[Senate Report 110-143]
[From the U.S. Government Publishing Office]
Calendar No. 328
110th Congress Report
SENATE
1st Session 110-143
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BLINDED VETERANS PAIRED ORGAN ACT OF 2007
_______
August 3, 2007.--Ordered to be printed
_______
Mr. Akaka, from the Committee on Veterans Affairs, submitted the
following
R E P O R T
[To accompany S. 1163]
The Committee on Veterans' Affairs (hereinafter, ``the
Committee''), to which was referred the bill (S. 1163) to amend
title 38, United States Code, to improve compensation and
specially adapted housing for veterans in certain cases of
impairment of vision involving both eyes, and to provide for
the use of the National Directory of New Hires for income
verification purposes, having considered the same, reports
favorably thereon with an amendment in the nature of a
substitute, and recommends that the bill, as amended, do pass.
Introduction
On April 19, 2007, Committee Chairman Daniel K. Akaka
introduced S. 1163 with Senators Sherrod Brown, Russell
Feingold, Chuck Hagel, Johnny Isakson, and Jim Webb as original
cosponsors. Senator Bernard Sanders was added later as a
cosponsor. S. 1163, as introduced, would amend the eligibility
criteria for disability compensation and specially adapted
housing in certain cases of impairment of vision in both eyes,
and authorize the Secretary of Veterans Affairs to use the
National Directory of New Hires for income verification
purposes. The bill was referred to the Committee.
On May 2, 2007, Ranking Member Larry Craig introduced S.
1266. Senator Johnny Isakson was added later as a cosponsor. S.
1266 would increase assistance for veterans interred in
cemeteries other than national cemeteries.
On May 8, 2007, Senator Christopher Dodd introduced S. 1334
with Senators Sherrod Brown, Robert Byrd, Kent Conrad, John
Kerry, and George Voinovich as original cosponsors. Senators
Tim Johnson, Joseph Lieberman, and Blanche Lincoln were added
later as cosponsors. S. 1334 would make permanent the authority
to furnish government headstones and markers for graves of
veterans interred at private cemeteries.
Committee Hearing
On May 9, 2007, the Committee held a hearing on benefits
legislation at which testimony on S. 1163, S. 1266, and S.
1334, among other bills, was offered by: Daniel L. Cooper,
Under Secretary for Benefits, Department of Veterans Affairs;
Carl Blake, Senior Associate National Legislative Director,
Paralyzed Veterans of America; Eric A. Hilleman, Assistant
Director, National Legislative Service, Veterans of Foreign
Wars of the United States; Brian E. Lawrence, Assistant
National Legislative Director, Disabled American Veterans; and
Alec S. Petkoff, Assistant Director, Veterans Affairs and
Rehabilitation, The American Legion.
Committee Meeting
On June 27, 2007, the Committee met in open session to
consider legislation pending before the Committee. Among the
measures so considered was S. 1163 with an amendment in the
nature of a substitute incorporating provisions from S. 1266
and S. 1334. By voice vote the Committee voted to report
favorably S. 1163, as amended, to the Senate.
Summary of S. 1163 as Reported
S. 1163, as reported (hereinafter, ``Committee bill'') is
titled the ``Blinded Veterans Paired Organ Act of 2007.'' The
Committee bill is summarized below.
TITLE I--LOW-VISION BENEFITS MATTERS
Section 101 would modify the eligibility criteria for
special monthly compensation in certain cases involving
disability due to visual impairment.
Section 102 would amend the eligibility criteria that
qualifies veterans to receive compensation for a service-
connected disability due to blindness in both eyes although the
visual impairment in only one of the eyes is, in fact, service-
connected.
Section 103 would direct the Secretary of the Department of
Veterans Affairs (hereinafter, ``VA'') and the Secretary of the
Department of Health and Human Services (hereinafter, ``HHS'')
to match and compare VA needs-based pension benefits data,
parents' dependency and indemnity compensation data, health-
care services data, and unemployability compensation data with
the National Directory of New Hires maintained by HHS, for the
purpose of determining eligibility for such VA benefits and
services.
TITLE II--BURIAL AND MEMORIAL AFFAIRS MATTERS
Section 201 would require the Secretary to design and
furnish a medallion or other emblem, upon request, signifying a
deceased veteran's status to be affixed to headstones or
markers purchased at private expense.
Section 202 would repeal the current two-year window within
which States must file for reimbursement from VA for the
interment or inurnment of unclaimed remains of deceased
veterans. It would also authorize $5 million to cover the
operational and maintenance expenses of State cemeteries.
Section 203 would make permanent the authority to furnish
government headstones and markers for privately-marked graves
of veterans interred at private cemeteries. It would also
include retroactive authority to do the same for those interred
on or between November 1, 1990 and September 10, 2001.
Background and Discussion
TITLE I--LOW-VISION BENEFITS MATTERS
Section 101. Modification of rate of reimbursement of visual impairment
for payment of disability compensation
Section 101 of the Committee bill would change the
definition of blindness used for subsection (o) of section
1114, title 38, United States Code, to that commonly used in
the United States.
Under current law, veterans with very serious disabilities
are eligible to receive additional benefits (often referred to
as ``special monthly compensation,'' 38 C.F.R. 3.350) which are
often higher than the rate paid to veterans who are totally and
permanently disabled. Subsection (o) of section 1114 of title
38, United States Code, provides benefits of $4,313 per month
for single veterans who have multiple severe disabilities.
Under subsection (o), a veteran who has bilateral deafness
(rated service-connected at 60 percent in one or both ears) and
also service-connected blindness with visual acuity of 5/200 or
less, is paid at the rate of $4,313 per month.
Subsection (o) of section 1114, title 38, United States
Code, is derived from The United States Veterans'
Administration Schedule for Rating Disabilities (March 20,
1933) where it was referred to as ``special monthly pension.''
Under that rating schedule, including subsection (o), benefits
for blindness were based on the veteran ``having only light
perception.'' In 1945, subsection (o) was amended by Public Law
79-182 to provide special monthly compensation for veterans who
had multiple disabilities, including ``total blindness with
visual acuity of 5/200 or less.'' The 5/200 standard for
blindness has been continued in subsection (o) to the present
day.
According to the National Eye Institute, visual acuity is
defined as the eye's ability to distinguish object details and
shape with good contrast, using the smallest identifiable
object that can be seen at a specified distance. It is measured
by use of an eye chart and recorded as test distance/target
size. Visual acuity of 5/200 means that an individual must be 5
feet away from an eye chart to see a letter that an individual
with normal vision could see from 200 feet.
While VA has used the 5/200 or less standard of visual
acuity for blindness over the last several decades, a consensus
definition of what constitutes ``legal blindness'' has emerged.
This consensus definition, which is less stringent than
VA's standard, encompasses individuals with lesser degrees of
vision impairment. The American Medical Association has
espoused this definition since 1934 and defines blindness as a
``central visual acuity of 20/200 or less in the better eye
with corrective glasses, or central visual acuity of more than
20/200 if there is a visual field defect in which the
peripheral field is contracted to such an extent that the
widest diameter of the visual field subtends an angular
distance no greater than 20 degrees in the better eye.''
The Social Security Administration (hereinafter, ``SSA'')
changed its definition of blindness to the same standard as the
American Medical Association in 1968. As of 1952, the Social
Security Act defined blindness, in Public Law 82-590, as visual
acuity of 5/200 or less. On January 2, 1968, Congress changed
the definition of blindness in section 216 of the Social
Security Act, Public Law 90-248. Section 216 states that the
SSA considers an individual to be blind if he or she has
``central visual acuity of 20/200 or less in the better eye
with the use of a correcting lens.'' SSA also considers an eye
with a peripheral field of vision of less than 20 degrees to
equate to having a central visual acuity of 20/200 or less.
This definition is widely used by state and federal governments
today, but not VA.
Section 101 of the Committee bill would provide that
veterans who are very severely disabled as the result of
blindness and other severe disabilities would be eligible to
receive the higher rate of compensation provided under
subsection (o) if their visual acuity in both eyes is 20/200 or
less. The Committee believes that veterans who are so seriously
disabled as to meet the visual acuity standard of 20/200 or
less, in addition to the other statutory conditions needed to
meet the criteria for an (o) rating under section 1114 of title
38, United States Code, should receive those benefits.
The provision would be effective for claims filed on or
after the date of enactment.
Section 102. Improvement in compensation for veterans in certain cases
of impairment of vision involving both eyes
Section 102 of the Committee bill, which is derived from S.
1163, would establish a definition of blindness in section
1160(a)(1) of title 38, United States Code, equivalent to that
commonly used in the United States.
In 1962, Public Law 87-610 was enacted requiring special
consideration for certain veterans' disability compensation
claims involving cases of blindness in both eyes or bilateral
kidney dysfunction when disability in only one eye or kidney is
adjudged by VA to have been tied to military service. This law
allowed for veterans to be compensated as if the ``blindness in
both eyes or such bilateral kidney involvement were the result
of service-connected disabilities.'' This principle of ``paired
organ'' impairment was extended to include ears in 1965 in
Public Law 89-311 and hands, feet, and lungs in 1986 in Public
Law 99-576.
These legislative enactments demonstrate Congress' view
that certain organs are designed to work together and warrant
special consideration for compensation in cases where a veteran
has disabilities in both organs, even if only one is service-
connected. Current law provides veterans who sustain a service-
connected injury or loss of function in one of these organs
with eligibility for additional compensation should they
sustain a non-service-connected injury or loss of function in
the companion organ.
In recent years, Congress has been active in updating the
paired organ statute to address more adequately the
disabilities that veterans face. In 2002, Congress enacted
Public Law 107-330 that amended section 1160, title 38, United
States Code, (hereinafter, the ``paired organ statute'') with
respect to hearing loss. The original language of Public Law
89-311 required that a veteran demonstrate ``total deafness''
in both the adjudged ear and the ear not affected by service in
order to be eligible for compensation under the paired organ
statute. Public Law 107-330 eliminated the ``total deafness''
requirement and allowed VA to consider partial hearing loss in
either ear when adjudicating claims for deafness under the
paired organ statute. Current law requires that a veteran have
deafness rated at 10 percent or greater in the service-
connected ear in order to receive consideration under the
paired organ statute.
With respect to vision impairment, section 1160(a)(1) of
title 38, United States Code, provides that a veteran with
blindness in one eye as a result of a service-connected
disability and blindness in the other eye as a result of a non-
service-connected disability that is not as a result of a
veteran's own willful misconduct is eligible to receive the
applicable rate of compensation as if both disabilities are
service-connected. However, section 1160(a)(1) does not define
the term ``blindness.'' In the absence of a statutory
definition, VA has applied its own standard for vision
impairment that amounts to ``blindness'' under the law--a
visual acuity of 5/200 or less, a standard that equates to
vision that is capable of light perception only.
According to an estimate conducted in March 2007 by the
Congressional Budget Office (hereinafter, ``CBO''), there are
approximately 45,000 veterans receiving disability compensation
primarily because of eye disease or impairment of vision, 1,150
of whom would qualify for increased benefits if the visual
acuity standard of the paired organ statute was amended.
Future veterans who have sustained eye-related injuries in
Operation Enduring Freedom and Operation Iraqi Freedom also
stand to benefit from this legislation. As of June 2007, Walter
Reed Army Medical Center reports having treated 534 soldiers
from these operations for eye injuries. Of these soldiers, 428
were treated for an injury to just one eye, meaning that any
future vision problems are likely to be considered connected to
service in only that one eye.
It is the Committee's view that these individuals and other
future veterans should not be denied benefits under the paired
organ statute if they demonstrate a central visual acuity of
greater than 5/200. Their vision impairment should be judged by
the same standard that civilians are by the SSA.
Section 102 of the Committee bill would define
``blindness,'' as referred to in section 1160(a)(1), title 38,
United States Code, as central visual acuity of 20/200 or less
or peripheral field of vision of 20 degrees or less. This would
eliminate the gap between the conventional definition of legal
blindness in the United States and the definition of blindness
heretofore used by VA in applying the paired organ statute.
Section 103. Use of National Directory of New Hires for income
verification purposes for certain veterans benefits
Section 103 of the Committee bill, which is derived from S.
1163, would authorize the Secretary to use the National
Directory of New Hires (hereinafter, ``NDNH'') for income
verification purposes.
Under current law, certain benefits programs administered
by VA, including pensions for wartime veterans and compensation
for Individual Unemployability (hereinafter, ``IU''), are
income based, meaning they are available only to beneficiaries
whose annual income is below a certain level. Thus, VA must
utilize certain income verification tools in order to ensure
that those receiving benefits under its income-based programs
are not earning a greater annual income than the law permits.
One of the tools currently used by VA is the Internal Revenue
Service's Income Verification Match (hereinafter, ``IVM'')
module. Authority to use the IVM module expires on September
30, 2008.
A May 2006 Government Accountability Office (hereinafter,
``GAO'') study, ``VA Should Improve Its Management of
Individual Employability Benefits by Strengthening Criteria,
Guidance, and Procedures,'' found that VA's process to enforce
the earnings limit for ongoing eligibility for IU benefits is
inefficient and ineffective. The study specifically identified
a number of shortcomings of the IVM, including timeliness and
efficiency. VA uses SSA earnings data that is about 1.5 years
old, which can mean that, along with other processing delays,
IU beneficiaries who earn an income above the threshold can
continue to receive benefits for up to 2.5 years before VA
determines they should be discontinued.
GAO suggested that HHS' NDNH database, which provides a
national directory of employment and unemployment insurance
information to facilitate employment and income verification,
could serve as an efficient complement to IVM. NDNH gathers its
information from State Directories of New Hires, which are
required to furnish NDNH with information regarding newly hired
employees within three business days after the date the
information enters the State Directory database. The State
Directories must also furnish NDNH with information concerning
the wages and unemployment compensation paid to individuals on
a quarterly basis.
NDNH provides more current earnings data than IVM,
including quarterly wage data for up to eight quarters.
Furthermore, NDNH's database also enjoys the advantage of being
accessible online, whereas all computer matching information
from IVM is transmitted to VA once a year on cartridge tapes.
GAO reported that estimates from SSA indicate that VA could
annually save $199 million by collecting and preventing
overpayments through the use of NDNH, while only spending $23
million on matching, following up on matches, and overpayment
collection, yielding an estimated 8.7 to one benefit-to-cost
ratio.
Section 103 of S. 1163 would require VA to use HHS' NDNH to
compare information provided by VA on individuals under 65
years of age who are applicants for or recipients of VA pension
benefits, parents' Dependency and Indemnity Compensation
benefits, health-care services, and IU compensation with NDNH
data on recent earnings, new hires, and unemployment. This
requirement would take effect 270 days after the enactment of
this bill and would expire on September 30, 2012.
Under the Committee bill, VA would furnish to HHS the names
and all other necessary information of those for whom the
Secretary seeks verification of income. In turn, HHS would then
disclose the results of the data match to VA. VA would then
independently verify the information provided by HHS' NDNH
database before any denial, reduction, or termination of
benefits could take effect. VA would then be required to
reimburse HHS for all costs incurred in performing data matches
for VA under this authority.
TITLE II--BURIAL AND MEMORIAL AFFAIRS MATTERS
Section 201. Provision of medallion or other device for privately
purchased gravemarkers
Section 201 of the Committee bill, which is derived from
section 4 of H.R. 797 as passed by the House of Representatives
on March 21, 2007, would give the Secretary authority to
furnish a medallion or other device that could be placed on a
privately purchased headstone or grave marker in a private
cemetery to denote veteran status.
Current law, section 2306(d) of title 38, United States
Code, requires the Secretary to furnish, on request, an
appropriate headstone or marker for the grave of an eligible
individual who died after September 10, 2001, and who is buried
in a private cemetery, notwithstanding that the grave is marked
by a headstone or marker furnished at private expense. Thus, in
some cases, an individual's grave may have two markers--one
privately-purchased and one furnished by VA.
Section 201 of the Committee bill would authorize VA to
furnish, on request, an appropriate medallion or other device
in lieu of a headstone or marker, which would be affixed to an
existing privately-purchased headstone or marker. This
medallion or device would serve to signify the deceased's
status as a veteran.
The Committee is concerned that a bronze ``V'' as specified
in H.R. 797 to denote veterans' status might be confused with
the ``V'' device for valor used on military awards. After
consultation with VA's National Cemetery Administration, the
Committee decided that rather than specify a particular device,
the Secretary should be required to design an appropriate
medallion or other device to signify the deceased's status as a
veteran.
Section 202. Increase in assistance for veterans interred in cemeteries
other than national cemeteries
Section 202 of the Committee bill, which is derived from S.
1266, would repeal the current two-year window within which
States must file for reimbursement from VA for the interment or
inurnment of unclaimed remains of deceased veterans. Section
202 would also authorize $5 million to cover a portion of the
operational and maintenance expenses of State cemeteries under
criteria to be determined by VA.
Under section 2408 of title 38, United States Code, VA,
through the State cemetery grant program, is authorized to
award grants to assist States in establishing, expanding, or
improving veterans' cemeteries owned by such States. States, in
turn, must agree to obtain suitable land for cemeteries
financed with VA grant money, and meet operations and
maintenance costs. To assist States in meeting some or all of
its cemetery operations and maintenance expenses, section
2303(b) of title 38 requires VA to pay to States a $300 plot
allowance for the interment or inurnment of eligible veterans
and reserve component members. In order to receive plot
allowance revenue, States must submit claims within two years
after the permanent burial or cremation of remains has
occurred.
The State cemetery grant program serves as a complement to
VA's national cemetery system. VA's present policy is to build
new national cemeteries in areas of the country with unserved
veterans' populations of 170,000 or greater. Based largely on
the results of a 2002 study that projected the need for
veterans' cemeteries through 2020, VA embarked on the largest
expansion of the national cemetery system since the Civil War.
After this expansion is completed, it is unclear whether, or
when, additional national cemeteries will be needed. It is
apparent, then, that VA will need increasingly to partner with
States to establish additional State cemeteries to meet
veterans' burial needs in those parts of the country with
unserved populations of less than 170,000.
The need to incentivize greater participation by States in
the State cemetery grant program was foreseen in a December 19,
2000, VA-contracted report entitled An Assessment of the Burial
Benefits Administered by the Department of Veterans Affairs.
The report found that an option for better serving veterans and
their families was to ``provide maintenance support to state
veterans cemeteries.'' Another recommendation to incentivize
State participation was to ``extend plot allowance eligibility
for all veterans buried in a state veterans cemetery.''
Section 202(a) of the Committee bill would permit States to
submit claims to VA for plot allowance revenue for the
interment or inurnment of unclaimed remains of deceased
veterans, notwithstanding that such claims may be submitted
more than two years after the permanent burial or cremation of
the remains. Thus, under section 202(a), States which have
sought, found, and provided dignified burials for the unclaimed
remains of veterans, even if such remains had been cremated for
more than two years, would be eligible to file claims for plot
allowance revenue. Section 202(a) would take effect on October
1, 2006, in recognition of the one state, Idaho, known to have
already interred the unclaimed remains of veterans since the
beginning of fiscal year 2007.
Section 202(b) of the Committee bill would amend the State
cemetery grant program to authorize VA to assist States with
operating and maintaining cemeteries. Authorized assistance for
operating and maintaining cemeteries under the grant program
would be limited to $5 million per fiscal year, and VA would be
required to prescribe regulations to carry out the provisions
of section 202(b).
Section 203. Modification of authorities on provision of government
headstones and markers for burials of veterans at private
cemeteries
Section 203 of the Committee bill, which is derived from S.
1334, would permanently authorize VA to provide government
headstones or markers for the privately-marked graves of
veterans in private cemeteries. In addition, it would make
retroactive VA's authority to provide headstones and markers
for the privately-marked graves of veterans who died on or
between November 1, 1990, and September 10, 2001.
Current law, section 2306(d) of title 38, United States
Code, requires the Secretary to furnish, on request, at no cost
to the veteran or the veteran's family an appropriate headstone
or marker for the grave of an eligible individual buried in a
private cemetery, regardless, if it was privately-marked or
not. This authority will expire on December 31, 2007. Section
203 of the Committee bill would make this authority permanent.
Prior to 1990, VA had authority to reimburse, up to the
cost of a government headstone or marker, the costs incurred
for a privately-furnished marker in a private cemetery or to
provide a government headstone or marker if the grave was
unmarked. The authority to reimburse for the cost of a
privately-furnished marker in lieu of a government provided
headstone or marker was repealed by section 8041 of Public Law
101-508, the Omnibus Budget Reconciliation Act of 1990. From
then until December 27, 2001, no authority existed for
reimbursing the cost of a privately-furnished marker or for
providing a government headstone or marker for privately-marked
graves in private cemeteries.
Section 502 of Public Law 107-103, the Veterans Education
and Benefits Expansion Act of 2001, enacted on December 27,
2001, established a five year pilot program that required VA to
provide, upon request, a government marker for an eligible
veteran buried in a private cemetery which was privately
marked. The authority under section 502 was initially set to
expire on December 31, 2006. This authority was revised on
December 6, 2002, under section 203 of Public Law 107-330 when
the date of eligibility was changed to September 11, 2001. The
authority was further revised under section 461 of Public Law
109-461 when the expiration date of the pilot program was
extended until December 31, 2007. Under current law no
authority exists to provide a government headstone or marker
for an eligible veteran buried in a private cemetery where the
grave was privately marked who died on or between November 1,
1990, and September 10, 2001.
Section 203 of the Committee bill is based upon
recommendations made by VA in a February 2006 report to the
Senate and House Committees on Veterans' Affairs, as required
by Public Law 107-103, on the utilization of VA's authority to
furnish headstones or markers in private cemeteries. In the
report, VA endorsed the concept of having VA furnish government
headstones and markers for privately marked graves at private
cemeteries. It also recommended that the authority for
providing a government headstone or marker for a privately
marked grave at a private cemetery be made permanent and
retroactive to 1990.
Committee Bill Cost Estimate
In compliance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate, the Committee, based on
information supplied by the CBO, estimates that enactment of
the Committee bill would, relative to current law, incur
little, if any, cost. Enactment of the Committee bill would not
affect direct spending or receipts, and would not affect the
budget of state, local or tribal governments.
The cost estimate provided by CBO follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 3, 2007.
Hon. Daniel K. Akaka,
Chairman, Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1163, the Blinded
Veterans Paired Organ Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dwayne M.
Wright.
Sincerely,
Peter R. Orszag, Director.
Enclosure.
S. 1163 contains provisions that would both increase and
decrease spending for veterans' benefits. The bill would
increase the disability benefits available for certain veterans
with impaired vision and expand certain burial benefits. It
also would allow the Department of Veterans Affairs (VA) to
access the National Directory of New Hires (NDNH) database for
income verification purposes. CBO estimates that enacting this
legislation would decrease net direct spending for veterans'
benefits by $12 million over the 2008-2012 period and by $10
million over the 2008-2017 period.
In addition, CBO estimates that implementing this
legislation would have discretionary costs of $5 million in
2008 and $25 million over the 2008-2012 period, subject to
appropriation of the necessary amounts. Enacting S. 1163 would
have no effect on receipts.
S. 1163 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
State and local governments would benefit from grant assistance
authorized by the bill; any costs they incur would be incurred
voluntarily.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1163 is shown in Table 1. The costs of
this legislation fall within budget function 700 (veterans
benefits and services).
TABLE 1. ESTIMATED BUDGETARY IMPACT OF S. 1163
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2008 2009 2010 2011 2012
------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING\1\
Estimated Budget Authority...... -1 -1 -3 -4 -5
Estimated Outlays............... -1 -1 -3 -4 -5
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level... 5 5 5 5 5
Estimated Outlays............... 5 5 5 5 5
------------------------------------------------------------------------
\1\ In addition to the direct spending effects shown here, enacting S.
1163 would have effects on direct spending after 2012 (see Table 2).
The estimated net reduction in direct spending sums to $12 million
over the 2008-2012 period and $10 million over the 2008-2017 period.
Basis of estimate: For this estimate, CBO assumes the bill
will be enacted near the beginning of fiscal year 2008 and that
the estimated amounts will be appropriated for each year.
Direct spending
S. 1163 would reduce direct spending through a new income
verification program and would increase direct spending for
several benefit programs. On balance, CBO estimates that
enacting this legislation would decrease net direct spending
for veterans' benefits by $12 million over the 2008-2012 period
and by $10 million over the 2008-2017 period (see Table 2).
National Directory of New Hires. Section 103 would
temporarily authorize VA to use the NDNH database maintained by
the Department of Health and Human Services to verify veterans'
income levels and their eligibility for certain veterans'
benefits such as disability pensions and disability
compensation for veterans whose disability rating is based on a
finding of individual unemployability. That authority would
expire on September 30, 2012. Currently, VA employs an income
verification match with the Internal Revenue Service (IRS) for
that purpose, but that authority expires on September 30, 2008.
In addition, VA has recently re-instituted the use of an annual
certification form that requires all individuals to certify
their employment and income with VA.
TABLE 2. COMPONENTS OF THE ESTIMATED CHANGES IN DIRECT SPENDING UNDER S. 1163
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays in millions of dollars, by fiscal year--
-----------------------------------------------------------------------------------------------------
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008-2012 2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
National Directory of New Hires................... -1 -2 -4 -6 -7 -5 -4 -3 -3 -2 -20 -37
Impairment of Vision Involving Both Eyes.......... * 1 1 2 2 2 3 3 3 3 6 21
Expansion of Special Monthly Compensation......... * * * * * * 1 1 1 1 1 4
Grave Markers..................................... * 1 * * * * * * * * 1 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Changes..................................... -1 -1 -3 -4 -5 -2 0 1 1 2 -12 -10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes.--Components may not sum to totals because of rounding. * = between -$500,000 and $500,000.
According to VA, the current income verification match
using IRS data yields, on average, about $5 million in new,
incremental savings per year. CBO assumes the savings for each
individual continues until that individual's death. Thus, if an
income matching program yielded $2 million in savings in the
first year, the following year would see that savings of $2
million continue and even increase slightly due to cost-of-
living increases (but reduced by some number of deaths) plus an
additional $2 million in new savings, for a total savings in
the second year of about $4 million.
The NDNH database would allow VA to analyze more recent
wage and income data than the IRS data, which is up to a year
and a half old when the data comparison is run. However,
according to a Government Accountability Office (GAO) report,
unlike the IRS income match, the NDNH data does not include
complete information on independent contractors, self-employed
individuals, subcontractors, or individuals who provide
services such as child-care for private homes. According to the
Department of Labor, about 15 percent of the total workforce
would fall into one of those categories.
As another method to reduce improper benefit payments, VA
has recently re-instituted the use of an annual certification
form that requires all individuals receiving means-tested
veterans benefits to certify their employment and income with
VA. Use of this annual certification was dropped in the late
1990s and VA reports that the number of cases where individuals
have been discovered to have received these means-tested
benefits fraudulently has since increased significantly.
Based on VA's renewed use of the annual certification of
employment form and the NDNH database's lack of ability to
account for the total workforce population in the income match,
CBO estimates that the incremental savings from utilizing the
NDNH database would be about $2 million per year, or slightly
less than half of the current $5 million in annual savings that
VA has been achieving using IRS data. As noted above, these
savings would continue in subsequent years, with cost-of-living
and mortality adjustments. This provision would take effect 270
days after enactment of the bill. Therefore, CBO estimates that
enacting section 103 would reduce direct spending by about $1
million in 2008, $20 million over the 2008-2012 period, and $37
million over the 2008-2017 period.
Impairment of Vision Involving Both Eyes. For veterans with
a service-connected vision impairment in one eye, current law
requires that they must be diagnosed as blind in both eyes for
vision impairment that was not caused by military service to be
considered for the purposes of disability compensation. Section
102 would allow certain veterans who receive veterans'
disability compensation for a severe, service-related
impairment of vision in one eye (the impairment would have to
reduce visual acuity to 20/200 or less or reduce the peripheral
field to 20 degrees or less) to receive additional compensation
if their other eye develops a comparable, nonservice-related,
vision impairment. That change in eligibility standards would
increase the amount of compensation paid to those veterans. In
total, CBO estimates that enacting section 102 would increase
direct spending for veterans' compensation by less than
$500,000 in 2008, $6 million over the 2008-2012 period, and $21
million over the 2008-2017 period.
Veterans Already Receiving Disability Compensation for
Vision Impairment. The Department of Veterans Affairs reports
that, as of September 30, 2006, it was paying disability
compensation for about 125,000 incidences of service-connected,
eye-related disability among veterans. This figure, however,
does not reflect the number of unique veterans who receive
disability compensation for eye-related disabilities, since a
veteran may exhibit more than one eye-related disability and
thus be counted more than once in the reported data. VA also
reports, as of that same date, that there were about 45,000
unique veterans receiving disability compensation primarily due
to eye disease or impairment of vision. VA data does not
indicate whether these veterans were receiving such
compensation for impairments in one or both eyes.
Based on information from VA, CBO assumes, for this
estimate, that the population of roughly 45,000 veterans
receiving disability compensation primarily because of eye
disease or impairment of vision would most likely constitute
the bulk of veterans that would be affected by enactment of
this bill. Of that population, CBO estimates that about 1,150
veterans would qualify for increased benefits under section
102. That estimate reflects the exclusion of eye diseases that
would likely not cause impairment of vision (such as the loss
of eyebrows), and veterans rated as either 100 percent disabled
or less than 70 percent disabled (ratings that would not be
eligible for an increase under the bill--a veteran with a
visual acuity of 20/200 or less in both eyes or a peripheral
field of 20 degrees or less would be rated at least 70 percent
disabled). Finally, while VA data does not indicate whether a
veteran's disability rating considered conditions in one or
both eyes, VA indicated that between 30 percent and 50 percent
of the veterans currently on the rolls for eye disabilities
received a service-connected rating for both eyes. Based on
that information, CBO estimates that 40 percent of the affected
population are currently receiving disability compensation for
service-connected disabilities in both eyes, and therefore,
would have ratings that would be unaffected by enactment of
section 102. Thus, CBO estimates that about 700 veterans in
2008 might qualify for an increase in their disability rating
under this bill.
Veterans receiving disability compensation are, on average,
57 years old. According to information from the National
Institutes of Health and a report on vision loss prepared by
researchers at the University of Washington, the most common
causes of impairment of vision in persons age 40 and older are
age-related maculopathy, cataracts, and glaucoma. Those
organizations report that about 30 percent of persons over the
age of 40 experience increased impairment of vision due to one
or more of those conditions. Because VA does not track the
progression of vision impairment in the veterans population,
CBO assumes that veterans experience vision impairment from
these same conditions at that same rate.
Thus, CBO estimates that about 200 of the roughly 700
veterans discussed above would likely experience additional
vision loss that could qualify them for a disability rating
increase under the bill. Using data provided by VA, CBO
estimates that about 15 percent of veterans who are already
receiving disability compensation apply for a reevaluation of
their rating each year. After adjusting for claims processing
times, CBO estimates that just over 30 of those veterans would
receive an increase in their disability rating in 2008 and that
number would reach 200 veterans by 2017.
In addition, based on VA data, CBO estimates that about 150
veterans who currently have a disability rating for eye disease
or vision impairment between 20 percent and 60 percent (20
percent is the lowest rating a veteran can receive for a
service-connected visual acuity of 20/200 in one eye) would
apply to have their rating reevaluated sometime over the 2008-
2014 period and would have the nonservice-disabled eye
evaluated with a visual acuity of 20/200 or less or a
peripheral field of 20 degrees or less.
The disability rating for a veteran receiving disability
compensation for a visual acuity of 20/200 or less or a
peripheral field of 20 degrees or less in both eyes is 70
percent and in 2006 the average annual compensation payment for
that rating was $22,326. Using data from VA about the average
rating increase for veterans currently on the disability
compensation rolls with a 70 percent rating, CBO expects that
the average disability rating for veterans qualifying under the
bill would increase to 80 percent and that the average annual
disability compensation payment would increase by $2,388
(expressed in 2006 dollars). For veterans with a disability
rating between 20 percent and 60 percent, and with a visual
acuity in one eye of 20/200 or less or a peripheral field of 20
degrees or less who come in for a reevaluation, CBO expects
that they would now qualify under section 102 and their average
disability ratings would increase to 70 percent. After
adjusting for cost-of-living increases and information from VA
on individuals moving to 70 percent on the disability rolls,
CBO estimates that enacting this provision would increase
direct spending for veterans' disability compensation for
veterans currently on the rolls by less than $500,000 in 2008,
about $6 million over the 2008-2012 period, and $19 million
over the 2008-2017 period.
New Accessions. According to information from VA, in 2006
there were roughly 2.7 million veterans receiving veterans'
disability compensation and less than 2 percent of those
veterans were rated disabled primarily due to eye disease or
vision impairment. Using discharge data from the Department of
Defense, information from VA on new compensation cases that
enter the rolls at 70 percent disabled, the information and
assumptions above regarding common eye disabilities for persons
over age 40, and the rate at which veterans return to be
reevaluated, CBO also estimates that, over the 10-year period,
about 150 veterans out of the impairment for the first time
each year would be eligible for a higher disability rating
under this bill.
Assuming that disability ratings for veterans qualifying
under the bill would increase from 70 percent to 80 percent,
that the average annual disability compensation payment would
increase by $2,388 (expressed in 2006 dollars), and that
payments are adjusted for cost-of-living increases, CBO
estimates that enacting this provision would increase direct
spending for veterans' disability compensation for veterans
coming onto VA's disability compensation rolls (i.e., for new
accessions after enactment) by less than $500,000 in 2008, $1
million over the 2008-2012 period, and $2 million over the
2008-2017 period.
Expansion of Special Monthly Compensation. Section 101
would expand the number of veterans with impaired vision who
could qualify to receive a special monthly compensation (SMC)
payment from VA. Under current law, a veteran who has been
rated for both service-connected total blindness with 5/200
visual acuity or less and bilateral deafness rated at 60
percent or more (eligible for a combination rating of 100
percent) is eligible for an SMC payment of $4,313 per month.
Section 101 would reduce the threshold for visual impairment
from 5/200 or less to 20/200 or less.
A veteran rated for service-connected total blindness with
20/200 visual acuity or less and bilateral deafness rated at 60
percent or more is eligible for a combined rating of 80
percent. Based on information from VA on the number of veterans
rated at 80 percent or greater for visual impairment who are
probably not receiving SMC (about 330 veterans) and the
percentage of the veterans population with hearing impairment
(about 2 percent), CBO estimates that fewer than 10 veterans
currently on the rolls would become eligible for SMC based upon
both their visual impairment of 20/200 or less and a bilateral
hearing loss rated at 60 percent or more.
Using data provided by VA, CBO estimates that about 15
percent of veterans who are already receiving disability
compensation apply for a reevaluation of their rating each
year. After adjusting for claims processing times, CBO
estimates that very few veterans would receive an increase in
disability rating over the next couple of years, and that
number would increase to about 10 veterans by 2017.
Also, section 101 would increase the number of new
accessions to the disability compensation rolls who would be
eligible for SMC. According to information from VA, of the
roughly 2.7 million veterans receiving veterans' disability
compensation, less than 2 percent were rated disabled primarily
due to eye disease or vision impairment. Using discharge data
from the Department of Defense, information from VA on new
compensation cases that enter the rolls with a disability
rating of 80 percent or greater, and the estimated percentage
of veterans with both a visual impairment and hearing loss (2
percent), CBO estimates that under section 101, about 20 new
veterans would become eligible for SMC over the 2008-2017
period.
In 2006 dollars, a veteran rated at 80 percent would
receive a monthly payment of $2,068 ($24,800 annually), on
average. The SMC for a person with 20/200 or less visual acuity
and a hearing loss rated at 60 percent or greater would be
$4,313 per month ($51,800 annually) for an annual difference of
about $27,000. After adjusting for cost-of-living increases and
mortality rates for veterans currently on the rolls and for new
accessions, CBO estimates that enacting this provision would
increase direct spending for veterans' disability compensation
by less than $500,000 in 2008, about $1 million over the 2008-
2012 period, and $4 million over the 2008-2017 period.
Grave Markers. Section 203 would allow VA to provide a
marker or headstone to be placed on a marked grave or other
appropriate location in a private cemetery to commemorate a
veteran's military service for those veterans who were buried
after November 11, 1990. Under current law, veterans buried in
a private cemetery are eligible for a second marker or
headstone only if they were buried after September 11, 2001.
Section 203 also would indefinitely extend the period
during which a marker or headstone could be requested. The
authority for VA to provide government headstones or markers to
veterans buried in private cemeteries currently expires on
December 31, 2007.
Based on VA projections regarding veterans' death rates and
the number of veterans who will be buried in private
cemeteries, CBO estimates that about 20,000 requests for
headstones or markers would be submitted over the 2008-2017
period. The estimate also reflects information from a VA study
that showed that only 27 percent of private cemeteries allow
second markers and that less than 5 percent of those eligible
would participate in this program. According to VA, a marker or
headstone costs about $100 on average. CBO estimates that this
provision would result in an increase in spending for burial
benefits of $1 million over the 2008-2012 period and $2 million
over the 2008-2017 period.
Medallions for Graves in Private Cemeteries. Section 201
would allow VA to provide a medallion or other memorial
representation to be attached to a headstone or marker of an
eligible individual at a private cemetery instead of a VA-
provided headstone or marker. According to VA, the cost for
medallions and headstones or markers are similar. Therefore,
CBO expects there would be no significant change in direct
spending under this section.
Reimbursement for Interment Costs. Under current law, any
claim for reimbursement for interment costs must be made within
two years of the burial or cremation of the body. Section 202
would repeal the two-year limit during which a state can
request a reimbursement for interment costs related to the
unclaimed remains of a veteran and would make the repeal
retroactive to October 1, 2006. Based on information from VA
regarding the average number of reimbursement claims that are
filed for interment of unclaimed remains each year and the cost
($300) of the interment payment to a state, CBO expects any
increase in direct spending to be insignificant.
Spending subject to appropriation
Section 202 would authorize VA to provide up to $5 million
per year for establishing, expanding, improving, operating, and
maintaining state veterans cemeteries. CBO estimates that
implementing section 202 would cost $5 million in 2008 and $25
million over the 2008-2012 period, subject to appropriation of
the estimated amounts.
Intergovernmental and private-sector impact: S. 1163
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would benefit state and local
governments that operate and maintain cemeteries for veterans.
Any cost those governments incur would be incurred voluntarily.
Previous CBO estimate: On March 20, 2007, CBO transmitted a
cost estimate for H.R. 797 as ordered reported by the House
Committee on Veterans' Affairs on March 15, 2007. Sections 102
and 103 of S. 1163 are similar to sections 1 and 2 of H.R. 797,
and the estimated costs for those provisions are unchanged from
our previous estimate.
Estimate prepared by: Federal Costs: Dwayne M. Wright;
Impact on State, Local, and Tribal Governments: Lisa Ramirez-
Branum; Impact on the Private Sector: Victoria Liu.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee on Veterans'
Affairs has made an evaluation of the regulatory impact that
would be incurred in carrying out the Committee bill. The
Committee finds that the Committee bill would not entail any
regulation of individuals or businesses or result in any impact
on the personal privacy of any individuals and that the
paperwork resulting from enactment would be minimal.
Tabulation of Votes Cast in Committee
In compliance with paragraph 7 of rule XXVI of the Standing
Rules of the Senate, the following is a tabulation of votes
cast in person or by proxy by members of the Committee on
Veterans' Affairs at its June 27, 2007 meeting.
On that date, the Committee, by voice vote, ordered S. 1163
to be reported favorably to the Senate.
Agency Report
On May 9, 2007, Daniel L. Cooper, Under Secretary for
Benefits of the Department of Veterans Affairs, appeared before
the Committee at a hearing on pending benefits legislation and
submitted testimony on, among other bills, S. 1163, the Blinded
Veterans Paired Organ Act of 2007. Excerpts from this statement
are reprinted below:
Statement of Daniel L. Cooper, Under Secretary for Benefits, Department
of Veterans Affairs
Mr. Chairman and Members of the Committee, thank you for
the opportunity to testify today on several bills of great
interest to veterans. I will comment today only on the
provisions of the bills that affect the Department of Veterans
Affairs (VA).
* * * * * * *
S. 1163
Section 2 of S. 1163, the ``Blinded Veterans Paired Organ
Act of 2007,'' would liberalize the eligibility for
compensation and SAH [Specially Adapted Housing] benefits for
veterans in certain cases of impairment of vision involving
both eyes. Under current law (38 U.S.C. Sec. 1160(a)), a
veteran with service-connected blindness in one eye and
nonservice-connected blindness in the other eye may be
compensated as though the combination of both disabilities were
service connected. Section 2(a) would replace the entitlement
requirement of ``blindness'' with impairment of vision in each
eye of visual acuity of 20/200 or less or of a peripheral field
of vision of 20 degrees or less (the definition of ``legal
blindness'' adopted by all 50 states and the Social Security
Administration (SSA)). Also, under current law (38 U.S.C.
Sec. 2101(b)), a veteran entitled to compensation for
``permanent and total service-connected disability'' due to
blindness in both eyes with 5/200 visual acuity or less is
entitled to SAH assistance. Section 2(b) would replace the
entitlement requirement of ``blindness * * * with 5/200 visual
acuity or less'' with a requirement of visual acuity of 20/200
or less or of a peripheral field of vision of 20 degrees or
less.
Subject to Congress' enactment of legislation offsetting
the increased costs associated with the enactment of the
provision, VA supports the amendment that would be made by
section 2(a) because it would treat visual impairment in both
eyes similarly to the way hearing loss in both ears is treated
under current law. The amendment would be consistent with a
prior amendment to section 1160(a) pertaining to special
consideration for hearing loss in both ears. Before that
amendment, a veteran with service-connected total deafness in
one ear and nonservice-connected total deafness in the other
ear could be compensated as though the combination of both
disabilities were service connected. In 2002, section 103 of
Public Law 107-330 amended section 1160(a)(3) to replace the
requirement of ``total deafness'' with ``deafness compensable
to a degree of 10 percent or more'' for the service-connected
impairment and ``deafness'' for the nonservice-connected
hearing loss.
However, VA opposes the amendment that would be made by
section 2(b) of S. 1163, primarily because it would treat
visual impairment differently from the other disability that
warrants SAH assistance under section 2101(b). The other
disability that warrants such assistance is anatomical loss or
loss of use of both hands. Not only do anatomical loss and loss
of use of both hands warrant a higher schedular rating than the
degree of visual impairment that section 2(b) would substitute
for the current criterion of blindness, they also warrant
special monthly compensation. Furthermore, section 2(b) would
create an inconsistency in the requirements for SAH assistance
under section 2101(b)(2). The overriding requirement for
assistance is that a veteran have a ``permanent and total''
service connected disability of the specified nature. Visual
acuity of 20/200 or less or a peripheral field of vision of 20
degrees or less, even when present in both eyes, does not
warrant a total disability rating.
VA estimates that enactment of section 2(a) of S. 1163
would result in a benefit cost of $893,000 in the first year
and $11.4 million over 10 years. VA estimates that enactment of
section 2(b) would result in a benefit cost of $480,000 for 48
new SAH grants in the first year. The cost of additional SAH
grants is less than $500,000 annually and is therefore
insignificant. There are no administrative costs associated
with these provisions.
Section 3 of S. 1163 would require the use of the National
Directory of New Hires (NDNH) for income-verification purposes
for certain veterans benefits. It would require the Department
of Health and Human Services (HHS) to compare information
provided by VA on individuals under 65 years of age who are
applicants for or recipients of VA pension benefits (under
chapter 15 of title 38, United States Code), parents' DIC
benefits (under section 1315 of title 38, United States Code),
health-care services (under section 1710(a)(2)(G), (a)(3), and
(b) of title 38, United States Code), and compensation paid at
the rate of 100 percent based solely on unemployability (under
chapter 11 of title 38, United States Code) with information in
the NDNH and disclose information in that directory to VA
solely for the purpose of determining an individual's
eligibility for such benefits or the amount of such benefits to
which the individual is entitled if the individual is under 65
years old. VA would be required to reimburse HHS for the costs
incurred by HHS in providing this information. VA would be
responsible for providing notice to applicants for or
recipients of VA benefits whose information is being disclosed
and for independently verifying information relating to
employment and income from employment if VA terminates, denies,
suspends, or reduces any benefit or service as a result of
information obtained from HHS. Furthermore, an individual would
have the opportunity to contest any findings made by VA when
verifying the information. VA's expenses related to use of this
directory for income-verification purposes would be paid from
amounts available for the payment of VA compensation and
pension. The authority for the income verification would expire
on September 30, 2012.
The NDNH, which was established as part of the Federal
Parent Locator Service by 42 U.S.C. Sec. 653, provides a
national directory of employment, wage, and unemployment
compensation information to facilitate employment and income
verification. Under 42 U.S.C. Sec. 653a(g)(2), State
Directories of New Hires are required to furnish information
regarding newly hired employees within 3 business days after
the date information is entered into the State Directory of New
Hires. In addition, it requires that, on a quarterly basis,
State Directories of New Hires must furnish to the NDNH
information concerning the wages and unemployment compensation
paid to individuals.
The Privacy Act allows agencies to disclose records
maintained in systems of records to other agencies pursuant to
computer data matching programs authorized by law. All computer
data matching programs must be formalized by a written
agreement that specifies, among other things, the justification
for the program and the anticipated results, including a
specific estimate of any savings.
As currently drafted, section 3 of this bill would make the
data match between VA and HHS mandatory, except to the extent
that HHS determined that it would interfere with the effective
operation of part D of title IV of the Social Security Act,
``Child Support and Establishment of Paternity.'' Accordingly,
section 3 could conceivably require VA to enter a computer data
matching program for which little or no justification exists
and for which cost savings are unlikely. The decision to enter
into a computer matching agreement under section 3 should be
within the sound discretion of VA, instead of a mandatory
requirement. In addition, any administrative expenses
associated with data matching should be paid from VA
discretionary administration accounts and not from mandatory
entitlement accounts.
VA currently matches data with the Internal Revenue Service
(IRS) and the SSA. As a result of these matches, VA obtains
unearned and earned income data concerning its needs-based
applicants and beneficiaries. VA's authority to use the NDNH
for VA health-care services would not substantially improve the
current income verification activities of VHA. It would add an
interim match step into the current process VHA has established
for income matching, which would not be definitive for the
majority of veterans for whom matching is required. While the
data may be more current than existing match data from the IRS
and SSA, it is not a comprehensive income reporting source,
particularly since it does not include unearned income. VA
believes that the cost of adding such a match to the income
verification business process and information and technology
support systems is unlikely to be recouped by any substantial
gain to the Government from integrating such a match into the
income verification process. VA does not support enactment of
section 3 as it applies to VA health-care services because VA
believes it is unnecessary.
VA's authority to use the NDNH to determine eligibility for
certain other VA monetary benefits or the amount of such
benefits for individuals under 65 years of age would have
limited benefit with respect to eligibility determinations for
pension benefits and parents' DIC and continued eligibility for
individual unemployability benefits. Although eligibility for
pension and parents' DIC depends on income, currently available
statistics show minimal overpayments due to new employment.
Furthermore, the average age of recipients of pension and
parents' DIC is more than 65 years, and the only other source
of income for most individuals who receive a pension is Social
Security benefits. In addition, with respect to continued
eligibility for individual unemployability, regulations require
a showing of sustained employment before adjusting individual
unemployability awards. Thus, the utility of income
verification for individuals receiving individual
unemployability is not as great.
VA's authority to use the NDNH would result in an
additional expense for VA, and we believe that the cost of
using the NDNH is unlikely to be recouped by any gain that
might result from eligibility determinations with respect to
pension benefits and parents' DIC, and continued eligibility
for individual unemployability benefits. However, significant
savings could be realized from use of the NDNH database as an
initial screening tool to make initial eligibility
determinations for individual unemployability. Through its
matches with SSA and IRS, VA has discovered cases where
individual unemployability was awarded based on incorrect data
furnished by the applicant. Because the NDNH data is more up-
to-date, VA might discover some errors through the NDNH match
up to three years earlier than it would have discovered the
error if it relied on SSA and IRS matches.
VA estimates that enactment of section 3 of S. 1163 would
result in a cost to reimburse HHS for comparing our income data
with data from the NDNH of $1 million in the first year and $4
million over 5 years, after which time the agreement would
expire. VA also estimates that section 3 would result in
benefit savings of $940,000 in the first year and $16.7 million
more in 10 years, resulting in an overall savings of $12.7
million. There are no other administrative costs associated
with this provision.
* * * * * * *
On July 25, 2007, the Committee received a letter from R.
James Nicholson, Secretary of the Department of Veterans
Affairs, stating the Department's views on Senate bills S. 1266
and S. 1334. The letter is reprinted below:
July 25, 2007.
Hon. Daniel K. Akaka,
Chairman, Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: I am pleased to provide the Committee
with the views of the Department of Veterans Affairs (VA) on
two bills: S. 1266, 110th Cong., the ``Veterans' Dignified
Burial Assistance Act of 2007,'' and S. 1334, 110th Cong., a
bill ``to make permanent the authority to furnish government
headstones and markers for graves of veterans at private
cemeteries, and for other purposes.'' For the reasons explained
below, with respect to S. 1266, we defer taking a position on
subsections (a) and (b) of section 2 and do not support section
2(c). We support S. 1334.
S. 1266
Section 2(a) of S. 1266 would increase from $300 to $400
the amount of reimbursement allowed for the costs of a burial
plot or interment for a veteran who is eligible for burial in a
VA national cemetery but is buried in a state or private
cemetery. This plot or interment allowance was last increased
from $150 to $300 by Public Law 107-103 in 2001. Section 2(b)
of the bill would nullify the two-year time limitation in 38
C.F.R. Sec. 3.1604(d)(2) for states to file claims for the plot
or interment allowance as it applies to claims in connection
with interment of a deceased veteran's unclaimed remains.
Section 2(b) would be retroactively effective as of October 1,
2006.
VA has embarked upon an independent evaluation of VA's
memorial benefits program. The main objectives of this
evaluation are to determine the extent to which VA's memorial
benefits program is achieving its expected outcomes and to
identify the program's impact on the eligible veteran
population. The evaluation will assess the appropriateness of
VA's current burial benefits based on the data obtained and
beneficiary needs. We expect to complete this program
evaluation by April 2008. We believe it would be premature to
take a position on subsections (a) and (b) of section 2 of S.
1266 before we have completed our memorial benefits program
evaluation. Accordingly, we defer taking a position on these
provisions until we have had an opportunity to review the
results of this program evaluation.
Enactment of section 2(a) of the bill would result in costs
of $7.2 million for Fiscal Year (FY) 2008, $37 million for the
five-year period FY 2008 through FY 2012, and $77 million for
the ten-year period FY 2008 through FY 2017. Enactment of
section 2(b) of the bill would result in insignificant costs.
Section 2(c) of the bill would authorize VA to provide up
to $5 million annually in grants to states or tribal
organizations for operating and maintaining state veterans'
cemeteries or veterans' cemeteries on trust land owned by, or
held in trust for, tribal organizations. It would also require
VA, not later than 180 days after enactment, to prescribe
regulations to carry out the amendments. VA does not support
using the State Cemetery Grant Program to operate and maintain
state veterans' cemeteries or tribal organization cemeteries.
(For convenience, we refer below only to grants to states and
state veterans' cemeteries, but our rationale applies also to
grants to tribal organizations and their veterans' cemeteries.)
The State Cemetery Grant Program is intended to complement
the national cemetery system in providing a dignified burial
place reasonably close to where veterans live. Through the
grant program, states establish, expand, or improve cemeteries
in areas where there are no plans to create an open national
cemetery. Under current law, VA may fund 100 percent of certain
costs related to the establishment, expansion, or improvement
of a state veterans' cemetery.
Historically, states have been solely responsible for all
operational and maintenance activities at state veterans'
cemeteries. Federal grants to operate and maintain state
veterans' cemeteries may create ambiguities in the states'
responsibility for the operation and maintenance of state
cemeteries. Also, because operating costs are recurring, it is
unclear upon what basis the grants would be awarded or how the
grants would be distributed. Funds obligated for this new
purpose could otherwise be used for state cemetery grants in
the existing program or to help fund operation and maintenance
costs for VA national cemeteries. Authorizing Federal grants to
fund operation and maintenance could discourage states that
have already received grants from fulfilling their commitments
to operate and maintain their cemeteries, or could encourage
future grant applicants to inadequately plan for funding the
operation and maintenance of their cemeteries because of the
availability of Federal grants to cover those costs.
Enactment of section 2(c) of this bill would result in
costs of $5 million for FY 2008, $25 million for the five-year
period FY 2008 through FY 2012, and $50 million for the ten-
year period FY 2008 through FY 2017.
S. 1334
Section 1(a) of S. 1334 would make permanent VA's authority
to provide a Government-furnished headstone or marker for the
private-cemetery grave of an eligible veteran regardless of
whether the grave has been marked at private expense. VA's
current authority to do so will expire on December 31, 2007.
Section 1(b) would authorize VA to furnish this benefit for a
private-cemetery grave of a veteran who died on or after
November 1, 1990.
Under current law, if a veteran died before September 11,
2001, VA is authorized to furnish a Government headstone or
marker only if the veteran's grave is unmarked. Although this
law has allowed VA to begin to meet the needs of families who
view the Government-furnished marker as a means of honoring and
publicly recognizing a veteran's military service, VA is now in
the difficult position of having to deny a benefit based solely
on when a veteran died.
Moreover, the law has never precluded the addition of
privately purchased headstone to a grave after placement of a
Government-furnished marker, resulting in double marking.
However, when a private marker was placed in the first
instance, a Government marker may not be provided if the
veteran died before September 11, 2001. We believe this creates
an arbitrary distinction disadvantaging families who promptly
obtain a private marker.
From October 18, 1979, until November 1, 1990, with an
enactment of the Omnibus Budget and Reconciliation Act of 1990,
VA paid a headstone or marker allowance to those families who
purchased a private headstone or marker, in lieu of furnishing
a Government headstone or marker. Those families all had the
opportunity to benefit from the VA-marker program. S. 1334
would benefit the families of veterans who died between
November 1, 1990, and September 11, 2001. The extension of the
authority to cover deaths since November 1, 1990, will assist
VA in providing uniform benefits to veterans, regardless of the
date of their deaths, and will meet public expectations for
honoring veterans and their service to the Nation.
Enactment of S. 1334 would result in costs of $630,000 for
FY 2008, $2.88 million for the five-year period FY 2008 through
FY 2012, and $5.47 million for the ten-year period FY 2008
through FY 2017.
The Office of Management and Budget has advised that there
is not objection to the submission of this report from the
standpoint of the Administration's program.
Sincerely yours,
R. James Nicholson.
* * * * * * *
Changes in Existing Law
In compliance with rule XXVI paragraph 12 of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new matter is printed in
italic, existing law in which no change is proposed is shown in
roman).
TITLE 38--VETERANS' BENEFITS
PART II--GENERAL BENEFITS
CHAPTER 11--COMPENSATION FOR SERVICE-CONNECTED DISABILITY OR DEATH
Subchapter II--Wartime Disability Compensation
SEC. 1114. RATES OF WARTIME DISABILITY COMPENSATION.
* * * * * * *
(o) if the veteran, as the result of service-connected
disability, has suffered disability under conditions which
would entitle such veteran to two or more of the rates provided
in one or more subsections (l) through (n) of this section, no
condition being considered twice in the determination, or if
the veteran has suffered bilateral deafness (and the hearing
impairment in either one or both ears is service connected)
rated at 60 percent or more disabling and the veteran has also
suffered service-connected total blindness with [5/200] 20/200
visual acuity or less, or if the veteran has suffered service-
connected total deafness in one ear or bilateral deafness (and
the hearing impairment in either one or both ears is service
connected) rated at 40 percent or more disabling and the
veteran has also suffered service-connected blindness having
only light perception or less, or if the veteran has suffered
the anatomical loss of both arms so near the shoulder as to
prevent the use of prosthetic appliances, the monthly
compensation shall be $4,313;
* * * * * * *
Subchapter VI--General Compensation Provisions
SEC. 1160. SPECIAL CONSIDERATION FOR CERTAIN CASES OF LOSS OF PAIRED
ORGANS OR EXTREMITIES.
(a) * * *
(1) [blindness] impairment of vision in one eye as a
result of service-connected disability and [blindness]
impairment of vision in the other eye as a result of
non-service-connected disability not the result of the
veteran's own willful [misconduct;] misconduct if--
(A) the impairment of vision in each eye is
rated at a visual acuity of 20/200 or less; or
(B) the peripheral field of vision for each
eye is 20 degrees or less;
* * * * * * *
CHAPTER 23--BURIAL BENEFITS
* * * * * * *
SEC. 2306. HEADSTONES, MARKERS, AND BURIAL RECEPTACLES.
* * * * * * *
(d) * * *
[(3) The authority to furnish a marker under this
subsection expires on December 31, 2007.]
[(4)] (3) The headstone or marker furnished under
this subsection shall be the headstone or marker
selected by the individual making the request from
among all the headstones and markers made available by
the Government for selection.
[(5)] (4) The Secretary may, upon request, furnish in
lieu of a headstone or marker authorized by this
subsection a medallion or other device of a design
determined by the Secretary to signify the deceased's
status as a veteran to be affixed to a headstone or
marker purchased at private expense.
* * * * * * *
CHAPTER 24--NATIONAL CEMETERIES AND MEMORIALS
* * * * * * *
SEC. 2408. AID TO STATES FOR ESTABLISHMENT, EXPANSION, AND IMPROVEMENT
OF VETERANS' CEMETERIES.
(a)(1) Subject to subsection (b) of this section, the
Secretary may make grants to any State to [assist such State in
establishing, expanding, or improving veterans' cemeteries
owned by such State.] assist such State in the following:
(A) Establishing, expanding, or improving veterans'
cemeteries owned by such State.
(B) Operating and maintaining such cemeteries.
(2) Any such grant may be made only upon submission of an
application to the Secretary in such form and manner, and
containing such information, as the Secretary may require.
(3) * * *
(b) [Grants under this section] Grants under this section
for the purposes described in subsection (a)(1)(A) shall be
subject to the following conditions:
(1) The amount of [a grant under this
section] such a grant may not exceed--
(A) in the case of the establishment
of a new cemetery, the sum of: (i) the
cost of improvements to be made on the
land to be converted into a cemetery;
and (ii) the cost of initial equipment
necessary to operate the cemetery; and
(B) in the case of the expansion or
improvement of an existing cemetery,
the sum of: (i) the cost of
improvements to be made on any land to
be added to the cemetery; and (ii) the
cost of any improvements to be made to
the existing cemetery.
(2) If the amount of [a grant under this section]
such a grant is less than the amount of costs referred
to in subparagraph (A) or (B) of paragraph (1), the
State receiving the grant shall contribute the excess
of such costs over the grant.
(3) If a State that has received [a grant under this
section] such a grant to establish, expand, or improve
a veterans' cemetery ceases to own such cemetery,
ceases to operate such cemetery as a veterans'
cemetery, or uses any part of the funds provided
through such grant for a purpose other than that for
which the grant was made, the United States shall be
entitled to recover from such State the total of all
grants made under this section to such State in
connection with such cemetery.
(c) * * *
(d)(1) In addition to the conditions specified in
subsections (b) and (c), any grant made to a State under this
section to assist such State in establishing, expanding, or
improving a veterans' cemetery, or in operating and maintaining
a veterans' cemetery, shall be made subject to the condition
specified in paragraph (2).
* * * * * * *
(e)(1) Amounts appropriated to carry out this section shall
remain available until expended. If all funds from a grant
under this section have not been utilized by a State for the
purpose for which the grant was made within three years after
such grant is made, the United States shall be entitled to
recover any such unused grant funds from such State.
(2) In any fiscal year, the aggregate amount of grants
awarded under this section for the purposes specified in
subsection (a)(l)(B) may not exceed $5,000,000.
(f)(1) The Secretary may take grants under this subsection
to any tribal organization to assist the tribal organization in
establishing, expanding, or improving veterans' cemeteries, or
in operating and maintaining veterans' cemeteries, on trust
land owned by, or held in trust for, the tribal organization.
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
CHAPTER 53--SPECIAL PROVISIONS RELATING TO BENEFITS
* * * * * * *
Sec. 5320. Use of National Directory of New Hires for income
verification purposes.
* * * * * * *
SEC. 5320. USE OF NATIONAL DIRECTORY OF NEW HIRES FOR INCOME
VERIFICATION PURPOSES.
(a) Information from National Directory of New Hires.--(1)
The Secretary shall furnish to the Secretary of Health and
Human Services information in the custody of the Secretary on
individuals under the age of 65 who are applicants for or
recipients of benefits or services specified in subsection (d)
for comparison with information on such individuals in the
National Directory of New Hires maintained by the Secretary of
Health and Human Services pursuant to section 453 of the Social
Security Act (42 U.S.C. 653). The Secretary shall furnish the
information on a quarterly basis or at such other intervals as
may be determined by the Secretary.
(2) The Secretary shall furnish information under paragraph
(1) with respect to any individual only if doing so is
essential to determine the individual's eligibility for
benefits and services specified in subsection (d) or the amount
of benefits specified in paragraphs (1), (2), and (4) of
subsection (d), to which the individual is entitled.
(3)(A) The Secretary of Health and Human Services shall, in
cooperation with the Secretary and in accordance with this
subsection--
(i) compare information in the National Directory of
New Hires with information furnished pursuant to
paragraph (1); and
(ii) disclose information in that directory to the
Secretary for the purposes specified in this
subsection.
(B) The Secretary of Health and Human Services may make a
disclosure in accordance with subparagraph (A) only to the
extent that the Secretary of Health and Human Services
determines that such disclosure does not interfere with the
effective operation of the program under part D of title IV of
the Social Security Act (42 U.S.C. 651 et seq.).
(4) The Secretary may use information resulting from a data
match pursuant to this subsection only for the purpose of
determining eligibility for benefits and services specified in
subsection (d), and the amount of benefits specified in
paragraphs (1), (2), and (4) of that subsection, for indivudals
under the age of 65.
(5) The Secretary shall reimburse the Secretary of Health
and Human Services for the additional costs incurred by that
Secretary in furnishing information under this subsection. Such
reimbursement shall be at rates that the Secretary of Health
and Human Services determines to be reasonable (and shall
include payment for the costs of obtaining, verifying,
maintaining, and comparing the information).
(b) Notification to Beneficiaries.--The Secretary shall
notify each applicant for, or recipient of, a benefit or
service specified in subsection (d) that income information
furnished by the applicant to the Secretary may be compared
with information obtained by the Secretary from the Secretary
of Health and Human Services under subsection (a). The
Secretary shall periodically transmit to recipients of such
benefits additional notices under this subsection.
(c) Independent Verification Required.--The Secretary may
terminate, deny, suspend, or reduce any benefit or service
described in subsection (d) by reason of information obtained
from the Secretary of Health and Human Services under
subsection (a) only if the Secretary takes appropriate steps to
verify independently information relating to employment and
income from employment.
(d) Covered Benefits and Services.--The benefits and
services specified in this subsection are the following:
(1) Needs-based pension benefits provided under
chapter 15 of this title or under any other law
administered by the Secretary.
(2) Parents' dependency and indemnity compensation
provided under section 1315 of this title.
(3) Health-care services furnished under subsections
(a)(2)(G), (a)(3), and (b) of section 1710 of this
title.
(4) Compensation paid under chapter 11 of this title
at the 100 percent rate based solely on unemployability
and without regard to the fact that the disability or
disabilities are not rated as 100 percent disabling
under the rating schedule.
(e) Opportunity to Contest Findings.--The Secretary shall
inform the individual of the findings made by the Secretary on
the basis of verified information under subsection (c), and
shall give the individual an opportunity to contest such
findings in the same manner as applies to other information and
findings relating to eligibility for the benefit or service
involved.
(f) Source of Funds for Administration of Section.--The
Secretary shall pay the expenses of carrying out this section
from amounts available to the Department for the payment of
compensation and pensions.
(g) Termination of Authority--The authority of the
Secretary to obtain information from the Secretary of Health
and Human Services under subsection (a) expires on September
30, 2012.