Sponsors (3)
Introduced June 23, 2025 by Elizabeth Warren · Last progress June 23, 2025
The bill strengthens the VA's ability to recover health-care costs from Medicare plans and third parties—helping preserve VA resources and reduce federal outlays—but imposes higher compliance, administrative and liability costs on plans, insurers, and some beneficiaries that may be passed on as higher premiums or cause claims/settlement delays for veterans.
Veterans who receive VA care: the bill creates clearer, standardized mechanisms for the VA to recover payments from Medicare Advantage/Part D plans and from liable third parties, producing faster and more predictable reimbursement of VA costs.
VA health system and taxpayers: recovered reimbursements can be deposited into the VA Medical Care Collections Fund, preserving VA resources for medical care and reducing net federal program spending.
Medicare beneficiaries and VA patients: the bill prevents Medicare Advantage and Part D plans from denying payment based on extra plan-specific paperwork or utilization rules, simplifying coordination and claims recovery between plans and the VA.
Medicare Advantage and Part D enrollees: plans' increased administrative and payment obligations are likely to raise plan costs that could be passed on as higher premiums, greater cost‑sharing, or reduced benefits for beneficiaries.
Medicare Advantage organizations, Part D sponsors, insurers and other third parties: stricter recovery rules, deadlines, penalties and related disputes will increase administrative burden, compliance costs and litigation risk for plans and carriers.
Veterans and plaintiffs in tort cases: more aggressive VA subrogation and recovery could complicate or delay veterans' settlements and access to settlement proceeds until VA claims are satisfied.
Based on analysis of 3 sections of legislative text.
Requires Medicare Advantage and Part D plans to reimburse the VA for covered VA-provided items/services without extra plan-imposed documentation or utilization barriers; recoveries go to the VA Medical Care Collections Fund.
Requires Medicare Advantage organizations and Part D prescription drug plan sponsors to reimburse the Department of Veterans Affairs for VA-provided items or services that the enrollee's MA or PDP plan also covers, and prevents plans from avoiding reimbursement by imposing extra documentation or utilization rules. It also strengthens and clarifies the VA’s rights to recover reasonable charges from third parties for non-service-connected care, sets deadlines and penalties for recovery, and directs recovered funds into the VA Medical Care Collections Fund. The MA/PDP reimbursement rules apply to plan years beginning on or after January 1, 2026.