ELIGIBILITY FOR OUTPATIENT SERVICES.

SEC 101. ELIGIBILITY FOR OUTPATIENT SERVICES. (a) Certain Veterans With Service-Connected Disabilities.— Paragraph (1) of section 612(a) is amended— (1) in the matter preceding clause (A), by striking out “may furnish” and inserting in lieu thereof “shall furnish on an ambulatory or outpatient basis”; (2) by striking out “and” at the end of clause (A); (3) by striking out the period at the end of clause (B) and inserting in lieu thereof “; and”; and (4) by adding at the end the following new clause: “(C) to any veteran for a disability for which the veteran is in receipt of compensation under section 351 of this title or for which the veteran would be entitled to compensation under that section but for a suspension pursuant to that section (but in the case of such a suspension, such medical services may be furnished only to the extent that such person’s continuing eligibility for medical services is provided for in the judgment or settlement described in that section).”. (b) Other Veterans.— Section 612(a) is further amended— (1) by striking out paragraph (2); (2) by redesignating paragraph (3) as paragraph (6); and (3) by inserting after paragraph (1) the following: 102 STAT. 490 “(2) The Administrator shall furnish on an ambulatory or out-patient basis medical services for a purpose described in paragraph (5) of this subsection— “(A) to any veteran who has a service-connected disability rated at 30 percent or 40 percent; and “(B) to any veteran who is eligible for hospital care under section 610(a) of this title and whose annual income (as determined under section 503 of this title) does not exceed the maximum annual rate of pension that would be applicable to the veteran if the veteran were eligible for pension under section 521(d) of this title. “(3) The Administrator may furnish on an ambulatory or out-patient basis medical services which the Administrator determines are needed— “(A) to any veteran who is a former prisoner of war; “(B) to any veteran of the Me)(ican border period or cf World War I; and “(C) to any veteran who is in receipt of increased pension or additional compensation or allowances based on the need of regular aid and attendance or by reason of being permanently housebound (or who, but for the receipt of retired pay, would be in receipt of such pension, compensation, or allowance). “(4) Subject to subsection (f) of this section, the Administrator may furnish on an ambulatory or outpatient basis medical services for a purpose described in paragraph (5) of this subsection to any veteran who is eligible for hospital care under section 610 of this title and who is not otherwise eligible for such services under this subsection. “(5) (A) Medical services for a purpose described in this paragraph are medical services reasonably necessary in preparation for hospital admission or to obviate the need of hospital admission. In the case of a veteran described in paragraph (4) of this subsection, services to obviate the need of hospital admission may be furnished only to the extent that facilities are available. “(B) In the case of a veteran who has been furnished hospital care, nursing home care, or domiciliary care, medical services for a purpose described in this paragraph include medical services reasonably necessary to complete treatment incident to such care. Such medical services may not be provided for a period in excess of 12 months after discharge from such care. However, the Administrator may authorize a longer period in any case if the Administrator finds that a longer period is required by reason of the disability being treated.”. (c) Priority for Outpatient Services.— Section 612(i) is amended by striking out paragraphs (1) through (6) and inserting in lieu thereof the following: “(1) To a veteran who is entitled to such services under paragraph (1) or (2) of subsection (a) of this section. “(2) To a veteran (A) who has a service-connected disability rated at less than 30-percent disabling, or (B) who is being examined to determine the e)(istence or severity of a service-connected disability. “(3) To a veteran (A) who is a former prisoner of war, or (B) who is eligible for hospital care under section 610(e) of this title. “(4) To a veteran eligible for medical services under subsection (a)(3)(B) or (a)(3)(C) of this section. “(5) To a veteran not covered by paragraphs (1) through (4) of this subsection who is unable to defray the expenses of nec-102 STAT. 491essary care as determined under section 622(a)(1)(C) of this title.”. (d) Home Health Services.— (1) Section 617 is amended— (A) by redesignating subsections (a) and (b) as subsections (b) and (c), respectively; and (B) by inserting after the section heading the following new subsection (a): “(a) (1) As part of medical services furnished to a veteran under section 612(a) of this title, the Administrator may furnish such home health services as the Administrator finds to be necessary or appropriate for the effective and economical treatment of the veteran’s disability. “(2) Improvements and structural alterations may be furnished as part of such home health services only as necessary to assure the continuation of treatment for the veteran’s disability or to provide access to the home or to essential lavatory and sanitary facilities. The cost of such improvements and structural alterations (or the amount of reimbursement therefor) under this subsection may not exceed— “(A) $2,500 in the case of medical services furnished under paragraph (1) of section 612(a) of this title; or “(B) $600 in the case of medical services furnished under any other provision of section 612 of this title.”. (2) Subsection (k) of section 612 is transferred to section 617 (as amended by paragraph (1)), inserted at the end of subsection (a) (as added by paragraph (1)), and redesignated as paragraph (3). (3) The heading of section 617 is amended to read as follows: “§ 617. Home health services; invalid lifts and other devices”. (e) Conforming Amendments.— (1) Section 612(f) is amended— (A) by striking out paragraphs (1), (2), and (3); (B) by striking out “(4)(A) The Administrator may not furnish medical services under this subsection (including home health services under paragraph (2) of this subsection)” and inserting in lieu thereof “(1) The Administrator may not furnish medical services under subsection (a) of this section (including home health services under section 617 of this title)”; (C) by striking out “subparagraph (B) of this paragraph” and inserting in lieu thereof “paragraph (2) of this subsection”; (D) by redesignating subparagraphs (B) through (G) as paragraphs (2) through (7), respectively; (E) by striking out “this paragraph” each place it appears in such paragraphs and inserting in lieu thereof “this subsection”; (F) in paragraph (2) (as so redesignated), by striking out “this subsection and who is required under subparagraph (A)” and inserting in lieu thereof “subsection (a) of this section and who is required under paragraph (1)”; (G) in paragraph (3) (as so redesignated), by striking out “furnished under this subsection” and inserting in lieu thereof “furnished under subsection (a) of this section”; and (H) in paragraph (5) (as so redesignated), by striking out “under this subsection” and inserting in lieu thereof “under section 617 of this title”. (2) Section 612 is further amended— (A) in the first sentence of subsection (b)(4), by striking out “subsections (a) and (f) of this section” and inserting in lieu 102 STAT. 492thereof “subsection (a) of this section (other than paragraphs (3)(B) and (3)(C) of that subsection)”; and (B) by striking out subsection (g). (3) Section 603(a)(2) is amended— (A) in clause (B), by striking out “section 612(f)(1)(A)(ii) of this title” and inserting in lieu thereof “section 612(a)(4) of this title, for a purpose described in section 612(a)(5) of this title”; and (B) in clause (C), by striking out “section 612(g)” and inserting in lieu thereof “section 612(a)(3) (other than a veteran who is a former prisoner of war)”. (f) Technical Amendments.— Section 612(b)(1)(B) is amended— (1) in clause (i), by striking out “at time of” and inserting in lieu thereof “at the time of the veteran’s”; (2) in clause (ii), by striking out “one hundred and eighty days” and inserting in lieu thereof “180 days”; (3) in clause (iii), by striking out “ninety days” each place it appears and inserting in lieu thereof “90 days”; and (4) in clause (iv), by striking out “ninety-day” and inserting in lieu thereof “90-day”. (g) Repeal of Dated Provisions; Grandfather Provision.— (1) Section 612 is amended— (A) in subsection (b)(1), by striking out subparagraph (F) and redesignating subparagraphs (G) and (H) as subparagraphs (F) and (G), respectively; and (B) by striking out subsection (e). (2) Any disability of a veteran of the Spanish-American War, upon application for outpatient medical services under section 612 or 624 of title 38, United States Code, shall be considered for the purposes thereof to be a service-connected disabilty and, for the purposes of section 612(b) of such title, to be compensable in degree. (h) Clerical Amendments.— (1) The heading of section 612 is amended to read as follows: “§ 612. Eligibility for outpatient services” (2) The table of sections at the beginning of chapter 17 is amended— (A) by striking out the item relating to section 612 and inserting in lieu thereof the following: “612. Eligibility for outpatient services.”; and (B) by striking out the item relating to section 617 and inserting in lieu thereof the following: “ 617. Home health services; invalid lifts and other devices.”. (i) Effective Date.— The amendments made by this section shall apply with respect to the furnishing of medical services to veterans who apply for such services after June 30, 1988.