Veterans' Health Care

Potential Effects of Health Financing Reforms on Demand for VA Services Gao ID: T-HRD-93-12 March 31, 1993

Demand for inpatient services at Department of Veterans Affairs (VA) facilities could drop by as much as 18 percent if employers nationwide were forced either to offer health insurance for workers or pay a tax to finance nationwide coverage. Under a nationwide universal health plan, the impact could be even greater--demand for VA inpatient care could plummet by 47 percent. Yet the ultimate impact of U.S. health care or VA eligibility reforms on future demand for VA medical services will not be known for some time. The VA health care system should be included in discussions about health care reform, and GAO is encouraged that VA is represented on the President's task force on that subject. But GAO has a more immediate concern: if VA continues to build hospitals on the basis of current demand, the hospitals could have significant excess capacity before they even open.



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