necessary for startup and transition costs). The Secretary
shall establish such premiums, copayments, and other
charges for the plan as necessary.
‘‘§ 1806. Annual report
‘‘(a) The Secretary shall submit to Congress an an-
nual report on the VA Group Health Plan. The report
shall provide information on prices, health outcomes, and
enrollee satisfaction under the plan and any other infor-
mation the Secretary considers appropriate concerning the
quality of the plan, including a breakdown of the portion
of premiums under the plan that are attributable to the
overhead operations of the plan.
‘‘(b) The report shall be submitted each year before
the annual general enrollment period. The Secretary shall
make such report available to other interested persons.’’.
(2) The table of chapters at the beginning of part
II of title 38, United States Code, is amended by inserting
after the item relating to chapter 17 the following new
item:
‘‘18. VA Group Health Plan ..................................................................... 1801.’’.
(b) INITIAL REPORT.—The initial report of the Sec-
retary of Veterans Affairs under section 1806 of title 38,
United States Code, as added by subsection (a), shall be
submitted no later than September 30, 1995. The report
shall include a cost analysis for the plan and a range of
premiums and copayments that may be implemented
under the plan.
SEC. 5. MANAGED CARE SYSTEM OF HEALTH DELIVERY.
(a) Chapter 73 of title 38, United States Code, is
amended by inserting after section 7306 the following new
sections:
‘‘§ 7307. Managed care
‘‘(a) The Secretary shall administer the health pro-
grams of the Veterans Health Administration through use
of the model of medical practice known as ‘managed care’.
‘‘(b) In implementing a managed care system, the
Under Secretary shall, to the extent possible—
‘‘(1) shift the focus of care provided by the Vet-
erans Health Administration to primary care;
‘‘(2) establish enhanced quality assurance
mechanisms; and
‘‘(3) establish utilization review procedures to
prevent inefficient practices.
‘‘§ 7308. Veterans Service Areas
‘‘The Secretary shall organize the health care delivery
services and resources of the Veterans Health Administra-
tion into geographic regions to be known as Veterans Serv-
ice Areas.’’.
(b) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 7306 the following new items:
‘‘7307. Managed care.
‘‘7308. Veterans Service Areas.’’.
(c) If, as of the date of the enactment of this Act,
the position of Under Secretary for Health of the Depart-
ment of Veterans Affairs is vacant, the provisions of sec-
tion 7308 of title 38, United States Code, as added by
subsection (a), shall not take effect until an individual is
appointed to that position.
SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Sec-
retary of Veterans Affairs for each of fiscal years 1995
through 1999 (in constant fiscal year 1995 dollars)—
(1) $200,000,000 to acquire medical equipment
to relieve the existing medical equipment backlog in
Department of Veterans Affairs medical facilities;
and
(2) $500,000,000 for improvements of infra-
structure, patient care amenities, primary care serv-
ices, and personnel and for medical facility construc-
tion projects (subject to section 8104 of title 38,
United States Code).
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