Discontinuance of Annual Financial Assessments, 64065-64066 [2013-25045]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 78, Number 207 (Friday, October 25, 2013)]
[Notices]
[Pages 64065-64066]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-25045]


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DEPARTMENT OF VETERANS AFFAIRS


Discontinuance of Annual Financial Assessments

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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SUMMARY: This Notice informs the public that the Department of Veterans 
Affairs (VA) will no longer request that certain veterans enrolled in 
the VA health care system annually submit income and asset information. 
VA uses such information to verify a veteran's continuing eligibility 
for certain health care benefits; however, VA is now able to get 
similar information through a means less burdensome on veterans. 
Moreover, annual, routine collection of this information has not 
significantly impacted veteran enrollment, and places an unwarranted 
burden on affected veterans. Therefore, VA will discontinue requesting 
that veterans submit an annual financial assessment following initial 
enrollment.

FOR FURTHER INFORMATION CONTACT: Kristin J. Cunningham, Director 
Business Policy, Chief Business Office (10NB6), Department of Veterans 
Affairs, 810 Vermont Avenue NW., Washington, DC 20420; (202) 461-1599. 
(This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: The Veterans Health Care Eligibility Reform 
Act of 1996, Public Law 104-262, made major changes in the laws 
governing eligibility for VA health care benefits. This law added a new 
section 38 U.S.C. 1705, which established a patient enrollment system 
to manage the provision of health care services. This statute requires 
VA to place an enrolled veteran into a defined priority group. Veterans 
enrolled in the VA health care system are placed in priority groups 
based on criteria found in 38 U.S.C. 1705, 1710 and 38 CFR 17.36. 
Enrollment in three of these priority groups is based on the income of 
the veteran. Priority Group 5 includes, among others, veterans who are 
determined by VA to be unable to defray the expenses of necessary care. 
Priority Group 7 includes veterans with incomes below the geographic 
means test income thresholds and who agree to pay the applicable 
copayment. Priority Group 8 includes veterans with gross household 
incomes above the VA national income threshold and the geographically-
adjusted income threshold for their resident location and who agree to 
pay copayments.
    VA has established a means test program to determine when a 
veteran's income would meet the requirements for enrollment in one of 
the priority groups mentioned above. The means test developed by VA 
requires a veteran to submit a financial assessment (38 CFR 
17.36(d)(3)(iv)) using the Application for Health Benefits, VA Form 10-
10EZ. VA verifies that self-

[[Page 64066]]

reported financial information through a computer matching of income 
reported to the Internal Revenue Service (IRS) and Social Security 
Administration (SSA). VA has authority to obtain income information 
from IRS and SSA under 38 U.S.C. 5317. IRS and SSA have authority to 
share this information with VA under 26 U.S.C. 6103(l)(7)(D)(viii).
    VA requires a veteran whose assignment to a priority group is based 
on income to submit a financial assessment when initially enrolled and 
then requests resubmission of this information each year thereafter on 
the enrollment anniversary. As a reminder of this requirement, VA mails 
a Health Benefits Renewal (VA Form 10-10EZR) to the veteran 60 days 
before the anniversary date, and a second notification 30 days before 
the anniversary date, if the veteran has not yet submitted the 
requested information. If the veteran's financial assessment 
information is not updated prior to the anniversary date, VA asks the 
veteran to update the financial assessment when they arrive for their 
next health care appointment.
    To accurately complete the financial assessment portion of the VA 
Form 10-10EZR, the veteran must maintain and have ready access to 
information on gross household income, assets, and expenses for the 
previous year. The average time required for a veteran to complete the 
financial assessment renewal form is 24 minutes. Of the approximately 
2.1 million veterans required to submit annual financial assessments, 
only about ten percent have a change in income or assets sufficient to 
affect the veteran's priority group placement. For the approximately 90 
percent of veterans who have no change in income or assets, the annual 
reporting requirement is an unnecessary burden.
    VA intends to eliminate this burden by changing the financial 
reporting practices. Veterans will be requested to submit financial 
assessment information using a VA Form 10-10EZ only during the initial 
enrollment process. VA will continue to receive income information from 
IRS and SSA, which will then be compared to the information initially 
provided by the veteran. A veteran will be asked to provide further 
income and asset information or to verify the data provided by IRS or 
SSA only in those cases where VA identifies a change to the veteran's 
income that would result in a change to the veteran's priority group 
status. However, any veteran who has information that he or she 
believes will affect his or her enrollment status may submit that 
information at any time using VA Form 10-10EZR.
    Because this change in policy requires revision of current VA forms 
and processes, including updating existing information technology, it 
will be implemented in two phases. VA anticipates that Phase I, 
affecting current enrollees, will be implemented by December 31, 2013. 
During Phase I, we will eliminate the need for current enrollees to 
submit the annual financial assessment. VA will use the income matching 
process from IRS and SSA to determine a veteran's income. Prior to 
implementation VA will send correspondence to affected veterans 
notifying them of this change. Phase II, which will include new 
enrollees, is targeted after Phase I is completed. During Phase II, VA 
will discontinue the requirement that new enrollees placed in Priority 
Group 5, 7, or 8 provide an annual update of financial assessment 
information. Again, we will compare the financial assessment initially 
provided by the new enrollee against the IRS and SSA data to determine 
income information and priority group placement for new enrollees.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Jose D. 
Riojas, Chief of Staff, Department of Veterans Affairs, approved this 
document on October 17, 2013, for publication.

    Dated: October 21, 2013.
William F. Russo,
Deputy Director, Regulation Policy and Management, Office of the 
General Counsel, Department of Veterans Affairs.
[FR Doc. 2013-25045 Filed 10-24-13; 8:45 am]
BILLING CODE 8320-01-P