WASHINGTON (AP) – The Department of Veterans Affairs said Thursday it faces a budget shortfall of more than $2.5 billion, mainly because of increased demand by veterans for health care, including new life-saving treatments for Hepatitis C.
Deputy VA Secretary Sloan Gibson told a House committee that VA health care sites experienced a 10.5 percent increase in workload for the 12-month period that ended in April.
The VA needs flexibility from Congress to close the budget gap, Gibson said, adding that the agency is considering furloughs, hiring freezes and other significant moves.
The VA wants to use money from the new Veterans Choice program to pay for the increased health care, Gibson said. The program, the centerpiece of a VA overhaul approved last year, makes it easier for veterans to receive federally paid medical care from local doctors. Congress approved $10 billion over three years for the Choice program as it responded to a scandal over long waits for veterans seeking medical care and falsified records to cover up the delays.
The program got off to a rocky start, but has expanded dramatically in recent months and is likely to grow even more, Gibson said. The VA also has expanded its staff, office space and productivity in the wake of the wait-time scandal, Gibson said.