Veteran Directed Care Program Newsletter

December 12, 2025

Fiscal Year (FY) 2026 VDC Budget Calculator Now Available

The Veterans Health Administration (VHA) released the FY 2026 VDC Budget Calculator (see attached) to locate Veteran Directed Care (VDC) case mix rates by state, county, and case-mix level for new referrals and re-authorizations. The VDC FY 2026 case mix rates replace the previous VDC FY 2025 case mix rates beginning October 1, 2025. Please note the following reminders:

• VAMCs will use the FY 2026 Case Mix Rates for new VDC authorizations beginning on October 1, 2025.
• VAMCs will use the FY 2026 Case Mix Rates for re-authorizations at the time of re-authorization effective October 1, 2025.
• VDC providers should review new VDC authorizations to verify changes in case mix rates have been applied.
• VDC providers should submit updated Veteran spending plans to their partnering VAMC for approval.

New Financial Management Services (FMS) Requirements Effective December 4, 2025

To enhance the provision of FMS, the VHA established new FMS requirements as outlined in the attached New FMS Requirement document. Below is a summary of the FMS requirements effective December 4, 2025.

• VDC providers currently providing FMS within their organization must demonstrate competence and success in the preparation and submission of VA claims. VDC providers who consistently experience claims denials or are unable to meet VA's timely filing requirements will be required to subcontract with a qualified FMS entity.
• New VDC providers (Hubs or Sole Proprietors) must subcontract with a qualified FMS agency for a minimum of two years and pass an FMS Readiness Review before operating the FMS function within their organization (if desired).
• Subcontractor FMS entities must provide the essential functions of monthly service report preparation and claims preparation and submission.

VDC Annual Survey

Each year, ACL collects information from VDC Hubs and Sole Proprietors through the VDC Annual Survey. The VDC Annual Survey asks about providers' experiences and current engagement with the VDC program, and helps us identify best practices, technical assistance opportunities, and themes across VDC programs. If you are a Hub or Sole Proprietor, please submit your responses to the VDC Annual Survey no later than Wednesday, January 14. Your responses will help inform our collective knowledge of the VDC program and technical assistance activities for the next 12 months. Your success will also be amplified and shared across VDC providers and with the VHA and ACL.

In Case You Missed It: National ACL Caregiving Event and September VDC Educational Webinar

• To celebrate November as National Family Caregivers Month, HHS and ACL hosted "The Power of Caregivers for a Healthy America" event on Tuesday, November 18. The event served as an opportunity to recognize and celebrate family caregivers, raise awareness of caregiver issues, and advocate for ongoing investment in caregiver supports and training. A recording of the event is available on YouTube.
• Thank you to those who attended the September VDC Educational Webinar held on Monday, September 22. The webinar provided brief updates from ACL and the VHA and provided an opportunity for attendees to discuss findings from the VDC Program Efficiency Committee with peers. Slides from the webinar are attached, and a recording of the webinar can be viewed in full on the ACL YouTube channel.

Reminders

ACL's No Wrong Door (NWD) Website VDC Page: Visit the VDC page on the NWD website for helpful resources. If you do not find a resource, please email veterandirected@acl.hhs.gov.

VDC Monthly Reporting Tool: Please continue submitting your program's data at the end of each month. This helps track the program's impact accurately. If your VDC provider or VAMC is missing from the tool, email veterandirected@acl.hhs.gov with the correct details.

Veteran Success Stories: Please use the Veteran Success Story form to share inspiring VDC success stories, including positive Veteran stories from their VDC enrollment experience, promising practices as a VDC provider, or stories of success that you've heard from the Veterans you serve. We'd love to feature them in future newsletters!

VDC Technical Assistance (TA) Community: VDC providers can share peer-created resources, join in on discussions, and get information on events related to VDC on the VDC TA Community! Create an account at www.ta-community.com or reach out to veterandirected@acl.hhs.gov for assistance with getting access to the Community.

Technical Assistance: Have a question? Need guidance? Want to share good news about your VDC program? Reach out to the VDC Federal Technical Assistance Team at veterandirected@acl.hhs.gov. We look forward to hearing from you!

VDC Email Distribution List: Ensure you and your team receive important updates. If you are not yet subscribed, add your information here: VDC Email Distribution List form. We value your partnership supporting Veterans through the Veteran Directed Care program.