I 

108TH CONGRESS 

1ST SESSION H. R. 270

To require the Secretary of Veterans Affairs to replace with a more equitable 

formula the current formula, known as the Veterans Equitable Resource 

Allocation (VERA), for the allocation of funds appropriated to the Department of Veterans Affairs for medical care to different geographic 

regions of the Nation, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 8, 2003

Mr. FRELINGHUYSEN (for himself, Mr. PALLONE, Mrs. MCCARTHY of New 

York, Mr. CROWLEY, Mr. HINCHEY, Mr. MCNULTY, Mrs. KELLY, Mr. 

PAYNE, Mr. KING of New York, and Mr. SANDERS) introduced the following bill; which was referred to the Committee on Veterans’ Affairs 

A BILL

To require the Secretary of Veterans Affairs to replace with 

a more equitable formula the current formula, known 

as the Veterans Equitable Resource Allocation (VERA), 

for the allocation of funds appropriated to the Department of Veterans Affairs for medical care to different 

geographic regions of the Nation, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Equal Treat5 ment Act’’. 
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1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) The Veterans Equitable Resource Allocation 

4 (VERA) formula, established by the Department of 

5 Veterans Affairs pursuant to section 429 of the fis6 cal year 1997 VA/HUD appropriations Act (Public 

7 Law 104–204; 110 Stat. 2929), has proved to be an 

8 ineffective means of allocating veterans medical care 

9 dollars fairly across the 22 national service regions, 

10 known as Veterans Integrated Service Networks 

11 (VISNs), of the Department of Veterans Affairs. 

12 (2) The VERA formula has resulted in a sys13 tem of inequitable care at veterans hospitals in dif14 ferent regions of the country. 

15 (3) The VERA formula has resulted in a sys16 tem in which veterans in some regions of the country 

17 are forced to compete with veterans in other regions 

18 for critical medical care dollars, when the system 

19 should be providing funding to all veterans, regard20 less of where they live, to ensure that all veterans 

21 have access to the level and quality of care that they 

22 have all earned and deserve. 

23 (4) The VERA formula should be replaced with 

24 a new funding formula that puts the funds provided 

25 to the Department of Veterans Affairs for medical 
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1 care into the Department of Veterans Affairs Med2 ical Centers that are treating patients. 

3 SEC. 3. REVISION TO MEDICAL CARE FUNDING ALLOCA4 TION FORMULA FOR DEPARTMENT OF VET5 ERANS AFFAIRS. 

6 (a) TERMINATION OF VERA FORMULA.—The funding 

7 allocation formula for the Department of Veterans Affairs 

8 medical care system known as the Veterans Equitable Re9 source Allocation system, established pursuant to section 

10 429 of Public Law 104–204 (110 Stat. 2929), shall be 

11 discontinued by the Secretary of Veterans Affairs effective 

12 at the end of the fiscal year during which this Act is en13 acted. 

14 (b) DEVELOPMENT OF REPLACEMENT FORMULA.—

15 The Secretary of Veterans Affairs shall develop a new for16 mula for the allocation of funds appropriated to the De17 partment of Veterans Affairs for Medical Care to the na18 tional service regions, known as Veterans Integrated Serv19 ice Networks (VISNs), of the Department. In developing 

20 such formula, the Secretary shall take the following re21 quirements into account: 

22 (1) For any fiscal year for which the amount 

23 appropriated for Medical Care is an increase from 

24 the preceding year, the funding level provided under 
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1 the new formula to any VISN may not be less than 

2 the amount provided for the preceding year. 

3 (2) The new formula shall take into account ad4 ditional costs incurred by a VISN due to any of the 

5 following factors at that VISN being in excess of the 

6 median for all VISNs: 

7 (A) The number of veterans moving into 

8 the geographic area of that VISN. 

9 (B) The median age of veterans in that 

10 VISN. 

11 (C) The number of veterans in that VISN 

12 requiring complex care or nursing home care. 

13 (D) The age of Department of Veterans 

14 Affairs health care facilities in that VISN. 

15 (c) TRANSITION FORMULA.—If as of the date speci16 fied in subsection (a) for the termination of the funding 

17 allocation formula referred to in that subsection the Sec18 retary of Veterans Affairs has not implemented a replace19 ment funding allocation formula in accordance with sub20 section (b), then effective as of that date and until such 

21 a replacement funding allocation formula is implemented, 

22 the funding allocation formula to be applied to amounts 

23 appropriated for veterans medical care shall be the for24 mula in effect before the formula referred to in subsection 

25 (a). 
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1 SEC. 4. AUTHORIZATIONS OF APPROPRIATIONS. 

2 (a) AUTHORIZATION FOR REPLACEMENT ALLOCA3 TION FORMULA.—There is authorized to be appropriated 

4 to the Department of Veterans Affairs for fiscal year 2003 

5 the amount of $10,000,000 for development and imple6 mentation of a replacement funding allocation formula in 

7 accordance with section 3(b). 

8 (b) ADDITIONAL ‘‘MEDICAL CARE’’ AUTHORIZA9 TIONS.—There is authorized to be appropriated to the De10 partment of Veterans Affairs for fiscal year 2003 the 

11 amount of $100,000,000 for ‘‘Medical Care’’ for the De12 partment of Veterans Affairs. Such amount is in addition 

13 to any other amount authorized to be appropriated to the 

14 Department of Veterans Affairs for fiscal year 2003 and 

15 shall be allocated by the Secretary to the national service 

16 regions, known as Veterans Integrated Service Networks 

17 (VISNs), of the Department of Veterans Affairs on the 

18 basis of need, as follows: 

19 (1) First, to the VISN that has experienced the 

20 greatest reduction in funding from the funding levels 

21 for fiscal year 1997. 

22 (2) Second, to any other VISN that has experi23 enced an overall five-year funding decrease. 

24 (3) Third, if any amount appropriated pursuant 

25 to such authorization remains after allocations pur26 suant to paragraphs (1) and (2), such amount shall 
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1 be allocated equally among the remaining 22 VISNs 

2 before implementation of the new formula.

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