This bill expands the Department of Veterans Affairs' Foreign Medical Program to include care for any health condition, not just service-connected disabilities, and modernizes the program's payment system. It also requires a feasibility study on contracting with an outside entity to create a provider network.
Jefferson Van Drew
Representative
NJ-2
The Foreign Medical Program Modernization Act of 2025 expands the Department of Veterans Affairs' Foreign Medical Program by removing the requirement that care and services must be for a service-connected disability. It also mandates updating the payment system to allow for reimbursements through electronic fund transfer. Finally, it requires an assessment of contracting with a non-Department entity to create a network for providing care under this program.
VA Foreign Medical Program Overhaul: Non-Service-Connected Care Covered, Payment System Upgraded
The "Foreign Medical Program Modernization Act of 2025" makes some big changes to how the Department of Veterans Affairs (VA) handles healthcare for veterans overseas. The core change? The VA's Foreign Medical Program (FMP) will now cover any health condition for eligible veterans living or traveling abroad, not just those directly related to their military service. This expansion kicks in immediately upon enactment.
Breaking Down the Barriers
Previously, the FMP only covered care for "service-connected disabilities" – meaning illnesses or injuries directly caused or worsened by military service. This bill (SEC. 2) throws that restriction out. Now, if you're a veteran enrolled in the FMP and you need medical care while abroad, the VA will cover it, regardless of the cause. Think of it like this: if you're a veteran living in, say, France, and you develop a non-service-related heart problem, the FMP will now cover your treatment, where previously it would not have.
Cash Flow and Contracting
The bill also tackles the payment side of things. It mandates (SEC. 2) that the VA update its reimbursement system to use electronic fund transfers (EFTs). No more waiting for paper checks – this should make reimbursements quicker and more efficient for both veterans and healthcare providers. This is a straight-up modernization move, bringing the FMP into the 21st century.
Beyond payments, the bill explores a potentially bigger shift: outsourcing. It requires (SEC. 2) the VA to study the feasibility of contracting with a non-VA entity to build and manage a network of healthcare providers for the FMP. This could mean a private company taking over some of the program's administration. The study must assess the impact on veterans, which is crucial. While contracting might lead to cost savings (that's a big might), it also raises questions about quality of care and potential privatization of veteran services.
Real-World Ripple Effects
For veterans living abroad or planning extended travel, this expanded coverage is significant. It removes a major hurdle in accessing healthcare. For example, a veteran with a pre-existing condition unrelated to their service can now relocate to another country without losing VA healthcare coverage. However, there are things to keep an eye on. Expanding coverage without a corresponding increase in resources could strain the FMP, potentially leading to longer wait times or difficulties finding providers. The mandated feasibility study on contracting is also a key point to watch. Will it prioritize cost-cutting over veteran care? That's a question that needs careful consideration. The bill's modernization of payments is a clear win, but the expansion of coverage and potential outsourcing introduce both opportunities and potential pitfalls for veterans' healthcare abroad.