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<classification authority="sudocs">GA 1.13:T-HEHS-99-196</classification>
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 <subject>Insurance companies</subject>
 <subject>Government collections</subject>
 <subject>Claims processing</subject>
 <subject>Managed health care</subject>
 <subject>Patient care services</subject>
 <subject>Health care programs</subject>
 <subject>Health insurance cost control</subject>
 <subject>Cost sharing (finance)</subject>
 <subject>Veterans benefits</subject>
 <identifier>Medicare Program</identifier>
 <identifier>VA Medical Care Collections Fund</identifier>
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 <title>VA Health Care: Collections Fall Short of Expectations</title>
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<abstract>Pursuant to a congressional request, GAO discussed the Department of
Veterans Affairs&apos; (VA) efforts to increase revenues from alternative
sources as a way to supplement its medical care appropriations, focusing
on trends in third-party collections.&lt;p/&gt;GAO noted that: (1) VA&apos;s third-party collections have declined in each
of the past 3 fiscal years and may decline again by the end of fiscal
year (FY) 1999; (2) in FY 1998, VA collected $442 million from
third-party insurers for care provided to veterans for
non-service-connected conditions, down from $523 million in FY 1995; (3)
in FY 1999, as of August 31, VA had collected about $388 million from
third-party insurers; (4) unless VA&apos;s September collections exceed by
$19 million its average monthly collections of $35 million, the annual
decline in third-party collections will continue for the fourth year in
a row; (5) next fiscal year, VA will experience its first full year of
billing insurers on a reasonable-charges basis rather than a
reasonable-cost basis; (6) however, data are insufficient to predict
whether this will reverse the declining collections trend; (7) VA has
tried to reverse the decline in its collections from third-party
insurers; (8) three factors limit VA&apos;s ability to increase the amount it
collects from private insurers--the increasing number of veterans whose
primary insurance is Medicare, increasing health maintenance
organization penetration, and its own efforts to increase the emphasis
on outpatient care; (9) nevertheless, VA can enhance its chances of
increasing collections if it ensures that the management improvements
that are being implemented at some facilities are implemented throughout
VA; and (10) these include overall improvements in VA medical
facilities&apos; use of good business management practices, as well as
specific improvements in how facilities collect insurance information,
document the appropriateness and medical necessity of care being billed,
and pursue unpaid bills.</abstract>
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<note>Testimony</note>
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<subject>
 <topic>Insurance companies</topic>
 <topic>Government collections</topic>
 <topic>Claims processing</topic>
 <topic>Managed health care</topic>
 <topic>Patient care services</topic>
 <topic>Health care programs</topic>
 <topic>Health insurance cost control</topic>
 <topic>Cost sharing (finance)</topic>
 <topic>Veterans benefits</topic>
 <topic>Medicare Program</topic>
 <topic>VA Medical Care Collections Fund</topic>
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