Putting Families First: Strengthening CHAMPVA for Survivors and Dependents

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Health · 2025-12-10 · 119th Congress
The House Veterans' Affairs Subcommittee on Health held this oversight hearing to examine recent VA reforms to CHAMPVA — the health care program for spouses, surviving spouses, and children of veterans with qualifying service-connected disabilities or deaths — including elimination of the application backlog, faster claims processing, and a planned provider directory. Begins at 0:39:58
Transcript
Highlights

Title

Oversight of CHAMPVA Reforms, Backlogs, and Provider Access

Purpose

The House Veterans' Affairs Subcommittee on Health held this oversight hearing to examine recent VA reforms to CHAMPVA — the health care program for spouses, surviving spouses, and children of veterans with qualifying service-connected disabilities or deaths — including elimination of the application backlog, faster claims processing, and a planned provider directory. Members and witnesses also pressed on remaining problems: long call-center wait times, lack of a provider network, identification-card design, and whether CHAMPVA should be treated as insurance. Begins at0:39:58

Who spoke

Chairwoman Miller Meeks (R-IA)0:39:58: Opened the hearing, noted the VA eliminated the CHAMPVA application backlog benefiting over 60,000 families0:41:14, praised progress toward processing 100% of electronic claims within 30 days0:42:40, and flagged paper-claims delays, lack of application status transparency, and paper CHAMPVA ID cards as ongoing problems0:43:050:44:48.

Ranking Member Julia Brownley (D-CA)0:46:27: Said committee staff have received no briefing from VA's Office of Integrated Veteran Care in a year despite it overseeing more than $40 billion in annual community care spending0:46:57, and argued CHAMPVA functions as insurance (co-pays, deductibles, formulary, prior authorization) though VA disputes that classification0:48:52.

Dr. Maria Llorente, VA Office of Integrated Veteran Care0:51:43: Testified CHAMPVA now covers over a million beneficiaries with roughly 4,000 new applications weekly0:53:01, said the application backlog (previously over 70,000) and appeals backlog (previously over 20,000, now ~1,000) have been sharply reduced0:53:54, and later acknowledged VA does not track wait times or outcomes by territory1:14:06 and has not factored ACA subsidy expiration into planning1:30:34.

Mrs. Caira Benson, Code of Support Foundation / CHAMPVA beneficiary0:56:27: Described signing a $110,000 promissory note to guarantee a hospitalization and being sent to collections after a provider waited 27 months for payment0:57:41, said only one of 26 hospitals she called would treat her daughter1:38:09, and argued CHAMPVA operates as an insurance product despite VA's denial0:59:34.

Mr. James Zenner, National Association of County Veteran Service Officers1:01:46: Praised VA's backlog progress (applications now processed in 4–10 days)1:02:13, and recommended electronic application submission, provider education campaigns, redesigned ID cards, and fixing the coverage gap for dependents turning 181:04:13.

Mr. David Fennell, VA Office of Integrated Veteran Care1:25:58: Explained VA cleared a roughly 300,000-item "other health insurance" processing queue down to about 20,000 remaining using automated business rules1:26:18, and said CHAMPVA pays claims at rates similar to TRICARE as a secondary payer1:32:20.

Rep. King Hines1:11:19: Pressed VA on the lack of CHAMPVA utilization and wait-time data for U.S. territories, citing a 33.3% utilization rate in the CNMI (15 of 45 enrollees) versus roughly 67% nationally1:15:541:16:24.

Rep. Sheris McCormack1:17:28: Asked whether CHAMPVA's scope could expand to cover families exposed to environmental toxins near military installations1:18:21, and questioned Dr. Llorente on the $110,000 promissory note incident1:20:47.

Dr. Dexter1:22:10: Noted over 10,000 Oregonians are enrolled in CHAMPVA1:22:10, asked when the application backlog peaked (May 2025)1:24:47, the FY2025 approval rate (approximately 80%)1:25:22, and the size of the "other health insurance" processing queue1:25:51.

Dr. Conaway1:27:29: Cited a projected 174% premium increase in New Jersey from ACA subsidy expiration1:28:09, asked whether that expiration would affect CHAMPVA enrollment1:28:40, and questioned whether CHAMPVA's TRICARE-based payment rates discourage providers from participating1:31:57.

Rep. Jen Kiggins (R-VA)1:36:24: Described her Clarity on Care Options Act requiring a public provider directory1:37:16, and asked witnesses about difficulty locating specialty and mental health providers1:38:09 and how VA is improving call-center service1:40:30.

Key moments

Miller Meeks said the VA eliminated a CHAMPVA application backlog of over 60,000 families just before Thanksgiving0:41:14 and is aiming to process 100% of electronic claims within 30 days, up from a prior 90% goal0:42:40.

Brownley disclosed the committee has not been briefed by VA's Office of Integrated Veteran Care since December 2024, despite the office managing over $40 billion annually0:46:57.

Benson testified she signed a $110,000 promissory note to secure a hospitalization and was sent to collections when a provider waited 27 months for CHAMPVA payment0:57:41; Llorente said this was the first time she'd heard of such a situation1:21:24.

Benson said only one of 26 hospitals she called nationwide would accept CHAMPVA for her daughter's specialty care, and no mental health provider for teens accepts CHAMPVA in her area of Florida1:38:09.

Brownley questioned Llorente on call-center wait times; Llorente confirmed waits can run "several hours"1:06:35, and Brownley said committee staff called four times and each time were told the wait would exceed two hours1:07:05.

Fennell said VA processed down a roughly 300,000-item "other health insurance" backlog to about 20,000 remaining, using automated business rules1:26:181:26:48.

Rep. King Hines cited a 33.3% CHAMPVA utilization rate in the CNMI (15 of 45 enrollees) versus roughly 67% nationally, and Llorente confirmed VA does not currently track wait times or outcomes by territory1:14:061:16:57.

Llorente said the application backlog peaked in May 2025 and that approximately 80% of FY2025 applications were approved1:25:071:25:32.

Llorente stated VA has not factored the expiration of enhanced ACA premium tax credits into CHAMPVA enrollment planning, despite year-over-year enrollment growth rising from roughly 5-8% historically to 22-23% in the past year1:30:171:30:54.

Brownley and Benson both argued CHAMPVA functions as insurance — citing co-pays, deductibles, a formulary, prior authorization, and ACA minimum-essential-coverage status — while VA maintains it is a medical care benefit, not an insurance product0:48:520:59:34.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Health
Chamber / CongressHouse · 119th Congress
Date2025-12-10
TypeHearing
Witnesses
Dr. Maria Llorente — Acting Assistant Under Secretary for Health, Office of Integrated Veteran Care, Department of Veterans Affairs
Mr. David Fennell — Director, Veteran and Family Member Programs, Integrated External Networks, Office of Integrated Veteran Care, Department of Veterans Affairs
Mr. James Zenner — National Policy Director, National Association of County Veteran Service Officers
Mrs. Caira Benson — Veteran Support & Strategic Initiatives Specialist, Code of Support Foundation
Videoyoutube
Transcript190 caption blocks · 10,697 words · 1:45:05 runtime
EventCongress.gov 118739