"The funding formulas penalize the Midwest and the Northeast," Grassley said. "As a result, these regions have to rely on supplemental funds to serve veterans. I secured report language urging the Department of Veterans Affairs to release money when it's needed to provide the care that our veterans need and deserve."
Grassley succeeded in having Senate appropriators include language in their report accompanying the Veterans Affairs/Housing and Urban Development appropriations bill to ensure that the Department of Veterans Affairs' reserve fund is adequate to serve any networks that experience operating shortfalls.
This year, several veterans health care networks sought supplemental funding. One of those was Veterans Integrated Service Network 14, which includes most of Iowa. Grassley said the network has cut employees and closed two inpatient facilities while the number of patients treated has increased. Funding has not kept pace with these needs, Grassley said.
Grassley's language in the Veterans Affairs/Housing and Urban Development appropriations bill report calls for the Department of Veterans Affairs to strongly consider releasing supplemental funding to a network when it has implemented all "appropriate economies and efficiencies."
Congress has approved the appropriations bill, which awaits consideration by President Clinton, who is expected to sign the measure.
"This step will preserve health care for Iowa veterans until we can revise the funding formulas and put our network on more stable financial footing," Grassley said.
The Veterans Integrated Service Network 14 is headquartered in Omaha and contains most of Iowa and Nebraska and parts of other states.