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The VA Health Scandal Is about Government Incompetence, not Inadequate Funding

The VA Health Scandal Is about Government Incompetence, not Inadequate Funding

Posted on June 1, 2014 by Dan Mitchell

I’ve never been susceptible to the claim that you solve problems with taxpayer money.

Indeed, this amusing poster is a pretty good summary of my views on the effectiveness of government spending.

But what about the horrific stories about veterans dying because of secret waiting lists and bureaucratic skullduggery at the Veterans Administration?

I want to take care of former soldiers who need treatment because of their service, and national defense is one of the few legitimate functions of the federal government. So is this one of the rare cases where a budget needs to increase? That’s certainly the mentality in some quarters on Capitol Hill.

Here are some excerpts from Byron York’s column in the Washington Examiner.

Sanders and his fellow Democrats want to give the VA billions more. …What is striking about Sanders’ bill is not just its price tag but how irrelevant it is to the most serious problems besetting the VA health care system. It was like adding new chrome to a car that won’t run. When Republicans stopped the bill earlier this year, Democrats predictably accused them of being insensitive to veterans’ needs. …It’s unclear what Congress will do, but one certainty in the debate is that the Sanders bill won’t solve the problem.

But what do the actual budget numbers show?

You probably won’t be surprised to learn that the VA already has lots of money.

Here’s some of what has been reported by the Wall Street Journal.

The Department of Veterans Affairs, the agency caught in a political firestorm over its medical care for veterans, has seen its funding grow faster than any other government department in recent years. Since 2000, annual spending has tripled to $63 billion to meet a surge in health-care and other costs. That is on top of the more than $85 billion the VA is set to receive this year for automatic payments such as disability benefits and pensions, a tally that has more than tripled since 2000.

But some may argue that needs are rising even faster because so many soldiers were injured in Iraq and Afghanistan.

The Federalist addressed this issue, in an article by Sean Davis.

VA funding has more than kept up with both medical inflation and increased patient loads. An analysis of budget and cost data, as well as data on the total number of VA patients and the number of acute inpatients treated, shows that the VA’s budget has grown much faster than its workload. Even when you take medical inflation into account, the VA budget still grew faster than its patient base since 2000. …The VA has a whole bunch of problems, but a lack of funding ain’t one.

Here’s a chart from Sean’s article. Hard to argue with these numbers.

VA-Funding-Growth


Foreign Policy government incompetence Government intervention government spending government waste Veterans Veterans Administration
June 1, 2014
Dan Mitchell

Dan Mitchell

Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.

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