Prohibition of debt arising from overpayment due to delay in processing by the Department of Veterans Affairs

(a)

Bar to recovery

(1)

In general

Chapter 53 of title 38, United States Code, is amended by inserting after section 5302A the following new section:

5302B.

Prohibition of debt arising from overpayment due to delay in processing

(a)

Limitation

No individual may incur a debt to the United States that—(1)arises from any program or benefit administered by the Under Secretary for Benefits; and(2)is attributable to the failure of an employee or official of the Department to process information provided by or on behalf of that individual within applicable timeliness standards established by the Secretary.(b)

Notice to beneficiary

If the Secretary determines that the Secretary has made an overpayment to an individual, the Secretary shall provide notice to the individual of the overpayment. Such notice shall include an explanation of the right of the individual to dispute the overpayment or to request a waiver of indebtedness.(c)

Delay on collection

The Secretary may not take any action under section 3711 of title 31 regarding an overpayment described in a notice under subsection (b) until the date that is 90 days after the date the Secretary issues such notice.

(2)

Clerical amendment

The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5302A the following new item:

5302B. Prohibition of debt arising from overpayment due to delay in processing.

(3)

Deadline

The Secretary of Veterans Affairs shall prescribe regulations to establish standards under section 5302B(a)(2) of such title, as added by subsection (a), not later than 180 days after the date of the enactment of this Act.(b)

Plan for improved notification and communication of debts

Not later than 180 days after the date of the enactment of this Act, and one year thereafter, the Secretary of Veterans Affairs shall submit to Congress a report on the improvement of the notification of and communication with individuals who receive overpayments made by the Secretary. Such report shall include each of the following:(1)The plan of the Secretary to carry out each of the following:(A)The development and implementation of a mechanism by which individuals enrolled in the patient enrollment system under section 1705 of title 38, United States Code, may view their monthly patient medical statements electronically.(B)The development and implementation of a mechanism by which individuals eligible for benefits under the laws administered by the Secretary may receive electronic correspondence relating to debt and overpayment information.(C)The development and implementation, by not later than October 1, 2022, of a mechanism by which individuals eligible for benefits under the laws administered by the Secretary may access information related to Department of Veterans Affairs debt electronically.(D)The improvement and clarification of Department communications relating to overpayments and debt collection, including letters and electronic correspondence. The Secretary shall develop such improvements and clarifications in consultation with veterans service organizations and other relevant non-governmental organizations.(E)The development and implementation, by not later than October 1, 2022, of a mechanism by which veterans may update their dependency information electronically.(2)A description of the current efforts and plans for improving the accuracy of payments to individuals entitled to benefits under the laws administered by the Secretary, including specific data matching agreements.(3)A description of steps to be taken to improve the identification of underpayments to such individuals and to improve Department procedures and policies to ensure that such individuals who are underpaid receive adequate compensation payments.(4)A list of actions completed, implementation steps, and timetables for each requirement described in paragraphs (1) through (3).(5)A description of any new legislative authority required to complete any such requirement.

Threshold for reporting debts to consumer reporting agencies

(a)

In general

Chapter 53 of title 38, United States Code, is amended by adding after section 5319 the following new section:

5320.

Threshold for reporting debts to consumer reporting agencies

The Secretary shall prescribe regulations that establish the minimum amount of a claim or debt, arising from a benefit administered by the Under Secretary for Benefits or Under Secretary for Health, that the Secretary will report to a consumer reporting agency under section 3711 of title 31.

(b)

Clerical amendment

The table of sections at the beginning of such chapter is amended by adding after the item relating to section 5319 the following new item:

5320. Threshold for reporting debts to consumer reporting agencies.

(c)

Deadline

The Secretary of Veterans Affairs shall prescribe regulations under section 5320 of such title, as added by subsection (a), not later than 180 days after the date of the enactment of this Act.