President's 2010 Budget Request Strongly Supports VA Programs

Funding Plan Improves Access, Modernizes Technology

WASHINGTON – President Obama's first proposed budget for the Department of Veterans Affairs (VA) expands eligibility for health care to an additional 500,000 deserving Veterans over the next five years, meets the need for continued growth in programs for the combat Veterans of Iraq and Afghanistan, and provides the resources to deliver quality health care for the Nation’s 5.5 million Veteran patients.

The 2010 budget request is a significant step toward realizing a vision shared by the President and Secretary of Veterans Affairs Eric K. Shinseki to transform VA into an organization that is people-centric, results-driven and forward-looking.

“Our success must encompass cost-effectiveness,” Shinseki said. “We are stewards of taxpayer dollars, and we will include appropriate metrics to accurately gauge the quality of our care and the effectiveness of our management processes.”

If accepted by Congress, the President’s budget proposal would increase VA’s budget from $97.7 billion this fiscal year to $112.8 billion for the fiscal year beginning Oct. 1, 2009.  This is in addition to the $1.4 billion provided for VA projects in the American Recovery and Reinvestment Act of 2009.

The 2010 budget represents the first step toward increasing discretionary funding for VA efforts by $25 billion over the next five years.  The gradual expansion in health care enrollment that this would support will open hospital and clinic doors to more than 500,000 Veterans by 2013 who have been regrettably excluded from VA medical care benefits since 2003.  The 2010 budget request provides the resources to achieve this level of service while maintaining high quality and timely care for lower-income and service-disabled Veterans who currently rely on VA medical care.

The new budget provides greater benefits for Veterans who are medically retired from active duty, allowing for the first time all military retirees to keep their full VA disability compensation along with their retired pay.  The President’s budget request also provides the resources for effective implementation of the post-9/11 GI Bill -- providing unprecedented levels of educational support to the men and women who have served our country through active military duty.

The new budget will support additional specialty care in such areas as prosthetics, vision and spinal cord injury, aging, and women's health.  New VA Centers of Excellence will focus on improving these critical services.

The proposed fiscal year 2010 budget also addresses the tragic fact of homelessness among Veterans.  It expands VA's current services through a collaborative pilot program with non-profit organizations that is aimed at maintaining stable housing for vulnerable Veterans at risk of homelessness, while providing them with supportive services to help them get back on their feet through job training, preventive care, and other critical services.

Finally, the President’s budget request provides the necessary investments to carry VA services to rural communities that are too often unable to access VA care.  The President's budget expands VA mental health screening and treatment with a focus on reaching Veterans in rural areas in part through an increase in Vet Centers and mobile health clinics.  New outreach funding will help rural Veterans and their families stay informed of these resources and encourage them to pursue needed care.

VA DEPENDENCY AND INDEMNITY COMPENSATION BENEFITS

DEPENDENCY AND INDEMNITY COMPENSATION (DIC):   DIC is a monthly tax free benefit paid by the Veterans administration to eligible survivors of a:

• Military service member who died while on active duty, active duty for training, or inactive duty training; or

• Veteran whose death resulted from a service-related injury or disease; or

• Veteran whose death resulted from a non service-related injury or disease, and who was receiving, or was entitled to receive, VA Compensation for service-connected disability that was rated as totally disabling for at least 10 years immediately before death, OR since the veteran's release from active duty and for at least five years immediately preceding death, OR for at least one year before death if the veteran was a former prisoner of war who died after September 30, 1999.

Those eligible to receive benefits are:

1.  Surviving spouses meeting the following criteria:

• Validly married the veteran before 1 JAN 57; or

• Was married to a service member who died on active duty, active duty for training, or inactive duty training; or

• Married the veteran within 15 years of discharge from the period of military service in which the disease or injury that caused the veteran's death began or was aggravated; or

• Was married to the veteran for at least one year; or

• Had a child with the veteran, and cohabited with the veteran continuously until the veteran's death or, if separated, was not at fault for the separation, and is not currently remarried. However, a surviving spouse who remarries on or after 16 DEC 03, and on or after attaining age 57, is entitled to continue to receive DIC.

2.  Surviving child(ren) who are not included on the surviving spouse's DIC and are unmarried and under age 18, or between the ages of 18 and 23 and attending school, or a helpless adult meeting specific criteria.  Criteria requirements for helpless adult children can be obtained by calling 1-800-827-1000.

3.  Surviving parent(s) may be eligible for an income-based benefit.  When countable income exceeds the limit set by law, no benefit is payable.  Eligible parents must report all sources of income to VA; for example, gross wages, retirement annuity, insurance proceeds or annuity, interest, and dividends.  The spouse's income must also be included if living with a spouse.  A spouse may be the other parent of the deceased veteran, or from remarriage.  The 2009 income limit for a sole surviving parent, or one of two parents not living with a spouse is $13,456.  For a sole surviving parent living with a spouse, or one of two parents living with a spouse it is $18,087.  Payment rates are reduced based on the countable income of the parent or parents: Income limits change annually.

     Those eligible for DIC are also eligible for Health Care (CHAMPVA), Federal Employment Preference, Home Loan Guaranty, and Survivors' & Dependents' Educational Assistance. Under current law a spouse's Survivor Benefits Plan (SBP) annuity is reduced by any DIC amount received.  Bills have been submitted in Congress for the last 4 years to eliminate this deduction without success.  The 2009 bill is H.R. 775. The basic monthly rate of DIC changes annually with COLA adjustments. There can be no decrease in the amount. For 2009 it is $1,154 for an eligible surviving spouse. The rate is increased for each dependent child, and also if the surviving spouse is housebound or in need of aid and attendance. Add $246 if at the time of the veteran's death, the veteran was in receipt of or entitled to receive compensation for a service-connected disability rated totally disabling (including a rating based on individual unemployability) for a continuous period of at least 8 years immediately preceding death and the surviving spouse was married to the veteran for those same 8 years.  VA also adds a transitional benefit of $286 to the surviving spouse's monthly DIC if there are children under age 18.  The amount is based on a family unit, not individual children.  For benefit rate tables, including those for children alone and parents, refer to http://www.vba.va.gov/bln/21/Rates or call 1-800-827-1000.  To apply for DIC claimants should complete VA Form 21-534 Application for Dependency and Indemnity Compensation, Death Pension and Accrued Benefits by a Surviving Spouse or Child. Veterans in receipt of VA disability compensation are encouraged to brief their spouses on how DIC would apply to them to ensure there are no false expectations in their estate planning.  [Source: www.vba.va.gov/VBA/benefits/factsheet  12 Jan 09 ++]