Title 38 › PART II — GENERAL BENEFITS › CHAPTER 17 — HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE › SUBCHAPTER V — PAYMENTS TO STATE HOMES › § 1745
The Secretary of Veterans Affairs must make payment deals with each State-run veterans’ home to pay for nursing home care when a veteran needs care for a service-connected disability, and also for any veteran who has a service-connected disability rated 70% or higher and needs such care. The VA must set a way to figure payments after talking with the State home so the home is fairly paid. When the VA pays under these deals, that payment counts as full payment for the care. These agreements do not have to go through normal competitive contracting rules. State homes that sign the deals do not have to follow laws that only apply to Medicare providers, except they must follow laws about fraud, ethics, employment discrimination, and the rules in this part of the law. They also are not treated as federal contractors for the Service Contract Act. The VA must also supply prescription drugs ordered by a licensed doctor for veterans who need them for a service-connected disability if the veteran is not already getting VA-paid nursing home care. That includes veterans rated 50% or higher and those the VA finds catastrophically disabled and for whom the VA pays a nursing home or domiciliary per diem. A State home that asks for payment must give the VA whatever information is needed to show each veteran is eligible. The VA must also make payment agreements for “medical supervision model” adult day health care for eligible veterans not in VA-paid nursing homes. The VA will set rates by rule, include needed transportation, consult State homes, and let the rules take effect 30 days after they are published. Medical supervision model adult day health care includes doctor, dental, and nursing coordination, drug administration, and other VA-required services.
Full Legal Text
Veterans' Benefits, Source: USLM XML via OLRC
Legislative History
Reference
Citation
38 U.S.C. § 1745
Title 38, Veterans' Benefits
Last Updated
Aug 21, 2026
Release point: 119-102