I
104TH CONGRESS
2D SESSION
H. R. 4068
To establish a demonstration project to provide that the Department of
Veterans Affairs may receive Medicare reimbursement for health care
services provided to certain Medicare-eligible veterans.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 12, 1996
Mr. STUMP (for himself, Mr. MONTGOMERY, Mr. SPENCE, Mr. EVANS, Mr.
EVERETT, Mr. EDWARDS, Mr. BUYER, Mr. TEJEDA, and Mr. HEFLEY)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committees on Commerce, and
Veterans’ Affairs, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To establish a demonstration project to provide that the
Department of Veterans Affairs may receive Medicare
reimbursement for health care services provided to cer-
tain Medicare-eligible veterans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Veterans Medicare
Subvention Demonstration Project Act’’.
SEC. 2. ESTABLISHMENT OF VETERANS MEDICARE SUB-
VENTION DEMONSTRATION PROJECT.
(a) DEFINITIONS.—For purposes of this section:
(1) MEDICARE-ELIGIBLE VETERAN.—The term
‘‘medicare-eligible veteran’’ means a veteran who—
(A) is entitled to hospital insurance bene-
fits under part A of title XVIII of the Social
Security Act (42 U.S.C. 1395c et seq.); and
(B) is enrolled in the supplementary medi-
cal insurance program under part B of such
title (42 U.S.C. 1395j et seq.).
(2) VETERAN.—The term ‘‘veteran’’ has the
meaning given that term in section 101(2) of title
38, United States Code.
(3) VETERAN
INTEGRATED
SERVICE
NET-
WORK.—The term ‘‘Veteran Integrated Service Net-
work’’ means a field component of the Veterans
Health Administration that—
(A) is based on a geographic area which
encompasses a population of veteran bene-
ficiaries and is defined on the basis of natural
patient referral patterns; and
(B) provides health care through strategic
alliances among Department of Veterans Af-
fairs medical centers, clinics, and other sites.
(4) SECRETARIES.—The term ‘‘Secretaries’’
means the Secretary of Veterans Affairs and the
Secretary of Health and Human Services acting
jointly.
(b) 
ESTABLISHMENT
OF
DEMONSTRATION
PROJECT.—
(1) ESTABLISHMENT.—The Secretary of Veter-
ans Affairs and the Secretary of Health and Human
Services shall jointly establish a demonstration
project to provide the Department of Veterans Af-
fairs with reimbursement, in accordance with this
section, from the medicare program under title
XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.) for health care services provided to medicare-
eligible veterans who participate in the demonstra-
tion project and receive the health care services
through a managed care plan established by the Sec-
retary of Veterans Affairs under subsection (f).
(2) LOCATION OF DEMONSTRATION PROJECT.—
The Secretaries shall conduct the demonstration
project in not more than three Veteran Integrated
Service Networks.
(3) DURATION.—The Secretaries shall conduct
the demonstration project during the three-year pe-
riod beginning on January 1, 1997.