Title 38Veterans' BenefitsRelease 119-73

§1729A Department of Veterans Affairs Medical Care Collections Fund

Title 38 › Part PART II— - GENERAL BENEFITS › Chapter CHAPTER 17— - HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE › Subchapter SUBCHAPTER III— - MISCELLANEOUS PROVISIONS RELATING TO HOSPITAL AND NURSING HOME CARE AND MEDICAL TREATMENT OF VETERANS › § 1729A

Last updated Apr 6, 2026|Official source

Summary

Creates a Treasury account called the Department of Veterans Affairs Medical Care Collections Fund. Money recovered under certain VA laws (38 U.S.C. sections 1710(f), 1710(g), 1711, 1722A, 1725, 1729, 1784, 8165(a), section 113 of Public Law 106–117, and Public Law 87–693 when the recovery is for VA medical care) must go into this fund. Subject to appropriation rules, money in the fund can be used without a fiscal year limit to pay for VA medical care and to pay VA expenses for identifying, billing, auditing, and collecting amounts owed for that care. The money cannot be used for other things. Each VA health care facility gets the full share equal to the portion it collected that year. For budget purposes, these amounts count as offsets to discretionary appropriations (not as offsets to direct spending) under sections 251 and 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901, 902).

Full Legal Text

Title 38, §1729A

Veterans' Benefits — Source: USLM XML via OLRC

(a)There is in the Treasury a fund to be known as the Department of Veterans Affairs Medical Care Collections Fund.
(b)Amounts recovered or collected under any of the following provisions of law shall be deposited in the fund:
(1)section 1710(f) of this title.
(2)section 1710(g) of this title.
(3)section 1711 of this title.
(4)section 1722A of this title.
(5)section 1725 of this title.
(6)section 1729 of this title.
(7)section 1784 of this title.
(8)section 8165(a) of this title.
(9)section 113 of the Veterans Millennium Health Care and Benefits Act (Public Law 106–117; 38 U.S.C. 8111 note).
(10)Public Law 87–693, popularly known as the “Federal Medical Care Recovery Act” (42 U.S.C. 2651 et seq.), to the extent that a recovery or collection under that law is based on medical care or services furnished under this chapter.
(c)(1)Subject to the provisions of appropriations Acts, amounts in the fund shall be available, without fiscal year limitation, to the Secretary for the following purposes:
(A)Furnishing medical care and services under this chapter, to be available during any fiscal year for the same purposes and subject to the same limitations (other than with respect to the period of availability for obligation) as apply to amounts appropriated from the general fund of the Treasury for that fiscal year for medical care.
(B)Expenses of the Department for the identification, billing, auditing, and collection of amounts owed the United States by reason of medical care and services furnished under this chapter.
(2)Amounts available under paragraph (1) may not be used for any purpose other than a purpose set forth in subparagraph (A) or (B) of that paragraph.
(d)Of the total amount recovered or collected by the Department during a fiscal year under the provisions of law referred to in subsection (b) and made available from the fund, the Secretary shall make available to each Department health care facility of the Department an amount that bears the same ratio to the total amount so made available as the amount recovered or collected by such facility during that fiscal year under such provisions of law bears to such total amount recovered or collected during that fiscal year. The Secretary shall make available to each facility the entirety of the amount specified to be made available to such facility by the preceding sentence.
(e)Amounts recovered or collected under the provisions of law referred to in subsection (b) shall be treated for the purposes of section 251 and 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901, 902) as offsets to discretionary appropriations (rather than as offsets to direct spending) to the extent that such amounts are made available for expenditure in appropriations Acts for the purposes specified in subsection (c).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Public Law 87–693, popularly known as the Federal Medical Care Recovery Act, referred to in subsec. (b)(10), is Pub. L. 87–693, Sept. 25, 1962, 76 Stat. 593, which is classified generally to chapter 32 (§ 2651 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Tables.

Amendments

2003—Subsec. (b). Pub. L. 108–183, § 708(a)(2)(A), struck out “after June 30, 1997,” after “collected” in introductory provisions. Subsec. (b)(8) to (10). Pub. L. 108–7 added pars. (8) and (9) and redesignated former par. (8) as (10). Subsec. (c)(3). Pub. L. 108–183, § 708(a)(2)(B), struck out par. (3) which related to duties of the Secretary for fiscal year 1998. Subsecs. (e), (f). Pub. L. 108–183, § 708(a)(2)(C), (D), redesignated subsec. (f) as (e) and struck out former subsec. (e) which required the Secretary to submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives quarterly reports on the operation of the section for fiscal years 1998, 1999, and 2000 and for the first quarter of fiscal year 2001. 2002—Subsec. (b)(7), (8). Pub. L. 107–135 added par. (7) and redesignated former par. (7) as (8). 1999—Subsec. (b)(5) to (7). Pub. L. 106–117, § 111(b)(1), added par. (5) and redesignated former pars. (5) and (6) as (6) and (7), respectively. Subsec. (d). Pub. L. 106–117, § 203, struck out par. (1) designation, substituted “each Department health care facility” for “each designated health care region” and “each facility” for “each region”, substituted “such facility” for “such region” in two places, and struck out par. (2) which read as follows: “In this subsection, the term ‘designated health care regions of the Department’ means the geographic areas designated by the Secretary for purposes of the management of, and allocation of resources for, health care services provided by the Department.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1999 AmendmentAmendment by section 111(b)(1) of Pub. L. 106–117 effective 180 days after Nov. 30, 1999, see section 111(c) of Pub. L. 106–117, set out as an

Effective Date

note under section 1725 of this title.

Effective Date

Section effective Oct. 1, 1997, see section 8023(g) of Pub. L. 105–33, set out as an

Effective Date

of 1997 Amendment note under section 1710 of this title. Improvements for Recovery and Collection of Amounts for Department of Veterans Affairs Medical Care Collections Fund Pub. L. 112–154, title I, § 111, Aug. 6, 2012, 126 Stat. 1175, provided that: “(a) Development and Implementation of Plan for Recovery and Collection.—“(1) In general.—Not later than 270 days after the date of the enactment of this Act [Aug. 6, 2012], the Secretary of Veterans Affairs shall develop and implement a plan to ensure the recovery and collection of amounts under the provisions of law described in section 1729A(b) of title 38, United States Code, for deposit in the Department of Veterans Affairs Medical Care Collections Fund. “(2) Elements.—The plan required by paragraph (1) shall include the following:“(A) An effective process to identify billable fee claims. “(B) Effective and practicable policies and procedures that ensure recovery and collection of amounts described in section 1729A(b) of such title. “(C) The training of employees of the Department, on or before
September 30, 2013, who are responsible for the recovery or collection of such amounts to enable such employees to comply with the process required by subparagraph (A) and the policies and procedures required by subparagraph (B). “(D) Fee revenue goals for the Department. “(E) An effective monitoring system to ensure achievement of goals described in subparagraph (D) and compliance with the policies and procedures described in subparagraph (B). “(b) Monitoring of Third-party Collections.—The Secretary shall monitor the recovery and collection of amounts from third parties (as defined in section 1729(i) of such title) for deposit in such fund.” Medical Services Accounts Pub. L. 108–447, div. I, title I, § 115, Dec. 8, 2004, 118 Stat. 3293, provided that: “(a) Hereafter receipts that would otherwise be credited to the accounts listed in subsection (c) shall be deposited into the Medical Care Collections Fund, and shall be transferred to and merged with the ‘Medical services’ account, in fiscal year 2005 and subsequent years, to remain available until expended, to carry out the purposes of the ‘Medical services’ account. “(b) The unobligated balances in the accounts listed in subsection (c), shall be transferred to and merged with the ‘Medical services’ account in fiscal year 2005 and subsequent years, and remain available until expended, to carry out the purposes of the ‘Medical services’ account: Provided, That the obligated balances in these accounts may be transferred to the ‘Medical services’ account at the discretion of the Secretary of Veterans Affairs and shall remain available until expended. “(c) Veterans Extended Care Revolving Fund; Medical Facilities Revolving Fund; Special Therapeutic and Rehabilitation Fund; Nursing Home Revolving Fund; Veterans Health Services Improvement Fund; and Parking Revolving Fund.” Similar provisions were contained in the following prior appropriation act: Pub. L. 108–199, div. G, title I, § 115, Jan. 23, 2004, 118 Stat. 370. Report on Implementation of section 8023 of Pub. L. 105–33 Pub. L. 105–33, title VIII, § 8023(f), Aug. 5, 1997, 111 Stat. 667, provided that: “Not later than
January 1, 1999, the Secretary of Veterans Affairs shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report on the implementation of this section [enacting this section, amending section 712, 1710, 1722A, and 1729 of this title, and enacting provisions set out as notes under section 712 and 1729 of this title]. The report shall describe the collections under each of the provisions specified in section 1729A(b) of title 38, United States Code, as added by subsection (a). Information on such collections shall be shown for each of the health service networks (known as Veterans Integrated Service Networks) and, to the extent practicable for each facility within each such network. The Secretary shall include in the report an analysis of differences among the networks with respect to (A) the market in which the networks operates, (B) the effort expended to achieve collections, (C) the efficiency of such effort, and (D) any other relevant information.”

Reference

Citations & Metadata

Citation

38 U.S.C. § 1729A

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73