October 2026 VDC Newsletter

Veteran Directed Care Program Newsletter

October 9, 2026


Save the Date: October Veteran Directed Care (VDC) Webinar

Please join the Administration for Community Living (ACL) and the Veterans Health Administration (VHA) for the October VDC Webinar on October 21, 2026 from 12:00-1:00pm ET. The session will include announcements from ACL and VHA, an overview of updates to the Operations Manual Guide and the Billing & Medical Claims Guide, and Q&A. Please register to attend the webinar here.


Fiscal Year (FY) 2027 VDC Budget Calculator Now Available

The VHA has released the FY 2027 VDC Budget Calculator. Use the calculator to locate VDC case mix rates by state, county, and case mix level for new referrals and re-authorizations. FY 2027 case mix rates replace the previous VDC FY 2026 case mix rates beginning October 1, 2026.

Please note the following reminders and changes:

  • VAMCs will use the FY 2027 Case Mix Rates for new VDC authorizations beginning on October 1, 2026.
  • VAMCs will use the FY 2027 Case Mix Rates for re-authorizations at the time of reauthorization effective October 1, 2026.
  • 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.
  • Rural counties are not specifically named and will receive the "Rural (Not listed as urban county)" rate for a given state, if applicable.

Revisions to the VDC Billing & Medical Claims Guide

The VDC Billing & Medical Claims Guide has been revised to reflect the latest VDC policy guidance and recommendations. The table below outlines revisions made to the resource.

VDC Billing & Medical Claims Guide

Relevant Section

List of Revisions Made

I. Introduction

  • Language edited for clarity

II. Overview

  • Added information on the offline referral form (VA Form 10-7080)
  • Added guidance that spending plans must be updated at least annually and as needed
  • Language edited for clarity

III. VDC Provider Enrollment Process

  • Language edited for clarity

IV. VAMC Referrals and VDC Authorizations

  • Added information regarding offline referral form (VA Form 10-7080)
  • Removed the reference to Service Transition Assessment Rate (STAR) fees
  • Added a reference to International Classification of Diseases, 10th Revision (ICD-10) for diagnostic codes
  • Added a Referral Documentation Tool (REFDOC) call-out box
  • Added guidance on access to and use of the HealthShare Referral Manager (HSRM) portal
  • Revised “VA-Purchased HCBS Case Mix Rate and Budget Tool” to “Personal Care Services Case Mix Tool” to reflect updated resources and guidance for determining a Veteran’s case-mix score and case-mix rate components
  • Language edited for clarity

V. VDC Spending Plan Submissions and Approvals

  • Revised the disqualifying events for background checks
  • Added guidance for onboarding when charges are identified in a background check
  • Added guidance on situational overspending of the monthly budget
  • Added guidance on State and Locality Mandated Paid Leave Policies and their effect on VDC Authorized Budgets
  • Language edited for clarity

VI. VDC Monthly Service Reports

  • Added guidance regarding mid-month changes to the authorized budget
  • Language edited for clarity

VII. VDC Invoices

  • Language edited for clarity

VIII. Monitoring of VDC Accounts Receivable

  • Replaced information on the Customer Engagement Portal (CEP) with information on eCAMS ePP
  • Added guidance on VA Billing and Invoicing Resources and the VA Disputes and Appeals Process
  • Language edited for clarity

Appendix A. VDC Billing and Invoicing Guide Glossary

  • Revised definitions for clarity

Appendix B. VDC Case Mix Rate Calculator

  • Revised to reflect the Fiscal Year (FY) 2026 VDC Budget Calculator

Appendix C. Sample UB-04 Claim Form and Accompanying Monthly Services Report Document

  • Language edited for clarity

Appendix D. Step-by-Step Guide for Completing Paper Invoices Using the UB-04 Claim Form

  • Language edited for clarity

Appendix E. Switching from Paper to Electronic VDC Invoices

  • Language edited for clarity

Appendix F. Common Billing Issues and Recommendations for Reaching a Resolution

  • Added an Explanation of Codes for Rejected Claims
  • Added resources from VA’s community care website
  • Removed the reference to Billing Issues Feedback Form

No Wrong Door (NWD) Microsite - VDC Page

The No Wrong Door (NWD) Microsite is now live and available for all VDC providers to explore! Resources on the VDC page are currently under review. For the most up-to-date VDC resources, please use the Technical Assistance (TA) Community VDC webpage.


Reminders

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

VDC Monthly Reporting Tool: Please continue to submit your program's data at the end of each month using this form. These submissions support accurate reporting of the program's impact. 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 from VDC providers, or other successes that you've heard from the Veterans you serve. We welcome these stories and may feature them in future newsletters.

VDC Technical Assistance (TA) Community: VDC providers can share peer-created resources, join discussions, and find information on VDC related events through the VDC TA Community. Create an account at www.ta-community.com or email VeteranDirected@acl.hhs.gov for assistance with obtaining access.

Technical Assistance: For questions, guidance, or news about your VDC program, contact the VDC Federal Technical Assistance Team at VeteranDirected@acl.hhs.gov. We look forward to hearing from you!

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