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If you look at slide 2, this gives you an overview of the five benefit programs that we do offer in the benefits administration here in the U.S. The compensation and pension program is by far our largest. About 70% of our employees work in compensation and pension.
VBA has approximately 51% of the Department of Veterans Affairs' total budget; however, 50% of that goes to mandatory benefits. Only 1% of the budget allocated to us is discretionary for VBA.
VBA has 16,000 employees. That's a very small percentage of VA's total of about 285,000 employees.
The next slide shows you geographically where our offices are located. We do have regional offices in each of the 50 states. We have 57 regional offices, so some states do have more than one office. We also have a regional office in Puerto Rico and Manila in the Philippines. Compensation and pension benefits are administered in all of those offices, as well as vocational rehabilitation and employment. Other benefits--education, loan guarantee, and insurance--are consolidated into central locations.
On the next slide, I'm going to go through each one of our benefits and give you a high level of overview of what they do.
In the compensation program for veterans we have disability compensation, and as you can see from the slide, that is for veterans who have suffered injuries or illnesses as a result of their service or if they had injuries that were aggravated during their service. The ratings that we give on these disabilities are based on an average loss of earning capacity. That's how the program was set up originally and that's how it's still run today.
A disability pension program is actually an income-based program, and as you can see here, that is awarded to veterans who have wartime service. They have 90 days' active duty, with one day in what is described as a wartime period. Wartime periods are prescribed by Congress--the beginning and end dates for each of those. Veterans who are eligible for pension have to meet an income requirement as well as service requirements.
On the next slide are survivors benefits. Under the compensation and pension program we have dependency indemnity compensation, which is the program for those survivors of veterans who died in service, who had service-related disabilities during life and died from one of those service-connected conditions, or if they were service-connected for a disability at 100%, for at least 10 years prior to death.
A death pension is the equivalent of a life pension for veterans. Surviving spouses have to meet an income requirement that is a little lower than that for veterans and they have to be a survivor of a veteran who served in that same wartime period.
We also offer a burial allowance. That's partial reimbursement for expenses that are incurred for a veteran's burial and funeral costs. The burial benefit is up to $2,000 for a service-connected burial.
The next slide gives you some numbers of what we did last fiscal year. In 2008 we had 2.9 million veterans on the rolls receiving compensation benefits--$31.6 billion in benefits paid. You can see the numbers here for pension benefits and survivor benefits as well. The only thing this slide does not include as far as moneys paid are ancillary benefits such as clothing allowance or specially adapted automobiles.
In the U.S., too, as of September 2007, which is the date of our last veteran population data, we had 23.5 million living veterans. You can see the percentage of that total who are actually on our rolls today.
The next two slides show some rough statistics of veterans serving in the global war on terror, how those veterans have impacted our workload and what benefits we're paying to them. Obviously, this is our newest population of veterans.
If you look at slide 8, so far we have had over 300,000 claims from those veterans. You'll also see that over 294,000 of those claims were awarded service-connected benefits. We still have quite a few of those pending, and we have them coming in all the time.
The global war on terror, or GWAT, claims make up about 18% of our current workload. As of February 1999, for rating-related issues we had a pending inventory of close to 400,000 claims. Again, 18% of them are from the GWAT veterans.
The VA's education programs were originally set up to provide readjustment to civilian life after service. They also serve as a recruitment and retention tool for our military. Our Department of Defense reports that education benefits from VA are one of the top five reasons reported for joining the military right now.
The next slide shows our current Montgomery GI Bill education benefits. The Montgomery GI Bill was signed in 1944. We've had some updates to that. You've probably heard about our Post-9/11 GI Bill benefits. It's our new education program that I will get to a few slides from now. What you see on slide 10 are the two open GI bill benefits right now for those service members who had active duty service after June 30, 1985.
To give you an idea of the current rate for the Montgomery GI Bill benefits, those who are in full-time training and active duty receive $1,321 per month for schooling. Those in the selected reserve receive a much smaller portion of that because they have a lesser time commitment to the military service.
The Montgomery GI Bill right now is our largest education program. If you go to slide 11, survivors' and dependents' education assistance is our second-largest educational program. It is available to survivors of service members. We offer them educational assistance as well.
Slide 12 shows what was our newest education program before the new GI bill was signed last year. The reserve educational assistance program was established in 2005 by the Department of Defense. It was designed to provide educational assistance to members of reserve components. We found that in the new war we had many more reserve and national guard members serving on active duty, and our education benefits for those service members were not equivalent to those for members serving on active duty. However, in the new war we had these veterans serving the same amount of time as our regular active duty members, so we were trying to make benefits commensurate for the two populations.
In 2008 we spent $3 billion in educational assistance for about 541,000 veterans, reservists, and their family members.
If you go to slide 14, this is the beginning of the information on the Post-9/11 GI Bill, which is a much enhanced version of our Montgomery GI Bill as we currently know it. This program will go into effect on August 1, 2009. We are currently in the process of implementing it. It will be completely new. We have had to set up an entirely new system and write new regulations, policies, and procedures for that program.
We estimate that we will get about 458,000 participants this year. On the difference between this GI bill and the other one, your active duty has to be after September 11, 2001, and your tuition and fees will probably be totally covered, depending on what school you go to. The other big difference for service members under the 9/11 GI bill is that you can have an aggregate of service. Rather than needing to have three years of continuous active duty, if you're called to duty for a year, go back home for six months, and go back, you can aggregate 36 months of active duty to receive this benefit.
The next slide gives you a little snippet of what the GI bill offers. It gives 36 months of benefits. It covers the highest amount of tuition and fees charged for full-time undergraduate training at a public institution by state. It's very complex to administer, which is part of the reason why we are working so hard to get this into place by August 1. We offer a monthly housing allowance as part of this program, as well as a books-and-supplies stipend. These are two additional benefits that we have not offered in the past.
The last issue is that it's transferable. The law includes a provision to allow service members to transfer any unused educational benefits to their spouses or dependants during their lifetime, or even after their death.
If you look at the next slide, we move to the loan guarantee program. It also resulted from the 1944 GI bill. It provides home financing assistance. We offer supplemental loan servicing to veterans who are in financial difficulty, special adapted housing grant benefits, and direct loans to native Americans.
On some of the benefits of a VA home loan, they are no down payment loans with a negotiable interest rate and no mortgage insurance premiums. VA guarantees the loans. They're made by private lenders. The guarantee means that the lender is protected against any loss if the owner fails to repay the loan.
The next slide gives you an idea of the loan volume over the past almost 20 years. In fiscal year 2008 we guaranteed over 179,000 loans, and 91% of VA home loans are made without a down payment. With the end of the subprime mortgage lenders in the United States, VA is now pretty much the only place where you can get a loan with no down payment.
Slide 19 gives you a little idea of our specially adapted housing workload. This has increased, and we have changed these benefits a little for the latest population of veterans because we have many more returning veterans with amputations and special needs. Our specially adapted housing program offers money to adapt a house for a wheelchair or other needs for those veterans with severe injuries.
The next slide discusses vocational rehabilitation and employment. Our two main programs there are to achieve and maintain suitable employment under the vocational rehabilitation program. If a veteran is not job-ready when he gets out of the service and has injuries or disabilities that make him ineligible to pursue employment at that time, we can put him into an independent living program so he is retrained on how to take care of his daily needs. Once he completes an independent living program, he is offered the opportunity to go into the employment program. Pursuit of an educational degree is another option under vocational rehabilitation, besides job training skills.
On the next slide, the pink areas show you how many veterans completed vocational rehabilitation programs. The blue show those who completed independent living programs.
The next page gives you an idea of how many of our veterans are receiving assistance through this program. While we've had 11,000 complete the programs, we have about 97,000 who are in some stage of vocational rehabilitation programs.
Last year we spent about $616 million in benefits for that program.
Lastly, we have the insurance program. It's located in one central office in Philadelphia, Pennsylvania. On the next two slides you can see a brief description of what each of the programs offers. The one I want to highlight for you, in the interest of time, is our TSGLI program; that's traumatic service group life insurance. It's the very last one on slide 23. It's our newest insurance program. All service members who receive service members group life insurance coverage are now automatically covered for this traumatic injury protection. It was designed to help traumatically injured service members and their families deal with the financial burdens of recovering from those severe injuries. It's a lump-sum payment of somewhere between $25,000 and $100,000 for those service members who have experienced a severe loss, while they recover from it--whether they return to service or whether they get out of service and go home to find employment later.
The last slide gives you our other insurance programs. For our service members group life insurance, once an active duty member leaves the military, they can convert that life insurance to the veterans group life insurance. On the last slide you'll see what we've paid in the fiscal year 2008 under our life insurance program. VA's life insurance program is the sixth largest life insurer in the United States. We are very proud of our insurance program. They do very good customer service. We have about 7.1 million people insured right now under all of these programs.
That's a high-level overview, hoping to meet your time requirements. I am happy to take your questions.
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I will run through this as quickly as I possibly can. I apologize that you can't see the PowerPoint. That would have been much easier, but let me go ahead.
I'm Ann Patterson. I'm the acting chief of staff here. I've been acting since the presidential inauguration, so not for very long. There very well may be some questions that you have in the end that I won't be able to answer, but I'm certainly willing to get back to you if we can establish a point of contact.
The Department of Veterans Affairs has been in operation for about 20 years. We're getting ready next weekend to have our 20th anniversary celebration.
We're divided into three administrations: Veterans Health Administration, Veterans Benefits Administration, and National Cemetery Administration. I work for Veterans Health Administration so that's what I'll focus on for the time we have.
To honour America's veterans by providing exceptional health care that improves their health and well-being is our motto. Our Under Secretary for Health is Dr. Michael Kussman, and his priorities are putting patient care first, leadership, promoting improved business practices, and producing and maintaining meaningful performance measures. Those were rolled out to our entire staff about a year ago. I think most everybody is very familiar with those priorities, and certainly he has established initiatives to make sure that we promote those.
These are some of the key facts that may be interesting to you. In 2008 we cared for 5.6 million veterans. We are among the largest providers of health professional training in the world. We train 100,000 students each year and are affiliated with 107 medical schools. We're among the largest and most productive research organizations in the United States. We're a principal federal asset for providing medical assistance in major disasters, and we're the largest direct care provider for homeless persons in the United States.
Quality is something we have really focused on over the last decade. Now I'm proud to say that we're recognized as a world leader in providing high-quality health care. We have an elaborate performance measurement system that was established back in 1996, and we believe this really has moved us and advanced us to the point where we are today.
We meet or exceed the performance of commercial health plans, Medicare or Medicaid, in each of the 18 quality measures that are pertinent to VA patient populations. We are and have been the benchmark in patient satisfaction through the American customer satisfaction index, for the past seven consecutive years.
A few years ago the RAND Corporation demonstrated that VA leads the nation for preventative health services and chronic disease management. The study found that VA patients received higher-quality care than comparable patients receiving care from other providers.
One of the latest products is a book called Best Care Anywhere, which was written by an investigative reporter named Phil Longman, who went searching for the hospital in the United States where Americans received the best health care available after his wife died of cancer. After several years of study he indicated that VA was the place where Americans got the best health care, and his recent book called Best Care Anywhere explains that.
You are all very aware of the electronic health record that we have, and I think Gail Graham, who is a colleague of mine, is going to spend some time with you in about two weeks going over the electronic health record. For now, in the interest of time, I'm not going to go into that very much.
The one thing I do want to say is that My HealtheVet, which is a fairly new functionality, allows veterans to actually dial in and get information, order prescriptions, and talk to their physicians. That is one of our most impressive functionalities now. I think Gail will go into that, as well as Vista Imaging, bar code medication administration, clinical reminders, and online prescription refills. Again, I think we filled nearly 8.8 million refills through 11/30/08.
We also have seven consolidated mail-out pharmacies. I think we were the first to establish a consolidated mail-out pharmacy. We provide 200 million 30-day equivalents per year.
As I said, we treat 5.6 million patients, or we did in fiscal year 2008. The median age of our veterans is 63. In the next 10 years there will be a 42% increase in veterans 85 years and older.
By 2018, the number of enrolled women veterans is expected to increase by 58%. I have a number of statistics about female veterans. We are really focusing on female veterans now. We have recently required every VA facility--we have 153 of them--to have its own women veterans coordinator.
One of the other things that we have focused on in the last 10 years or so is community-based and ambulatory care. Back in 1996, I think we had about 100 or maybe 200 community clinics. Now we have 919 community-based clinics. They are established, actually, through our local facilities, which determine, based on geography and a number of other things such as market penetration, where we need to have community-based outpatient clinics.
We have actually brought that process into central office recently to make sure that we are consistently applying our access standards. So now there is not only the expectation that medical centres will determine where they need CBOCs, but they have to come into headquarters for an approval through central office.
We're also focusing on rural care. We have established a new Office of Rural Health. Many initiatives are being rolled out. One is mobile clinics. Ten of them are being implemented. I don't think more than two have actually started operation, but ten of them are expected to be operational in the next year.
We have 135 community living centres. Last year we changed the name of our nursing home care units to community living centres, and there are initiatives to try to make those environments more homelike.
We have 230 vet centres. Vet centres are non-institutional. They are usually away from our main facilities. Mostly, they are a kind of peer-to-peer counselling centre. We also have 50 mobile vet centre vans that are being deployed this year.
We have 48 domiciliaries.
I've mentioned central office a number of times. We're organized regionally. We have 21 veterans integrated service networks. All of our facilities fall under one of the directors of VISN, the veterans integrated service network. The VISNs range between about three facilities in some of our small geographic areas like Washington, D.C., and New York City, where we may have a few facilities, and up to ten facilities in some of our western areas.
I mentioned our community-based outpatient clinics, CBOCs, a little while ago. Some of those are VA-staffed and some are contract care. We make sure that our contracts include all of the quality issues, the credentialling and privileging and all of those things, so that there will be no difference, really, in the type of treatment that a veteran gets should he or she choose to go to a contract clinic.
In 2009 our budget is $44.5 billion. We have three appropriations to which our money is allocated. There are medical services, medical support and compliance, and medical facilities appropriation. I have a lot of information about what goes into each appropriation, which I could certainly share with you.
Our method for allocating dollars is called VERA, which is veterans equitable resource allocation system, which was developed in 1997. It uses a modified capitation allocation methodology to distribute the money each year to the 21 networks.
We have 245,000 employees, 31% of whom are veterans. We have 18,000 physicians, about 6,000 pharmacists, 49,000 nurses, and about 900 dentists. I'm sure you all understand that we have tons of workforce challenges. Approximately 40% of VHA employees are eligible to retire by FY 2014, and more than 80% of our senior executives are eligible to retire by 2014. Clearly we are experiencing, as everyone is, the shortage of health care workers, for example, registered nurses. We have all kinds of recruitment enticements for nurses.
We are very proud of some of our research milestones. There are a lot of accomplishments that have occurred through the research of the DVA: the invention of the cardiac pacemaker, our first successful liver transplant, the first rehabilitation program for blind persons, and development of the nicotine patch.
With respect to our newest returning veterans, we continue to work on our seamless transition from the military. There are a lot of ways in which we try to reach out and touch the new veterans who are coming back. We send letters to every veteran welcoming them home. We have a very elaborate care management system that we have put into place. Every facility has an OEF/OIF point of contact and an OEF/OIF program manager.
This year our previous secretary initiated a combat veteran call centre. We went back and looked at every single person who had been separated from the military and who had not used the VA system and we called every one of them. We left messages. We had scripts that were developed to talk to them to explain to them what their benefits were, and we're now tracking to see how many of them will come to the VA to use our services.
When combat veterans come home, they are offered five years of free VA health care. We have screening programs that we've established for these new veterans. One is for PTSD and one is for TBI.
As I said, we've put points of contact in every facility. We have outreach coordinators in almost every facility. We have transition patient advocates who help transition our returning service members from Walter Reed, from the military facilities to the VA facilities.
With respect to polytrauma, I mentioned TBI and PTSD. There are a number of folks who come back and who fall into a category called polytrauma. We have established polytrauma centres in four of our big medical centres. We're getting ready to establish a fifth one in San Antonio. Every vision and every facility has at least a polytrauma support clinic.
Mental health is another huge initiative for us. We have hired 4,000 new mental health clinicians in the last couple of years. Every CBOC has to have a professional in mental health who can treat patients who go to a CBOC.
Regarding suicide prevention, back in July 2007 we established a suicide prevention hotline through health and human services. We have coordinators in every facility. The hotline is 24/7, and we believe we have saved about 2,800 lives since the hotline started.
We are tracking the common injuries and issues of our OEF/OIF population, and we actually have made sure that anyone with a severe injury has a case manager assigned to them.
I have run through most of my slides. Why don't I stop now and see if there are questions you all have?