I
107TH CONGRESS
2D SESSION
H. R. 4939
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.
IN THE HOUSE OF REPRESENTATIVES
JUNE 13, 2002
Mr. SMITH of New Jersey (for himself, Mr. EVANS, and Mr. FILNER) intro-
duced the following bill; which was referred to the Committee on Energy
and Commerce, and in addition to the Committees on Ways and Means
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 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.
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
Payment Act of 2002’’.
SEC. 2. TRANSFER OF PAYMENT FOR MEDICARE-ELIGIBLE
VETERANS WHO RECEIVE OUTPATIENT SERV-
ICES 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 VET-
ERANS WHO RECEIVE OUTPATIENT CARE FROM THE
DEPARTMENT OF VETERANS AFFAIRS
‘‘SEC. 1841A. (a) PAYMENT TO SECRETARY OF VET-
ERANS AFFAIRS.—
‘‘(1) IN GENERAL.—If a medicare-eligible vet-
eran 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 Vet-
erans Affairs for that veteran for that year an ag-
gregate amount equal to 12 times the monthly pre-
mium rate applicable to an individual enrolled under
this part for that year, as determined by the Sec-
retary under section 1839(a)(3).
‘‘(2) PERIODIC
PAYMENTS.—Payments under
this subsection shall be made from the Federal Sup-
plementary Medical Insurance Trust Fund estab-
rollees 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 in-
volved, take into account payments transferred to the Sec-
retary of Veterans Affairs under subsection (a), or the
costs incurred by the Secretary of Veterans Affairs in fur-
nishing care to the medicare-eligible veteran.
‘‘(d) PAYMENT OF PREMIUMS.—The receipt of out-
patient care from the Department of Veterans Affairs dur-
ing a year by a medicare-eligible veteran shall not result
in a reduction in the amount of premium otherwise col-
lected from the veteran under section 1840(a)(1).
‘‘(e) WAIVER OF CERTAIN CONDITIONS OF PARTICI-
PATION.—The prohibition of payments to Federal pro-
viders 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 ‘medi-
care-eligible’ means, with respect to a veteran, an in-
dividual who is enrolled under this part.
‘‘(3) OUTPATIENT CARE.—The term ‘outpatient
care’ means those items and services for which pay-
ment 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 AF-
FAIRS.—With respect to contract years beginning
after 2003, the right of the United States under sec-
tion 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 en-
rolled.’’.
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