Since 2004, the Department of Veteran Affairs (VA) spending has quadrupled, despite a 30% decline in the number of veterans. During the Biden administration alone, 80,000 new VA employees were added.
“There’s clearly bloat,” said Jeremiah Mosteller, Policy Director at Americans for Prosperity. “And unfortunately, that bloat can get in the way of serving the very people the VA exists to help.”
As the Federal Government needs to find ways to save taxpayer money, one way the VA can do that is in the area of health care. One of the solutions is a straightforward, practical approach known as site-neutral payments.
Put plainly, site-neutral payment would require the VA to pay the same amount for the same medical service, no matter where it’s provided. That means whether a veteran gets a flu shot at a large hospital or at a local clinic, the VA would reimburse the same amount.
“This is about fairness and fiscal responsibility,” Mosteller stated. “Right now, hospitals that own outpatient clinics can bill at much higher rates, even when it’s literally the same service being performed. It makes no sense.”
Mosteller points out that this payment disparity has real consequences: hospital systems are rapidly buying up independent doctor offices to take advantage of the higher reimbursement rates. “It’s not about better care; it’s about gaming the system,” he added.
Fixing this quirk in the VA’s Community Care Program could save taxpayers billions. “We estimate $14 billion in savings by simply paying the same amount for the same care,” Mosteller said. “That’s a no-brainer.”
The idea has already been introduced in Congress by Rep. Rick McCormick of Georgia, a veteran and emergency room doctor. Advocates hope the bill gains traction as the federal government continues exploring ways to trim waste and focus spending on core services.
Some wasteful spending that was recently discovered at the VA was a contract that paid $3.9 million to Deloitte for a salary survey that, it turns out, could be done for just $5,000.
“You don’t need a billion-dollar consultant to ask what your employees earn and what the market rate is,” said Mosteller. “It’s infuriating.”
He added: “Veterans are being made to wait weeks or drive hours to get care, and we’re paying millions for unnecessary surveys? That’s unacceptable.”
It’s time to get serious about reforming a system that too often prioritizes bureaucracy over veterans. With ballooning budgets, unchecked administrative growth, and outrageous spending on overpriced contracts, the VA must be held accountable. If Washington truly wants to serve those who served, cutting waste and embracing reforms like this should be a top priority.
Author: David From hosts the American Potential podcast. David serves as a Regional Vice President at Americans for Prosperity, a political advocacy and grassroots organization dedicated to advancing policies that expand freedom and opportunity. With extensive experience in advocacy and public policy, David is committed to highlighting stories of individuals and communities breaking barriers and creating positive change across the country.
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