Statement of Administration Policy: H.R. 4557 - Department of Veterans Affairs Health Professionals Compensation and Labor Relations Act

(House)
(Montgomery (D) MS and three others)

The Administration strongly opposes the enactment of H.R. 4557 because it would exempt the Veterans' Medical Care appropriation from sequestration under Gramm-Rudman-Hollings (GRH). The importance of veterans healthcare, and the need to cushion the effect of sequester, is already recognized under current law. Veterans' Medical Care, Medicare, and other health care programs are protected by a 2 percent cap on sequestration of certain activities. Exemption of Veterans' Medical Care is ill advised and could encourage program-by-program exemptions that circumvent the discipline of sequestration.

Unless H.R. 4557 is amended to delete the exemption from sequestration, the Secretary of Veterans Affairs and the President's other senior advisers will recommend that the bill be vetoed.

The Administration also opposes H.R. 4557 because:

—  The pay provisions for VA physicians and dentists would result in costs of $26 million in excess of those proposed in the FY 1991 Budget. If this proposal were enacted, it would permit VA's Chief Medical Director and Associate Chief Medical Director to receive salaries in excess of $200,000 annually. Other physicians could receive pay up to $160, 000 annually.

—  Provisions for nurse pay would abolish the current grade structure in a manner that is not consistent with the Administration's nurse pay bill pending in Congress. The Administration's bill would retain the current grade structure while permitting higher pay under a locality based pay system.

—  It would extend premium pay currently reserved for registered nurses to licensed practical nurses, licensed vocational nurses, and nursing assistants. VA does not have a problem recruiting or retaining staff in these occupations, and already has the discretionary authority to offer such compensation.