SEC. 2. ELIGIBILITY OF MEDICARE-ELIGIBLE VETERANS 
FOR OUT-PATIENT MEDICATION BENEFIT. 
(a) RESTATEMENT OF CURRENT LAW ON DRUGS 
AND MEDICATIONS
AND PROVISION
OF OUT-PATIENT 
MEDICATION BENEFIT.—Chapter 17 of title 38, United 
States Code, is amended by inserting after section 1710B 
the following new section: 
‘‘§ 1710C. Drugs and medications; vaccines 
‘‘(a)(1) The Secretary shall furnish to each veteran 
who is receiving additional compensation or allowance 
under chapter 11 of this title, or increased pension as a 
veteran of a period of war, by reason of being permanently 
housebound or in need of regular aid and attendance, such 
drugs and medicines (subject to subsection (d)) as may 
be ordered on prescription of a duly licensed physician as 
specific therapy in the treatment of any illness or injury 
suffered by such veteran. 
‘‘(2) The Secretary shall continue to furnish such 
drugs and medicines ordered under paragraph (1) to any 
such veteran in need of regular aid and attendance whose 
pension payments have been discontinued solely because 
such veteran’s annual income is greater than the applica-
ble maximum annual income limitation, but only so long 
as such veteran’s annual income does not exceed such 
maximum annual income limitation by more than $1,000. 
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‘‘(b)(1) Any medicare-eligible veteran may elect to be 
furnished by the Secretary, on an out-patient basis, such 
drugs and medicines (subject to subsection (d)) as may 
be ordered on prescription of a duly licensed physician as 
specific therapy in the treatment of any illness or injury 
suffered by such veteran. 
‘‘(2) In this subsection, the term ‘medicare-eligible 
veteran’ means any veteran who— 
‘‘(A) is entitled to or enrolled in hospital insurance 
benefits under part A of title XVIII of the Social Security 
Act (42 U.S.C. 1395 et seq.); or 
‘‘(B) is enrolled in the supplementary medical insur-
ance program under part B of such title (42 U.S.C. 1395j 
et seq.). 
‘‘(3) The Secretary shall furnish to any veteran who 
makes an election under paragraph (1), on an out-patient 
basis, such drugs and medicines as may be ordered on pre-
scription of a duly licensed physician as specific therapy 
in the treatment of any illness or injury suffered by such 
veteran. 
‘‘(4)(A) Notwithstanding any other provision of law 
and except as provided in subparagraph (B), a veteran 
who makes an election under paragraph (1) shall not be 
eligible for care and services under this chapter during the 
year covered by the election. 
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‘‘(B) Subparagraph (A) shall not apply with re-
spect to any veteran who has a compensable service- 
connected disability. 
‘‘(5) The furnishing of drugs and medicines under 
this subsection shall be subject to the provisions of section 
1722A(b) of this title. 
‘‘(6)(A) An election under paragraph (1) shall be for 
a calendar year, and shall be irrevocable for the year cov-
ered by such election. An election may be renewed. 
‘‘(B) The Secretary shall prescribe the form, 
manner, and timing of an election. 
‘‘(7) Before permitting a veteran to make an election 
under paragraph (1), the Secretary shall provide the vet-
eran such educational materials and other information on 
the furnishing and receipt of drugs and medicines under 
this subsection as the Secretary considers appropriate to 
inform the veteran of the benefits and costs of being fur-
nished drugs and medicines under this subsection, includ-
ing materials and information on the consequences of 
making an election under paragraph (1) and on the fees, 
copayments, or other amounts required under section 
1722A(b) of this title for drugs and medicines furnished 
under this subsection. 
‘‘(c)(1) In order to assist the Secretary of Health and 
Human Services in carrying out national immunization 
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programs under other provisions of law, the Secretary may 
authorize the administration of immunizations to eligible 
veterans who voluntarily request such immunizations in 
connection with the provision of care for a disability under 
this chapter in any Department health care facility. 
‘‘(2) Any immunization under paragraph (1) shall be 
made using vaccine furnished by the Secretary of Health 
and Human Services at no cost to the Department. For 
such purpose, notwithstanding any other provision of law, 
the Secretary of Health and Human Services may provide 
such vaccine to the Department at no cost. 
‘‘(3) Section 7316 of this title shall apply to claims 
alleging negligence or malpractice on the part of Depart-
ment personnel granted immunity under such section. 
‘‘(d) Drugs and medicines may be furnished under 
subsections (a) and (b) only if included on the National 
Prescription Drug Formulary of the Department, except 
that the Secretary may authorize the furnishing of a drug 
or medicine not included on that formulary under such 
circumstances as the Secretary determines warranted.’’. 
(b) COPAYMENT REQUIREMENTS.— 
(1) IN GENERAL.—Section 1722A of such title 
is amended— 
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(A) in subsection (a)(1), by inserting 
‘‘(other than a veteran covered by subsection 
(b))’’ after ‘‘require a veteran’’; 
(B) by redesignating subsections (b) and 
(c) as subsections (c) and (d), respectively; and 
(C) by inserting after subsection (a) the 
following new subsection (b): 
‘‘(b)(1) In the case of a veteran who is furnished 
medications on an out-patient basis under section 
1710C(b) of this title, the Secretary shall require the vet-
eran to pay, at the election of the Secretary, one or more 
of the following: 
‘‘(A) An annual enrollment fee in an amount 
determined appropriate by the Secretary. 
‘‘(B) A copayment for each 30-day supply of 
such medications in an amount determined appro-
priate by the Secretary. 
‘‘(C) An amount equal to the cost to the Sec-
retary of such medications, as determined by the 
Secretary. 
‘‘(2)(A) In determining the amounts to be paid by 
a veteran under paragraph (1), and the basis of payment 
under one or more subparagraphs of that paragraph, the 
Secretary shall ensure that the total amount paid by vet-
erans for medications under that paragraph in a year is 
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not less than the costs of the Department in furnishing 
medications to veterans under section 1710C(b) of this 
title during that year, including the cost of purchasing and 
furnishing medications, and other costs of administering 
that section. 
‘‘(B) The Secretary shall take appropriate ac-
tions to ensure, to the maximum extent practicable, 
that amounts paid by veterans under paragraph (1) 
in a year are equal to the costs of the Department 
referred to in subparagraph (A) in that year. 
‘‘(3) In determining amounts under paragraph (1), 
the Secretary may take into account the following: 
‘‘(A) Whether or not the medications furnished 
are generic medications or brand name medications. 
‘‘(B) Whether or not the medications are fur-
nished by mail. 
‘‘(C) Any other matters the Secretary considers 
appropriate. 
‘‘(4) The Secretary may from time to time adjust any 
amount determined by the Secretary under paragraph (1), 
as previously adjusted under this paragraph, in order to 
meet the purpose specified in paragraph (2).’’. 
(2) DEPOSIT
OF
COLLECTIONS
IN
MEDICAL 
CARE COLLECTIONS FUND.—Paragraph (4) of sec-
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