[Congressional Record Volume 148, Number 46 (Tuesday, April 23, 2002)]
[Senate]
[Pages S3168-S3169]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (by request):
  S. 2229. A bill to amend title 38, United States Code, to authorize a 
cost-of-living increase in rates of disability compensation and 
dependency and indemnity compensation, and to revise the requirement 
for maintaining levels of extended-care services to veterans; to the 
Committee on Veterans' Affairs.
  Mr. ROCKEFELLER. Mr. President, today I introduce legislation 
requested by the Secretary of Veterans Affairs, as a courtesy to the 
Secretary and the Department of Veterans Affairs, VA. Except in unusual 
circumstances, it is my practice to introduce legislation requested by 
the Administration so that such measures will be available for review 
and consideration.
  This ``by-request'' bill contains two sections. The first would 
authorize the Secretary of Veterans Affairs to increase 
administratively the rates of compensation for service-disabled 
veterans, and for the dependent survivors of veterans whose deaths were 
service-related, beginning this December. The rate of increase, as 
requested by VA in its proposed budget for FY 2003, would be the same 
as the cost-of-living adjustment provided under current law to 
veterans' pension and Social Security recipients.
  The second section of this bill would allow VA to change the way that 
it calculates the number of veterans receiving VA long-term care. In 
1999, Congress passed the Veterans Millennium Health Care Benefits Act, 
which required VA to maintain the level of extended care services 
offered to veterans at the 1998 level. VA has argued that this law, 
based on the average daily census in VA-operated nursing homes, 
unfairly ignores care provided through contracts with private nursing 
homes and by VA-subsidized State nursing homes. The requested bill 
would amend the law to include nursing home care furnished by community 
providers and State veterans homes when determining whether VA has 
maintained extended care services at the mandated 1998 level.
  I ask unanimous consent that the text of the bill and Secretary 
Principi's transmittal letter that accompanied the draft legislation be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2229

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

     SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE.

       (a) Short Title.--This Act may be cited as the ``Veterans 
     Benefits Improvement Act of 2002''.
       (b) References.--Except as otherwise expressly provided, 
     whenever in this Act an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of title 38, United States Code.

        TITLE I--INCREASE IN COMPENSATION RATES AND LIMITATIONS

     SEC. 101. INCREASE IN COMPENSATION RATES AND LIMITATIONS.

       (a) Rate Adjustment.--The Secretary of Veterans Affairs 
     shall, effective on December 1, 2002, increase the dollar 
     amounts in effect for the payment of disability compensation 
     and dependency and indemnity compensation (DIC) by the 
     Secretary, as specified in subsection (b).
       (b) Amounts To Be Increased.--The dollar amounts to be 
     increased pursuant to subsection (a) are the following:
       (1) Compensation.--The dollar amounts in effect under 
     section 1114 of title 38, United States Code.
       (2) Additional compensation for dependents.--The dollar 
     amounts in effect under section 1115(1) of such title.
       (3) Clothing allowance.--The dollar amount in effect under 
     section 1162 of such title.
       (4) New dic rates.--The dollar amounts in effect under 
     paragraphs (1) and (2) of section 1311(a) of such title.
       (5) Old dic rates.--The dollar amounts in effect under 
     paragraph (3) of section 1311(a) of such title.
       (b) Additional dic for surviving spouses with minor 
     children.--The dollar amount in effect under section 1311(b) 
     of such title.
       (7) Additional dic for disability.--The dollar amounts in 
     effect under sections 1311(c) and 1311(d) of such title.
       (8) DIC for dependent children.--The dollar amounts in 
     effect under sections 1313(a) and 1314 of such title.
       (c) Determination of increase.--(1) The increase under 
     subsection (a) shall be made in the dollar amounts specified 
     in subsection (b) as in effect on November 30, 2002.
       (2) Except as provided in paragraph (3), each such amount 
     shall be increased by the same percentage as the percentage 
     by which benefit amounts payable under title II of the Social 
     Security Act (42 U.S.C. 401 et seq.) are increased 
     effective December 1, 2002, as a result of a determination 
     under section 215(i) of such Act (42 U.S.C. 415(i)).
       (3) Each dollar amount increased pursuant to paragraph (2) 
     shall, if not a whole dollar amount, be rounded down to the 
     next lower whole dollar amount.
       (d) Special Rule.--The Secretary may adjust 
     administratively, consistent with the increases made under 
     subsection (a), the rates of disability compensation payable 
     to persons within the purview of section 101 of Public Law 
     85-857 (72 Stat. 1263) who are not in receipt of compensation 
     payable pursuant to chapter 11 of title 38, United States 
     Code.
       (e) Publication Requirement.--At the same time as the 
     matters specified in section 215(i)(2)(D) of the Social 
     Security Act (42 U.S.C. 415(i)(2)(D)) are required to be 
     published by reason of a determination made

[[Page S3169]]

     under section 215(i) of such Act during fiscal year 2003, the 
     Secretary shall publish in the Federal Register the amounts 
     specified in subsection (b) as increased under this section.

                        TITLE II--HEALTH MATTERS

     SEC. 201. NURSING HOME STAFFING LEVELS.

       Section 1710B(b) is amended to read as follows:
       ``(b)(1) The Secretary shall ensure that the staffing and 
     level of extended care services, excluding nursing home care, 
     provided by the Secretary nationally in facilities of the 
     Department during any fiscal year is not less than the 
     staffing and level of such services provided nationally in 
     facilities of the Department during fiscal year 1998.
       ``(2) The Secretary shall ensure that the average daily 
     census in nursing homes over which the Secretary has direct 
     jurisdiction, plus the average daily census of veterans 
     placed by the Secretary in community nursing homes pursuant 
     to a contract, plus the average daily census of veterans for 
     which the Secretary pays per diem to States for nursing home 
     care in a State nursing home, is not less in total than in 
     fiscal year 1998.''.
                                  ____



                            The Secretary of Veterans Affairs,

                                       Washington, April 18, 2002.
     Hon. Richard B. Cheney,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: Enclosed is a draft bill containing two 
     very important components of the President's FY 2003 budget 
     request for the Department of Veterans Affairs: legislation 
     to (1) authorize a cost of living increase in rates of 
     disability compensation and dependency and indemnity 
     compensation, and (2) revise the requirement for maintaining 
     levels of extended-care services to veterans. I request that 
     this bill be referred to the appropriate committee for prompt 
     consideration and enactment.
       Section 101 of the draft bill would direct the Secretary of 
     Veterans Affairs to increase administratively the rates of 
     compensation for service-disabled veterans and of dependency 
     and indemnity compensation (DIC) for the survivors of 
     veterans whose deaths are service related, effective December 
     1, 2002. As provided in the President's FY 2003 budget 
     request, the rate of increase would be the same as the cost-
     of-living adjustment (COLA) that will be provided under 
     current law to veterans' pension and Social Security 
     recipients, which is currently estimated to be 1.8 percent.
       We estimate that enactment of this section would cost $279 
     million during FY 2003, $1.66 billion over the period FY 
     2003-2007 and $3.45 billion over the period FY 2003-2012. 
     Although this section is subject to the pay-as-you-go (PAYGO) 
     requirement of the Omnibus Budget Reconciliation Act of 1990 
     (OBRA), the PAYGO effect would be zero because OBRA requires 
     that the full compensation COLA be assumed in the baseline. 
     We believe this proposed COLA is necessary and appropriate in 
     order to protect the benefits of affected veterans and their 
     survivors from the eroding effects of inflation. These worthy 
     beneficiaries deserve no less.
       Section 201 of the draft bill would amend section 1710B(b) 
     of title 38, United States Code, to revise the statutory 
     requirement that the Secretary continue to provide veterans 
     with extended care services at 1998 levels. Current law, 
     established in the 1999 Veterans Millennium and Health Care 
     Benefits Act, requires VA to maintain the staffing and level 
     of extended care services provided by the Department 
     nationally in facilities of the Department at levels not less 
     than the staffing and level of such services provided 
     nationally during FY 1998. We propose to amend the law as 
     it applies to nursing home care to allow VA to also count 
     nursing home care VA procures in the community, and 
     supports in State nursing homes, when determining whether 
     the Department is maintaining its level of effort in 
     providing such care.
       For more than 30 years, VA has provided veterans with 
     nursing home care through contracts with private sector 
     nursing homes and by paying states per diem for nursing home 
     care furnished in State nursing homes. Of the total amount of 
     VA-supported nursing home care in FY 2000, VA furnished 
     approximately thirty-eight percent directly in VA-operated, 
     nursing homes. VA supported approximately twelve percent 
     through contracts with private nursing homes, and fifty 
     percent through care furnished in State nursing homes.
       VA also provides up to sixty-five percent of the cost of 
     construction of State nursing homes. That has encouraged the 
     expansion of the State Home Program to the point that there 
     are currently 108 such homes nationwide. The availability of 
     the State Home Program and the contract program has improved 
     veterans' access to nursing home care, and has provided 
     veterans with greater choice to meet both clinical needs and 
     preferences of placement near family. We believe it is 
     appropriate and these two sources of nursing home care be 
     counted when assessing the effort VA puts into nursing home 
     care.
       Increasing the FY 2002 average daily census in VA nursing 
     homes to 1998 levels would require us to divert to that 
     program large amount of funds VA currently devotes to other 
     health-care purposes, including payments for community 
     nursing-home care, and grants to construct State nursing 
     homes. However, as stated above, the community and State 
     nursing home programs enable VA to offer veterans both choice 
     and access to care closer to loved ones, values that VA does 
     not want to jeopardize. Using other extended care funds to 
     immediately move to achieve 1998 levels could jeopardize the 
     excellent mix of those other services that VA now offers. The 
     Department now provides veterans a balanced program of 
     extended care services that best meets their needs. It would 
     greatly disserve veterans to dramatically shift funding to 
     meet the strictures of the current requirement for provision 
     of care in VA-operated nursing homes, particularly when the 
     cost of contract nursing homes care is significantly less 
     than the cost of providing care in VA facilities.
       Enactment of our proposal would permit us to continue the 
     overall FY 1998 level of effort for this care as measured by 
     average daily census, without the need to divert an estimated 
     $161.2 million by the end of FY 2004 from resources which 
     would otherwise be available to meet other critical health-
     care needs.
       We are advised by the Office of Management and Budget that 
     there is no objection to the transmittal of this draft bill 
     to the Congress and its enactment would be in accord with the 
     program of the President.
           Sincerely yours,
                                              Anthony J. Principi.
                                 ______