retary may be referred to as the ‘VetsCare Federal pro-
gram’. 
‘‘(b) DESIGNATION OF RECIPIENTS.—Effective as of 
the date described in section 2(c)(3) of the Veterans Em-
powerment Act, any eligible individual who receives hos-
pital care, medical services, and other health care (exclud-
ing nursing home care and domiciliary care) in accordance 
with the authorities referred to in subsection (a) after such 
date may be referred to in the receipt of such care or serv-
ices as participating in the ‘VetsCare Federal program’. 
‘‘(c) SECONDARY PAYER.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, any health plan (including the 
Medicare program under title XVIII of the Social 
Security Act (42 U.S.C. 1395 et seq.) or a State 
plan under title XIX of such Act (42 U.S.C. 1396 
et seq.) and the TRICARE program under chapter 
55 of title 10) under which an eligible individual is 
covered shall be responsible for the payment of costs 
for any health care received by an eligible individual 
for a non-service connected disability up to the max-
imum amount allowable under such plan before the 
VetsCare Federal program is responsible for any 
such costs, if applicable. 
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‘‘(2) NOTIFICATION.—The Secretary of Health 
and Human Services, the Secretary of Defense, or 
any other head of a relevant department or agency 
of the Federal Government shall notify the Secretary 
of Veterans Affairs of an eligible individual being 
covered under a health plan described in paragraph 
(1). 
‘‘(d) 
TREATMENT
OF
EMPLOYER-SPONSORED 
HEALTH PLANS.— 
‘‘(1) IN GENERAL.—The provisions of section 
1862(b)(3)(C) of the Social Security Act (42 U.S.C. 
1395y(b)(3)(C)) shall apply with respect to financial 
or other incentives for an employee who is an eligible 
individual not to enroll (or to terminate enrollment) 
under a health plan that would (in the case of such 
enrollment) be responsible under subsection (c) for 
the payment of costs for hospital care, medical serv-
ices, or other health care received by the eligible in-
dividual for a non-service connected disability in the 
same manner as such section 1862(b)(3)(C) applies 
to financial or other incentives for an individual enti-
tled to benefits under title XVIII of the Social Secu-
rity Act (42 U.S.C. 1395 et seq.) not to enroll (or 
to terminate enrollment) under a group health plan 
or a large group health plan which would (in the 
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case of enrollment) be a primary plan (as defined in 
section 1862(b)(2)(A) of such Act). 
‘‘(2) REGULATIONS.—The Secretary may by 
regulation adopt such additional exceptions to the 
prohibition described in paragraph (1) as the Sec-
retary considers appropriate and such paragraph 
shall be implemented taking into account the adop-
tion of such exceptions. 
‘‘(3) AGREEMENTS.—The Veterans Accountable 
Care Organization and the Secretary of Health and 
Human Services may enter into agreements to carry 
out this subsection. Any such agreement shall pro-
vide that any expenses incurred by the Secretary of 
Health and Human Services pertaining to carrying 
out this subsection shall be reimbursed by the Vet-
erans Accountable Care Organization. 
‘‘(4) GROUP HEALTH PLAN DEFINED.—In this 
subsection, the term ‘group health plan’ means a 
group health plan (as that term is defined in section 
5000(b)(1) of the Internal Revenue Code of 1986 
without regard to section 5000(d) of the Internal 
Revenue Code of 1986). 
‘‘(e) ELIGIBLE INDIVIDUALS.—An individual is eligi-
ble to participate in the VetsCare Federal program if such 
individual was enrolled in the system of annual patient 
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enrollment established and operated by the Secretary 
under section 1705(a) of this title as of the date described 
in section 2(c)(3) of the Veterans Empowerment Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 1701 the following new 
item: 
‘‘1701A. VetsCare Federal program: designation of authorities for hospital care, 
medical services, and other health care as program.’’. 
SEC. 5. HEALTH INSURANCE SUPPORT FOR NEW VETERANS 
AND VETERANS ELECTING HEALTH INSUR-
ANCE SUPPORT IN LIEU OF ELIGIBILITY FOR 
HOSPITAL CARE, MEDICAL SERVICES, AND 
OTHER HEALTH CARE UNDER EXISTING AU-
THORITIES. 
(a) IN GENERAL.—Part II of title 38, United States 
Code, is amended by inserting after chapter 24 the fol-
lowing new chapter: 
‘‘CHAPTER 26—VETERANS 
INDEPENDENCE IN HEALTH CARE 
‘‘SUBCHAPTER I—VETERANS GENERALLY 
‘‘2601. VetsCare Choice program: designation of recipients. 
‘‘2602. Eligibility. 
‘‘2603. Qualifying health insurance. 
‘‘2604. Health insurance support. 
‘‘2605. Treatment of other health plans. 
‘‘2606. Receipt of health care through the Department. 
‘‘2607. Pharmacy benefits. 
‘‘SUBCHAPTER II—MEDICARE-ELIGIBLE VETERANS 
‘‘2611. VetsCare Senior program: designation of recipients. 
‘‘2612. Medicare support. 
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‘‘Subchapter I—Veterans Generally 
‘‘§ 2601. VetsCare Choice program: designation of re-
cipients 
‘‘(a) IN GENERAL.—The authorities for the provision 
of health insurance support under this subchapter may be 
referred to as the ‘VetsCare Choice program’. 
‘‘(b) DESIGNATION OF RECIPIENTS.—Any veteran 
who receives health insurance support under this sub-
chapter may be referred to in the receipt of support as 
participating in the ‘VetsCare Choice program’. 
‘‘(c) RELATIONSHIP
TO CARE
BY VETERANS AC-
COUNTABLE
CARE
ORGANIZATION.—Health insurance 
support under this subchapter is in addition to any health 
care or medical services furnished to a veteran at a facility 
operated by the Veterans Accountable Care Organization. 
‘‘§ 2602. Eligibility 
‘‘(a) IN GENERAL.—Except as provided in sub-
sections (c) and (d), the following veterans shall be pro-
vided health insurance support under this subchapter: 
‘‘(1) Veterans who first enroll in the system of 
annual patient enrollment established and operated 
by the Secretary under section 1705(a) of this title 
on or after the date described in section 2(c)(3) of 
the Veterans Empowerment Act. 
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‘‘(2) Veterans enrolled in such system as of the 
date described in section 2(c)(3) of the Veterans 
Empowerment Act who elect health insurance sup-
port under this subchapter in lieu of eligibility for 
hospital care, medical services, and other health care 
(excluding nursing home care and domiciliary care) 
under the VetsCare Federal program under chapter 
17 of this title or any other law administered by the 
Secretary. 
‘‘(b) ENROLLMENT.—The Secretary shall admin-
ister— 
‘‘(1) an open enrollment period for the 
VetsCare Choice program that corresponds to the 
open enrollment period for the Federal Employees 
Health Benefits program described in section 
8905(g); and 
‘‘(2) special enrollment periods based on quali-
fying life events of veterans similar to such events 
under the Federal Employees Health Benefits Pro-
gram, except that the change of priority group shall 
also be treated as a qualifying life event. 
‘‘(c) EFFECT
OF ELECTION.—While an election 
under subsection (a)(2) of a veteran described in that sub-
section is in effect, the veteran is not eligible for hospital 
care, medical services, and other health care (excluding 
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nursing home care and domiciliary care) under chapter 17 
of this title or any other law administered by the Sec-
retary. 
‘‘(d) EXCEPTIONS.—The following veterans are not 
eligible for health insurance support under this sub-
chapter: 
‘‘(1) Any veteran eligible for care under the 
Medicare program under title XVIII of the Social 
Security Act (42 U.S.C. 1395 et seq.). 
‘‘(2) Any veteran who— 
‘‘(A) first enrolls in the system of annual 
patient enrollment established and operated by 
the Secretary under section 1705(a) of this title 
on or after the date described in section 2(c)(3) 
of the Veterans Act; and 
‘‘(B) is in priority group 7 or priority 
group 8. 
‘‘(e) COMMENCEMENT
OF AVAILABILITY
OF SUP-
PORT.—Health insurance support under this subchapter 
shall commence being available as follows: 
‘‘(1) With respect to veterans in priority group 
1, 2, or 3, on the first day of the first month that 
begins on or after the date described in section 
2(c)(3) of the Veterans Empowerment Act. 
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‘‘(2) With respect to veterans in a priority 
group other than 1, 2, or 3, on the first day of the 
first month that begins on or after the date that is 
180 days after the commencement date under para-
graph (1). 
‘‘(f) PRIORITY GROUP DEFINED.—In this section, 
the term ‘priority group’ means the priority groups estab-
lished by the Secretary for purposes of the enrollment of 
veterans in the patient enrollment system under section 
1705(a) of this title. 
‘‘§ 2603. Qualifying health insurance 
‘‘Health insurance support may be provided under 
this subchapter only for health plans that— 
‘‘(1) include the types of health care authorized 
under section 1079 of title 10, United States Code; 
and 
‘‘(2) provide such additional elements of cov-
erage as the Secretary shall prescribe for purposes 
of this subchapter. 
‘‘§ 2604. Health insurance support 
‘‘(a) IN GENERAL.—The Secretary shall provide 
health insurance support to veterans eligible for such sup-
port under this subchapter through premium support 
under subsections (b) and (c), cost-sharing support under 
subsection (d), and alternative support under subsection 
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(e) by paying or reimbursing such veterans for the costs 
associated with such health insurance support. The Sec-
retary shall make such payments or reimbursements in a 
manner similar to the manner in which the Centers for 
Medicare & Medicaid Services make similar payments and 
reimbursements. 
‘‘(b) PREMIUM SUPPORT GENERALLY.—The pre-
mium support provided by the Secretary under this sub-
section is as follows: 
‘‘(1) TIER 1.—To any veteran with a service- 
connected disability rated as 100 percent disabling, 
health insurance support sufficient to provide bene-
fits to the veteran under a health plan that are actu-
arially equivalent to 100 percent of the full actuarial 
value of the benefits provided under the health plan. 
A health plan under this paragraph may be referred 
to as a ‘Tier 1 Plan’. 
‘‘(2) TIER 2.—To any veteran in priority group 
1 not covered by paragraph (1) and any veteran in 
priority group 2, health insurance support sufficient 
to provide benefits to the veteran under a health 
plan that are actuarially equivalent to 90 percent of 
the full actuarial value of the benefits provided 
under the health plan. A health plan under this 
paragraph may be referred to as a ‘Tier 2 Plan’. 
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‘‘(3) TIER 3.—To any veteran in priority group 
3 or priority group 4, health insurance support suffi-
cient to provide benefits to the veteran under a 
health plan that are actuarially equivalent to 80 per-
cent of the full actuarial value of the benefits pro-
vided under the health plan. A health plan under 
this paragraph may be referred to as a ‘Tier 3 
Plan’. 
‘‘(4) TIER 4.—To any veteran in priority group 
5 or priority group 6, health insurance support suffi-
cient to provide benefits to the veteran under a 
health plan that are actuarially equivalent to 70 per-
cent of the full actuarial value of the benefits pro-
vided under the health plan. A health plan under 
this paragraph may be referred to as a ‘Tier 4 
Plan’. 
‘‘(5) TIER 5.—To any veteran not in a priority 
group covered by paragraphs (1) through (4) and 
not ineligible for such support under section 
2602(d)(2) of this title, health insurance support 
sufficient to provide benefits to the veteran under a 
health plan that are actuarially equivalent to 60 per-
cent of the full actuarial value of the benefits pro-
vided under the health plan. A health plan under 
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this paragraph may be referred to as a ‘Tier 5 
Plan’. 
‘‘(c) ADDITIONAL PREMIUM SUPPORT BASED
ON 
NEED.—The premium support provided by the Secretary 
under this subsection is as follows: 
‘‘(1) To any veteran with an annual gross 
household income that is less than 133 percent of 
the poverty line, health insurance support sufficient 
to cover any costs of such monthly premium that are 
more than 2 percent of the monthly gross household 
income of the veteran. 
‘‘(2) To any veteran with an annual gross 
household income that is between 133 percent and 
150 percent of the poverty line, health insurance 
support sufficient to cover any costs of such monthly 
premium that are more than 3 percent of the 
monthly gross household income of the veteran. 
‘‘(3) To any veteran with an annual gross 
household income that is between 150 percent and 
200 percent of the poverty line, health insurance 
support sufficient to cover any costs of such monthly 
premium that are more than 4 percent of the 
monthly gross household income of the veteran. 
‘‘(4) To any veteran with an annual gross 
household income that is between 200 percent and 
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vided under the health plan of the veteran is not less 
than 94 percent. 
‘‘(2) To any veteran with an annual gross 
household income that is between 150 percent and 
200 percent of the poverty line, health insurance 
support sufficient to cover cost-sharing in order to 
ensure that the effective minimum actuarial value of 
the benefits provided under the health plan of the 
veteran is not less than 87 percent. 
‘‘(3) To any veteran with an annual gross 
household income that is between 200 percent and 
250 percent of the poverty line, health insurance 
support sufficient to cover cost-sharing in order to 
ensure that the effective minimum actuarial value of 
the benefits provided under the health plan of the 
veteran is not less than 73 percent. 
‘‘(e) ALTERNATIVE SUPPORT FOR VETERANS WITH 
CERTAIN HEALTH INSURANCE.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section, upon the election of a vet-
eran eligible for health insurance support under this 
subchapter who obtains a high deductible health 
plan that includes a health savings account under 
section 223 of the Internal Revenue Code of 1986, 
the Secretary shall contribute an amount calculated 
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under paragraph (2) into such health savings ac-
count on behalf of the veteran. 
‘‘(2) AMOUNT CALCULATED.—The amount cal-
culated under this paragraph is an amount equal to 
the difference between— 
‘‘(A) the amount of health insurance sup-
port the veteran would otherwise have received 
under the subsection of this section applicable 
to the veteran; and 
‘‘(B) the amount payable by the veteran in 
connection with the high deductible health plan 
described in paragraph (1). 
‘‘(f) 
DETERMINATIONS
BASED
ON
COST
OF 
PLANS.—In making determinations under this section 
with respect to the amount of health insurance support 
to provide to a veteran, the Secretary shall make such de-
terminations based on the costs associated with the sec-
ond-least-costly health plan available to the veteran in the 
area in which the veteran resides. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘cost-sharing’, in connection with 
the receipt of health care and treatment under a 
health plan, means any copayments, deductibles, or 
other charges imposed, collected, or otherwise re-
quired by a health insurance provider or health care 
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provider in connection with the receipt of health care 
and treatment under such health plan. 
‘‘(2) The term ‘poverty line’ means the poverty 
line (as defined in section 673(2) of the Community 
Services Block Grant Act (42 U.S.C. 9902(2)) appli-
cable to a family of the size involved. 
‘‘(3) The term ‘high deductible health plan’ has 
the meaning given that term in section 223(c)(2) of 
the Internal Revenue Code of 1986. 
‘‘(4) The term ‘priority group’ means the pri-
ority groups established by the Secretary for pur-
poses of the enrollment of veterans in the patient en-
rollment system under section 1705(a) of this title. 
‘‘§ 2605. Treatment of other health plans 
‘‘(a) SECONDARY PAYER.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, any health plan (including a State 
plan under title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.) and the TRICARE program 
under chapter 55 of title 10) under which a veteran 
is covered that is not a health plan for which health 
insurance support is provided under this subchapter 
shall be responsible for the payment of costs for any 
health care received by an eligible individual for a 
non-service connected disability up to the maximum 
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amount allowable under such plan before any health 
plan for which health insurance support is provided 
under this subchapter is responsible for any such 
costs, if applicable. 
‘‘(2) NOTIFICATION.—The Secretary of Health 
and Human Services, the Secretary of Defense, or 
any other head of a relevant department or agency 
of the Federal Government shall notify the Secretary 
of Veterans Affairs of an eligible individual being 
covered under a health plan described in paragraph 
(1). 
‘‘(b) 
TREATMENT
OF
EMPLOYER-SPONSORED 
HEALTH PLANS.— 
‘‘(1) IN GENERAL.—The provisions of section 
1862(b)(3)(C) of the Social Security Act (42 U.S.C. 
1395y(b)(3)(C)) shall apply with respect to financial 
or other incentives for an employee who is a veteran 
not to enroll (or to terminate enrollment) under a 
health plan that is not a health plan for which 
health insurance support is provided under this sub-
chapter and that would (in the case of such enroll-
ment) be responsible under subsection (a) for the 
payment of costs for health care received by the vet-
eran in the same manner as such section 
1862(b)(3)(C) applies to financial or other incentives 
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for an individual entitled to benefits under title 
XVIII of the Social Security Act (42 U.S.C. 1395 et 
seq.) not to enroll (or to terminate enrollment) 
under a group health plan or a large group health 
plan which would (in the case of enrollment) be a 
primary plan (as defined in section 1862(b)(2)(A) of 
such Act). 
‘‘(2) REGULATIONS.—The Secretary may by 
regulation adopt such additional exceptions to the 
prohibition described in paragraph (1) as the Sec-
retary considers appropriate and such paragraph 
shall be implemented taking into account the adop-
tion of such exceptions. 
‘‘(3) AGREEMENTS.—The Secretary of Veterans 
Affairs and the Secretary of Health and Human 
Services may enter into agreements to carry out this 
subsection. Any such agreement shall provide that 
any expenses incurred by the Secretary of Health 
and Human Services pertaining to carrying out this 
subsection shall be reimbursed by the Secretary of 
Veterans Affairs. 
‘‘(4) GROUP HEALTH PLAN DEFINED.—In this 
subsection, the term ‘group health plan’ means a 
group health plan (as that term is defined in section 
5000(b)(1) of the Internal Revenue Code of 1986 
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without regard to section 5000(d) of the Internal 
Revenue Code of 1986). 
‘‘§ 2606. Receipt of health care through the Depart-
ment 
‘‘(a) CONTRACTS.—Any health insurance provider 
that provides a health plan for which health insurance 
support may be provided under this subchapter or sub-
chapter II may enter into a contract with the Veterans 
Accountable Care Organization under which the medical 
personnel and facilities of the Veterans Accountable Care 
Organization may be treated as a designated provider for 
purposes of such health plan. 
‘‘(b) COST OF CARE.—The cost, including any copay-
ments, of any health care or treatment provided to a vet-
eran by the Veterans Accountable Care Organization 
under a contact under subsection (a) shall be determined 
by the Veterans Accountable Care Organization. 
‘‘(c) MECHANISM.—The Board of Directors of the 
Veterans Accountable Care Organization shall establish a 
mechanism through which the Veterans Accountable Care 
Organization enters into contracts with health insurance 
providers under subsection (a). 
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‘‘§ 2607. Pharmacy benefits 
‘‘A veteran who is enrolled in the VetsCare Choice 
program or the VetsCare Senior program may fill pre-
scriptions at pharmacies of the Department. 
‘‘SUBCHAPTER II—MEDICARE-ELIGIBLE 
VETERANS 
‘‘§ 2611. VetsCare Senior program: designation of re-
cipients 
‘‘(a) IN GENERAL.—The authorities for the provision 
of health insurance support under this subchapter may be 
referred to as the ‘VetsCare Senior program’. 
‘‘(b) DESIGNATION OF RECIPIENTS.—Any veteran 
who receives health insurance support under this sub-
chapter may be referred to in the receipt of support as 
participating in the ‘VetsCare Senior program’. 
‘‘(c) RELATIONSHIP
TO CARE
BY VETERANS AC-
COUNTABLE
CARE
ORGANIZATION.—Health insurance 
support under this subchapter is in addition to any health 
care or medical services furnished to a veteran at a facility 
operated by the Veterans Accountable Care Organization. 
‘‘§ 2612. Medicare support 
‘‘(a) IN GENERAL.—The Secretary shall provide 
health insurance support to each covered veteran equal to 
the costs incurred by such veteran for Medicare premiums 
and cost-sharing under parts A, B, C, and D of title XVIII 
of the Social Security Act (42 U.S.C. 1395 et seq.) and 
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for premiums and cost-sharing for Medicare supplemental 
policies under section 1882 of such Act (42 U.S.C. 
1395ss). 
‘‘(b) RELATIONSHIP WITH VETSCARE FEDERAL.— 
Notwithstanding any other provision of law, if a covered 
veteran is enrolled in the VetsCare Federal program under 
section 1701A of this title, the Medicare program under 
title XVIII of the Social Security Act (42 U.S.C. 1395 
et seq.) (or a Medicare supplemental policy under section 
1882 of such Act (42 U.S.C. 1395ss)) shall be responsible 
for the payment of costs for any health care received by 
an eligible individual for a non-service connected disability 
up to the maximum amount allowable under such program 
(or supplemental policy) for such health care before the 
VetsCare Federal program is responsible for any such 
costs, if applicable. 
‘‘(c) AVAILABILITY OF PAYMENT OR REIMBURSE-
MENT.— 
‘‘(1) COMMENCEMENT.—Health insurance sup-
port under this subchapter shall commence being 
available as follows: 
‘‘(A) With respect to covered veterans in 
priority group 1, 2, or 3, on the first day of the 
first month that begins on or after the date de-
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scribed in section 2(c)(3) of the Veterans Em-
powerment Act. 
‘‘(B) With respect to covered veterans in a 
priority group other than 1, 2, or 3, on the first 
day of the first month that begins on or after 
the date that is 180 days after the commence-
ment date under paragraph (1). 
‘‘(2) EXCLUSION
OF
CERTAIN
VETERANS.—A 
covered veteran is not eligible for health insurance 
support under this section if such veteran— 
‘‘(A) first enrolls in the system of annual 
patient enrollment established and operated by 
the Secretary under section 1705(a) of this title 
on or after the date of the enactment of this 
Act; and 
‘‘(B) is in priority group 7 or 8. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘cost-sharing’, in connection with 
the receipt of health care and treatment under the 
Medicare program under title XVIII of the Social 
Security Act (42 U.S.C. 1395 et seq.) or Medicare 
supplemental policies under section 1882 of such Act 
(42 U.S.C. 1395ss), 
means 
any 
copayments, 
deductibles, or other charges imposed, collected, or 
otherwise required by a health insurance provider or 
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health care provider in connection with receipt of 
health care and treatment under such program or 
supplemental policies. 
‘‘(2) The term ‘covered veteran’ means a vet-
eran receiving benefits under the Medicare program 
under title XVIII of the Social Security Act. 
‘‘(3) The term ‘priority group’ means the pri-
ority groups established by the Secretary for pur-
poses of the enrollment of veterans in the patient en-
rollment system under section 1705(a) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
at the beginning title 38, United States Code, is amended 
by inserting after the item relating to chapter 24 the fol-
lowing new item: 
‘‘Chapter 26. Veterans Independence in Health Care ............................. 2601’’. 
(c) CONFORMING AMENDMENTS.— 
(1) MINIMUM ESSENTIAL COVERAGE.—Section 
5000A(f)(1)(A)(v) of the Internal Revenue Code of 
1986 is amended by striking ‘‘or 18’’ and inserting 
‘‘, 18, or 26’’. 
(2) MEDICARE PART B.— 
(A) NON-APPLICATION OF LATE ENROLL-
MENT PENALTY.—Section 1839(b) of the Social 
Security Act (42 U.S.C. 1395r(b)) is amended, 
in the second sentence, by inserting ‘‘or months 
for which the individual can demonstrate that 
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the individual was enrolled in the VetsCare Sen-
ior program under subchapter II of chapter 26 
of title 38, United States Code’’ after ‘‘an indi-
vidual described in section 1837(k)(3)’’. 
(B) SPECIAL ENROLLMENT PERIOD.—Sec-
tion 1837 of the Social Security Act (42 U.S.C. 
1395p) is amended by adding at the end the 
following new subsection: 
‘‘(m)(1) In the case of any individual who is enrolled 
in the VetsCare Senior program under subchapter II of 
chapter 26 of title 38, United States Code at the time 
the individual is entitled to part A under section 226 or 
section 226A and who is eligible to enroll but who has 
elected not to enroll (or to be deemed enrolled) during the 
individual’s initial enrollment period, there shall be a spe-
cial enrollment period as specified by the Secretary. 
‘‘(2) In the case of an individual who enrolls during 
the special enrollment period provided under paragraph 
(1), the coverage period under this part shall begin on 
such date specified by the Secretary. 
‘‘(3) An individual may only enroll during the special 
enrollment period provided under paragraph (1) one time 
during the individual’s lifetime. 
‘‘(4) The Secretary of Veterans Affairs shall collabo-
rate with the Secretary of Health and Human Services 
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and the Commissioner of Social Security to provide for 
the accurate identification of individuals described in para-
graph (1). The Secretary of Veterans Affairs shall provide 
such individuals with notification with respect to this sub-
section. The Secretary of Veterans Affairs shall collabo-
rate with the Secretary of Health and Human Services 
and the Commissioner of Social Security to ensure appro-
priate follow up pursuant to any notification provided 
under the preceding sentence.’’. 
SEC. 6. COORDINATION BETWEEN VETSCARE CHOICE PRO-
GRAM AND ELIGIBILITY TO MAKE CONTRIBU-
TIONS TO HEALTH SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Section 223(c)(1)(B) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘and’’ 
at the end of clause (ii), by striking the period at the end 
of clause (iii) and inserting ‘‘, and’’, and by adding at the 
end the following new clause: 
‘‘(iv) coverage for health insurance 
support under the VetsCare Choice pro-
gram under subchapter I of chapter 26 of 
title 38, United States Code.’’. 
(b) DENIAL OF DEDUCTION FOR AMOUNTS NOT IN-
CLUDIBLE IN GROSS INCOME.—Subsection (b) of section 
223 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph: 
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