To amend title XVIII of the Social Security Act to provide for a transfer of payment to the Department of Veterans Affairs for outpatient care furnished to Medicare-eligible veterans by the Department.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Medicare Payment Act of 
2002''.

SEC. 2. TRANSFER OF PAYMENT FOR MEDICARE-ELIGIBLE VETERANS WHO RECEIVE 
              OUTPATIENT SERVICES FROM THE DEPARTMENT OF VETERANS 
              AFFAIRS.

    (a) Medicare Program.--Part B of title XVIII of the Social Security 
Act (42 U.S.C. 1395j) is amended by inserting after section 1841 the 
following new section:

   ``transfer of payment for medicare-eligible veterans who receive 
        outpatient care from the department of veterans affairs

    ``Sec. 1841A. (a) Payment to Secretary of Veterans Affairs.--
            ``(1) In general.--If a medicare-eligible veteran receives 
        outpatient care from the Department of Veterans Affairs during 
        a year (beginning with 2003) that the veteran is otherwise 
        eligible to receive under chapter 17 of title 38, United States 
        Code, the Secretary shall transfer to the Secretary of Veterans 
        Affairs for that veteran for that year an aggregate amount 
        equal to 12 times the monthly premium rate applicable to an 
        individual enrolled under this part for that year, as 
        determined by the Secretary under section 1839(a)(3).
            ``(2) Periodic payments.--Payments under this subsection 
        shall be made from the Federal Supplementary Medical Insurance 
        Trust Fund established in section 1841 on a periodic basis upon 
        receipt of a certification from the Secretary of Veterans 
        Affairs that a medicare-eligible veteran was provided such 
        outpatient care during the year involved in a facility of the 
        Department of Veterans Affairs.
            ``(3) Documentation of care provided.--The Secretary and 
        the Secretary of Veterans Affairs shall establish a mechanism 
        under which the Secretary may verify that a medicare-eligible 
        veteran received outpatient care from the Department of 
        Veterans Affairs.
    ``(b) Effect on Enrollment Under This Part.--The receipt of 
outpatient care from the Department of Veterans Affairs during a year 
by a medicare-eligible veteran shall not affect--
            ``(1) the enrollment of the veteran under this part; and
            ``(2) the ability of the veteran to receive items and 
        services from participating physicians, health care 
        practitioners, providers of services, and suppliers under this 
        part and to have payment made for such services under this part 
        during the year.
    ``(c) Effect on Calculation of Part B Premiums.--In determining a 
monthly actuarial rate for enrollees under section 1839 for determining 
the amounts of premiums charged to such enrollees for months in a year, 
the Secretary shall not, for months in the year involved, take into 
account payments transferred to the Secretary of Veterans Affairs under 
subsection (a), or the costs incurred by the Secretary of Veterans 
Affairs in furnishing care to the medicare-eligible veteran.
    ``(d) Payment of Premiums.--The receipt of outpatient care from the 
Department of Veterans Affairs during a year by a medicare-eligible 
veteran shall not result in a reduction in the amount of premium 
otherwise collected from the veteran under section 1840(a)(1).
    ``(e) Waiver of Certain Conditions of Participation.--The 
prohibition of payments to Federal providers of services under sections 
1814(c) and 1835(d), and paragraphs (2) and (3) of section 1862(a) 
shall not apply to payments made under subsection (a). The Secretary 
shall waive such provisions of this title that the Secretary of 
Veterans Affairs demonstrates to the satisfaction of the Secretary 
should not apply to the provision of health care services furnished by 
the Department of Veterans Affairs.
    ``(f) Definitions.--In this section:
            ``(1) Veteran.--The term `veteran' has the meaning given 
        that term in section 101(2) of title 38, United States Code.
            ``(2) Medicare-eligible.--The term `medicare-eligible' 
        means, with respect to a veteran, an individual who is enrolled 
        under this part.
            ``(3) Outpatient care.--The term `outpatient care' means 
        those items and services for which payment may be made under 
        this part.''.
    (b) Conforming Amendment.--Section 1857(e) of such Act (42 U.S.C. 
1395w-27(e)) is amended by adding at the end the following new 
paragraph:
            ``(3) Reimbursement for certain care provided by the 
        department of veterans affairs.--With respect to contract years 
        beginning after 2003, the right of the United States under 
        section 1729 of title 38, United States Code, to recover or 
        collect charges for health care items or services from a third 
        party, with respect to which payment may be made under part B, 
        shall apply to Medicare+Choice organizations offering a 
        Medicare+Choice plan in which a veteran is enrolled.''.

Summary: Veterans Medicare Payment Act of 2002 - Amends part B of title XVIII (Medicare) of the Social Security Act to provide for a transfer of payment to the Department of Veterans Affairs for outpatient care furnished to Medicare-eligible veterans by the Department.