To amend title 38, United States Code, to ensure appropriate payment for the cost of long term care provided to veterans in State veterans homes, and for other purposes.

Summary: Veterans Long Term Care Security Act - Directs the Secretary of Veterans Affairs to pay for nursing home care furnished in a non-Department of Veterans Affairs (VA) nursing home to any veteran in need of such care: (1) for a service-connected disability; or (2) who has a service-connected disability rated at 70 percent or more.

Directs the Secretary to furnish such drugs and medicines as ordered by a duly licensed physician for any veteran in need of such drugs and medicines: (1) for a service-connected disability; or (2) who has a service-connected disability rated at 50 percent or more.

Authorizes the Secretary, for three years after the enactment of this Act, to treat certain health facilities as state homes for purposes of eligibility for payments for care provided to veterans.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Long Term Care Security 
Act''.

SEC. 2. INCREASE IN PAYMENT RATES FOR NURSING HOME CARE PROVIDED IN 
              STATE HOMES TO VETERANS WITH SERVICE-CONNECTED 
              DISABILITIES.

    (a) Community-Based Facility Rate.--Subchapter V of chapter 17 of 
title 38, United States Code, is amended by adding at the end the 
following new section:
``Sec. 1744. Payment for care provided to veterans with service-
              connected disabilities
    ``(a) Nursing Home Care.--(1) The Secretary shall pay each State 
home for nursing home care provided (A) to any veteran in need of such 
care for a service-connected disability, and (B) to any veteran who is 
in need of such care and who has a service-connected disability rated 
at 70 percent or more, at the applicable rate payable under section 
1720 of this title for such care furnished in a non-Department nursing 
home (as defined in subsection (e)(2) of such section).
    ``(2) Payment by the Secretary under paragraph (1) to a State home 
for nursing home care provided to a veteran described in that paragraph 
constitutes payment in full under this title to the State home for such 
care furnished to that veteran.''.
    (b) Conforming Amendments.--(1) Subsection (a)(1) of section 1741 
of such title is amended by striking ``The'' in the matter preceding 
subparagraph (A) and inserting ``Except as provided in section 1744 of 
this title, the''.
    (2) Subsection (a)(4) of section 1710 of such title is amended--
            (A) by striking ``and'' before ``the requirement in section 
        1710B of this title''; and
            (B) by inserting ``, and the requirement in section 1744 of 
        this title to provide nursing home care and prescription 
        medicines to veterans with service-connected disabilities in 
        State homes'' after ``a program of extended care services''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1743 the following new item:

``1744. Payment for care provided to veterans with service-connected 
                            disabilities.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006, and apply to care furnished in State homes 
on or after such date.

SEC. 3. PROVISION OF PRESCRIPTION MEDICINES FOR VETERANS WITH SERVICE-
              CONNECTED DISABILITIES RECEIVING CARE IN STATE HOMES.

    (a) Requirement to Furnish Prescription Medicines.--Section 1744 of 
title 38, United States Code, as added by section 2, is amended by 
adding at the end the following new subsection:
    ``(b) Prescription Medicines.--The Secretary shall furnish such 
drugs and medicines as may be ordered on prescription of a duly 
licensed physician as specific therapy in the treatment of illness or 
injury of a veteran who is provided nursing home care that is payable 
under subsection (a) in the case of a veteran--
            ``(1) who is in need of such drugs and medicines for a 
        service-connected disability; or
            ``(2) who is in need of such drugs and medicines and who 
        has a service-connected disability rated at 50 percent or 
        more.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2006.

SEC. 4. TEMPORARY AUTHORITY TO TREAT CERTAIN HEALTH FACILITIES AS STATE 
              HOMES.

    (a) Authority.--Subchapter III of chapter 81 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 8138. Treatment of certain health facilities as State homes
    ``(a) Subject to subsections (b) through (f), the Secretary may 
treat a health facility as a State home for purposes of subchapter V of 
chapter 17 of this title if the facility meets the following 
requirements:
            ``(1) The facility meets the standards for the provision of 
        nursing home care that is applicable to State homes, as 
        prescribed by the Secretary under section 8134(b) of this 
        title, and such other standards relating to the facility as the 
        Secretary may require.
            ``(2) The facility is licensed or certified by the 
        appropriate State and local agencies charged with the 
        responsibility of licensing or otherwise regulating or 
        inspecting such facilities.
            ``(3) The State demonstrates in an application to the 
        Secretary that, but for the treatment of a facility as a State 
        home under this subsection, a substantial number of veterans 
        residing in the geographic area in which the facility is 
        located who require nursing home care will not have access to 
        such care.
            ``(4) The Secretary has made a determination that the 
        treatment of the facility as a State home best meets the needs 
        of veterans in the area for nursing home care.
            ``(5) The Secretary approves the application submitted by 
        the State with respect to the health facility.
    ``(b) The Secretary may not treat a health facility as a State home 
under subsection (a) if the Secretary determines that such treatment 
would increase the number of beds allocated to the State in excess of 
the limit on the number of beds provided for under regulations 
prescribed under section 8134(a) of this title.
    ``(c) The number of beds occupied by veterans in a health facility 
for which payment may be made under subchapter V of chapter 17 of this 
title by reason of subsection (a) shall not exceed the number of 
veterans in beds in State homes that otherwise would be permitted in 
the State involved under regulations prescribed under section 8134(a) 
of this title.
    ``(d) The number of beds in a health facility in a State that has 
been treated as a State home under subsection (a) shall be taken into 
account in determining the unmet need for beds for State homes for the 
State under section 8134(d)(1) of this title.
    ``(e) In no case may the aggregate number of beds in all facilities 
treated as State homes under subsection (a) exceed 100.
    ``(f)(1) The authority of the Secretary to treat a health facility 
as a State home under subsection (a) shall terminate on the date that 
is three years after the date of the enactment of the Veterans Long 
Term Care Security Act.
    ``(2) Any facility treated as a State home under subsection (a) 
before the date referred to in paragraph (1) shall continue to be so 
treated for such time as the facility meets the requirements of this 
section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter 81 is amended by inserting after the item relating to 
section 8137 the following new item:

``8138. Treatment of certain health facilities as State homes.''.