Veterans Affairs Budget Utilization Per-Capita Outlays

Veterans Affairs Department Budget Outlay and Use Trends, Emphasizing Health 2001 to estimated 2014
Original (non-inflation-adjusted) budget outlay data from Budget 2015 Historical Tables, Table 3.2.
The charts on the following pages show trends in inflation-adjusted spending by the Department of Veterans Affairs (prior
to 1989 the Veterans Administration).
Data for VA enrollment and VA patients using VA health, available for 2001 to estimated 2014, are used to calculate per
person spending for health care.
The charts on pages 6 and 7 show the relationship between changes (in percent per year) in the number of VA patients
using VA health and in health outlays overall and per capita (in inflation-adjusted dollars, using CPI-health index), for years
2001 to estimated 2014. The divergences and lags in the trends might suggest some reasons for difficulties by the VA
delivering timely health care in recent years. That is, budget resource increases often lag increases in the number of
patients using VA health.
The final chart shows derivation of the CPI health data using 2013 as the base year (= 1) for 2000 to estimated 2014.
The sources of data are indicated for each set of charts.
Robert Sahr
Political Science Program, School of Public Policy
Oregon State University
E-mail: Robert.Sahr@oregonstate.edu
Phone: (541) 908-1955
veterans_affairs_budget_utilization_per-capita_outlays.docx
Veterans Affairs Department Budget Outlay and Use Trends, Emphasizing Health, 2001 to estimated 2014, page 2
Total VA Outlays for Veterans Benefits and Services, 1962 to estimated

2014, in Millions of Current and Inflation-adjusted (2013) Dollars
160,000
140,000
Highest value shown

is $160 billion
120,000
100,000
80,000
60,000
40,000
20,000
0
1962
From and calculated from Budget 2015 Historical Tables,

Table 3.2. Adjusted for inflation using CPI-U-X1, which
applies the post-1982 CPI to the entire period.
1966
1970
1974
1978
1982
Total, Veterans Benefits and Services (2013$)
1986
1990
1994
1998
2002
2006
2010
Total, Veterans Benefits and Services (current dollars)
2014 est.
VA Outlays for Hospital and Medical Care for Veterans (Budget Category 703),
1962 to estimated 2014, in Millions of Current and Constant (2013) Dollars
60,000
Highest value shown equals $60 billon
50,000
40,000
30,000
20,000
10,000
From and calculated from Budget 2015 Historical Tables,
Table 3.2. Adjusted for inflation using the medical care
index of CPI, re-based to 2013 = 1.
0
1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
2002
Hospital and medical care for veterans ($ millions)

Hospital and medical care for veterans (CPI-medical 2013$ millons)
2006
2010
2014 est.
VA Enrollment and VA Patients Using VA Health During Each Year,

2001 to Estimated 2014
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
The number of VA-enrolled veterans and patients using VA health care during the year from
Erin Bagalman, The Number of Veterans That Use VA Health Care Services: A Fact Sheet ,
Congressional Research Service, Report R43579, June 3, 2014, Table 1.
2,000,000
1,000,000
2001
2002
2003
2004
2005
VA-enrolled veterans
2006
2007
2008
2009
2010
2011
Patients using VA health care during year
2012
2013
2014 est.
VA Inflation-adjusted (2013 $) Outlays for Hospital and Medical Care

for Veterans (Budget item 703) 2001-2013 per enrolled Veteran and Per
Patient Using Health Care During Year, Inflation Adjusted with CPI
Medical Index (2013 base year)
10,000
8,645
9,000
8,193
8,337
8,316
8,280
6,011
6,015
7,703
8,000
7,255
6,765
7,000
6,955
6,972
6,681
7,120
6,783
6,013
5,848
6,000
5,996
6,217
5,483
5,057
5,000
4,612
4,843
4,835
4,980
4,710
4,000
Non-inflation-adjusted budget outlays from Budget 2015 Historical Tables, Table 3.2.
Number of VA-enrolled veterans and patients using VA health care during the year from
Erin Bagalman, The Number of Veterans That Use VA Health Care Services: A Fact Sheet ,
Congressional Research Service, Report R43579, June 3, 2014, Table 1.
Dollar figures djusted for inflation with BLS CPI-U Medical Index, using 2013 as the base year.
3,000
2,000
1,000
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Inflation-adjusted (CPI-medical) dollars per VA-enrolled veteran

Inflation-adjusted (CPI-medical) dollars per patient using VA health care during year
2012
2013
Change in Inflation-adjusted VA Outlays for Health Care and Change in Number

of Patients Using VA Health Care During Year, In Percent over Previous Year
12.0
10.4
10.0
9.8
10.0
8.0
6.9
6.3
6.2
6.0
5.5
3.9
4.0
4.4
4.1
3.5
2.7 2.7
2.0
3.0
3.0
2.8
3.1
2.7
2.4
2.0
1.8
1.6
1.4
0.2
0.0
-0.1
-2.0
-2.5
-4.0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Change in Patients using VA health care during year (1-year %)

Change in hospital and medical care outlays for veterans CPI-Medical 2013$ (1-year %)
2013
2014 est.
Change in Inflation-adjusted Spending per Year PER PATIENT Using VA Health

Care During Year and Change in Number of Patients Using VA Health Care
During Year, In Percent over Previous Year
12.0
10.0
10.0
8.5
8.0
6.6
6.2
6.0
4.4
4.1
4.0
2.6
3.2
3.0
2.7
3.4
3.0
2.8
2.7
2.4
1.8
2.0
1.1
2.0
1.0
0.2
0.0
0.0
-1.0
-2.0
-2.2
-3.0
-4.0
-5.1
-6.0
-8.0
-7.6
-10.0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Change in Patients using VA health care during year (1-year %)
Change in inflation-adjusted dollars per patient using VA health care during year (1-year %)
2013
2014 est.
How CPI-Medical using base year 2013 was calculated from the original CPI-medical data series.
Derivation of CPI-Medical for base year 2013.
The BLS uses 1982-1984 average as base (that is, = 100 [or here, 1]).
CPI-Medical Care-100 (original
CPI-Med 1 (1982CPI-Med 1 reBLS data, annual average, 1982- 1984 = 1 [to ease based to 2013 =
1984 = 100)
calculation])
1.00.
260.8
2000
2.608
0.613
2001
272.8
2.728
0.642
2002
285.6
2.856
0.672
2003
297.1
2.971
0.699
2004
310.1
3.101
0.729
2005
323.2
3.232
0.760
2006
336.2
3.362
0.791
2007
351.054
3.51054
0.826
2008
364.065
3.64065
0.856
2009
375.613
3.75613
0.884
2010
388.436
3.88436
0.914
2011
400.258
4.00258
0.941
2012
414.924
4.14924
0.976
2013
425.134
4.25134
1.000
2014 (May)
434.874
4.34874
1.023
Data provided from http://data.bls.gov/cgi-bin/surveymost?cu, for "U.S. Medical Care, 198284=100," for 1961 to 2014; calculated using yearly average
Formula
(CPI-Med 1) for each

year divided by 4.25134
[CPI-Medical number for
2013] converts the value
for each year so new
base year 2013 = 1.

Veterans Affairs Budget Utilization Per-Capita Outlays

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Veterans Affairs Department Budget Outlay and Use Trends, Emphasizing Health 2001 to estimated 2014

Total VA Outlays for Veterans Benefits and Services, 1962 to estimated

Highest value shown

From and calculated from Budget 2015 Historical Tables,

Total, Veterans Benefits and Services (2013$)

Total, Veterans Benefits and Services (current dollars)

Hospital and medical care for veterans ($ millions)

VA Enrollment and VA Patients Using VA Health During Each Year,

Patients using VA health care during year

VA Inflation-adjusted (2013 $) Outlays for Hospital and Medical Care

Inflation-adjusted (CPI-medical) dollars per VA-enrolled veteran

Change in Inflation-adjusted VA Outlays for Health Care and Change in Number

Change in Patients using VA health care during year (1-year %)

Change in Inflation-adjusted Spending per Year PER PATIENT Using VA Health

Change in Patients using VA health care during year (1-year %)

(CPI-Med 1) for each

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