Veterans Long-Term Care Security Act of 2006

Subsection (c) of section 1741 of title 38, United States Code, is amended—

(1) by inserting (1) after (c); and

(2) by adding at the end the following new paragraph:

(A) If the Secretary proposes to implement a reduction in payments made under this section with respect to a fiscal year the Secretary shall, not later than January 1 of the preceding fiscal year, submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans' Affairs of the House of Representatives a report containing a detailed justification of such proposed reduction.

(B) For purposes of this paragraph, a reduction in payments is—

(i) a lack of increase in the rates paid under subsection (a) pursuant to a determination of the Secretary under paragraph (1); or

(ii) a modification of the eligibility for veterans to receive care in State homes that would, if enacted into law, result in fewer veterans eligible to receive such care in State homes.

(C) In preparing a report under subparagraph (A), the Secretary shall consult with the heads and appropriate officials of the State and local agencies responsible for the supervision of State homes in each State in which State homes are operated, and representatives of such other organizations with expertise in State home matters as the Secretary determines appropriate.

(D) A report under subparagraph (A) shall include the following information:

(i) A specific description of the degree to which the proposed reduction in payments would effect the financial well-being of each State home.

(ii) A detailed description of the consultation with heads, officials, and representatives required under subparagraph (C), and the results of that consultation.

(iii) A description of the intent of the Secretary to recover grant amounts under section 8136(a) of this title where a State determines, as a result of the proposed reduction in payments, to close a State home within the period prescribed under that section.

(iv) A description of the effect of the proposed reduction in payments on the long-term care needs of veterans who receive care in State homes, including a description of the options for long-term care in reasonably proximate facilities available to such veterans and an assessment of the cost of the provision of care for such veterans in such facilities.

The amendment made by subsection (a) shall take effect on the date of enactment of this Act, and apply with respect to per diem payments made under section 1741 of title 38, United States Code, on or after such date.

Subchapter V of chapter 17 of title 38, United States Code, is amended by adding at the end the following new section:

(1) The Secretary shall pay each State home for nursing home care at the applicable rate payable under section 1720 of this title for nursing home care furnished in a non-Department nursing home (as that term is defined in subsection (e)(2) of such section), where such care is provided to any veteran as follows:

(A) Any veteran in need of such care for a service-connected disability.

(B) Any veteran who—

(i) has a service-connected disability rated at 70 percent or more; and

(ii) is in need of such care.

(2) Payment by the Secretary under paragraph (1) to a State home for nursing home care provided to a veteran described in that paragraph constitutes payment in full to the State home for such care furnished to that veteran.

Such section is further amended by adding at the end the following new subsection:

(b) The Secretary shall furnish such drugs and medicines as may be ordered on prescription of a duly licensed physician as specific therapy in the treatment of illness or injury to any veteran as follows:

(1) Any veteran in need of such drugs and medicines for a service-connected disability.

(2) Any veteran who—

(A) has a service-connected disability rated at 50 percent or more;

(B) is provided nursing home care that is payable under subsection (a); and

(C) is in need of such drugs and medicines.

Section 1741(a)(1) of such title is amended by striking The and inserting Except as provided in section 1744 of this title, the.

Section 1710(a)(4) of such title is amended—

(A) by striking and before the requirement in section 1710B of this title; and

(B) by inserting, and the requirement in section 1744 of this title to provide nursing home care and prescription medicines to veterans with service-connected disabilities in State homes after a program of extended care services.

The table of sections at the beginning of chapter 17 of such title is amended by inserting after the item relating to section 1743 the following new item:

The amendment made by this section shall take effect on October 1, 2006.

Subchapter III of chapter 81 of title 38, United States Code, is amended by adding at the end the following new section:

(a) The Secretary may treat a health facility as a State home for purposes of subchapter V of chapter 17 of this title if the following requirements are met:

(1) The facility meets the standards for the provision of nursing home care that is applicable to State homes, as prescribed by the Secretary under section 8134(b) of this title, and such other standards relating to the facility as the Secretary may require.

(2) The facility is licensed or certified by the appropriate State and local agencies charged with the responsibility of licensing or otherwise regulating or inspecting State home facilities.

(3) The State demonstrates in an application to the Secretary that, but for the treatment of a facility as a State home under this subsection, a substantial number of veterans residing in the geographic area in which the facility is located who require nursing home care will not have access to such care.

(4) The Secretary determines that the treatment of the facility as a State home best meets the needs of veterans for nursing home care in the geographic area in which the facility is located.

(5) The Secretary approves the application submitted by the State with respect to the facility.

(b) The Secretary may not treat a health facility as a State home under subsection (a) if the Secretary determines that such treatment would increase the number of beds allocated to the State in excess of the limit on the number of beds provided for by regulations prescribed under section 8134(a) of this title.

(c) The number of beds occupied by veterans in a health facility for which payment may be made under subchapter V of chapter 17 of this title by reason of subsection (a) shall not exceed the number of veterans in beds in State homes that otherwise would be permitted in the State under regulations prescribed under section 8134(a) of this title.

(d) The number of beds in a health facility in a State that has been treated as a State home under subsection (a) shall be taken into account in determining the unmet need for beds for State homes for the State under section 8134(d)(1) of this title.

The table of sections at the beginning of chapter 81 of such title is amended by inserting after the item relating to section 8137 the following new item: