TITLE VII—APPLICATION OF ACT 
TO 
INDIVIDUALS 
COVERED 
UNDER MEDICARE PROGRAM 
SEC. 701. ELIGIBILITY; BENEFITS AVAILABLE. 
(a) LIMITATION TO SUPPLEMENTARY BENEFITS.— 
(1) IN GENERAL.—In the case of any individual 
who is entitled to hospital insurance benefits under 
part A of title XVIII of the Social Security Act, or 
to supplementary medical insurance benefits under 
the insurance program established by part B of such 
title, during any benefit year or part thereof in 
which the individual is otherwise eligible for benefits 
under this Act in accordance with section 104 or 
would otherwise be furnished such benefits in ac-
cordance with section 105, the personal health serv-
ices (specified in section 101) which may be made 
available to the individual as benefits under this Act 
shall be limited to those services (otherwise available 
to the individual in accordance with section 102) for 
which the individual is ineligible under part A or B 
of such title XVIII. 
(2) TREATMENT.—For purposes of paragraph 
(1), an individual shall be considered ineligible under 
part A or B of such title XVIII if no payment is or 
can be made to the individual or on the individual’s 
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behalf thereunder with respect to the item or service 
involved, whether because the individual is not enti-
tled to benefits under whichever such part is applica-
ble, because no payment is provided under either 
such part for the item or service involved, or because 
the individual has exhausted entitlement to have 
payment made thereunder for items or services of 
the type involved. An individual shall also be consid-
ered ineligible under part A or B of such title XVIII 
with respect to any item or service (for which the in-
dividual is otherwise entitled to have payment made 
thereunder) to the extent that payment is not made 
with respect to such item or service because of the 
application of the deductible and coinsurance provi-
sions of sections 1813 and 1833 of the Social Secu-
rity Act. 
(b) REGULATIONS.—The Board, after consultation 
with the Advisory Council, shall prescribe such regulations 
as may be necessary or appropriate to insure, in the case 
of individuals whose benefits under this Act are limited 
under subsection (a), that the combination of benefits 
under this Act and title XVIII of the Social Security Act 
will effectively carry out (without duplication of benefits) 
the purpose of this Act. 
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(c) NO IMPACT ON DEPENDENTS.—The limitation 
under subsection (a) of an individual’s benefits under this 
Act shall not be construed as affecting the eligibility of 
the individual’s dependents for such benefits in accordance 
with subsection (a)(3) or (b)(3) of section 104. 
SEC. 702. STUDY AND REPORT. 
(a) STUDY.—As soon as practicable after the date of 
the enactment of this Act, the Secretary of Health and 
Human Services shall undertake and carry out a full and 
complete study of the interrelationship of the program of 
national health insurance under this Act and the program 
of health insurance under title XVIII of the Social Secu-
rity Act, in order to determine the way in which the latter 
program may be most effectively and equitably transferred 
to and incorporated in the program under this Act. 
(b) CONSIDERATIONS.—In conducting such study, 
the Secretary shall give particular attention to the transi-
tional problems which would result from such a transfer, 
and shall consider in detail (with respect to each such pro-
gram)— 
(1) the benefits provided; 
(2) the standards of eligibility therefor; 
(3) the standards and qualifications for partici-
pation by providers of services of various types; 
(4) the methods of administration; 
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(5) the costs and methods of financing; and 
(6) any other matters which might assist in 
making such determination and in insuring that all 
desirable features of the program under title XVIII 
of the Social Security Act will to the maximum ex-
tent feasible be preserved with respect to the individ-
uals covered by that program (and, in appropriate 
cases, included in the program under this Act for all 
individuals who are eligible thereunder, without re-
gard to any transfer). 
(c) REPORT.—The Secretary shall submit to the 
President and the Congress, no later than one year after 
the date of the enactment of this Act, a complete report 
of the study conducted under this section together with 
the Secretary’s findings as to the most effective and equi-
table way in which the transfer under consideration could 
be effected and detailed recommendations for legislative, 
administrative, and other actions to accomplish it. 
TITLE VIII—FISCAL PROVISIONS 
SEC. 801. USE OF TRUST FUND. 
(a) AVAILABILITY OF FUNDS.—Funds in the Na-
tional Health Care Trust Fund shall be available for all 
expenditures necessary or appropriate to carry out this 
Act; except that (subject to the provisions of section 
802(g)) only so much of such funds shall be available for 
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salaries or other administrative expenses of any depart-
ment or agency of the United States as may be authorized 
in annual or other appropriation Acts. 
(b) DEPOSIT OF REIMBURSEMENTS.—Sums received 
as reimbursements to the National Health Care Trust 
Fund pursuant to section 104(c) or section 105, or by vir-
tue of subrogation pursuant to section 104(c), shall be de-
posited in the National Health Care Trust Fund and shall 
be available in accordance with the provisions of sub-
section (a). 
SEC. 802. ALLOTMENT OF FUNDS. 
(a) FOR CLASSES OF SERVICES.— 
(1) IN GENERAL.—The Board, after consulta-
tion with the Advisory Council, shall determine, as 
far in advance of the beginning of each fiscal year 
as is possible, the sums which shall be available from 
the Trust Fund for provision during the fiscal year 
of all classes, and of each of the five classes, of per-
sonal health-service benefits specified in section 
101(a). 
(2) CONSIDERATIONS.—Such sums shall be de-
termined, after taking into consideration the esti-
mated amount which will be in the Trust Fund at 
the beginning of the fiscal year and the anticipated 
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