A bill to amend title 38, United States Code, to make permanent and codify the pilot program for use of contract physicians for disability examinations, and for other purposes.
- Sponsor
- Sen. Moran, Jerry [R-KS]
- Committees
- Veterans' Affairs Committee (primary)
- Last action
- Jul 30, 2025
Bottom line
This bill permanently authorizes the VA to utilize external contract medical professionals for veteran disability examinations, aiming to improve efficiency and access to care by leveraging a broader pool of providers.
What it actually does
This bill makes permanent and codifies a pilot program that allows the Department of Veterans Affairs (VA) to use contract physicians for medical disability examinations for veterans. It also establishes a mechanism for these contract professionals to transmit new and material medical evidence to the VA and permits them to conduct examinations across state lines under specific licensure conditions.
Proponents argue
Supporters argue that making this pilot program permanent will streamline the disability claims process, significantly reduce backlogs, and provide veterans with more timely access to necessary medical examinations by leveraging a broader pool of healthcare professionals, including those licensed in other states.
Opponents contend
Critics might express concerns about potential impacts on the quality or consistency of examinations when performed by contract personnel versus VA employees, or raise questions about oversight and accountability for these external providers. Some might also worry about the long-term cost implications of relying on contractors.
The bill text is very short and clearly written, making it highly accessible for a reader to understand its core provisions quickly and efficiently.
Section 1(a), new 38 U.S.C. 5103B(a)
Codification and Permanence of Contract Physician Authority
This provision amends Title 38 of the U.S. Code to permanently authorize the Under Secretary for Benefits to contract with non-Department employees to conduct medical disability examinations for veterans applying for benefits. This action codifies and makes permanent an existing pilot program, ensuring the VA can continue to use external providers for these critical assessments without a sunset date.
Supporters argue
Supporters contend that this permanent authority is crucial for managing the high volume of disability claims, reducing veteran wait times, and ensuring timely access to examinations, which are often a bottleneck in the claims process.
Critics contend
Some might argue that relying heavily on contract physicians could lead to less standardized examination practices or potentially higher costs in the long run compared to expanding internal VA capacity, though specific opposition to the pilot program's permanence is not widely documented.
Tradeoffs
The bill balances the need for efficiency and speed in processing claims against potential concerns regarding consistency, oversight, and cost-effectiveness of contract services versus in-house VA capabilities.
Section 1(a), new 38 U.S.C. 5103B(b)
Interstate Practice for Contract Health Care Professionals
This section allows contract health care professionals performing disability examinations for the VA to practice in any state, regardless of where they are primarily licensed. This is permissible as long as they hold a current unrestricted license in some state, are not barred from practicing, and are performing duties within the scope of their VA contract. This provision removes state-specific licensure barriers for these specific contract services.
Section 1(a), new 38 U.S.C. 5103B(d)
Mechanism for Transmitting New and Material Medical Evidence
This provision mandates that the Secretary of Veterans Affairs establish a system for contract health care professionals conducting disability examinations to transmit any new and material medical evidence introduced by the applicant during the examination directly to the Secretary. This ensures that all relevant information presented during an examination is formally considered in the veteran's claims process.
Expenses for carrying out the contract physician program, including examination travel and incidental expenses, will be reimbursed to the Veterans Benefits Administration (VBA) and information technology systems accounts from amounts available to the Secretary for payment of compensation and pensions.
Section 1(a), new 38 U.S.C. 5103B(c)
Why it matters:This is standard legislative practice for specifying how new or expanded programs will be funded within existing departmental budgets, ensuring clarity on financial flows and accountability.
Case for: Proponents would argue this ensures the program's costs are directly tied to the benefits it supports, making the funding transparent and accountable within the VA's overall budget for veteran compensation.
Case against: Critics might argue that drawing funds from "compensation and pensions" could indirectly strain those accounts or create a perception that resources for direct veteran payments are being diverted, even if it's a reimbursement mechanism.
Estimated impact: This provision outlines the internal funding flow for the program, potentially involving millions of dollars annually depending on the scale of contract examinations and associated expenses.
This subsection explicitly terminates the existing pilot program under section 504(a) of the Veterans' Benefits Improvements Act of 1996 (Public Law 104-275; 38 U.S.C. 5101 note).
Section 1(c)
Why it matters:This is standard legislative practice when a pilot program is being made permanent or superseded by new statutory authority, ensuring there isn't redundant or conflicting legal text.
Case for: Supporters would argue this is a necessary cleanup, formally ending the temporary program now that its provisions are being codified permanently, ensuring legal clarity and avoiding confusion.
Case against: No specific opposition to terminating the pilot program itself, as the intent of the bill is to replace it with a permanent authority, making its termination a logical consequence.
Estimated impact: Procedural, but signifies the full transition from temporary to permanent status for the contract physician authority, removing any ambiguity about its legal basis.