S. 1533 — A bill to amend title 38, United States Code, to make permanent and codify the pilot program for use of contract physicians for disability examinations, and for other purposes.

This section codifies as permanent authority in new 38 U.S.C. §5103B the pilot program for using contract physicians to conduct medical disability examinations (i.e., Compensation and Pension, or C&P, exams) for VA benefits applicants. The new section (1) authorizes the Under Secretary for Benefits to contract with qualified health care professionals (i.e., those eligible for Veterans Health Administration positions under 38 U.S.C. §7402(b), with current unrestricted licenses and no state bars) who may perform exams at any location in any state notwithstanding state licensure laws; (2) charges expenses, including applicant travel, to funds available for compensation and pensions; and (3) requires a mechanism for examiners to transmit new and material medical evidence submitted by applicants during exams. This section terminates the pilot program established under section 504(a) of the Veterans Benefits Improvements Act of 1996 (Public Law 104-275) and directs the Secretary of Veterans Affairs to submit to Congress, not later than three years after enactment, a report on the authority's effects on the cost, timeliness, and thoroughness of such exams.