Legislative Hearing on: “H.R. 984, To amend title 38, United States Code, to direct the Secretary of Veterans Affairs to provide timely equitable relief to an individual who suffers a loss based on an administrative error by the Secretary, and for other purposes; H.R. 1663, Veterans Scam and Fraud Evasion (VSAFE) Act of 2025; H.R. 3185, Personnel Integrity in Veterans Affairs Act of 2025; H.R. 3455, Veterans Affairs Distributed Ledger Innovation Act of 2025; H.R. 3482, Veterans Community Care Scheduling Improvement Act; H.R. 3483, Forcing Real Accountability for Unlawful Distributions (FRAUD) Act of 2025; H.R. 3494, VA Hospital Inventory Management System Authorization Act; Discussion Draft, To authorize the Secretary of Veterans Affairs to carry out a program to modernize the electronic health record system of the Department of Veterans Affairs, and for other purposes; Discussion Draft, To amend title 38, United States Code, to prohibit the collection of a health care copayment by the Secretary of Veterans Affairs from a veteran after a two-year period if the delay in collection is attributable to a failure of an employee, official, or information system of the Department of Veterans Affairs to process certain information within applicable timeliness standards established by the Secretary

House Veterans' Affairs Subcommittee on Oversight and Investigations

2025-06-11

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Source: Congress.gov

Summary

This legislative hearing focused on reviewing nine legislative proposals aimed at enhancing the delivery of services to veterans by the Department of Veterans Affairs (VA)[ 00:31:36 ] . Participants included members of Congress, VA officials, and representatives from veteran advocacy groups and technology organizations, who provided feedback to inform policy decisions[ 00:32:08 ] . The discussions covered a wide range of topics, including IT modernization, accountability, and veteran protection from scams and financial burdens[ 00:32:14 ] .

Themes

Fraud, Waste, and Abuse Detection

The hearing addressed H.R. 3483, the Fraud Act of 2025, which aims to implement an IT system for detecting fraud, waste, and abuse in community care payment processing[ 00:34:33 ] . The VA expressed support for the bill, believing that savings from preventing overpayments would cover technology costs, but suggested technical amendments to ensure comprehensive coverage of fraud risks. The VA Chief Financial Officer indicated this conclusion was based on comparing VA's experience to private sector recoupment standards[ 00:59:26 ]

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. Dr. McDonald from the VA Office of the Inspector General (OIG) highlighted the previous pause of the Program Integrity Tool (PIT), which was designed to consolidate data for community care programs and identify potential fraud indicators like duplicate payments. The PIT's inoperability led to limited revenue collection, impacting over $660 million and creating a significant billing backlog, with approximately 40 million community care claims processed while it was down. The Digital Chamber suggested that blockchain technology could prevent fraud due to its immutable and transparent nature, requiring all network participants to confirm inputs, making falsification difficult.

Veteran Scam and Fraud Evasion

The Veterans Scam and Fraud Evasion Act of 2025 (H.R. 1663) was discussed, proposing to codify an office at the VA dedicated to combating scams targeting veterans[ 00:32:46-00:32:56 ] . The VA supports these efforts, noting an existing V-SAFE officer since 2023, and recommends formally establishing this position within the Veterans Experience Office. The American Legion strongly supports the V-SAFE Act, citing that veterans are 40% more likely to be targeted by financial scams, resulting in a $584 million loss in 2024 alone. American Legion representatives indicated that their veteran service officers actively assist in identifying scams and preventing fraud at the local level[ 01:25:16-01:25:19 ]

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.

VA Hospital Inventory Management System

H.R. 3494, the VA Hospital Inventory Management System Authorization Act, seeks to authorize the VA to acquire or develop a modern inventory management system for its hospitals[ 00:34:37-00:34:48 ] . The VA supports this bill, emphasizing that a modern system would provide a unified view of inventory across the entire enterprise, addressing current challenges posed by multiple, disparate systems. While the OIG noted that the VA has repeatedly failed in past supply chain modernization efforts due to inadequate needs assessment, the VA affirmed that it is now taking a disciplined, incremental approach and has assessed previous challenges[ 00:54:31-00:54:32 ]

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. The American Legion endorsed the bill, believing it would prevent waste and abuse, improve efficiency, and ultimately benefit veterans by reducing delays in care caused by supply chain issues.

Personnel Integrity and Accountability

H.R. 3185, the Personal Integrity and Veteran Affairs Act of 2025, proposes tools for oversight bodies to investigate misconduct and require documentation in personal files if an employee resigns under investigation[ 00:33:25 ] . The OIG indicated that any information regarding prior investigations would be beneficial for oversight, though specific examples were deferred[ 00:52:15-00:52:52 ]

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. The American Legion supports the bill, asserting that VA employees under investigation should not be able to avoid consequences by resigning or transferring, and that balancing due process with maintaining trust in the VA workforce is crucial.

Community Care Scheduling and Access

The Veterans Community Care Scheduling Improvement Act (H.R. 3482) aims to establish a program enabling VA employees to directly schedule healthcare appointments for veterans receiving community care[ 00:34:02 ] . While the VA supports the bill's intent, concerns were raised that specific legislation might constrain existing efforts to develop self-service scheduling platforms. Dr. Edward O'Brien from the Medical University of South Carolina (MUSC) highlighted the success of their direct digital scheduling system (EPS), which has reduced veteran wait times by 8.8 days (33%) in the Charleston area. He credited this success to strong collaboration with VA staff and an increasing number of providers sharing their schedules, noting that the new digital system is a significant improvement over previous manual processes involving fax machines[ 01:33:21-01:33:30 ]

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. Dr. O'Brien also suggested tracking time and money saved and setting performance goals to ensure accountability. The American Legion supports the bill, advocating for uniform training for VA staff and the ability to compare wait times for veterans, emphasizing that direct scheduling would lead to faster care and address a main challenge of community care implementation.

Debt Collection and Copays (STRIVE Act)

H.R. 3812, the STRIVE Act, was introduced to prohibit the VA from collecting copays from veterans in specific situations, such as when the care is over two years old or the debt exceeds $2,000 due to VA fault or administrative errors[ 00:38:08-00:38:09 ]

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. The bill also grants the Secretary authority to waive copays, shifting the burden from individual veterans to the government. The OIG confirmed instances where IT system failures and administrative errors, such as the PIT pause, led to delayed copay billing impacting an estimated 85,000 veterans. Dr. O'Brien noted that waiving copays could increase healthcare utilization, as financial concerns often prevent veterans from seeking necessary care[ 01:27:36-01:27:45 ]

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. The American Legion supports this legislation, recognizing that delayed bills for thousands of dollars create significant financial hardship for veterans on fixed incomes.

Electronic Health Record Modernization (EHRM)

A discussion draft regarding the VA's Electronic Health Record Modernization (EHRM) program was also on the agenda[ 00:34:37 ] . The VA expressed support for modernizing EHRM, subject to amendments and appropriations, and welcomed collaboration with the committee. Concerns were raised about the acceleration of EHRM deployment coinciding with staff reductions, which could undermine the necessary infrastructure. The OIG highlighted that IT modernization has been a major challenge for the VA, with past EHRM delays attributed to a lack of comprehensive deployment schedules and cost estimates. The American Legion supports the draft legislation, emphasizing the importance of standardizing clinical workflows, clearly defining leadership roles, and securing personal data to ensure program sustainability and successful deployment, particularly to protect veterans from the misuse of their sensitive health information.

Tone of the Meeting

The overall tone was largely cooperative, with a shared commitment to improving veteran services through legislative action and technological advancement. There was a consistent theme of support for the intent of the bills from witnesses, often with caveats regarding necessary amendments, appropriations, or technical improvements. However, the Ranking Member introduced a critical undertone by expressing disappointment over a perceived erosion of bipartisanship in bill selection and significant concerns about potential negative impacts of VA staff reductions and reorganization on modernization efforts, even hinting at a risk of privatization[ 00:37:25-00:37:49 ]

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. This led to calls for further conversations and careful consideration before advancing legislation.

Participants

Transcript

good afternoon thank you to our witnesses for being here today without objection the chair may declare recess at any time i'd also like to welcome the members present from the subcommittee on technology modernization i think they're on their way and the other members who have sponsored bills on today's agenda who will be joining us today who are hopefully on their way as well today's hearing is about coordinating with other individuals who also care deeply about how veterans are treated and who represent organizations with expertise on the proposed legislation on the agenda this afternoon   We will use the feedback and ideas they share with us to make informed policy decisions to improve the delivery of services at the VA.  We have nine important legislative proposals to consider here today.  It is important to note that not all of the proposals move forward in the legislative process.  The valuable insight provided by these members, stakeholders, and agencies is fundamental to the work of the subcommittee.   During today's legislative hearing, we will examine a variety of bills, including bills that impact the VA's systems and technology acquisition, pay, and accountability.  The agenda includes H.R.  984, sponsored by Representative Van Orden, which would direct the VA Secretary to cancel agreements with debt collectors.  To collect debt from veterans, the VA determines the debt was due to an error.  The Veterans Scam and Fraud Evasion Act of 2025, sponsored by Representative Kalbert,   would codify an office of the VA that is needed to fight against scammers targeting veterans.  H.R.  3185, the Personal Integrity and Veteran Affairs Act of 2025, sponsored by Representative Franklin, would provide oversight bodies with the tools to complete their investigations into misconduct and improve the federal workforce by requiring the VA to make note in their personal file if they resign under investigation.   The bill sponsored by Representative Gray, which would prohibit the VA from collecting co-pays after two years if the delay in collection is due to a VA failure in timely processing.  H.R.  3482, the Veterans Community Care Scheduling Improvement Act, sponsored by Representative Barrett, would establish a program for the VA employees to directly schedule healthcare appointments for veterans receiving community care.
And H.R.  3455, the Veteran Affairs Distributed Ledger Innovation Act of 2025,   sponsored by Representative Mace, would direct the VA to conduct a study on the use of distributed ledger technology to modernize the claims process.  H.R.  3483, Forcing Real Accountability for Unlawful Distributions or the Fraud Act of 2025, sponsored by Representative Barrett, would direct the VA to implement an information technology system to detect fraud, waste, and abuse in payment processing for community care payment submissions.  A discussion draft of legislation to improve the VA EHRM program   And lastly, my legislation, HR 3494, the VA Hospital Inventory Management System Authorization Act, which would authorize the VA to purchase or develop a modernized inventory management system for hospitals.  Inventory modernization is an important step forward to more effectively manage the crucial medical equipment and other assets providers need to deliver first-class healthcare to our nation's veterans.   I'm eager to hear more from our members and witnesses about these bills and I want to thank our witnesses again for being here today.  I look forward to our discussion.  I now recognize Ranking Member Ramirez for her opening remarks.
Thank you, Chair Kiggins.  I want to first start by thanking our witnesses that are here today, Dr. Phillips, Miss Duke, Miss Waters and Miss McDonald.  Thank you for being with us today.  When I first joined this committee a couple of years ago, I hoped to find common ground with my conservative, my more conservative colleagues, because we were united by a shared belief that it's our responsibility to serve those who sacrifice so much for our country, our diverse veterans.   So I have to admit that I continue to be disappointed as I witnessed the erosion of the spirit of bipartisanship in our committee.  While I'm committed to work on today's bills on advancement and modernization of the VA,   I can't help but point out that, contrary to the traditions of this committee, we're discussing eight Republican-led bills and only one Democratic-led bill.  In the past, for every two bills from the majority, we considered a bill from the minority.  So you can understand my disappointment that while we're in fact going to discuss modernization of the VA, we omitted and disregarded Democratic legislation on the subject that could bring even a greater level of transparency and accountability to the VA.   Let me give you a couple examples.  Congressman Kennedy's VA Funding and Workforce Protection Act, which would reinstate veterans who have been illegally terminated from the VA and exempt them from the hiring freezes.  Or Dr. Conway's VA Data Act, which addresses serious privacy concerns veterans have shared with us and would prevent DOGE from accessing veterans' personal information from the VA systems.   And I hope I have the chance to discuss the bills that I plan to introduce over the next few months, which would include a bill to restore collective bargaining rights for VA employees and a bill that will bring much needed transparency to VA's relationship with special government employees.   While I'm disappointed the ratio of Republican to Democratic bills that is so low in this hearing, I am proud of the single Democratic-led bill on today's agenda, Congressman Gray's STRIVE Act.
The bill would prohibit the VA from collecting co-pays from veterans in specific situations when the billed care is more than two years old or the debt incurred by the veteran is due to the department's fault and exceeds $2,000.   This bill would protect veterans by ensuring that they're not on the hook for surprise medical bills due to dysfunction or error in VA systems.  It's common sense step to shield veterans from avoidable financial burdens.  Today we will also be considering bills on modernization efforts within the department and that is a timely and crucial conversation.   But if I'm being honest with you, from my perspective, we can't successfully realize modernization without the infrastructure needed to actually support it and implement it.  For example, Secretary Collins has announced his plans to accelerate the electronic health record modernization.  We call it the EHRM program.   to 13 sites next year and 26 the following year.  At the same time, there's a doubling of the sites, there's a reduction in the EHRM integration office staff, about 10% of whom took the deferred resignation program.

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