed for the veteran's
maintenance.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(ii) The date described in this clause is the date on which the
veteran applies for pension under section 1513 or 1521 of this title
or, if later, the date on which the veteran (or the spouse of the
veteran) disposes of covered resources for less than fair market value.
``(D) The date described in this subparagraph is the first day of the
first month in or after which covered resources were disposed of for
less than fair market value and which does not occur in any other
period of ineligibility under this paragraph.
``(E) The number of months calculated under this subparagraph shall
be equal to--
``(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by the veteran (or
the spouse of the veteran) on or after the look-back date
described in subparagraph (C)(i) that the Secretary determines
would reasonably have been consumed for the veteran's
maintenance; divided by
``(ii) the maximum amount of monthly pension that is payable
to a veteran under section 1513 or 1521 of this title,
including the maximum amount of increased pension payable under
such sections on account of family members, but not including
any amount of pension payable under such sections because a
veteran is in need of regular aid and attendance or is
permanently housebound,
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.'';
(2) in subsection (b)--
(A) by inserting ``(1)'' before ``The Secretary'';
and
(B) by adding at the end the following new paragraph:
``(2)(A) If a veteran otherwise eligible for payment of increased
pension under subsection (c), (d), (e), or (f) of section 1521 of this
title on account of a child, the spouse of the veteran, or the child
disposes of covered resources for less than fair market value on or
after the look-back date described in subparagraph (C)(i), the
Secretary shall deny or discontinue payment of such increased pension
for months during the period beginning on the date described in
subparagraph (D) and equal to the number of months calculated as
provided in subparagraph (E).
``(B)(i) For purposes of this paragraph, a covered resource is any
resource that was a part of the corpus of the estate of the child that
the Secretary considers that under all the circumstances, if the
veteran, the spouse of the veteran, or the child had not disposed of
such resource, it would be reasonable that the resource (or some
portion of the resource) be consumed for the child's maintenance.
``(ii) For purposes of this paragraph, the Secretary may consider, in
accordance with regulations the Secretary shall prescribe, a transfer
of an asset (including a transfer of an asset to an annuity, trust, or
other financial instrument or investment) a disposal of a covered
resource for less than fair market value if such transfer reduces the
amount in the corpus of the estate of the child that the Secretary
considers, under all the circumstances, would be reasonable to be
consumed for the child's maintenance.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(ii) The date described in this clause is the date on which the
veteran applies for payment of increased pension under subsection (c),
(d), (e), or (f) of section 1521 of this title on account of a child
or, if later, the date on which the veteran, the spouse of the veteran,
or the child disposes of covered resources for less than fair market
value.
``(D) The date described in this subparagraph is the first day of the
first month in or after which covered resources were disposed of for
less than fair market value and which does not occur in any other
period of ineligibility under this paragraph.
``(E) The number of months calculated under this subparagraph shall
be equal to--
``(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by the veteran, the
spouse of the veteran, or the child on or after the look-back
date described in subparagraph (C)(i) that the Secretary
determines would reasonably have been consumed for the child's
maintenance; divided by
``(ii) the maximum amount of increased monthly pension that
is payable to a veteran under subsection (c), (d), (e), or (f)
of section 1521 of this title on account of a child,
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.''; and
(3) by adding at the end the following new subsections:
``(c)(1) The Secretary shall not deny or discontinue payment of
pension under section 1513 or 1521 of this title or payment of
increased pension under subsection (c), (d), (e), or (f) of section
1521 of this title on account of a child by reason of the application
of subsection (a)(2) or (b)(2) of this section to the disposal of
resources by an individual to the extent that--
``(A) a satisfactory showing is made to the Secretary (in
accordance with regulations promulgated by the Secretary) that
all resources disposed of for less than fair market value have
been returned to the individual who disposed of the resources;
or
``(B) the Secretary determines, under procedures established
by the Secretary, that the denial or discontinuance of payment
would work an undue hardship as determined on the basis of
criteria established by the Secretary.
``(2) At the time a veteran applies for pension under section 1513 or
1521 of this title or increased pension under subsection (c), (d), (e),
or (f) of section 1521 of this title on account of a child, and at such
other times as the Secretary considers appropriate, the Secretary
shall--
``(A) inform such veteran of the provisions of subsections
(a)(2) and (b)(2) providing for a period of ineligibility for
payment of pension under such sections for individuals who make
certain dispositions of resources for less than fair market
value; and
``(B) obtain from such veteran information which may be used
in determining whether or not a period of ineligibility for
such payments would be required by reason of such subsections.
``(d) Subsections (a)(2) and (b)(2) shall not apply with respect to
the disposal of resources or the transfer of an asset if such disposal
or transfer is to a trust described in section 1917(d)(4) of the Social
Security Act (42 U.S.C. 1396p(d)(4)) that is established for the
benefit of a child of the veteran.''.
(b) Surviving Spouses and Children.--Section 1543 of such title is
amended--
(1) in subsection (a)--
(A) by redesignating paragraph (2) as paragraph (3);
(B) by inserting after paragraph (1) the following
new paragraph (2):
``(2)(A) If a surviving spouse otherwise eligible for payment of
pension under section 1541 of this title disposes of covered resources
for less than fair market value on or after the look-back date
described in subparagraph (C)(i), the Secretary shall deny or
discontinue the payment of pension to such surviving spouse under
section 1541 of this title for months during the period beginning on
the date described in subparagraph (D) and equal to the number of
months calculated as provided in subparagraph (E).
``(B)(i) For purposes of this paragraph, a covered resource is any
resource that was a part of the corpus of the estate of the surviving
spouse that the Secretary considers that under all the circumstances,
if the surviving spouse had not disposed of such resource, it would be
reasonable that the resource (or some portion of the resource) be
consumed for the surviving spouse's maintenance.
``(ii) For purposes of this paragraph, the Secretary may consider, in
accordance with regulations the Secretary shall prescribe, a transfer
of an asset (including a transfer of an asset to an annuity, trust, or
other financial instrument or investment) a disposal of a covered
resource for less than fair market value if such transfer reduces the
amount in the corpus of the estate of the surviving spouse that the
Secretary considers, under all the circumstances, would be reasonable
to be consumed for the surviving spouse's maintenance.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(ii) The date described in this clause is the date on which the
surviving spouse applies for pension under section 1541 of this title
or, if later, the date on which the surviving spouse disposes of
covered resources for less than fair market value.
``(D) The date described in this subparagraph is the first day of the
first month in or after which covered resources were disposed of for
less than fair market value and which does not occur in any other
period of ineligibility under this paragraph.
``(E) The number of months calculated under this subparagraph shall
be equal to--
``(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by the surviving
spouse on or after the look-back date described in subparagraph
(C)(i) that the Secretary determines would reasonably have been
consumed for the surviving spouse's maintenance; divided by
``(ii) the maximum amount of monthly pension that is payable
to a surviving spouse under section 1541 of this title,
including the maximum amount of increased pension payable under
such section on account of a child, but not including any
amount of pension payable under such section because a
surviving spouse is in need of regular aid and attendance or is
permanently housebound,
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.
``(F) In the case of a transfer by the surviving spouse during the
veteran's lifetime that resulted in a period of ineligibility for the
veteran under section 1522 of this title, the Secretary shall apply to
the surviving spouse any remaining ineligibility for that period.'';
and
(C) by adding at the end the following new paragraph:
``(4)(A) If a surviving spouse otherwise eligible for payment of
increased pension under subsection (c), (d), or (e) of section 1541 of
this title on account of a child or the child disposes of covered
resources for less than fair market value on or after the look-back
date described in subparagraph (C)(i), the Secretary shall deny or
discontinue payment of such increased pension for months during the
period beginning on the date described in subparagraph (D) and equal to
the number of months calculated as provided in subparagraph (E).
``(B)(i) For purposes of this paragraph, a covered resource is any
resource that was a part of the corpus of the estate of the child that
the Secretary considers that under all the circumstances, if the
surviving spouse or the child had not disposed of such resource, it
would be reasonable that the resource (or some portion of the resource)
be consumed for the child's maintenance.
``(ii) For purposes of this paragraph, the Secretary may consider, in
accordance with regulations the Secretary shall prescribe, a transfer
of an asset (including a transfer of an asset to an annuity, trust, or
other financial instrument or investment) a disposal of a covered
resource for less than fair market value if such transfer reduces the
amount in the corpus of the estate of the child that the Secretary
considers, under all the circumstances, would be reasonable to be
consumed for the child's maintenance.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(ii) The date described in this clause is the date on which the
surviving spouse applies for payment of increased pension under
subsection (c), (d), or (e) of section 1541 of this title on account of
a child or, if later, the date on which the surviving spouse (or the
child) disposes of covered resources for less than fair market value.
``(D) The date described in this subparagraph is the first day of the
first month in or after which covered resources were disposed of for
less than fair market value and which does not occur in any other
period of ineligibility under this paragraph.
``(E) The number of months calculated under this clause shall be
equal to--
``(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by surviving spouse
(or the child) on or after the look-back date described in
subparagraph (C)(i) that the Secretary determines would
reasonably have been consumed for the child's maintenance;
divided by
``(ii) the maximum amount of increased monthly pension that
is payable to a surviving spouse under subsection (c), (d), or
(e) of section 1541 of this title on account of a child,
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.'';
(2) in subsection (b)--
(A) by inserting ``(1)'' before ``The Secretary'';
and
(B) by adding at the end the following new paragraph:
``(2)(A) If a child otherwise eligible for payment of pension under
section 1542 of this title or any person with whom such child is
residing who is legally responsible for such child's support disposes
of covered resources for less than fair market value on or after the
look-back date described in subparagraph (C)(i), the Secretary shall
deny or discontinue the payment of pension to such child under section
1542 of this title for months during the period beginning on the date
described in subparagraph (D) and equal to the number of months
calculated as provided in subparagraph (E).
``(B)(i) For purposes of this paragraph, a covered resource is any
resource that was a part of the corpus of the estate of the child or
the corpus of the estate of any person with whom such child is residing
who is legally responsible for such child's support that the Secretary
considers that under all the circumstances, if the child or person had
not disposed of such resource, it would be reasonable that the resource
(or some portion of the resource) be consumed for the child's
maintenance.
``(ii) For purposes of this paragraph, the Secretary may consider, in
accordance with regulations the Secretary shall prescribe, a transfer
of an asset (including a transfer of an asset to an annuity, trust, or
other financial instrument or investment) a disposal of a covered
resource for less than fair market value if such transfer reduces the
amount in the corpus of the estate described in clause (i) that the
Secretary considers, under all the circumstances, would be reasonable
to be consumed for the child's maintenance.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(ii) The date described in this clause is the date on which the
child applies for pension under section 1542 of this title or, if
later, the date on which the child (or person described in subparagraph
(B)) disposes of covered resources for less than fair market value.
``(D) The date described in this clause is the first day of the first
month in or after which covered resources were disposed of for less
than fair market value and which does not occur in any other period of
ineligibility under this paragraph.
``(E) The number of months calculated under this clause shall be
equal to--
``(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by the child (or
person described in subparagraph (B)) on or after the look-back
date described in subparagraph (C)(i) that the Secretary
determines would reasonably have been consumed for the child's
maintenance; divided by
``(ii) the maximum amount of monthly pension that is payable
to a child under section 1542 of this title,
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.''; and
(3) by adding at the end the following new subsections:
``(c)(1) The Secretary shall not deny or discontinue payment of
pension under section 1541 or 1542 of this title or payment of
increased pension under subsection (c), (d), or (e) of section 1541 of
this title on account of a child by reason of the application of
subsection (a)(2), (a)(4), or (b)(2) of this section to the disposal of
resources by an individual to the extent that--
``(A) a satisfactory showing is made to the Secretary (in
accordance with regulations promulgated by the Secretary) that
all resources disposed of for less than fair market value have
been returned to the individual who disposed of the resources;
or
``(B) the Secretary determines, under procedures established
by the Secretary, that the denial or discontinuance of payment
would work an undue hardship as determined on the basis of
criteria established by the Secretary.
``(2) At the time a surviving spouse or child applies for pension
under section 1541 or 1542 of this title or increased pension under
subsection (c), (d), or (e) of section 1541 of this title on account of
a child, and at such other times as the Secretary considers
appropriate, the Secretary shall--
``(A) inform such surviving spouse or child of the provisions
of subsections (a)(2), (a)(4), and (b)(2), as applicable,
providing for a period of ineligibility for payment of pension
or increased pension under such sections for individuals who
make certain dispositions of resources for less than fair
market value; and
``(B) obtain from such surviving spouse or child information
which may be used in determining whether or not a period of
ineligibility for such payments would be required by reason of
such subsections.
``(d) Paragraphs (2) and (4) of subsection (a) and subsection (b)(2)
shall not apply with respect to the disposal of resources or the
transfer of an asset if such disposal or transfer is to a trust
described in section 1917(d)(4) of the Social Security Act (42 U.S.C.
1396p(d)(4)) that is established for the benefit of a child of the
veteran or surviving spouse.''.
(c) Effective Date.--Subsections (a)(2), (b)(2), and (c) of section
1522 of title 38, United States Code, as added by subsection (a), and
subsections (a)(2), (a)(4), (b)(2), and (c) of section 1543 of such
title, as added by subsection (b), shall take effect on the date that
is one year after the date of the enactment of this Act and shall apply
with respect to payments of pension and increased pension applied for
after such date and to payments of pension and increased pension for
which eligibility is redetermined after such date, except that no
reduction in pension shall be made under such subsections because of
any disposal of covered resources made before such date.
(d) Annual Reports.--
(1) In general.--Not later than two years after the date of
the enactment of this Act and not less frequently than once
each year thereafter through 2018, the Secretary of Veterans
Affairs shall submit to the appropriate committees of Congress
a report on the administration of subsections (a)(2), (b)(2),
and (c) of section 1522 of title 38, United States Code, as
added by subsection (a), and subsections (a)(2), (a)(4),
(b)(2), and (c) of section 1543 of such title, as added by
subsection (b), during the most recent 12-month period.
(2) Elements.--Each report submitted under paragraph (1)
shall include the following, for the period covered by the
report:
(A) The number of individuals who applied for pension
under chapter 15 of such title.
(B) The number of individuals who received pension
under such chapter.
(C) The number of individuals with respect to whom
the Secretary denied or discontinued payment of pension
under the subsections referred to in paragraph (1).
(D) A description of any trends identified by the
Secretary regarding pension payments that have occurred
as a result of the amendments made by this section.
(E) Such other information as the Secretary considers
appropriate.
(3) Appropriate committees of congress defined.--In this
subsection, the term ``appropriate committees of Congress''
means--
(A) the Committee on Veterans' Affairs and the Select
Committee on Aging of the Senate; and
(B) the Committee on Veterans' Affairs of the House
of Representatives.
SEC. 203. BIFURCATED PAYMENTS OF COMPENSATION BENEFITS UNDER LAWS
ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.
(a) In General.--Subchapter III of chapter 51 of title 38, United
States Code, is amended by adding at the end the following new section:
``Sec. 5127. Bifurcated payments of compensation benefits
``(a) In General.--During the eight-year period beginning on the date
of the enactment of this section, in the case of a claim described in
subsection (b), prior to adjudicating the claim, the Secretary shall
make payments of monetary benefits to the claimant based on any
disability for which the Secretary has made a decision. Upon the
adjudication of the claim, the Secretary shall pay to the claimant any
monetary benefits awarded to the claimant for the period of payment
under section 5111 of this title less the amount of such benefits paid
to the claimant under this section.
``(b) Claim Described.--A claim described in this subsection is a
claim for disability compensation under chapter 11 of this title--
``(1) the adjudication of which requires the Secretary to
make decisions with respect to two or more disabilities; and
``(2) for which, before completing the adjudication of the
claim, the Secretary makes a decision with respect to a
disability that would result in the payment of monetary
benefits to the claimant upon the adjudication of the claim.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end of the items relating to
such subchapter the following new item:
``5127. Bifurcated payments of compensation benefits.''.
(c) Effective Date.--Section 5127 of title 38, United State Code, as
added by subsection (a) shall take effect on the date that is one year
after the date of the enactment of this Act.
SEC. 204. PENSION FOR CERTAIN VETERANS COVERED BY MEDICAID PLANS FOR
SERVICES FURNISHED BY NURSING FACILITIES.
Section 5503(d)(7) of title 38, United States Code, is amended by
striking ``November 30, 2016'' and inserting ``September 30, 2018''.
TITLE III--OTHER MATTERS
SEC. 301. REVIEW OF OPERATION OF CERTAIN SHIPS DURING THE VIETNAM ERA.
(a) Review Required.--By not later than one year after the date of
the enactment of this Act, the Secretary of Defense shall review the
logs of each ship under the authority of the Secretary of the Navy that
is known to have operated in the waters near Vietnam during the period
beginning on January 9, 1962, and ending on May 7, 1975, to determine--
(1) whether each such ship operated in the territorial waters
of the Republic of Vietnam during such period; and
(2) for each such ship that so operated--
(A) the date or dates when the ship so operated; and
(B) the distance from the shore of the location where
the ship operated that was the closest proximity to
shore.
(b) Provision of Information to the Secretary of Veterans Affairs.--
Upon a determination that any such ship so operated, the Secretary of
Defense shall provide such determination, together with the information
described in subsection (a)(2) about the ship, to the Secretary of
Veterans Affairs.
(c) Public Availability of Information.--The Secretary of Veterans
Affairs shall make publicly available all unclassified information
provided to the Secretary under subsection (b).
SEC. 302. METHODS FOR VALIDATING CERTAIN SERVICE CONSIDERED TO BE
ACTIVE SERVICE BY THE SECRETARY OF VETERANS
AFFAIRS.
(a) Findings.--Congress makes the following findings:
(1) The Merchant Marine Act, 1936 established the United
States Maritime Commission, and stated as a matter of policy
that the United States should have a merchant marine that is
``capable of serving as a naval and military auxiliary in time
of war or national emergency''.
(2) The Social Security Act Amendments of 1939 (Public Law
76-379) expanded the definition of employment to include
service ``on or in connection with an American vessel under
contract of service which is entered into within the United
States or during the performance of which the vessel touches at
a port in the United States, if the employee is employed on and
in connection with such vessel''.
(3) The Joint Resolution to repeal sections 2, 3, and 6 of
the Neutrality Act of 1939, and for other purposes (Public Law
77-294; 55 Stat. 764) repealed section 6 of the Neutrality Act
of 1939 (related to the arming of United States vessels) and
authorized the President during the national emergency to arm
or permit to arm any United States vessel.
(4) On February 7, 1942, President Franklin D. Roosevelt,
through Executive Order Number 9054, established the War
Shipping Administration that was charged with building or
purchasing, and operating the civilian shipping vessels needed
for the war effort.
(5) During World War II, United States merchant mariners
transported goods and materials through ``contested waters'' to
the various combat theaters.
(6) At the conclusion of World War II, United States merchant
mariners were responsible for transporting several million
members of the United States Armed Forces back to the United
States.
(7) The GI Bill Improvement Act of 1977 (Public Law 95-202)
provided that the Secretary of Defense could determine that
service for the Armed Forces by organized groups of civilians,
or contractors, be considered ``active service'' for benefits
administered by the Veterans Administration.
(8) Department of Defense Directive 1000.20 directed that the
determination be made by the Secretary of the Air Force, and
established the Civilian/Military Service Review Board and
Advisory Panel.
(9) In 1987, three merchant mariners along with the AFL-CIO
sued Edward C. Aldridge, Secretary of the Air Force,
challenging the denial of their application for veterans
status. In Schumacher v. Aldridge (665 F. Supp. 41 (D.D.C.
1987)), the Court determined that Secretary Aldridge had failed
to ``articulate clear and intelligible criteria for the
administration'' of the application approval process.
(10) During World War II, women were repeatedly denied
issuance of official documentation affirming their merchant
marine seaman status by the War Shipping Administration.
(11) Coast Guard Information Sheet #77 (April 1992)
identifies the following acceptable forms of documentation for
eligibility meeting the requirements set forth in the GI Bill
Improvement Act of 1977 (Public Law 95-202) and Veterans
Programs Enhancement Act of 1998 (Public Law 105-368):
(A) Certificate of shipping and discharge forms.
(B) Continuous discharge books (ship's deck or engine
logbooks).
(C) Company letters showing vessel names and dates of
voyages.
(12) Coast Guard Commandant Order of March 20, 1944, relieved
masters of tugs, towboats, and seagoing barges of the
responsibility of submitting reports of seamen shipped or
discharged on forms, meaning certificates of shipping and
discharge forms are not available to all eligible individuals
seeking to document their eligibility.
(13) Coast Guard Information Sheet #77 (April 1992) states
that ``deck logs were traditionally considered to be the
property of the owners of the ships. After World War II,
however, the deck and engine logbooks of vessels operated by
the War Shipping Administration were turned over to that agency
by the ship owners, and were destroyed during the 1970s'',
meaning that continuous discharge books are not available to
all eligible individuals seeking to document their eligibility.
(14) Coast Guard Information Sheet #77 (April, 1992) states
``some World War II period log books do not name ports visited
during the voyage due to wartime security restrictions'',
meaning that company letters showing vessel names and dates of
voyages are not available to all eligible individuals seeking
to document their eligibility.
(b) Methods for Validating Certain Service Considered to Be Active
Service by the Secretary of Veterans Affairs.--
(1) In general.--For the purposes of verifying that an
individual performed service under honorable conditions that
satisfies the requirements of a coastwise merchant seaman who
is recognized pursuant to section 401 of the GI Bill
Improvement Act of 1977 (Public Law 95-202; 38 U.S.C. 106 note)
as having performed active duty service for the purposes
described in paragraph (3)(A), the Secretary of Homeland
Security shall accept the following:
(A) In the case of an individual who served on a
coastwise merchant vessel seeking such recognition for
whom no applicable Coast Guard shipping or discharge
form, ship logbook, merchant mariner's document or Z-
card, or other official employment record is available,
the Secretary shall provide such recognition on the
basis of applicable Social Security Administration
records submitted for or by the individual, together
with validated testimony given by the individual or the
primary next of kin of the individual that the
individual performed such service during the period
beginning on December 7, 1941, and ending on December
31, 1946.
(B) In the case of an individual who served on a
coastwise merchant vessel seeking such recognition for
whom the applicable Coast Guard shipping or discharge
form, ship logbook, merchant mariner's document or Z-
card, or other official employment record has been
destroyed or otherwise become unavailable by reason of
any action committed by a person responsible for the
control and maintenance of such form, logbook, or
record, the Secretary shall accept other official
documentation demonstrating that the individual
performed such service during period beginning on
December 7, 1941, and ending on December 31, 1946.
(C) For the purpose of determining whether to
recognize service allegedly performed during the period
beginning on December 7, 1941, and ending on December
31, 1946, the Secretary shall recognize masters of
seagoing vessels or other officers in command of
similarly organized groups as agents of the United
States who were authorized to document any individual
for purposes of hiring the individual to perform
service in the merchant marine or discharging an
individual from such service.
(2) Treatment of other documentation.--Other documentation
accepted by the Secretary of Homeland Security pursuant to
paragraph (1)(B) shall satisfy all requirements for eligibility
of service during the period beginning on December 7, 1941, and
ending on December 31, 1946.
(3) Benefits allowed.--
(A) Burial benefits eligibility.--Service of an
individual that is considered active duty pursuant to
paragraph (1) shall be considered as active duty
service with respect to providing burial benefits under
chapters 23 and 24 of title 38, United States Code, to
the individual.
(B) Medals, ribbons, and decorations.--An individual
whose service is recognized as active duty pursuant to
paragraph (1) may be awarded an appropriate medal,
ribbon, or other military decoration based on such
service.
(C) Status of veteran.--An individual whose service
is recognized as active duty pursuant to paragraph (1)
shall be honored as a veteran but shall not be entitled
by reason of such recognized service to any benefit
that is not described in this subsection.
(4) Determination of coastwise merchant seaman.--The
Secretary of Homeland Security shall verify that an individual
performed service under honorable conditions that satisfies the
requirements of a coastwise merchant seaman pursuant to this
section without regard to the sex, age, or disability of the
individual during the period in which the individual served as
such a coastwise merchant seaman.
(5) Definition of primary next of kin.--In this section, the
term ``primary next of kin'' with respect to an individual
seeking recognition for service under this section means the
closest living relative of the individual who was alive during
the period of such service.
(6) Effective date.--This section shall take effect 90 days
after the date of the enactment of this Act.
SEC. 303. DESIGNATION OF AMERICAN WORLD WAR II CITIES.
(a) In General.--The Secretary of Veterans Affairs shall designate at
least one city in the United States each year as an ``American World
War II City''.
(b) Criteria for Designation.--After the designation made under
subsection (c), the Secretary, in consultation with the Secretary of
Defense, shall make each designation under subsection (a) based on the
following criteria:
(1) Contributions by a city to the war effort during World
War II, including those related to defense manufacturing, bond
drives, service in the Armed Forces, and the presence of
military facilities within the city.
(2) Efforts by a city to preserve the history of the city's
contributions during World War II, including through the
establishment of preservation organizations or museums,
restoration of World War II facilities, and recognition of
World War II veterans.
(c) First American World War II City.--The city of Wilmington, North
Carolina, is designated as an ``American World War II City''.
SEC. 304. OBSERVANCE OF VETERANS DAY.
(a) Two Minutes of Silence.--Chapter 1 of title 36, United States
Code, is amended by adding at the end the following new section:
``Sec. 145. Veterans Day
``The President shall issue each year a proclamation calling on the
people of the United States to observe two minutes of silence on
Veterans Day in honor of the service and sacrifice of veterans
throughout the history of the Nation, beginning at--
``(1) 3:11 p.m. Atlantic standard time;
``(2) 2:11 p.m. eastern standard time;
``(3) 1:11 p.m. central standard time;
``(4) 12:11 p.m. mountain standard time;
``(5) 11:11 a.m. Pacific standard time;
``(6) 10:11 a.m. Alaska standard time; and
``(7) 9:11 a.m. Hawaii-Aleutian standard time.''.
(b) Clerical Amendment.--The table of sections for chapter 1 of title
36, United States Code, is amended by adding at the end the following
new item:
``145. Veterans Day.''.
Amend the title so as to read:
A bill to improve the processing of disability claims by
the Department of Veterans Affairs, and for other purposes.
Purpose and Summary
H.R. 2189 was introduced on May 23, 2013, by Representative
Jeff Miller of Florida. H.R. 2189, as amended, incorporates
provisions from H.R. 2138, as amended, introduced by
Representative Kevin McCarthy of California, H.R. 2382, as
amended, introduced by Representative Paul Cook of California,
H.R. 1623, as amended, introduced by Representative Gloria
Negrete McLeod of California, H.R. 1805, as amended, introduced
by Representative Ann M. Kuster of New Hampshire, H.R. 1759, as
amended, introduced by Representative Raul Ruiz of California,
H.R. 1824, as amended, introduced by Representative Grace Meng
of New York, H.R. 1809, as amended, introduced by
Representative Beto O'Rourke of Texas, H.R. 2423, as amended,
introduced by Representative Jon Runyan of New Jersey, H.R.
2341, as amended, introduced by Representative Thomas J. Rooney
of Florida, H.R. 2086, as amended, introduced by Representative
Dina Titus of Nevada, H.R. 1494, as amended, introduced by
Representative Christopher P. Gibson of New York, H.R. 1288,
introduced by Representative G. K. Butterfield of North
Carolina, H.R. 864, introduced by Representative Mike McIntyre
of North Carolina, H.R. 2185, introduced by Representative
Stephen F. Lynch of Massachusetts. Together, these provisions
would establish a commission or task force to provide a
comprehensive evaluation and assessment of the backlog of
disability claims of the Department of Veterans Affairs (VA) as
well as appeals of claims, would require VA to regularly report
on implementation of its Strategic Plan, would require
departmental coordination to expedite the transfer of Social
Security, Department of Defense, and National Guard records,
would establish a statutory two-year training program for
claims processors, would require the Comptroller General to
submit to Congress a report on the progress of the Secretary of
Veterans Affairs in implementing the Strategic Plan to
Eliminate the Compensation Claims Backlog within one year of
enactment, would require Secretary of Veterans Affairs to
prioritize certain enumerated claims for disability benefits,
would direct the Secretary of Veterans Affairs to make publicly
available certain information about pending and completed
claims for compensation and would also require VA to report
data on individual medical-issue processing, would add multiple
reporting requirements for the Secretary's annual report to
Congress, would direct the Secretary of Veterans Affairs to
provide notice of average times for processing claims and
percentage of claims approved, would extend the temporary
authority of the Secretary of Veterans Affairs to enter into
contracts with private physicians to conduct medical disability
examinations from 2013 through 2016, would expand scope of
pilot project on contracts with private physicians to provide
compensation and pension exam from ten regional offices to
fifteen regional offices, would reduce licensing hurdles for
licensed contracted physicians for purposes of veteran
compensation and pension examinations, would require the
Secretary of Veterans Affairs, when determining the eligibility
of individuals for pension benefits, to consider the resources
of individuals applying for pension that were disposed of
within three years of application by the individuals for less
than fair market value and make reports to Congress, would
direct the Secretary to make bifurcated payments of disability
compensation benefits prior to the adjudication of additional
issues within the claim, would extend provision of law
regarding pension for certain veterans covered by Medicaid
plans for services furnished by nursing facilities for two
additional years, would direct the Secretary of Defense to
review the operation of ships operated in the waters near
Vietnam during the Vietnam Era, and would require notification
to the Secretary of Veterans Affairs, and public, of the
findings, would permit additional documentation to be
considered for veterans' status of coastwise merchant seamen
during World War II, would direct the Secretary of Veterans
Affairs to designate at least one city in the United States
annually as an ``American World War II City,'' and would codify
a two minute moment of silence on Veterans Day.
Background and Need for Legislation
Section 1--Table of contents
Section 1 of H.R. 2189, as amended, contains a table of
contents.
Section 2--Scoring of budgetary effects
Section 2 of H.R. 2189, as amended, contains budgetary
information regarding compliance with the Statutory Pay-As-You-
Go Act of 2010.
TITLE I
Section 101--Evaluation of backlog of disability claims and appeals of
claims of Department of Veterans Affairs
Section 101 of H.R. 2189, as amended, would establish a
commission or task force to provide a comprehensive evaluation
and assessment of the backlog of VA disability claims, as well
as the lesser noted backlog of appealed claims, an analysis of
possible improvements to the Department of Veterans Affairs?
(VA) disability claims process, and any related issues that the
commission or task force considers relevant. This section would
require interim and final reports to Congress within 180 days
of commencement of work.
The VA disability compensation program provides monetary
support to veterans with disabling conditions that were
incurred or aggravated during military service. In fiscal year
2012, the program provided over $48 billion in disability
compensation benefits to nearly 3.5 million veterans. For
years, the disability compensation claims process has been the
subject of concern and attention by VA, Congress, and Veterans
Service Organizations (VSO), due in large part to long waits
for decisions and the large number of claims pending a
decision. Moreover, VA's backlog of claims, defined as claims
awaiting a decision for over 125 days, had more than tripled
since September 2009. Against this backdrop, hundreds of
thousands of servicemembers are expected to become veterans in
the coming years according to VA officials, with a significant
number expected to apply for disability benefits.
VA has faced challenges in reducing the time it takes to
decide veterans' claims, and continues to struggle with
hundreds of thousands of backlogged veterans' and survivors'
claims. In 2013, VA presented its Strategic Plan to Eliminate
the Compensation Claims Backlog. While this Strategic Plan set
ambitious goals for 2015, it did not adequately define clear
initiatives, correlations between initiatives, or expectations
for success of the initiatives. Recently, on December 21, 2012,
the Government Accountability Office (GAO) issued a report\1\
on VA's plan for backlog reduction, wherein it noted that VA's
Strategic Plan was inadequate. GAO wrote that VA's ongoing
efforts should be driven by a robust, comprehensive plan;
however when reviewing the Strategic Plan of the Veterans
Benefits Administration (VBA), GAO found that it fell short of
established criteria for sound planning.
---------------------------------------------------------------------------
\1\United States Government Accountability Office, Veterans?
disability Benefits: Timely Processing Remains a Daunting Challenge,
December, 2012, GAO-13-89.
---------------------------------------------------------------------------
VA has installed sweeping technological changes in recent
months, and has implemented various initiatives under its
Strategic Plan. However, VA has also layered new initiative
upon new initiative, including short-notice mandatory overtime,
focused deadlines for claims dated in excess of two years and
one year, and alteration of the VA tracking and reporting
figures of backlogged claims in its Monday Morning Workload
Report. While VA has targeted backlog elimination by 2015, VA
lacks a comprehensive process and workload strategy for the
future that takes into account the changing nature of
disabilities in our nation, the evolution of VA's duty to
assist in light of amended notices to veterans, partnerships
with the VSO community, and newly structured processing of
claims that VA delineates as fully developed upon submission.
Within its review, GAO noted that although VBA is attempting to
address processing challenges through various improvement
initiatives, without a comprehensive plan to strategically
manage resources and evaluate the effectiveness of these
efforts, the agency risks spending limited resources on
initiatives that may not speed up disability claims and appeals
processes. This may, in turn, result in forcing veterans to
continue to wait months and even years to receive compensation
for injuries incurred during their service to the country.
Furthermore, numerous recent reports of the VA Office of
Inspector General (VA OIG) demonstrate that VA regional offices
across the nation continue to lack effective controls and
accuracy in processing disability claims, fail to adequately
interpret policy requirements, lack effective training, and
further lack proper managerial oversight. While VA has set
concrete goals for processing times, and reduction of
backlogged veterans' disability compensation claims, it is
evident that more must be done to ensure that VA implements a
workload management strategy that will not only eliminate the
current backlog, but will also improve the system in a holistic
manner, provide capacity for anticipated and unanticipated
surges, ensure accurate processing of claims, and prevent
future backlog occurrences.
The need for this legislation establishing a commission or
task force has been highlighted before the Committee by
independent subject matter expert academics, organizations who
advocate on behalf of veterans, and by the Court of Appeals for
Veterans Claims, most recently at a Subcommittee of Disability
Assistance and Memorial Affairs' hearing on June 18, 2013,
entitled, ``Why Are Veterans Waiting Years on Appeal?: A Review
of the Post-Decision Process for Appealed Veterans' Disability
Benefits Claims.'' An outside analysis is necessary to clearly
identify, first, why the backlog exists, and second, how to
prevent this situation from ever recurring, whether by needed
amendment to law, regulation, policy, or process.
The commission or task force created by this section would
augment and support VA's ongoing work, contribute added value
to VA's efforts, report on its findings early and often, and
increase transparency throughout the process. Additionally,
while much focus is placed upon the backlog of veterans'
disability benefit claims, a commensurate focus upon the
backlog of veterans' appealed claims does not exist. With a
current caseload of over 250,000 appeals and a projected
workload of hundreds of thousands of appealed claims in the
coming years, the appellate system must also be considered with
thoughtful analysis, evaluation, and recommendations for
improvement.
Section 102--Supplemental reports to the Strategic Plan to Eliminate
the Compensation Claims Backlog
Section 102 of H.R. 2189, as amended, would direct the
Secretary of Veterans Affairs to provide a supplemental report
to the Strategic Plan to Eliminate the Compensation Claims
Backlog within 60 days of enactment, and every 120 days
thereafter until May 25, 2015.
While VA's Strategic Plan to Eliminate the Compensation
Claims Backlog sets forth dozens of initiatives targeted at
eliminating the backlog, VA has failed to forecast the effects
of each initiative. The Committee is significantly concerned
that VA's Strategic Plan lacks specific details on how its
metrics were derived, lacks data on which those metrics were
based, and lacks sufficient information on how the plan would
be implemented. Furthermore, insufficient transparency as VA
works toward the 2015 goal complicates Congress' ability to
hold VA accountable for meeting its goals. Thus, this
legislation is necessary in order to ascertain the efficacy of
the various new approaches undertaken by VA, allow for
transparency of process, and enable accountability and further
development of VA's improved service to veterans.
Section 103--Expedition of transfer of certain records
Section 103 of H.R. 2189, as amended, would require the
Secretary of Veterans Affairs enter into agreements with the
Secretary of Defense and the Commissioner of the Social
Security Administration to ensure that the relevant federal
records of members or former members of the Armed Forces,
including persons who served within the National Guard, are
transferred to the Secretary of Veterans Affairs for use in
evaluating claims by not later than 30 days after the Secretary
of Veterans Affairs requests such records.
The enactment of this provision would reduce the delay that
VA experiences when waiting for records from other federal
agencies. VA officials have repeatedly indicated that the
longest delays in processing compensation claims result from
incomplete medical, service, and financial records that are
needed to support the claim. While all delays in records
receipt are problematic, it is unacceptable to have such delays
for records in the custody of federal or state governmental
agencies. Accordingly, this legislation is necessary to require
that the federal departments that possess relevant records
treat VA requests with proper expediency, and coordinate as
needed with state actors.
Section 104--Claims processors training
Section 104 of H.R. 2189, as amended, would direct the
Secretary of Veterans Affairs to establish a training program
to provide newly hired claims processors of the Department of
Veterans Affairs with training for a period of not less than
two years. In carrying out such program, the Secretary would be
required to identify successful claims processors of the
Department who can assist in the training of newly hired claims
processors.
Within VA's transformation process, focus has been placed
on improving employee training programs in order to provide
high-quality, timely, and relevant training for both new and
experienced personnel. To that end, VA redesigned and deployed
centralized programs and new tools that standardize training
for the disability compensation and pension benefit programs
across its 56 regional offices. VA has implemented eight-week
Challenge Training for new employees, has deployed intensive
multi-week Station Enhancement Training to regional offices
that have reported consistently low performance and poor
results, and has developed a National Training Curriculum.
However, VA has also indicated that, on average, it takes two
to three years for an employee to master the skills necessary
within the Regional Offices. While VA has implemented new
training programs, VSOs have long reported that VA's training
is not sufficient. Accordingly, this section will require VA to
ensure that adequate focus and resources remain targeted to
ongoing and improved education and training for employees.
Section 105--Report by Comptroller General of the United States
Section 105 of H.R. 2189, as amended, would require the
Comptroller General to submit to Congress a report on the
progress of the Secretary of Veterans Affairs in implementing
the Strategic Plan to Eliminate the Compensation Claims Backlog
within one year of enactment.
On December 21, 2012, the Government Accountability Office
(GAO) issued a report\2\ on VA's transformation efforts, which
noted that VBA was taking steps to improve the timeliness of
claims and appeals processing; however, prospects for
improvement remained uncertain because timely processing
remained a daunting challenge. GAO indicated that VBA was using
contractors to handle some aspects of the claims process, and
was also shifting some workload between regional offices. Also,
VBA was modifying and streamlining certain claims and appeals
processing procedures for veterans who opt to participate in
these initiatives in exchange for an expedited decision. For
example, veterans receive expedited processing when they submit
a claim that is certified as having all required evidence. In
addition, VBA has been trying to decrease the amount of time it
takes to gather medical evidence. For example, VBA recently
encouraged medical providers to use a standardized form when
responding to VBA's request for information. However, results
of this initiative have been mixed. VBA was also taking steps
to streamline the claims process, including implementing
initiatives to create standardized language for decision
letters sent to veterans, specialized teams that process claims
based on level of complexity, and a paperless claims system.
---------------------------------------------------------------------------
\2\Supra, note 1.
---------------------------------------------------------------------------
GAO noted that, according to VBA officials, these efforts
will help VA process veterans' claims within 125 days by 2015.
However, GAO raised concerns as to the extent to which VA is
positioned to meet this ambitious goal. Specifically, VBA's
Strategic Plan did not articulate performance measures for each
initiative, including their intended impact on the claims
backlog. Furthermore, VA has not yet reported on how these
efforts have affected processing times, a condition which
raises concern given the mixed results that have emerged to
date. GAO made several recommendations on areas for
improvement. Accordingly, this section is necessary to ensure
that GAO remains apprised of VA's actions, and is able to
provide a follow-up report so as to inform Congress on VA's
progress in its implementation of the Strategic Plan.
Section 106--Priority for processing claims of the Department of
Veterans Affairs
Section 106 of H.R. 2189, as amended, would require
Secretary of Veterans Affairs to prioritize disability benefits
claims submitted by veterans who have attained the age of 70,
who are terminally ill, have life-threatening illnesses, are
homeless, have received the Medal of Honor, were prisoners of
war, were seriously or very seriously injured, and those whose
claims are being reviewed again in relation to a previously
denied claim relating to military sexual trauma, or for good
cause shown at the discretion of the Secretary on a case by
case basis.
Current VA's practice includes the prioritization of
certain claims, including Medal of Honor recipients, homeless
veterans, and veterans experiencing extreme financial
hardships, terminal illness, among others. Thus, VA has
identified certain classes of claimants, and determined that in
some instances expedited treatment is appropriate. Most of the
classes of claimants enumerated in section 106 of H.R. 2189, as
amended, currently qualify for prioritization and expedited
process under VA's policy. However, on June 28, 2013, at a
Subcommittee legislative hearing on this proposal, VBA Director
of Compensation Service, Thomas Murphy, testified that it is
not guaranteed that the VA practice is uniformly applied across
all regional offices. Accordingly, it is the intent of this
section to create a statutory requirement in order to ensure
uniform prioritization for these most urgent claimants. The
Committee believes that codification of this requirement would
ensure uniform application of the priority classes, while still
giving discretion to the Secretary of Veterans Affairs to
provide for the prioritization of additional claims on a case
by case basis.
In addition, pursuant to this section, veterans whose
claims are being reviewed again in relation to a previously
denied claim relating to military sexual trauma (MST) would be
prioritized. The Committee is aware that, for several years, VA
has insufficiently processed veterans' claims relating to MST.
At a Subcommittee legislative hearing, held April 16, 2013, VA
Director of Pension and Fiduciary Service, David R. McLenachen,
testified that Under Secretary Hickey has devoted efforts to
improving VA's overall sensitivity to MST-related post
traumatic stress disorder (PTSD) claims through implementation
of regulations, training, and coordination within VBA and the
Veterans Health Administration (VHA). Even so, VA has
recognized that some veterans' MST-related claims were decided
before these targeted efforts began.
To assist those veterans and provide them with the same
evidentiary considerations as veterans who file claims today,
VBA plans to advise veterans of the opportunity to request that
VA review their previously denied PTSD claims based on MST.
Those veterans who respond will receive reconsideration of
their claims based on VA's heightened sensitivity to MST and a
more complete awareness of evidence development. However, as it
stands currently, these claims will go to the back of the line
and wait for newer filed claims to be processed. As the
veterans' MST claims were both pending and adjudicated after
lengthy wait times in the first instance, without the benefits
of newly implemented safeguards for increased accuracy, the
Committee believes that these veterans should also receive
urgent and expeditious review within the statutorily
prioritized classes.
Section 107--Public availability of certain information about pending
and completed claims for compensation under the laws
administered by the Secretary of Veterans Affairs
Section 107 of H.R. 2189, as amended, would require VA to
increase its capabilities to regularly track the processing of
claims in greater detail, and with an emphasis on the medical
issues within a claim. Currently, VA tracks claims, but not
individual medical issues. While VA reports its statistics on
claim completions, this statistic is an ineffective measure of
productivity, as a claim may contain any number of medical
issues; some claims have as few as one issue, while others may
have 15 or 16 issues. While each claim does represent one
veteran, from an operational perspective, the preferred
knowledge would be to have an understanding of the effort
required for completion of the claim. In terms of gaining
understanding of VA's workload, the Committee believes that 100
claims completed, each containing two objective issues is
entirely different than 100 claims completed, each containing
10 or 11 issues demonstrating complex medical conditions.
At a Committee hearing in March, 2013,\3\ VBA Under
Secretary for Benefits, Allison A. Hickey, testified that the
average number of claimed issues for recently separated
Servicemembers is currently in the 12 to 16 range. Accordingly,
VA does not believe the current all-or-nothing measure of claim
accuracy reflects the actual level of decision accuracy
achieved.
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\3\Hearing, Committee on Veterans' Affairs, ``Focusing on People: A
Review of VA's Plans for Employee Training, Accountability, and
Workload Management to Improve Disability Claims Processing,'' March
20, 2013.
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The Under Secretary indicated that VA has proposed an
issue-based accuracy approach, which identifies individual
medical issues and affords VBA the opportunity to precisely
target those medical issues where the most errors are made.
Ideally, with issue-based accuracy detail, VBA will be able to
dedicate targeted training and improve employees' level of
medical issue accuracy.
Dovetailing with VBA's internal identification of issue-
based accuracy metrics, this section would require VA to track
the time spent evaluating each issue within a veteran's
disability claim, as well as the performance of each regional
office in handling disability claims at the medical issue
level. It would also require VA to provide public information
on respective lengths for processing time. This information
would provide Congress, VA, and the public with greater
understanding of the backlog, including specific information on
medical issues that are experiencing the shortest, and longest,
delays. While this level of detail was not available in the
legacy paper system, VA has indicated that an issue-based level
of clarity would be possible within the Veterans Benefits
Management System (VBMS). The Committee's intent is to both
ensure that VA prioritizes the building of these capabilities
within VBMS system, and to ensure that this information is
shared on a regular basis with stakeholders.
Sec. 108. Annual report on processing of claims
As noted by the Veterans Benefits Administration, Under
Secretary for Benefits, Allison A. Hickey, at March hearing,\4\
the average benefits claim for Iraq and Afghanistan veterans
contains 12 to 16 separate conditions. The medical conditions
vary in complexity and each issue is individually adjudicated
by VA employees; however, the veteran only begins receiving
benefits when the entire claim has been processed.
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\4\Id.
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The Committee believes that VA's annual reporting
requirements to Congress require amendment in order to quantify
the efficacy of various initiatives and performance-improving
endeavors of the department. For instance, VA's continued
pursuit of increased automation in the adjudication process is,
in part, aimed at streamlining the objective facets of
adjudication in order to allow full time employees to
concentrate their efforts upon more complex claims. This
section would direct the VA to provide information on the
automatic processing of claims.
Section 108 would also require VA to provide information
within its annual report to Congress on the performance of any
regional office that fails to meet the administrative goals of
the regional office with respect to timeliness and accuracy in
processing claims for compensation. The Committee believes that
this reporting requirement would allow for greater transparency
of backlog and claims' processing issues, and would improve
regional office accountability by providing individual
reporting requirements for any of VA's 56 regional offices that
fail to meet the department's target goals. This reporting
requirement would also allow regional offices to explain the
unique challenges faced, and would facilitate targeted
resourcing and remediation of struggling offices.
Finally, this section would create a reporting requirement
within VA's annual report to Congress on the timeliness of
receiving information pursuant to a request by the Secretary to
the head of another department or agency of the United States
for information required by the Secretary in adjudicating a
claim for compensation under chapter 11 of title 38, United
States Code. At the March 20, 2013, Committee hearing,\5\ VA
indicated that veterans' claims are often delayed due to slow
response from other agencies, who must provide records in order
to permit claim adjudication. For instance, the Committee is
aware that a large proportion of claims are waiting for
information from DoD in order to progress in the claims'
adjudication process. As of August 26, 2013, VA's national
average days to complete a claim, as reported upon VA's Monday
Morning Workload Report, was over 375 days. Many months of that
period consist of a holding pattern, wherein VA waits for the
Department of Defense, the Internal Revenue Service, the Social
Security Administration to respond to requests for records.
Under Secretary Hickey stated that VA has made agreements with
the other federal entities to provide a cleaner and quicker
transfer of needed records, and so as to provide necessary
oversight of this collaboration, this section would require
annual information on the progress of these records transfers.
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\5\Id.
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Sec. 109. Department of Veterans Affairs notice of average times for
processing claims and percentage of claims approved
VA adopted the fully developed claims (FDCs) program
pursuant to section 221 of P.L. 110-389 (122 Stat. 4145), the
Veterans Benefits Improvement Act of 2008. This program allows
veterans to collect their necessary documents and records
independently, and then submit those claims as ``fully
developed.'' The veterans' efforts in providing the necessary
records and documentation up front reduces VA's required
efforts to assist the veterans in records development, thereby
reducing several delays in the claim adjudication process with
regards to VA's statutory duty to notify and duty to assist,
provided at section 5103 and 5103A of title 38, United States
Code. Within VBA's briefing to Congressional staff for July
2013, entitled ``Understanding the VA Claims Process,'' VA
reported that claims submitted pursuant to the FDC program have
benefited from wait time reductions of up to 62 percent.
VA seeks to expand the FDC program and encourage an
increase in FDC submissions nationally. In order to gain
insight on the benefits that may be attributed to this program,
this section would require VA to report quarterly on certain
information regarding VA's timeliness for adjudicating claims
in different formats such as paper application or online
utilizing the FDC program. This section is intended to provide
information that would educate VA stakeholders and veterans of
the available options, and the consequent timeliness that would
be associated with various forms of claims submission including
fully developed claims submitted in electronic form, fully
developed claims submitted in paper form, undeveloped claims
submitted in paper form, undeveloped claims submitted in
standard paper form, claims submitted in a non-standard form,
as well as claims submitted with the assistance of veterans
service organizations (VSO). By providing ready access to this
information, the Committee believes that veterans will be more
informed on the possible benefits for faster adjudication of
certain forms of claims submission, which will consequently
shift behavior by encouraging submissions by the most
manageable formats and with an appropriate level of VSO
assistance. Additionally, this section would require that
veterans be notified of the statutory benefit that is provided
to FDC submissions; pursuant to statute, FDCs are eligible for
up to one extra year of benefits through August 6, 2015. This
provision is also intended to encourage veterans to file FDCs,
and is intended to result in time savings within the claims
process.
Sec. 110. Claim defined
Section 110 of H.R. 2189, as amended, defines the term
``claim,'' for the purposes of Title I, as a claim for
disability compensation under the laws administered by the
Secretary of Veterans Affairs.
TITLE II--COMPENSATION AND PENSIONS
Sec. 201. Improvements to authority for performance of medical
disabilities examinations by contract physicians
Section 201 of H.R. 2189, as amended, would extend from
December 31, 2013, through December 31, 2016, VA's authority
under the Veterans Benefits Act of 2003 to provide for medical
examinations by contract physicians in claims for VA disability
benefits. VA specifically requested this extension in its FY
2014 budget submission, at that time stating of the proposal:
Contract Physicians Medical Disability Evaluations:
This proposal seeks to amend Public Law 108-183 by
amending Section 704(c) with a five year extension.
This Public Law provides authority under which persons
not employed by the VA carry out examinations with
respect to medical disability or applicants for VA
benefits.\6\
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\6\U.S. Department of Veterans Affairs Fiscal Year 2014 Budget
Submission, Vol. 3, pg. 2A-24.
The need for this legislation was demonstrated at the
legislative hearing held on June 28, 2012 of the Subcommittee
on Disability Assistance and Memorial Affairs. In testimony
before the Committee, Veteran Service Organizations (VSO)
offered that the quality and timeliness of compensation exams
conducted by contractors have proven to be on par, and
sometimes better than, disability exams conducted by VA
physicians who are generally more focused on treating veterans
rather than evaluating disabilities under the VA Schedule for
Rating Disabilities. Moreover, VSOs noted that with demand for
VA medical care rising, it is important that VA's treating
physicians, especially specialists, remain focused on providing
high quality care to their patients. In addition, the more
technologically-advanced and user-friendly scheduling and
Information Technology (IT) systems used by some contractors
has contributed to higher customer satisfaction scores from
veterans receiving contract exams. The Committee heard
testimony that if the existing contracting authority were to
expire, an already overstressed system would be further taxed,
potentially to the breaking point. With wait times for exams a
potential delaying factor in an already overlong disability
claims process, VSOs indicate that losing this contracting
authority could be disastrous to VA's attempts to eradicate the
backlog of disability claims. Accordingly, it is the
Committee's belief that extension of this VA authority is
merited.
Section 201 of H.R. 2189, as amended, would also address
physician licensure issues for contract physicians, as it would
permit physicians who possess a license to practice the health
care profession of the physician to perform compensation and
pension examinations under the authority of VA at any location
in any State, the District of Columbia, or a Commonwealth,
territory, or possession of the United States, so long as the
examination is within the scope of the authorized duties under
such contract. The Committee finds this provision to be a
sensible accommodation in light of several factors, including
the fact that VA physicians similarly licensed are permitted to
provide VA medical care at VA locations nationwide, as well as
the supply and demand realities of specialized physicians in
various geographic locations, and the specialized nature of
compensation and pension examinations for the purpose of the VA
disability benefits program. The licensure extended for VA
purposes within this section regard only the contract
physician's ability to provide compensation and pension
examinations for VA rating purposes.
Finally, Section 201 of H.R. 2189, as amended, would extend
VA's authority under the Veterans' Benefits Improvement Act of
1996. This provision would allow VA to utilize contract
physicians at five additional Regional Offices, thus permitting
VA to increase from 10 Regional Office to 15 Regional Offices.
Due to the echoed support of both VA and VSOs of the contract
physician program, the Committee believes that enlarging the
pilot program to 15 of VA's 56 Regional Offices is appropriate,
in order to expedite medical examination and, ultimately,
claims' decisions for veterans.
Sec. 202. Consideration by Secretary of Veterans Affairs of resources
disposed of for less than fair market value by individuals
applying for pension
Section 202 would protect veterans the unscrupulous actions
of individuals who have designed methods to scam veterans of
their benefits. This section would eliminate the loophole that
allows predators to divert veterans' assets in order to
improperly qualify them for a pension. By creating a three-year
``look-back'' period to determine eligibility for the VA
pension program, this section is designed to ensure that bad
actors are not taking advantage of the system, and ensure the
benefits for those veterans that truly qualify for the program.
Representative Thomas J. Rooney of Florida provided a
written statement for the record at the legislative hearing
held by the Subcommittee on Disability Assistance and Memorial
Affairs on June 28, 2013. Representative Rooney indicated that
there is concern that financial advisors and firms seeking to
prey on elderly and disabled veterans are misleading and taking
advantage of these veterans. The firms and individuals promise
to help veterans qualify for VA pension benefits if they divert
their assets into trusts or annuities. Currently the VA only
considers net worth at the time a veteran applies for benefits,
therefore the Department cannot determine if an applicant has
recently diverted their assets in order to qualify.
Consequently, the firms profit from the purchased trusts or
annuities, which are often poor investments for seniors. As a
result, victims have lost access to their savings in exchange
for a small pension and the VA pension fund is further drained
for veterans in need. In addition, these firms further profit
by charging veterans exorbitant fees and selling them
additional, costly services.
This practice is shameful and appalling, and the Committee
believes that this section is necessary in order to remedy this
predatory situation. The financial firms are not only scamming
elderly veterans out of their life savings, but they are also
undermining the VA pension program in the process.
Sec. 203. Bifurcated payments of compensation benefits under laws
administered by the Secretary of Veterans Affairs
The Veterans Benefits Management System (VBMS) is a
transformational effort aimed at a paperless environment for
veterans claims processing and benefits delivery across VBA's
business lines. VBMS was originally piloted at the Providence
and Salt Lake City regional offices in 2012, and was expanded
to all regional offices in June 2013. Upon full development,
VBMS is intended to provide end-to-end electronic claims
processing for each stage of the claims life cycle.
The Committee believes that VBMS has the potential to allow
for improvements to VBA's production performance and accuracy.
Additionally, by operating in an electronic environment, VBA
will eventually be able to adjudicate individual medical
conditions.
More than 85 percent of claims are only paid after the
entire claim has been reviewed and processed. The average
benefits claim for Iraq and Afghanistan veterans contains 12 to
16 separate claimed disabling conditions. Each medical
condition is individually adjudicated, but the veteran only
begins receiving benefits when the entire claim has been
processed. This section would require VA to pay veterans
benefits they are entitled to as each element of their claim is
finalized, rather than when the entire package has been
processed. Such a payment approach was difficult in a paper
processing operation; however, the Committee believes that
paying veterans by individual medical condition should be
achievable with VA's ongoing technological updates. Such a
bifurcated payment system would be beneficial to veterans
within the electronic processing system.
Sec. 204. Pension for certain veterans covered by Medicaid plans for
services furnished by nursing facilities
Section 204 would extend through September 30, 2018, the
expiration date for the reduction of VA pensions for certain
beneficiaries with no dependents who are covered by Medicaid
plans for services furnished by nursing facilities.
Under current law, a veteran with no dependents who is
entitled to receive pension under section 1521 of title 38,
United States Code, cannot be paid more than $90 per month if
the veteran is in a nursing facility where services are covered
by a Medicaid plan. The $90 pension benefit may not be counted
in determining eligibility for Medicaid or the patient's share
of cost.
This section is necessary, as extending the current law
would generate required cost savings to provide funding for
alterations of veterans' benefits programs that would be
provided within H.R. 2189, as amended. While generating cost
savings, the impact upon veterans' receipt of benefits is
minimized as the enumerated reduction of VA pensions provided
for Medicaid recipients, within section 5503 of title 38,
United States Code, are currently in effect.
TITLE III--OTHER MATTERS
Sec. 301. Review of operation of certain ships during the Vietnam Era
Under current law, so-called ``Blue Water'' Navy Veterans
who did not set foot in Vietnam or serve aboard ships that
operated on the inland waterways of Vietnam between January 9,
1962 and May 7, 1975 have the burden of proof to demonstrate
exposure to Agent Orange and the connection to their illnesses.
These claims are decided on a case-by-case basis.
VA maintains a list of U.S. Navy and Coast Guard ships that
operated within the vicinity of Vietnam. Some offshore vessels
docked to the shore of Vietnam, operated in Vietnam's close
coastal waters and sent smaller vessels ashore. Section 301 or
H.R. 2189, as amended, would direct the Secretary of Defense to
do a comprehensive search to determine which ships are eligible
for coverage under current law, reducing the wait time when new
claims are filed, and taking the burden off of claimant
veterans to prove the operational maneuvers of DoD ships in the
Vietnam Era. The Secretary of Defense would be required to
report the information to the Secretary of Veterans Affairs,
who would provide publicly accessible information. This section
would properly place the burden on the organization that enjoys
both access and subject matter expertise, the DoD, and would
result in more accurate and timely claims processing for
Vietnam veterans as a consequence of this thorough review and
reporting.
Sec. 302. Methods for validating certain service considered to be
active service by the Secretary of Veterans Affairs
Section 302 of H.R. 2189, as amended, would expand the
official documentation accepted by the Secretary of Homeland
Security to grant veterans status with limited benefits to
World War II Merchant Marine, Coastwise Merchant Seamen. In
all, fewer than 10,000 World War II Merchant Mariners are still
alive and because of their specialized mission and small
numbers, it's likely that only several hundred Coastwise
Merchant Seamen are still living. This section would provide
for the awarding of any commendations, ribbons, or honors
earned during their time of service, and provide burial
benefits to these individuals.
The Merchant Marines were private citizens employed by
freight shipping companies. In an effort to support the
American war effort during World War II, these freight shipping
companies and their employees became an auxiliary to the United
States Navy. Their mission was to transport bulk war materials
including food, clothing, weapons, and even troops to all areas
of conflict and coastal installations here at home.
The ranks of the Coastwise Merchant Seamen were not solely
filled by men, but with women, children, and disabled
individuals as well. Although Coastwise Merchant Seamen did not
sail across the Atlantic or Pacific Oceans into areas of
conflict, they still encountered the enemy while delivering
cargo that kept the war effort moving forward. One coastwise
tugboat operating just off the coast of Virginia was sunk by a
German U-Boat tragically killing several members of the crew.
Congress has attempted to recognize the efforts of the
Merchant Marine with legislation signed into law such as the GI
Bill Improvement Act of 1977, the Merchant Mariners Act of
1988, and the Veterans Programs Enhancement Act of 1998.
However, these laws have not incorporated the entirety of those
who served in the Merchant Marine during World War II, and have
placed onerous criteria on these individuals to prove their
service.
Most documentation required to prove service no longer
exists or can be difficult to find. Currently, a certificate of
shipping and discharge forms, continuous deck or engine
logbooks, and shipping company records that indicate the vessel
names and dates of voyages are the only documents that are
considered acceptable to determine an individual's service in
the Merchant Marine. Additionally, deck or engine logbooks were
turned over to the War Shipping Administration and were ordered
destroyed because they were too ``voluminous to maintain,
costly to keep, and rarely used for research.'' Shipping
company records that indicate the vessel names and dates of
voyages likely did not exist because written communication
relating to the movement of supplies and troops were forbidden
by U.S. military commanders.
This section would expand the acceptable forms of
documentation used to determine eligible service in the
Merchant Marines, and would allow acceptance of Social Security
Administration records, validated testimony by the applicant or
closest living relative, and other official records that
provide sufficient proof of service.
Sec. 303. Designation of American World War II Cities
Section 303 of H.R. 2189, as amended, would mandate that
the Secretary of Veterans Affairs designate one city in the
United States each year as an ``American World War II City''
based on a set of criteria that includes: contributions to the
war effort, efforts to preserve the history of the city's
contributions, and the presence of military facilities within
the city. The Committee believes that American cities provided
critical and distinguished contributions to the World War II
effort and should be honored and celebrated. This section would
set in place a procedure for other cities to receive this
designation.
Sec. 304. Observance of Veterans Day
When Veterans Day, originally known as Armistice Day, was
first observed in 1919, the concept for the observance was to
suspend business for a two minute period beginning at 11 A.M.
Today, observance of a moment of silence varies from community
to community and business to business around the United States.
Section 304 of H.R. 2189, as amended, would amend title 36,
United States Code, to encourage the nationwide observance of
two minutes of silence each Veterans Day.
Specifically, this section would direct the President to
issue an annual proclamation calling on the people of the
United States to observe two minutes of silence on Veterans
Day, beginning at 2:11 P.M. eastern time, in honor of the
service and sacrifice of veterans throughout the history of the
nation.
This section would call for Americans across the nation to
officially hold a uniform moment of silence for our nation's
servicemen and women on Veterans Day. The Committee believes
this section would refocus the American public upon the Day's
true and original meaning.
Hearings
On June 28, 2013, the Subcommittee on Disability Assistance
and Memorial Affairs conducted a legislative hearing on various
bills introduced during the 113th Congress, including H.R. 2189
(from which section 101 of H.R. 2189, as amended, is derived),
H.R. 2138 (from which sections 102, 103, 104, and 105 of H.R.
2189, as amended, are derived), H.R. 2382 (from which section
106 of H.R. 2189, as amended, is derived), H.R. 1623 (from
which section 107 of H.R. 2189, as amended, is derived), H.R.
1809 (from which section 109 of H.R. 2189, as amended, is
derived), H.R. 2423 (from which section 201 of H.R. 2189, as
amended, is derived), H.R. 2341 (from which section 202 of H.R.
2189, as amended, is derived), H.R. 2086 (from which section
203 of H.R. 2189, as amended, is derived), H.R. 1494 (from
which section 301 of H.R. 2189, as amended, is derived), and
H.R. 1288 (from which section 302 of H.R. 2189, as amended, is
derived). The following witnesses testified:
The Honorable G.K. Butterfield, U.S. House of
Representatives; The Honorable Christopher Gibson, U.S. House
of Representatives; The Honorable Kevin McCarthy, U.S. House of
Representatives; Verna Jones, Director, Veterans Affairs and
Rehabilitation Commission, The American Legion; Mr. Alexander
Nicholson, Legislative Director, Iraq and Afghanistan Veterans
of America; Heather Ansley, Esq., MSW, Vice President of
Veterans Policy VetsFirst, a program of United Spinal
Association; Thomas Murphy, Director, Compensation Service U.S.
Department of Veterans Affairs, accompanied by Richard Hipolit,
Assistant General Counsel, U.S. Department of Veterans Affairs.
The following groups or individuals submitted statements for
the record: Disabled American Veterans; Paralyzed Veterans of
America; J. Don Horton.
Subcommittee Consideration
On July 17, 2013, the Subcommittee on Disability Assistance
and Memorial Affairs met in an open markup session, a quorum
being present, and favorably forwarded to the full Committee
H.R. 2086, as amended, H.R. 2189, as amended, and H.R. 2423, as
amended, by voice vote.
During consideration of H.R. 2086, the following amendment
was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by Ms.
Titus of Nevada that modifies the original text to terminate
the bifurcated payment system at eight years from enactment,
and that incorporates provisions from H.R. 1288, H.R. 1623,
with technical amendment to ensure VA metrics provided pursuant
to this measure be for each Regional Office and for VA as a
whole, and H.R. 1809. Additionally, the amendment in the nature
of a substitute incorporated the text of H.R. 2185, originally
offered by Representative Stephen F. Lynch of Massachusetts, to
provide for a moment of silence on Veterans' Day.
During consideration of H.R. 2189, the following amendments
were considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by Mr.
Runyan of New Jersey that incorporates provisions from H.R.
2138, with amendment clarifying that work performed pursuant to
this measure to implement VA's Strategic Plan to Eliminate the
Compensation Claims Backlog shall be in addition to, and
consistent with, any actions taken pursuant to the work of the
commission or task force, and amendment that changed the
reporting period of the Comptroller General of the United
States to one year from enactment.
An amendment to the amendment in the nature of a substitute
offered by Ms. Titus of Nevada, which would provide for a
subcommittee of the commission or task force that would focus
upon the appeals backlog and process.
During consideration of H.R. 2423, the following amendment
was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by Mr.
Runyan of New Jersey that incorporates provisions from H.R.
1494, H.R. 2341, and H.R. 2382, with amendment to add priority
for homeless veterans, recipients of Medal of Honor, Prisoners
of War, seriously and very seriously injured, and claims being
reviewed again in relation to a previously denied claim of
military sexual trauma. Additionally, the amendment in the
nature of a substitute incorporated the text of H.R. 864,
originally offered by Representative Mike McIntyre of North
Carolina, to direct the Secretary of Veterans Affairs to
designate at least one city in the United States each year as
an ``American World War II City.''
Committee Consideration
On August 1, 2013, the Full Committee met in an open markup
session, a quorum being present, and ordered H.R. 2189, as
amended, reported favorably to the House of Representatives by
voice vote.
During consideration of H.R. 2189, as amended, the
following amendment was considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by Mr.
Runyan of New Jersey that modifies the text so as to
restructure the commission or task force as a single entity
with two subcommittees that would focus respectively upon the
backlog of claims and the backlog of appeals, as well as to
clarify the commission or task force scope, membership,
advisors, and defined terms. The amendment also alters the
claims processor training program from three years to two
years, to comport with VA's input on training requirements, and
modifies the text to provide that VA shall report upon its
implementation of the Strategic Plan to Eliminate the
Compensation Claims Backlog. This amendment also incorporates
provisions from H.R. 2086, as amended, with amendment to
clarify that payments made are bifurcated, rather than interim,
and to alter the effective dates of certain provisions.
Additionally, this amendment incorporates provisions from H.R.
2423, as amended, with amendment to exempt certain transfers to
special needs trusts from the transfers of assets prohibited
within three years of seeking pension benefits under title 38,
United States Code. The provisions contained in H.R. 2423, as
amended, were also amended to clarify the time period in
relation to Vietnam conflict, and to permit the Secretary of
Veterans Affairs additional considerations when determining
which regional offices would be selected within the group of 15
to allow contract physicians to conduct compensation and
pension examinations.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report the legislation and amendments
thereto. There were no recorded votes taken on amendments or in
connection with ordering H.R. 2189, as amended, reported to the
House. A motion by Ranking Member Michael H. Michaud of Maine
to report H.R. 2189, as amended, favorably to the House of
Representatives was agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 2189, as amended, does not contain any congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
2189, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 2189, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 26, 2013.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2189, a bill to
improve the processing of disability claims by the Department
of Veterans Affairs, and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dwayne M.
Wright.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 2189--A bill to improve the processing of disability claims by the
Department of Veterans Affairs, and for other purposes
Summary: H.R. 2189 would modify several programs
administered by the Department of Veterans Affairs (VA)
including those providing disability compensation and pensions
to veterans. Also, the bill would require VA to establish a
commission to review the backlog of claims for disability
compensation and the process for appealing the denial of such
claims, and would require the commission to submit a number of
reports to the Congress.
CBO estimates that enacting H.R. 2189 would decrease net
direct spending by $412 million over the 2014-2018 period and
by $471 million over the 2014-2023 period. Because enacting the
legislation would affect direct spending, pay-as-you-go
procedures apply. CBO also estimates that implementing H.R.
2189 would have a discretionary cost of $126 million over the
2014-2018 period, assuming appropriation of the necessary
amounts.
H.R. 2189 would impose an intergovernmental mandate as
defined in the Unfunded Mandates Reform Act (UMRA) by
preempting state licensing laws governing health care
professionals in some circumstances. CBO estimates that the
costs of the intergovernmental mandate would be small and would
not exceed the threshold established in UMRA ($75 million in
2013, adjusted annually for inflation). The bill contains no
private-sector mandates as defined in UMRA.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2189 is shown in the following table.
The costs of this legislation fall within budget functions 700
(veterans benefits and services) and 550 (health).
TABLE 1--ESTIMATED BUDGETARY EFFECTS OF H.R. 2189
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2014 2015 2016 2017 2018 2014-2018
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING\a\
Estimated Budget Authority.............................. 0 12 -3 -199 -243 -432
Estimated Outlays....................................... 0 12 -3 -199 -223 -412
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... 4 44 51 19 8 126
Estimated Outlays....................................... 4 44 51 19 8 126
----------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding.
* = less than $500,000.
a. In addition to the changes in direct spending shown above, enacting H.R. 2189 would have effects beyond 2018
(see Table 2). CBO estimates that over the 2014-2023 period, H.R. 2189 would decrease net direct spending by
$471 million.
Basis of estimate: For this estimate, CBO assumes H.R. 2189
will be enacted near the start of fiscal year 2014, that the
estimated authorizations will be appropriated near the start of
each fiscal year, and that outlays will follow historical
spending patterns for similar and existing programs.
Direct spending
H.R. 2189 would make several changes to programs
administered by VA including disability compensation and
pensions. CBO estimates that enacting H.R. 2189 would decrease
net direct spending by $471 million over the 2014-2023 period
(see Table 2).
TABLE 2--ESTIMATED EFFECTS ON DIRECT SPENDING UNDER H.R. 2189
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays, in millions of dollars, by fiscal year--
-----------------------------------------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014-2018 2014-2023
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Pensions for Veterans in Medicaid-Approved Nursing Homes.......... 0 0 0 -195 -218 -20 0 0 0 0 -413 -433
Asset Look-Back for Disability Pensions........................... 0 -1 -3 -4 -5 -5 -5 -5 -5 -5 -13 -38
Immediate Payments of Adjudicated Claims.......................... 0 13 * * * * * * * -16 14 0
-----------------------------------------------------------------------------------------------------------------------------
Total Changes................................................. 0 12 -3 -199 -223 -25 -5 -5 -5 -21 -412 -471
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding.
* = less than $500,000.
Pensions for Veterans in Medicaid-Approved Nursing Homes.
Section 204 would extend the expiration date of a provision of
current law that sets a $90 per month limit on pensions paid to
any veteran who does not have a spouse or child and who is
receiving Medicaid benefits in a Medicaid-approved nursing
home; that provision also applies to any survivor of a veteran
who is receiving such coverage. That limit on pension benefits
would be extended through September 30, 2018, and would reduce
such benefits for 22 months, with the last affected payment
being disbursed in October 2018.
Using data provided by VA, CBO estimates that about 15,000
veterans and 19,000 survivors would be affected by this
provision and that the average monthly savings to VA would be
about $1,825 per veteran and $1,140 per survivor. (Those
projections account for inflation, mortality rates, and new
nursing home patients.) On that basis, CBO estimates that
enacting the provision would reduce VA spending by $490 million
in 2017 and about $1.1 billion over the 2017-2019 period.
Higher Medicaid payments to nursing homes would offset some of
those savings. We estimate that those costs would total $654
million. The net reduction in direct spending resulting from
this provision would total $195 million in 2017 and $433
million over the 2017-2019 period, with no effects after 2019.
Asset Look-Back for Disability Pensions. Section 202 would
authorize VA to conduct a review of the financial records of
individuals applying for veterans' or survivors' pension
benefits in 2015 or later. The review would cover the three
years preceding each application. This look-back would
determine if applicants disposed of any assets or resources for
less than fair market value to become eligible for pension
benefits. Based on information from VA and the Government
Accountability Office about the income and resources of most
pension applicants, CBO expects that less than 1 percent of all
eligible veterans or survivors would have disposed of assets
that would disqualify them from eligibility within the three-
year window. Therefore, CBO estimates that in 2015, about 100
veterans and 70 survivors who will apply over the course of
that year would be disqualified from eligibility because of the
review and that a similar trend would continue in subsequent
years. Such individuals would be disqualified, on average, for
three years.
CBO estimates an average veteran's pension rate will be
about $9,800 in 2015 and an average survivor's pension rate
will be about $6,300 in that year. After accounting for
inflation and mortality, CBO estimates that enacting section
202 would decrease direct spending by $38 million over the
2015-2023 period. The administrative costs to conduct these
reviews are discussed below in the ``Spending Subject to
Appropriation'' section of the estimate.
Immediate Payments of Adjudicated Claims. Section 203 would
require VA to pay a disability benefit to a veteran as claims
are decided if the veteran files claims for more than one
disability at the same time. That requirement to make partial
payments would be in force during the eight-year period from
2015 through 2022. Under current law, VA has the authority to
make such partial payments for multiple claims should it be
able to quickly decide one of the claims, but that authority is
rarely used.
Once adjudicated, VA benefits are paid retroactively from
the date of the initial application. That is, veterans usually
receive an initial lump-sum payment that covers the months
since their application was submitted. Thus, section 203 would
have the effect of shifting some payments to an earlier fiscal
year by paying some veterans a part of their benefit earlier
than they would otherwise receive it. However, those early
payments would be fully offset by savings in the following year
when the retroactive payments would normally be made.
Based on information from VA, and assuming trends similar
to those observed in previous years, CBO expects about 260,000
veterans will apply for disability benefits for the first time
in 2015. CBO assumes that veterans who begin receiving payments
at a disability rating of 50 percent or greater (about 90,000
veterans) would probably have applied to be compensated for
more than one disability. Of those, CBO estimates that about 20
percent would have a claim that could be adjudicated quickly,
and that two-thirds of those--about 12,300--would then be paid
one year earlier than under current law. Assuming an average
rating of 10 percent ($134 per month) for the quickly
adjudicated claims, and an average of eight months of benefits,
CBO estimates that enacting section 203 would increase direct
spending by $13 million in 2015. However, that new spending in
2015 would be offset by an equal reduction in spending in 2016.
In each subsequent year, a similar effect would be seen--
increased spending in one year followed by decreased spending
in the following year. CBO adjusts the amount of the
accelerated spending each year to account for inflation and
population growth.
The requirement under section 203 would end in 2022. Paying
some claims early in 2022 would yield about $16 million in
savings in 2023. Therefore, CBO estimates that enacting section
203 would cost $14 million over the 2015-2018 period, but would
have a net direct spending effect of zero over the 2015-2023
period.
Benefits for Coastwise Merchant Mariners. Section 302 would
extend eligibility for burial benefits and medals, ribbons, or
decorations to merchant mariners who have the documents to
prove they served off of the coast of the United States between
December 7, 1941, and December 31, 1946.
Based on information from VA and the U.S. Coastwise
Merchant Seamen's Association, CBO estimates that the survivors
of roughly 300 eligible merchant mariners would apply for a
burial marker and a ribbon or medallion in 2014 at a cost of
about $200 per request. Because most of the eligible population
is deceased, CBO expects the number of applications would
decline steadily in subsequent years. Thus, CBO estimates that
section 302 would have an insignificant impact on direct
spending.
Spending subject to appropriation
H.R. 2189 would extend VA's authority to contract with non-
VA physicians to conduct disability exams and require VA to
provide several reports to the Congress regarding the
disability claims process. CBO estimates that implementing H.R.
2189 would cost $126 million over the 2014-2018 period, subject
to appropriation of the necessary amounts (see Table 3).
Disability Examinations by Contract Physicians. Section 201
would extend the pilot program that allows VA to use contract
physicians to perform medical disability examinations to
December 31, 2016, and would expand the pilot program to
include five additional facilities. Under current law, that
authority will expire on December 31, 2013, and is permitted at
10 facilities. However, the provision would not take effect
until October 1, 2014 (the beginning of fiscal year 2015).
Based on information from VA, CBO estimates that, in 2012, VA
used the current authority to have about 36,000 exams completed
by contract physicians at a cost of about $800 per exam. Under
section 201, we expect VA would complete 54,000 exams each year
over the 2015-2017 period.
In the absence of such authority, VA physicians who would
otherwise be providing other types of health care to veterans
will perform the exams, at no additional cost to VA. Thus,
taking inflation into account, CBO estimates that implementing
section 201 would cost $97 million over the 2015-2018 period,
assuming appropriation of the necessary amounts.
Asset Look-Back for Disability Pensions. Section 202 would
authorize VA to conduct a review of the financial records of
all applicants for pensions. The review would cover the three
years preceding each application. This look-back would
determine if applicants disposed of any assets or resources for
less than fair market value in order to become eligible for
pension benefits. Individuals who were found to have disposed
of such assets would be ineligible to receive pensions for up
to three years, depending on the value of the assets involved.
This provision would only affect those individuals applying for
veterans' or survivors' pension benefits starting in 2015.
TABLE 3--ESTIMATED EFFECTS ON SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2189
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------
2014 2015 2016 2017 2018 2014-2018
----------------------------------------------------------------------------------------------------------------
Disability Exams by Contract Physicians:
Estimated Authorization Level................................. 0 43 43 11 0 97
Estimated Outlays............................................. 0 43 43 11 0 97
Asset Look-Back for Disability Pensions:
Estimated Authorization Level................................. 0 0 7 7 7 21
Estimated Outlays............................................. 0 0 7 7 7 21
Evaluation of Disability Claims Backlog:
Estimated Authorization Level................................. 2 0 0 0 0 2
Estimated Outlays............................................. 2 0 0 0 0 2
Reports:
Estimated Authorization Level................................. 1 * * * * 2
Estimated Outlays............................................. 1 * * * * 2
Other Provisions:
Estimated Authorization Level................................. 1 1 1 1 1 4
Estimated Outlays............................................. 1 1 1 1 1 4
Total Changes:
Estimated Authorization Level............................. 4 44 51 19 8 126
Estimated Outlays......................................... 4 44 51 19 8 126
----------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding.
* = less than $500,000.
Based on information from VA on the time needed to process
a pension claim, CBO estimates that VA would eventually hire
about 70 employees to maintain the current processing times. VA
reports that under this provision, most of the additional
employees would be hired at the beginning of fiscal year 2016.
At an average cost of about $100,000 per employee, CBO
estimates that implementing section 501 would cost $21 million
over the 2015-2018 period. The savings from reduced spending
for pension benefits are discussed in the ``Direct Spending''
section of this estimate.
Evaluation of the Disability Claims Backlog. Section 101
would establish a commission tasked with creating a plan to
eliminate the disability claims backlog, improve the disability
claims process, and reduce the number of appeals filed for
disapproved claims. The commission would have 21 members plus a
paid staff and would exist for about seven months. The
commission would be required to submit interim reports and a
final report within 180 days of the commission's first meeting.
Based on the costs of similar commissions, CBO estimates that
implementing section 101 would cost about $2 million over the
2014-2018 period, subject to appropriation of the necessary
amounts.
Reports. H.R. 2189 would require VA to complete several
reports by various deadlines. CBO estimates that those
provisions, collectively, would cost about $2 million over the
2014-2018 period, assuming appropriation of the necessary
amounts.
Other provisions. H.R. 2189 also contains numerous
provisions that individually would have an insignificant impact
on spending subject to appropriation. However, CBO estimates
that those provisions, collectively, would cost about $4
million over the 2014-2018 period, mostly for additional
administrative activities, assuming availability of the
necessary amounts.
Section 103 would require VA to enter into
agreements with the Social Security Administration and
Department of Defense to ensure that the transfer of requested
disability or medical records that VA uses to make disability
determinations would occur within 30 days of the VA's request
for such records.
Section 104 would require VA to establish a
training process for newly hired claims processors. According
to VA, it has already begun the process of establishing new
claims processor training programs. Most of the requirements of
section 104 would align with VA's new training program.
Section 106 would require VA to establish a system
of priorities for processing claims.
Section 107 would require VA to include a page on
the agency's website listing information about pending and
completed claims.
Section 109 would require VA to post information
at its regional facilities and on its website about the average
processing times for various types of claims submitted by
veterans.
Section 203 would require VA to begin paying
certain adjudicated claims upon completion if the veteran files
a claim for more than one claim.
Section 302 would require VA to process claims for
coastwise merchant mariners for burial benefits.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2189 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON AUGUST 1, 2013
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------------------------------------------------------------------------------
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-2018 2013-2023
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact............................. 0 0 12 -3 -199 -223 -25 -5 -5 -5 -21 -412 -471
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated impact on state, local, and tribal governments:
The bill would authorize physicians, under a contract with the
Department of Veterans Affairs, to perform medical exams in any
location and in any state as long as the physician is licensed
by another state to practice medicine. That provision would
preempt state licensing laws and impose an intergovernmental
mandate as defined in UMRA. While states could lose a small
amount of revenue from fewer license fees, the bill would
impose no other duty that would result in additional spending.
CBO estimates that the cost of complying with the mandate would
be well below the threshold established in UMRA ($75 million in
2013, adjusted annually for inflation).
Estimated impact on the private sector: H.R. 2189 contains
no private-sector mandates as defined in UMRA.
Previous CBO estimate: On May 16, 2013, CBO transmitted a
cost estimate for H.R. 1412, the Improving Job Opportunities
for Veterans Act of 2013, as ordered reported by the House
Committee on Veterans' Affairs on May 8, 2013. Section 204 of
H.R. 2189 would extend a provision from November 30, 2016, to
September 30, 2018, whereas section 4 of H.R. 1412 would extend
the provision for a month to December 31, 2016. The differences
in estimated savings reflect the differences in the expiration
dates.
Estimate prepared by: Federal Costs: Dwayne M. Wright;
Impact on State, Local, and Tribal Governments: Lisa Ramirez-
Branum; Impact on the Private Sector: Elizabeth Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 2189, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
2189, as amended.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013),
the Committee finds that no provision of H.R. 2189, as amended,
establishes or reauthorizes a program of the Federal Government
known to be duplicative of another Federal program, a program
that was included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013),
the Committee estimates that H.R. 2189, as amended, does not
require any directed rulemakings.
Section-by-Section Analysis of the Legislation
Section 1--Table of Contents
Section 1 contains a table of contents.
Section 2--Scoring of budgetary effects
Section 2 contains budgetary information regarding
compliance with the Statutory Pay-As-You-Go Act of 2010.
TITLE I
Section 101--Evaluation of backlog of disability claims and appeals of
claims of Department of Veterans Affairs
Section 101(a) would establish a commission or task force
to evaluate the backlog of disability claims of the Department
of Veterans Affairs, and the appeals process of claims.
Section 101(b) would provide for the considerations to be
made by the commission or task force, matters included within
the backlog of claims study and the backlog of appeals study,
and would set forth the role of the Secretary, Chairman of the
Board of Veterans' Appeals, and Chief Judge of the United
States Court of Veterans Claims.
Section 101(c) would provide for initial, interim, and
final comprehensive reporting on the studies conducted of the
backlog of claims and appeals.
Section 101(d) would provide for the membership of the
commission or task force, as well as the structure of the
subcommittees, qualifications, advisors, and chairman's role.
This subsection would also provide the period of appointment of
members, vacancy considerations, and appointment deadline.
Section 101(e) would provide for the timeline of commission
or task force meetings, as well as rules on quorum.
Section 101(f) would provide the powers of the commission
or task force as regards holding hearings, obtaining
information from federal agencies, use of postal services, and
disposition of gifts.
Section 101(g) would provide for compensation of commission
or task force members, travel expenses, and would guide staff
appointment and compensation, and permit detailing of federal
government employees to the commission or task force to assist
in carrying out its duties and procurement of temporary and
intermittent services.
Section 101(h) would provide for the termination of the
commission or task force sixty days after submission of its
final comprehensive report.
Section 101(i) would provide that the Secretary shall, upon
request, provide funding as required by the commission or task
force, which funding would remain available without fiscal year
limitations.
Section 101(j) provides defined terms.
Section 102--Supplemental reports to the Strategic Plan to Eliminate
the Compensation Claims Backlog
Section 102 would direct the Secretary of Veterans Affairs
to provide a supplemental report to the Strategic Plan to
Eliminate the Compensation Claims Backlog within 60 days of
enactment, and every 120 days thereafter until May 25, 2015.
Section 103--Expedition of transfer of certain records
Section 103(a) would direct the Secretary of Veterans
Affairs to enter into an agreement with the Commissioner of the
Social Security Administration within 60 days of enactment, to
provide for expedited transfer of records.
Section 103(b) would direct the Secretary of Veterans
Affairs to enter into an agreement with the Secretary of
Defense within 60 days of enactment, to provide for expedited
transfer of records.
Section 103(c) would require the Secretary of Veterans
Affairs and the Secretary of Defense to jointly form, provide,
and implement a plan to reduce to 30 days the amount of time
needed to provide records of members of the National Guard.
Section 104--Claims processors training
Section 104(a) would require the Secretary of Veterans
Affairs to establish a two year training program for newly
hired claims processors.
Section 104(b) would require VA to execute the training
program for newly hired claims processors without increasing
the amount of time in which claims are processed.
Section 104(c) would set the effective date of this section
one year after the enactment of the Act.
Section 105--Report by Comptroller General of the United States
Section 105 would require the Comptroller General to submit
to Congress a report on the progress of the Secretary of
Veterans Affairs in implementing the Strategic Plan to
Eliminate the Compensation Claims Backlog within one year of
enactment of the Act.
Section 106--Priority for processing claims of the Department of
Veterans Affairs
Section 106(a) would add a new section to subchapter I of
chapter 51 of title 38, United States Code, which would require
the Secretary of Veterans Affairs to prioritize disability
benefits claims submitted by veterans who have attained the age
of 70, who are terminally ill, have life-threatening illnesses,
are homeless, have received the Medal of Honor, were prisoners
of war, were seriously or very seriously injured, and those
whose claims are being reviewed again in relation to a
previously denied claim relating to military sexual trauma.
Additionally, this section allows prioritization for good cause
shown at the discretion of the Secretary of Veterans Affairs on
a case by case basis.
Section 106(b) provides a clerical amendment.
Section 107--Public availability of certain information about pending
and completed claims for compensation under the laws
administered by the Secretary of Veterans Affairs
Section 107(a) would add a new section to subchapter I of
chapter 51 of title 38, United States Code, which would require
the Secretary of Veterans Affairs to maintain certain
enumerated information on pending and completed claims, as well
as medical issue determinations, upon the VA website, which
would be updated at least once per week.
Section 107(b) provides a clerical amendment.
Sec. 108. Annual report on processing of claims
Section 108(a) would require the Secretary of Veterans
Affairs to include, within VA's annual report to Congress as
required by section 529 of title 38, United States Code,
information on the automatic processing of claims for
compensation, the performance of any regional office that fails
to meet the administrative goals of the regional office with
respect to timeliness and accuracy in processing claims, and
the timeliness of receiving information pursuant to a request
by the Secretary to the head of another department or agency of
the United States for information required by VA in
adjudicating a claim for compensation.
Section 108(b) provides a clerical amendment.
Sec. 109. Department of Veterans Affairs notice of average times for
processing claims and percentage of claims approved
Section 109(a) would provide for public notice of the
information that is required to be collected by this section to
be posted in each regional office and claims intake facility of
VA and on the VA website.
Section 109(b) would require the Secretary of Veterans
Affairs to provide notice to claimants of the information that
is required to be collected by this section, pursuant to
subsection (c), as well as notice that for the period ending on
August 6, 2015, claimants are eligible to receive up to an
extra year of benefits payments if filing a claim that is fully
developed. This subsection would also require claimants to
include a signed form with their application acknowledging that
the claimant received the notice provided by this subsection.
Section 109(c) would require VA to collect information on
the average processing times of specific types of enumerated
claims, including fully developed electronic claims, fully
developed paper claims, not fully developed electronic claims,
not fully developed standard paper format, and not fully
developed non-standard paper format, as well as information on
the percentage of each such submitted claim for which benefits
are awarded. This subsection would also require VA to collect
information on the percentage of claims that are awarded
benefits based upon the type of representation received by the
veteran in the claims process.
Section 109(d) would set the effective date of this section
one year after the enactment of the Act.
Sec. 110. Claim defined
Section 110 defines the term ``claim,'' for the purposes of
Title I, as a claim for disability compensation under the laws
administered by the Secretary of Veterans Affairs.
TITLE II--COMPENSATION AND PENSIONS
Sec. 201. Improvements to authority for performance of medical
disabilities examinations by contract physicians
Section 201(a) would extend from December 31, 2013, through
December 31, 2016, VA's authority under the Veterans Benefits
Act of 2003 to provide for medical examinations by contract
physicians in claims for VA disability benefits.
Section 201(b) would address physician licensure issues for
contract physicians, as it would permit physicians who possess
a license to practice the health care profession of the
physician to perform compensation and pension examinations
under the authority of VA at any location in any State, the
District of Columbia, or a Commonwealth, territory, or
possession of the United States, so long as the examination is
within the scope of the authorized duties under such contract.
Section 201(c) would grant authority to VA to extend the
pilot program with contract physicians, established within the
Veterans' Benefits Improvement Act of 1996, to five additional
Regional Offices, thus permitting VA to increase from 10
Regional Office to 15 Regional Offices.
Section 201(d) would set the effective date of this section
one year after the enactment of the Act.
Sec. 202. Consideration by Secretary of Veterans Affairs of resources
disposed of for less than fair market value by individuals
applying for pension
Section 202(a) would amend section 1522 of title 38, United
States Code, and would create a three-year look-back period for
disposal of covered resources for less than fair market value,
in order to determine veteran eligibility for the VA pension
program.
Section 202(b) would amend section 1543 of title 38, United
States Code, and would create a three-year look-back period for
disposal of covered resources for less than fair market value,
in order to determine surviving spouse and children's
eligibility for the VA pension program.
Section 202(c) would set the effective date of this section
one year after the enactment of the Act.
Section 202(d) would require VA to submit to the
appropriate committees of Congress a report on the
administration of this section during the most recent 12-month
period, no later than two years after the date of enactment,
and at least once per year thereafter through 2018.
Sec. 203. Bifurcated payments of compensation benefits under laws
administered by the Secretary of Veterans Affairs
Section 203(a) would add a new section to subchapter III of
chapter 51 of title 38, United States Code, which would require
the Secretary of Veterans Affairs, in claims in which
adjudication requires decision making with respect to two or
more disabilities, to pay the claimant any monetary benefits
awarded to the claimant for individual conditions as other
conditions are further developed.
Section 203(b) provides a clerical amendment.
Section 203(c) would set the effective date of this section
one year after the enactment of the Act.
Sec. 204. Pension for certain veterans covered by Medicaid plans for
services furnished by nursing facilities
Section 204 would extend the limitation on pension for
certain veterans covered by Medicaid plans for services
furnished by nursing facilities from November 30, 2016 to
September 30, 2018.
TITLE III--OTHER MATTERS
Sec. 301. Review of operation of certain ships during the Vietnam Era
Section 301(a) would require, within one year of enactment,
the Secretary of Defense to review the logs of each ship under
the authority of the Secretary of the Navy that is known to
have operated in the waters near Vietnam during the period
January 9, 1962 through May 7, 1975, and determine which ships
operated in the territorial waters of the Republic of Vietnam,
and for what period of time.
Section 301(b) would require the Secretary of Defense to
notify the Secretary of Veterans Affairs of its findings on
Vietnam ships.
Section 301(c) would require the Secretary of Veterans
Affairs to make the all unclassified information, provided by
the Secretary of Defense under this section, publicly
available.
Sec. 302. Methods for validating certain service considered to be
active service by the Secretary of Veterans Affairs
Section 302(a) makes findings of Congress on merchant
mariners.
Section 302(b) would direct the Secretary of Homeland
Security to accept additional documentation when considering
the application for veterans' status of an individual who
performed service as a coastwise merchant seaman during World
War II. This section would also provide that qualified merchant
mariners shall be honored as a veteran and shall be entitled to
veteran designation, burial benefits, and military decoration,
that they shall not be entitled by reason of such recognized
service to any benefit that is not described in this
subsection.
Sec. 303. Designation of American World War II Cities
Section 303(a) would require the Secretary of Veterans
Affairs to designate at least one city in the United States
each year as an ``American World War II City.''
Section 303(b) would provide criteria for consideration of
the designation as an ``American World War II City.''
Sec. 304. Observance of Veterans Day
Section 304(a) would provide for a codified two minute
moment of silence on Veterans Day in honor of the service and
sacrifice of veterans throughout history.
Section 304(b) would provide a clerical amendment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART II--GENERAL BENEFITS
* * * * * * *
CHAPTER 15--PENSION FOR NON-SERVICE-CONNECTED DISABILITY OR DEATH OR
FOR SERVICE
* * * * * * *
SUBCHAPTER II--VETERANS' PENSIONS
* * * * * * *
Sec. 1522. Net worth limitation
(a)(1) The Secretary shall deny or discontinue the payment of
pension to a veteran under section 1513 or 1521 of this title
when the corpus of the estate of the veteran or, if the veteran
has a spouse, the corpus of the estates of the veteran and of
the veteran's spouse is such that under all the circumstances,
including consideration of the annual income of the veteran,
the veteran's spouse, and the veteran's children, it is
reasonable that some part of the corpus of such estates be
consumed for the veteran's maintenance.
(2)(A) If a veteran otherwise eligible for payment of pension
under section 1513 or 1521 of this title or the spouse of such
veteran disposes of covered resources for less than fair market
value on or after the look-back date described in subparagraph
(C)(i), the Secretary shall deny or discontinue the payment of
pension to such veteran under section 1513 or 1521 of this
title, as the case may be, for months during the period
beginning on the date described in subparagraph (D) and equal
to the number of months calculated as provided in subparagraph
(E).
(B)(i) For purposes of this paragraph, a covered resource is
any resource that was a part of the corpus of the estate of the
veteran or, if the veteran has a spouse, the corpus of the
estates of the veteran and of the veteran's spouse, that the
Secretary considers that under all the circumstances, if the
veteran or spouse had not disposed of such resource, it would
be reasonable that the resource (or some portion of the
resource) be consumed for the veteran's maintenance.
(ii) For purposes of this paragraph, the Secretary may
consider, in accordance with regulations the Secretary shall
prescribe, a transfer of an asset (including a transfer of an
asset to an annuity, trust, or other financial instrument or
investment) a disposal of a covered resource for less than fair
market value if such transfer reduces the amount in the corpus
of the estate of the veteran or, if the veteran has a spouse,
the corpus of the estates of the veteran and of the veteran's
spouse, that the Secretary considers, under all the
circumstances, would be reasonable to be consumed for the
veteran's maintenance.
(C)(i) The look-back date described in this clause is a date
that is 36 months before the date described in clause (ii).
(ii) The date described in this clause is the date on which
the veteran applies for pension under section 1513 or 1521 of
this title or, if later, the date on which the veteran (or the
spouse of the veteran) disposes of covered resources for less
than fair market value.
(D) The date described in this subparagraph is the first day
of the first month in or after which covered resources were
disposed of for less than fair market value and which does not
occur in any other period of ineligibility under this
paragraph.
(E) The number of months calculated under this subparagraph
shall be equal to--
(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by the
veteran (or the spouse of the veteran) on or after the
look-back date described in subparagraph (C)(i) that
the Secretary determines would reasonably have been
consumed for the veteran's maintenance; divided by
(ii) the maximum amount of monthly pension that is
payable to a veteran under section 1513 or 1521 of this
title, including the maximum amount of increased
pension payable under such sections on account of
family members, but not including any amount of pension
payable under such sections because a veteran is in
need of regular aid and attendance or is permanently
housebound,
rounded, in the case of any fraction, to the nearest whole
number, but shall not in any case exceed 36 months.
(b)(1) The Secretary shall deny or discontinue the payment of
increased pension under subsection (c), (d), (e), or (f) of
section 1521 of this title on account of a child when the
corpus of such child's estate is such that under all the
circumstances, including consideration of the veteran's and
spouse's income, and the income of the veteran's children, it
is reasonable that some part of the corpus of such child's
estate be consumed for the child's maintenance. During the
period such denial or discontinuance remains in effect, such
child shall not be considered as the veteran's child for
purposes of this chapter.
(2)(A) If a veteran otherwise eligible for payment of
increased pension under subsection (c), (d), (e), or (f) of
section 1521 of this title on account of a child, the spouse of
the veteran, or the child disposes of covered resources for
less than fair market value on or after the look-back date
described in subparagraph (C)(i), the Secretary shall deny or
discontinue payment of such increased pension for months during
the period beginning on the date described in subparagraph (D)
and equal to the number of months calculated as provided in
subparagraph (E).
(B)(i) For purposes of this paragraph, a covered resource is
any resource that was a part of the corpus of the estate of the
child that the Secretary considers that under all the
circumstances, if the veteran, the spouse of the veteran, or
the child had not disposed of such resource, it would be
reasonable that the resource (or some portion of the resource)
be consumed for the child's maintenance.
(ii) For purposes of this paragraph, the Secretary may
consider, in accordance with regulations the Secretary shall
prescribe, a transfer of an asset (including a transfer of an
asset to an annuity, trust, or other financial instrument or
investment) a disposal of a covered resource for less than fair
market value if such transfer reduces the amount in the corpus
of the estate of the child that the Secretary considers, under
all the circumstances, would be reasonable to be consumed for
the child's maintenance.
(C)(i) The look-back date described in this clause is a date
that is 36 months before the date described in clause (ii).
(ii) The date described in this clause is the date on which
the veteran applies for payment of increased pension under
subsection (c), (d), (e), or (f) of section 1521 of this title
on account of a child or, if later, the date on which the
veteran, the spouse of the veteran, or the child disposes of
covered resources for less than fair market value.
(D) The date described in this subparagraph is the first day
of the first month in or after which covered resources were
disposed of for less than fair market value and which does not
occur in any other period of ineligibility under this
paragraph.
(E) The number of months calculated under this subparagraph
shall be equal to--
(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by the
veteran, the spouse of the veteran, or the child on or
after the look-back date described in subparagraph
(C)(i) that the Secretary determines would reasonably
have been consumed for the child's maintenance; divided
by
(ii) the maximum amount of increased monthly pension
that is payable to a veteran under subsection (c), (d),
(e), or (f) of section 1521 of this title on account of
a child,
rounded, in the case of any fraction, to the nearest whole
number, but shall not in any case exceed 36 months.
(c)(1) The Secretary shall not deny or discontinue payment of
pension under section 1513 or 1521 of this title or payment of
increased pension under subsection (c), (d), (e), or (f) of
section 1521 of this title on account of a child by reason of
the application of subsection (a)(2) or (b)(2) of this section
to the disposal of resources by an individual to the extent
that--
(A) a satisfactory showing is made to the Secretary
(in accordance with regulations promulgated by the
Secretary) that all resources disposed of for less than
fair market value have been returned to the individual
who disposed of the resources; or
(B) the Secretary determines, under procedures
established by the Secretary, that the denial or
discontinuance of payment would work an undue hardship
as determined on the basis of criteria established by
the Secretary.
(2) At the time a veteran applies for pension under section
1513 or 1521 of this title or increased pension under
subsection (c), (d), (e), or (f) of section 1521 of this title
on account of a child, and at such other times as the Secretary
considers appropriate, the Secretary shall--
(A) inform such veteran of the provisions of
subsections (a)(2) and (b)(2) providing for a period of
ineligibility for payment of pension under such
sections for individuals who make certain dispositions
of resources for less than fair market value; and
(B) obtain from such veteran information which may be
used in determining whether or not a period of
ineligibility for such payments would be required by
reason of such subsections.
(d) Subsections (a)(2) and (b)(2) shall not apply with
respect to the disposal of resources or the transfer of an
asset if such disposal or transfer is to a trust described in
section 1917(d)(4) of the Social Security Act (42 U.S.C.
1396p(d)(4)) that is established for the benefit of a child of
the veteran.
* * * * * * *
SUBCHAPTER III--PENSIONS TO SURVIVING SPOUSES AND CHILDREN
* * * * * * *
Sec. 1543. Net worth limitation
(a)(1) * * *
(2)(A) If a surviving spouse otherwise eligible for payment
of pension under section 1541 of this title disposes of covered
resources for less than fair market value on or after the look-
back date described in subparagraph (C)(i), the Secretary shall
deny or discontinue the payment of pension to such surviving
spouse under section 1541 of this title for months during the
period beginning on the date described in subparagraph (D) and
equal to the number of months calculated as provided in
subparagraph (E).
(B)(i) For purposes of this paragraph, a covered resource is
any resource that was a part of the corpus of the estate of the
surviving spouse that the Secretary considers that under all
the circumstances, if the surviving spouse had not disposed of
such resource, it would be reasonable that the resource (or
some portion of the resource) be consumed for the surviving
spouse's maintenance.
(ii) For purposes of this paragraph, the Secretary may
consider, in accordance with regulations the Secretary shall
prescribe, a transfer of an asset (including a transfer of an
asset to an annuity, trust, or other financial instrument or
investment) a disposal of a covered resource for less than fair
market value if such transfer reduces the amount in the corpus
of the estate of the surviving spouse that the Secretary
considers, under all the circumstances, would be reasonable to
be consumed for the surviving spouse's maintenance.
(C)(i) The look-back date described in this clause is a date
that is 36 months before the date described in clause (ii).
(ii) The date described in this clause is the date on which
the surviving spouse applies for pension under section 1541 of
this title or, if later, the date on which the surviving spouse
disposes of covered resources for less than fair market value.
(D) The date described in this subparagraph is the first day
of the first month in or after which covered resources were
disposed of for less than fair market value and which does not
occur in any other period of ineligibility under this
paragraph.
(E) The number of months calculated under this subparagraph
shall be equal to--
(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by the
surviving spouse on or after the look-back date
described in subparagraph (C)(i) that the Secretary
determines would reasonably have been consumed for the
surviving spouse's maintenance; divided by
(ii) the maximum amount of monthly pension that is
payable to a surviving spouse under section 1541 of
this title, including the maximum amount of increased
pension payable under such section on account of a
child, but not including any amount of pension payable
under such section because a surviving spouse is in
need of regular aid and attendance or is permanently
housebound,
rounded, in the case of any fraction, to the nearest whole
number, but shall not in any case exceed 36 months.
(F) In the case of a transfer by the surviving spouse during
the veteran's lifetime that resulted in a period of
ineligibility for the veteran under section 1522 of this title,
the Secretary shall apply to the surviving spouse any remaining
ineligibility for that period.
[(2)] (3) The Secretary shall deny or discontinue the payment
of increased pension under subsection (c), (d), or (e) of
section 1541 of this title on account of a child when the
corpus of such child's estate is such that under all the
circumstances, including consideration of the income of the
surviving spouse and such child and the income of any other
child for whom the surviving spouse is receiving increased
pension, it is reasonable that some part of the corpus of the
child's estate be consumed for the child's maintenance. During
the period such denial or discontinuance remains in effect,
such child shall not be considered as the surviving spouse's
child for purposes of this chapter.
(4)(A) If a surviving spouse otherwise eligible for payment
of increased pension under subsection (c), (d), or (e) of
section 1541 of this title on account of a child or the child
disposes of covered resources for less than fair market value
on or after the look-back date described in subparagraph
(C)(i), the Secretary shall deny or discontinue payment of such
increased pension for months during the period beginning on the
date described in subparagraph (D) and equal to the number of
months calculated as provided in subparagraph (E).
(B)(i) For purposes of this paragraph, a covered resource is
any resource that was a part of the corpus of the estate of the
child that the Secretary considers that under all the
circumstances, if the surviving spouse or the child had not
disposed of such resource, it would be reasonable that the
resource (or some portion of the resource) be consumed for the
child's maintenance.
(ii) For purposes of this paragraph, the Secretary may
consider, in accordance with regulations the Secretary shall
prescribe, a transfer of an asset (including a transfer of an
asset to an annuity, trust, or other financial instrument or
investment) a disposal of a covered resource for less than fair
market value if such transfer reduces the amount in the corpus
of the estate of the child that the Secretary considers, under
all the circumstances, would be reasonable to be consumed for
the child's maintenance.
(C)(i) The look-back date described in this clause is a date
that is 36 months before the date described in clause (ii).
(ii) The date described in this clause is the date on which
the surviving spouse applies for payment of increased pension
under subsection (c), (d), or (e) of section 1541 of this title
on account of a child or, if later, the date on which the
surviving spouse (or the child) disposes of covered resources
for less than fair market value.
(D) The date described in this subparagraph is the first day
of the first month in or after which covered resources were
disposed of for less than fair market value and which does not
occur in any other period of ineligibility under this
paragraph.
(E) The number of months calculated under this clause shall
be equal to--
(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by
surviving spouse (or the child) on or after the look-
back date described in subparagraph (C)(i) that the
Secretary determines would reasonably have been
consumed for the child's maintenance; divided by
(ii) the maximum amount of increased monthly pension
that is payable to a surviving spouse under subsection
(c), (d), or (e) of section 1541 of this title on
account of a child,
rounded, in the case of any fraction, to the nearest whole
number, but shall not in any case exceed 36 months.
(b)(1) The Secretary shall deny or discontinue payment of
pension to a child under section 1542 of this title when the
corpus of the estate of the child is such that under all the
circumstances, including consideration of the income of the
child, the income of any person with whom such child is
residing who is legally responsible for such child's support,
and the corpus of the estate of such person, it is reasonable
that some part of the corpus of such estates be consumed for
the child's maintenance.
(2)(A) If a child otherwise eligible for payment of pension
under section 1542 of this title or any person with whom such
child is residing who is legally responsible for such child's
support disposes of covered resources for less than fair market
value on or after the look-back date described in subparagraph
(C)(i), the Secretary shall deny or discontinue the payment of
pension to such child under section 1542 of this title for
months during the period beginning on the date described in
subparagraph (D) and equal to the number of months calculated
as provided in subparagraph (E).
(B)(i) For purposes of this paragraph, a covered resource is
any resource that was a part of the corpus of the estate of the
child or the corpus of the estate of any person with whom such
child is residing who is legally responsible for such child's
support that the Secretary considers that under all the
circumstances, if the child or person had not disposed of such
resource, it would be reasonable that the resource (or some
portion of the resource) be consumed for the child's
maintenance.
(ii) For purposes of this paragraph, the Secretary may
consider, in accordance with regulations the Secretary shall
prescribe, a transfer of an asset (including a transfer of an
asset to an annuity, trust, or other financial instrument or
investment) a disposal of a covered resource for less than fair
market value if such transfer reduces the amount in the corpus
of the estate described in clause (i) that the Secretary
considers, under all the circumstances, would be reasonable to
be consumed for the child's maintenance.
(C)(i) The look-back date described in this clause is a date
that is 36 months before the date described in clause (ii).
(ii) The date described in this clause is the date on which
the child applies for pension under section 1542 of this title
or, if later, the date on which the child (or person described
in subparagraph (B)) disposes of covered resources for less
than fair market value.
(D) The date described in this clause is the first day of the
first month in or after which covered resources were disposed
of for less than fair market value and which does not occur in
any other period of ineligibility under this paragraph.
(E) The number of months calculated under this clause shall
be equal to--
(i) the total, cumulative uncompensated value of the
portion of covered resources so disposed of by the
child (or person described in subparagraph (B)) on or
after the look-back date described in subparagraph
(C)(i) that the Secretary determines would reasonably
have been consumed for the child's maintenance; divided
by
(ii) the maximum amount of monthly pension that is
payable to a child under section 1542 of this title,
rounded, in the case of any fraction, to the nearest whole
number, but shall not in any case exceed 36 months.
(c)(1) The Secretary shall not deny or discontinue payment of
pension under section 1541 or 1542 of this title or payment of
increased pension under subsection (c), (d), or (e) of section
1541 of this title on account of a child by reason of the
application of subsection (a)(2), (a)(4), or (b)(2) of this
section to the disposal of resources by an individual to the
extent that--
(A) a satisfactory showing is made to the Secretary
(in accordance with regulations promulgated by the
Secretary) that all resources disposed of for less than
fair market value have been returned to the individual
who disposed of the resources; or
(B) the Secretary determines, under procedures
established by the Secretary, that the denial or
discontinuance of payment would work an undue hardship
as determined on the basis of criteria established by
the Secretary.
(2) At the time a surviving spouse or child applies for
pension under section 1541 or 1542 of this title or increased
pension under subsection (c), (d), or (e) of section 1541 of
this title on account of a child, and at such other times as
the Secretary considers appropriate, the Secretary shall--
(A) inform such surviving spouse or child of the
provisions of subsections (a)(2), (a)(4), and (b)(2),
as applicable, providing for a period of ineligibility
for payment of pension or increased pension under such
sections for individuals who make certain dispositions
of resources for less than fair market value; and
(B) obtain from such surviving spouse or child
information which may be used in determining whether or
not a period of ineligibility for such payments would
be required by reason of such subsections.
(d) Paragraphs (2) and (4) of subsection (a) and subsection
(b)(2) shall not apply with respect to the disposal of
resources or the transfer of an asset if such disposal or
transfer is to a trust described in section 1917(d)(4) of the
Social Security Act (42 U.S.C. 1396p(d)(4)) that is established
for the benefit of a child of the veteran or surviving spouse.
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
* * * * * * *
CHAPTER 51--CLAIMS, EFFECTIVE DATES, AND PAYMENTS
SUBCHAPTER I--CLAIMS
Sec.
5100. Definition of ``claimant''.
* * * * * * *
5109C. Priority for processing claims.
5109D. Information about pending and completed claims.
5109E. Annual report on processing of claims.
* * * * * * *
SUBCHAPTER III--PAYMENT OF BENEFITS
* * * * * * *
5127. Bifurcated payments of compensation benefits.
SUBCHAPTER I--CLAIMS
* * * * * * *
Sec. 5109C. Priority for processing claims
(a) Priority.--In processing claims for compensation under
this chapter, the Secretary shall provide the following
claimants with priority over other claimants:
(1) Veterans who have attained the age of 70.
(2) Veterans who are terminally ill.
(3) Veterans with life-threatening illnesses.
(4) Homeless veterans (as defined in section 2002 of
this title).
(5) Veterans who were awarded the Medal of Honor.
(6) Veterans who are former prisoners of war.
(7) Veterans whose claims are being reviewed again in
relation to a previously denied claim relating to
military sexual trauma.
(8) Veterans whom the Secretary determines, on a
case-by-case basis, are seriously or very seriously
injured.
(9) Veterans whom the Secretary determines, on a
case-by-case basis, should be given priority under this
section based on an application for good cause
established by the Secretary.
(b) Regulations.--The Secretary shall prescribe regulations
to carry out subsection (a).
Sec. 5109D. Information about pending and completed claims
(a) Availability of Information.--The Secretary shall
maintain on the Internet website of the Department publicly
accessible information about pending and completed claims for
compensation under chapter 11 of this title. Such information
shall include each of the following:
(1) For each regional office and for the Department
as a whole--
(A) the average number of days between the
date of the submittal of a claim and the date
of the decision with respect to the claim for
each of the preceding three-month and one-year
period;
(B) the average number of days such a claim
is pending during the preceding three-month and
one-year periods;
(C) the quality and accuracy rating of the
claims adjudication process during the
preceding three-month and one-year periods;
(D) the number of claims pending;
(E) the number of pending claims that have
been pending for more than 125 days; and
(F) the number of claims completed during--
(i) the current month, to date;
(ii) the month preceding the current
month;
(iii) the current calendar year, to
date; and
(iv) the calendar year preceding the
current calendar year.
(2) For each medical condition for which a claim for
compensation is submitted, for each regional office and
for the Department as a whole--
(A) the average number of days between the
date of the submittal of a claim relating to
such medical condition and the date of the
decision with respect to the claim for each of
the preceding three-month and one-year period;
(B) the average number of days such a claim
is pending during the preceding three-month and
one-year periods;
(C) the quality and accuracy rating of the
claims adjudication process as applied to
claims relating to such medical condition
during the preceding three-month and one-year
periods;
(D) the number of pending claims relating to
such condition;
(E) the number of such pending claims that
have been pending for more than 125 days; and
(F) the number of claims relating to such
medical condition completed during--
(i) the current month, to date;
(ii) the month preceding current
month;
(iii) the current calendar year, to
date; and
(iv) the calendar year preceding the
current calendar year.
(b) Updates.--The Secretary shall update the information on
the website under subsection (a) not less frequently than once
every seven days.
Sec. 5109E. Annual report on processing of claims
(a) Annual Report.--The Secretary shall include in the annual
report to Congress required under section 529 of this title
information on the following:
(1) The automatic processing of claims for
compensation.
(2) The performance of any regional office that fails
to meet the administrative goals of the regional office
with respect to timeliness and accuracy in processing
claims for compensation.
(3) The timeliness of receiving information pursuant
to a request by the Secretary to the head of another
department or agency of the United States for
information required by the Secretary in adjudicating a
claim for compensation under chapter 11 of this title.
(b) Matters Included.--In carrying out subsection (a) to
include information in the report required under section 529 of
this title, the Secretary shall include the following:
(1) With respect to the information required by
subsection (a)(1)--
(A) each medical condition for which claims
relating to such condition were processed in an
electronic automated fashion during the fiscal
year covered by the report;
(B) the feasibility of processing any
additional medical conditions in an electronic
automated fashion and any barriers to such
processing, including any such barriers
relating to the schedule for rating
disabilities under section 1155 of this title;
(C) the number of claims for compensation
relating to each medical condition submitted
during such fiscal year; and
(D) for each medical condition, the
percentage of claims denied and the percentage
of claims approved during such fiscal year.
(2) With respect to the information required by
subsection (a)(2), in the case of any regional office
that, for the fiscal year covered by the report, did
not meet the administrative goal of having no claim
pending for more than 125 days and achieving an
accuracy rating of 98 percent--
(A) a signed statement prepared by the
individual serving as director of the regional
office as of the date of the submittal of the
report containing--
(i) an explanation for why the
regional office did not meet the goal;
(ii) a description of the additional
resources needed to enable the regional
office to reach the goal; and
(iii) a description of any additional
actions planned for the subsequent
fiscal year that are proposed to enable
the regional office to meet the goal;
and
(B) a statement prepared by the Under
Secretary for Benefits explaining how the
failure of the regional office to meet the goal
affected the performance evaluation of the
director of the regional office.
(3) With respect to the information required by
subsection (a)(3)--
(A) the number of requests described in such
paragraph made during the fiscal year covered
by the report; and
(B) the average response time for such
requests made during each month of such fiscal
year, as determined based on the period
beginning on the date on which the Secretary
made the request and ending on the date on
which the Secretary determines that the request
is completed.
* * * * * * *
SUBCHAPTER III--PAYMENT OF BENEFITS
* * * * * * *
Sec. 5127. Bifurcated payments of compensation benefits
(a) In General.--During the eight-year period beginning on
the date of the enactment of this section, in the case of a
claim described in subsection (b), prior to adjudicating the
claim, the Secretary shall make payments of monetary benefits
to the claimant based on any disability for which the Secretary
has made a decision. Upon the adjudication of the claim, the
Secretary shall pay to the claimant any monetary benefits
awarded to the claimant for the period of payment under section
5111 of this title less the amount of such benefits paid to the
claimant under this section.
(b) Claim Described.--A claim described in this subsection is
a claim for disability compensation under chapter 11 of this
title--
(1) the adjudication of which requires the Secretary
to make decisions with respect to two or more
disabilities; and
(2) for which, before completing the adjudication of
the claim, the Secretary makes a decision with respect
to a disability that would result in the payment of
monetary benefits to the claimant upon the adjudication
of the claim.
* * * * * * *
CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS
* * * * * * *
Sec. 5503. Hospitalized veterans and estates of incompetent
institutionalized veterans
(a) * * *
* * * * * * *
(d)(1) * * *
* * * * * * *
(7) This subsection expires on [November 30, 2016] September
30, 2018.
* * * * * * *
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VETERANS BENEFITS ACT OF 2003
* * * * * * *
TITLE VII--OTHER MATTERS
* * * * * * *
SEC. 704. TEMPORARY AUTHORITY FOR PERFORMANCE OF MEDICAL DISABILITIES
EXAMINATIONS BY CONTRACT PHYSICIANS.
(a) * * *
* * * * * * *
(c) Expiration.--The authority in subsection (a) shall expire
on [December 31, 2013] December 31, 2016. No examination may be
carried out under the authority provided in that subsection
after that date.
(d) Licensure of Contract Physicians.--
(1) In general.--Notwithstanding any law regarding
the licensure of physicians, a physician described in
paragraph (2) may conduct an examination pursuant to a
contract entered into under subsection (b) at any
location in any State, the District of Columbia, or a
Commonwealth, territory, or possession of the United
States, so long as the examination is within the scope
of the authorized duties under such contract.
(2) Physician described.--A physician described in
this paragraph is a physician who--
(A) has a current license to practice the
health care profession of the physician; and
(B) is performing authorized duties for the
Department of Veterans Affairs pursuant to a
contract entered into under subsection (b).
[(d)] (e) Report.--Not later than four years after the date
of the enactment of this Act, the Secretary shall submit to
Congress a report on the use of the authority provided in
subsection (a). The Secretary shall include in the report an
assessment of the effect of examinations under that authority
on the cost, timeliness, and thoroughness of examinations with
respect to the medical disabilities of applicants for benefits
under laws administered by the Secretary.
* * * * * * *
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SECTION 504 OF THE VETERANS' BENEFITS IMPROVEMENT ACT OF 1996
SEC. 504. PILOT PROGRAM FOR USE OF CONTRACT PHYSICIANS FOR DISABILITY
EXAMINATIONS.
(a) * * *
[(b) Limitation.--The Secretary may carry out the pilot
program under this section through not more than 10 regional
offices of the Department of Veterans Affairs.]
(b) Locations.--
(1) Number.--The Secretary may carry out the pilot
program under this section through not more than 15
regional offices of the Department of Veterans Affairs.
(2) Selection.--The Secretary shall select the
regional offices under paragraph (1) by analyzing
appropriate data to determine the regional offices that
require support. Such appropriate data shall include--
(A) the number of backlogged claims;
(B) the total pending case workload;
(C) the length of time cases have been
pending;
(D) the accuracy of completed cases;
(E) the overall timeliness of completed
cases;
(F) the availability and workload of the
examination units and physicians of the medical
centers in the regional office; and
(G) any other data the Secretary determines
appropriate.
(3) Annual analysis.--The Secretary shall carry out
the data analysis of the regional offices under
paragraph (2) during each year in which the program
under this section is carried out to determine the
regional offices selected under paragraph (1) for such
year.
(c) Licensure of Contract Physicians.--
(1) In general.--Notwithstanding any law regarding
the licensure of physicians, a physician described in
paragraph (2) may conduct an examination pursuant to a
contract entered into under subsection (a) at any
location in any State, the District of Columbia, or a
Commonwealth, territory, or possession of the United
States, so long as the examination is within the scope
of the authorized duties under such contract.
(2) Physician described.--A physician described in
this paragraph is a physician who--
(A) has a current license to practice the
health care profession of the physician; and
(B) is performing authorized duties for the
Department of Veterans Affairs pursuant to a
contract entered into under subsection (a).
[(c)] (d) Source of Funds.--Payments for contracts under the
pilot program under this section shall be made from amounts
available to the Secretary of Veterans Affairs for payment of
compensation and pensions.
[(d)] (e) Report to Congress.--Not later than three years
after the date of the enactment of this Act, the Secretary
shall submit to the Congress a report on the effect of the use
of the authority provided by subsection (a) on the cost,
timeliness, and thoroughness of medical disability
examinations.
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TITLE 36, UNITED STATES CODE
* * * * * * *
SUBTITLE I--PATRIOTIC AND NATIONAL OBSERVANCES AND CEREMONIES
* * * * * * *
PART A--OBSERVANCES AND CEREMONIES
* * * * * * *
CHAPTER 1--PATRIOTIC AND NATIONAL OBSERVANCES
Sec.
101. American Heart Month.
* * * * * * *
145. Veterans Day.
* * * * * * *
Sec. 145. Veterans Day
The President shall issue each year a proclamation calling on
the people of the United States to observe two minutes of
silence on Veterans Day in honor of the service and sacrifice
of veterans throughout the history of the Nation, beginning
at--
(1) 3:11 p.m. Atlantic standard time;
(2) 2:11 p.m. eastern standard time;
(3) 1:11 p.m. central standard time;
(4) 12:11 p.m. mountain standard time;
(5) 11:11 a.m. Pacific standard time;
(6) 10:11 a.m. Alaska standard time; and
(7) 9:11 a.m. Hawaii-Aleutian standard time.
* * * * * * *