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 De-
partment 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 fol-
lowing 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 Depart-
ment of Veterans Affairs for medical care to different 
geographic regions of the Nation, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans Equal Treat-
ment Act’’.
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) The Veterans Equitable Resource Allocation 
(VERA) formula, established by the Department of 
Veterans Affairs pursuant to section 429 of the fis-
cal year 1997 VA/HUD appropriations Act (Public 
Law 104–204; 110 Stat. 2929), has proved to be an 
ineffective means of allocating veterans medical care 
dollars fairly across the 22 national service regions, 
known as Veterans Integrated Service Networks 
(VISNs), of the Department of Veterans Affairs. 
(2) The VERA formula has resulted in a sys-
tem of inequitable care at veterans hospitals in dif-
ferent regions of the country. 
(3) The VERA formula has resulted in a sys-
tem in which veterans in some regions of the country 
are forced to compete with veterans in other regions 
for critical medical care dollars, when the system 
should be providing funding to all veterans, regard-
less of where they live, to ensure that all veterans 
have access to the level and quality of care that they 
have all earned and deserve. 
(4) The VERA formula should be replaced with 
a new funding formula that puts the funds provided 
to the Department of Veterans Affairs for medical
care into the Department of Veterans Affairs Med-
ical Centers that are treating patients. 
SEC. 3. REVISION TO MEDICAL CARE FUNDING ALLOCA-
TION FORMULA FOR DEPARTMENT OF VET-
ERANS AFFAIRS. 
(a) TERMINATION OF VERA FORMULA.—The funding 
allocation formula for the Department of Veterans Affairs 
medical care system known as the Veterans Equitable Re-
source Allocation system, established pursuant to section 
429 of Public Law 104–204 (110 Stat. 2929), shall be 
discontinued by the Secretary of Veterans Affairs effective 
at the end of the fiscal year during which this Act is en-
acted. 
(b) DEVELOPMENT OF REPLACEMENT FORMULA.—
The Secretary of Veterans Affairs shall develop a new for-
mula for the allocation of funds appropriated to the De-
partment of Veterans Affairs for Medical Care to the na-
tional service regions, known as Veterans Integrated Serv-
ice Networks (VISNs), of the Department. In developing 
such formula, the Secretary shall take the following re-
quirements into account: 
(1) For any fiscal year for which the amount 
appropriated for Medical Care is an increase from 
the preceding year, the funding level provided under
the new formula to any VISN may not be less than 
the amount provided for the preceding year. 
(2) The new formula shall take into account ad-
ditional costs incurred by a VISN due to any of the 
following factors at that VISN being in excess of the 
median for all VISNs: 
(A) The number of veterans moving into 
the geographic area of that VISN. 
(B) The median age of veterans in that 
VISN. 
(C) The number of veterans in that VISN 
requiring complex care or nursing home care. 
(D) The age of Department of Veterans 
Affairs health care facilities in that VISN. 
(c) TRANSITION FORMULA.—If as of the date speci-
fied in subsection (a) for the termination of the funding 
allocation formula referred to in that subsection the Sec-
retary of Veterans Affairs has not implemented a replace-
ment funding allocation formula in accordance with sub-
section (b), then effective as of that date and until such 
a replacement funding allocation formula is implemented, 
the funding allocation formula to be applied to amounts 
appropriated for veterans medical care shall be the for-
mula in effect before the formula referred to in subsection 
(a).
SEC. 4. AUTHORIZATIONS OF APPROPRIATIONS. 
(a) AUTHORIZATION FOR REPLACEMENT ALLOCA-
TION FORMULA.—There is authorized to be appropriated 
to the Department of Veterans Affairs for fiscal year 2003 
the amount of $10,000,000 for development and imple-
mentation of a replacement funding allocation formula in 
accordance with section 3(b). 
(b) ADDITIONAL
‘‘MEDICAL
CARE’’ AUTHORIZA-
TIONS.—There is authorized to be appropriated to the De-
partment of Veterans Affairs for fiscal year 2003 the 
amount of $100,000,000 for ‘‘Medical Care’’ for the De-
partment of Veterans Affairs. Such amount is in addition 
to any other amount authorized to be appropriated to the 
Department of Veterans Affairs for fiscal year 2003 and 
shall be allocated by the Secretary to the national service 
regions, known as Veterans Integrated Service Networks 
(VISNs), of the Department of Veterans Affairs on the 
basis of need, as follows: 
(1) First, to the VISN that has experienced the 
greatest reduction in funding from the funding levels 
for fiscal year 1997. 
(2) Second, to any other VISN that has experi-
enced an overall five-year funding decrease. 
(3) Third, if any amount appropriated pursuant 
to such authorization remains after allocations pur-
suant to paragraphs (1) and (2), such amount shall