VA Backs Goal of House Data Sharing Bill but Seeks Key Revisions

The Department of Veterans Affairs told lawmakers Tuesday that a draft House bill aimed at improving data sharing with the Department of Health and Human Services to prevent duplicate healthcare payments requires additional legal authority before it can achieve its goals.

The draft Veterans Care and Cost Coordination Act of 2026, discussed during a hearing of the House Committee on Veterans’ Affairs, would require VA and HHS to establish a memorandum of understanding (MOU) to share patient data and coordinate costs, care and medical services to reduce “duplicative, improper, or erroneous billings or payments” for hospital care.

While supporting the legislation’s objective, VA officials said the proposal does not grant either department the authority needed to share the billing and payment information necessary to address the underlying problem.

“The successful sharing of information is critical to eliminating duplicate payments. Without addressing this fundamental issue — ensuring each department can share all necessary information with the other — the bill will not address the root problem,” Lisa Arfons, acting assistant under secretary for health in the Veterans Health Administration Office of Integrated Veteran Care, told the committee.

What the Bill Would do

Under the proposed legislation, the MOU would establish reciprocal data-sharing between VA and the Centers for Medicare & Medicaid Services for veterans enrolled in both VA healthcare and Medicare or a Medicare Advantage plan.

Arfons told Congress that while the VA agreed with the intent of the bill, the agency could not support the current version.

She noted that VA and CMS already entered into an agreement in 2025 to reduce duplicate billing. Under that arrangement, the agencies compare claims data to identify providers seeking reimbursement from both VA and Medicare and prevent overpayments.

However, Arfons said the draft legislation would not expand VA’s legal authority to share data and therefore “does not address the fundamental issue limiting coordination between the departments, namely limitations in current law on data sharing.”

More Coordination Needed

Arfons also said the bill should include the War Department because many veterans eligible for VA healthcare and Medicare are also eligible for TRICARE.

“We believe a coordinated effort between VA, DOW and HHS would be most effective in identifying and eliminating duplicative, improper, or erroneous billings and payments,” she told Congress.

VA officials were also concerned that the bill may be too broad. Arfons noted that the bill requires the VA to share information on all VA healthcare enrollees “regardless of whether they are enrolled in, or even eligible for, a Medicare or Medicare Advantage plan.”

However, the VA may not have the specialized knowledge to inform veterans of beneficial follow-up care available under Medicare plans. Arfons said the VA would work with the committee to ensure the bill provides the department and other agencies with the appropriate authority to support their intended goals.

While the language of the draft bill requires more work, Arfons said it was promising and could be improved with additional input, noting that successful efforts to reduce or eliminate duplicative, improper and erroneous billings and payments “could result in significant savings to VA, DOW and HHS.”