Community Care Network Next Generation: One Trillion Dollars of Oversight

VA Budget and ModernizationHouse Veterans' Affairs · January 22, 2026 · 119th Congress
The House Veterans' Affairs Committee held this hearing to conduct initial oversight of the Community Care Network (CCN) NextGen procurement, a proposed 10-year, roughly $700 billion–$1 trillion indefinite-delivery/indefinite-quantity (IDIQ) contract that will replace VA's current community care network administrators. Begins at ▶ 0:10:50
Transcript
Highlights

Title

VA's trillion-dollar Community Care NextGen contract oversight hearing

Purpose

The House Veterans' Affairs Committee held this hearing to conduct initial oversight of the Community Care Network (CCN) NextGen procurement, a proposed 10-year, roughly $700 billion–$1 trillion indefinite-delivery/indefinite-quantity (IDIQ) contract that will replace VA's current community care network administrators. Two panels testified: VA Assistant Secretary/CFO Richard Topping and Alicia Skolrood of the Office of Integrated Veteran Care for the department, followed by outside witnesses John Vick (Concerned Veterans for America) and Dr. Rachel Madley (Center for Health and Democracy), addressing quality controls, cost growth, staffing, and oversight risks in the new contract structure. Begins at▶ 0:10:50

Who spoke

• Chairman Mike Bost (R-IL)▶ 0:10:50: Opened by explaining Congress's constitutional oversight duty over the contract▶ 0:11:07, criticized VA for submitting testimony only the night before the hearing▶ 0:12:00, and outlined the contract's new value-based care and utilization management features▶ 0:15:37▶ 0:16:33.

• Ranking Member Mark Takano (D-CA)▶ 0:22:04: Blasted VA for late testimony, comparing the contract's $700 billion ceiling to Trump's offer for Greenland▶ 0:24:22; cited a 67% jump in community care spending (2021–2024) versus only 34% growth in users▶ 0:27:36; warned VA plans to outsource contract oversight to contractors▶ 0:29:57; later pressed the panel on referral steering by vertically-integrated insurers▶ 2:57:09.

• Mr. Richard Topping, VA Assistant Secretary/CFO▶ 1:19:12: Presented CCN NextGen's five pillars (quality, value, alternative payments, utilization management, program integrity)▶ 1:23:50; projected $54–100 billion in savings over the contract's life based on CMS data▶ 1:26:05; testified average community-care referral wait times range from 4 to 54 days▶ 1:59:03; confirmed no FY26 community care fund transfers are currently planned but acknowledged a roughly $1.3–1.4 billion FY25 transfer from medical support and compliance▶ 1:32:48.

• Ms. Alicia Skolrood, VA Office of Integrated Veteran Care▶ 1:35:33: Maintained that VA, not third-party administrators (TPAs), controls patient referrals and placement, disputing concerns about self-dealing by vertically-integrated insurers▶ 1:36:21.

• Rep. Radwagon▶ 1:37:39: Asked Topping to explain the shift from sole-source first-generation contracts to the multi-award IDIQ structure▶ 1:38:08.

• Rep. Julia Brownley (D-CA)▶ 1:39:33: Questioned whether competition alone functions as oversight and asked Topping to list VSOs supporting the plan▶ 1:40:48▶ 1:44:20.

• A committee member (referred to as "General")▶ 1:44:53: Asked what lessons learned from the 2018 MISSION Act have been incorporated and requested a closed-door session for candid discussion▶ 1:45:18▶ 1:46:04.

• Rep. Morgan McGarvey (D-KY)▶ 1:50:00: Cited a Kentucky Hospital Association prediction that 35 rural hospitals could close due to funding cuts, and pressed on safeguards preventing insurers from bypassing rural providers▶ 1:50:47▶ 1:51:46.

• Rep. Burgess Owens/Van Orton▶ 1:56:01: Described personal experience with VA community care and pressed on referral delays caused by 45-minute drive-time rules and average wait times▶ 1:57:19▶ 1:58:03.

• Rep. Delia Ramirez (D-IL)▶ 2:01:16: Cited a GAO report showing VA's contract-oversight office staffed at 57% (contract management team at 50%) and challenged Topping's staffing figures, including his dispute of a reported 35,000-position cut▶ 2:03:08▶ 2:04:51.

• A committee member (Rep. South)▶ 2:06:36: Warned IDIQ contracts risk a "race to the bottom," asked how VA will off-ramp underperforming vendors and who holds that authority▶ 2:08:58▶ 2:09:41.

• A committee member (physician, addressed as "Dr.")▶ 2:11:54: Asked which US healthcare organizations have used an IDIQ structure before and pressed on a three-year-old unanswered congressional request for VA wait-time transparency data▶ 2:14:56.

• Rep. Barry▶ 2:17:43: Recounted a Michigan veteran unable to get local physical therapy under the old system and asked about electronic health record interoperability with community care▶ 2:19:33.

• Rep. Kendy▶ 2:23:32: Argued the RFP lacks defined clinical quality metrics and pressed Topping on whether contractors are effectively "policing" their own quality oversight▶ 2:26:30▶ 2:27:47.

• Rep. Shiffless McCormack▶ 2:28:50: Questioned the acquisition framework used to select the IDIQ approach and asked whether "Acquisition Decision Events A and B" have occurred▶ 2:30:24▶ 2:31:18.

• Dr. Morrison (D-MN)▶ 2:34:05: Criticized weak, easily achievable performance incentives such as adverse credit reporting, and asked how VA will bridge the gap until full implementation in FY28▶ 2:34:35▶ 2:37:45.

• Rep. Vinski▶ 2:39:13: Focused on medical-records interoperability, VA's aging Vista system, and whether return of records could be tied to contractor payment▶ 2:40:26▶ 2:42:45.

• A Republican committee member (referred to by the chair as "Keith")▶ 2:46:24: Pressed on whether the $1.049 trillion figure is truly final and asked about flexibility across VISN/regional boundaries▶ 2:47:00▶ 2:49:12.

• A committee member (follow-up questioner)▶ 2:51:23: Sought explicit confirmation that no FY26 community care transfers are planned and asked about conversations with appropriators▶ 2:51:48.

• Mr. John Vick, Concerned Veterans for America▶ 3:07:01: Cited an 83%-versus-69% veteran satisfaction gap favoring community care over VHA▶ 3:17:03; noted DC-area VA wait times of 35+ days for primary care and 56 days for oncology▶ 3:09:45; disclosed CVA cannot provide a donor list and confirmed CVA is a sister organization to Americans for Prosperity▶ 3:23:31▶ 3:24:33.

• Dr. Rachel Madley, Center for Health and Democracy▶ 3:11:34: Testified OIG found Optum Serve and TriWest overbilled VA nearly $1 billion for dental services from 2020–2024▶ 3:12:54; warned CCN NextGen imports Medicare Advantage-style capitated payments letting contractors keep up to 50% of savings from reduced care▶ 3:20:37▶ 3:22:07; cited UnitedHealth's Optum-owned providers being paid up to 61% more than non-affiliated providers▶ 3:29:56.

Key moments

• VA submitted required testimony at 6:00 p.m. the night before the hearing rather than the 10:00 a.m. Tuesday deadline, prompting both Bost and Takano to call it "inexcusable" and warn it must not recur▶ 0:12:00▶ 0:22:35.

• Takano's data: community care users grew 34% (2021–2024) while spending grew 67%, from $19.7 billion to $32.9 billion, prompting his charge that VA's touted "cost containment" is actually "cost explosion"▶ 0:27:36▶ 0:29:26.

• Topping, under oath, confirmed no community care fund transfers occurred in FY26 to date but acknowledged roughly $1.3–1.4 billion was transferred into the community care account in FY25 from the medical support and compliance account▶ 1:32:48▶ 1:33:24.

• Topping testified referral-to-community-care wait times range from 4 to 54 days, and agreed a 54-day wait for care is unacceptable▶ 1:59:03▶ 1:59:31.

• Sharp exchange between Takano and Skolrood: she insisted VA controls all referrals so TPAs cannot steer veterans to affiliated providers; Takano called the lack of any enforcement mechanism "a huge flaw" in VA's assumptions▶ 1:35:56▶ 1:37:16.

• Ramirez cited an August 2024 GAO report showing VHA's Office of Integrated External Networks staffed at 57% of authorized levels (contract performance team at 50%); Topping disputed a reported cut of 35,000 positions, citing an actual staffing delta of 8,679▶ 2:03:38▶ 2:04:38.

• Takano and Topping disputed whether TPAs can be required to ensure community providers complete VA-equivalent suicide-prevention training; Topping admitted it is currently voluntary and that TPAs have resisted the requirement because it complicates network recruitment▶ 3:02:20▶ 3:04:23.

• Madley testified the OIG found Optum Serve and TriWest overbilled VA nearly $1 billion for dental services between 2020 and 2024, and that UnitedHealth's Optum-owned providers are paid up to 61% more than non-affiliated providers in the same network▶ 3:12:54▶ 3:29:56.

• Takano pressed Vick on CVA's funding, establishing CVA is a 501(c)(4) that does not disclose donors and is a "sister organization" to Americans for Prosperity; Vick could not confirm whether donors have financial interests in VA-related healthcare or insurance▶ 3:23:31▶ 3:24:33.

• Topping stated NextGen projects savings of 8–14% ($54–100 billion) over the contract's life, based on CMS data from other federal healthcare programs rather than VA's own historical data▶ 1:26:05▶ 2:48:32.

Metadata

CommitteeHouse Veterans' Affairs
Chamber / CongressHouse · 119th Congress
DateJanuary 22, 2026
TypeHearing
Witnesses
Mr. John Vick — Executive Director, Concerned Veterans for America
Dr. Rachel Madley, Ph.D. — Executive Director, Center for Health and Democracy
Ms. Alicia Skolrood — Executive Director, Integrated External Networks, Office of Integrated Veteran Care, Veterans Health Administration, U.S. Department of Veterans Affairs
Mr. Richard Topping — Assistant Secretary for Management and Chief Financial Officer, U.S. Department of Veterans Affairs
Videoyoutube
Transcript538 caption blocks · 27,326 words · 3:37:26 runtime
EventCongress.gov 118882