Title 38 › Part II— GENERAL BENEFITS › Chapter 17— HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE › Subchapter V— PAYMENTS TO STATE HOMES › § 1745
The Secretary must make contracts with each State veterans home to pay for nursing home care for veterans who need care for a service-connected disability, and for veterans who have a service-connected disability rated 70% or higher and need care. Payment amounts will be set by a method the Secretary makes with the State homes so the homes are properly paid. When the Secretary pays under these contracts, that payment is the full payment for that care. State homes must give the Secretary whatever information is needed to identify veterans who are eligible. Agreements to pay are not treated like normal competitive government hospital contracts. State homes are mostly not held to the same laws that apply to Medicare providers, but they must follow laws about fraud and ethics, employment discrimination, and the rules in this part of the law. They are not treated as federal contractors under the Service Contract Act. The Secretary must also provide prescription drugs ordered by a licensed doctor for veterans who are not getting nursing-home-paid care but who need the drugs for a service-connected disability; for veterans with a service-connected disability rated 50% or more who need the drugs; and for veterans the Secretary finds to be catastrophically disabled (as defined in 38 CFR 17.36(e)) who are getting a per diem for nursing or domiciliary care in a State home. The Secretary must also contract to pay State homes for "medical supervision model adult day health care" for veterans who qualify under the nursing-home rules but are not in nursing home care. The payment rate for that adult day care, set by regulation after consulting State homes, must cover care and needed transportation and becomes effective 30 days after the rules are published. Payment for this care is also full payment. "Medical supervision model adult day health care" means adult day health care that coordinates doctor, dental, nursing, and drug administration services and any other requirements the Secretary decides.
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Veterans' Benefits — Source: USLM XML via OLRC
Legislative History
Reference
Citation
38 U.S.C. § 1745
Title 38 — Veterans' Benefits
Last Updated
Apr 5, 2026
Release point: 119-73not60