PER DIEM RATES FOR CARE IN STATE HOMES.

SEC. 134. PER DIEM RATES FOR CARE IN STATE HOMES. (a) Increases in Rates.— Section 641 is amended— (1) in subsection (a), by striking out clauses (1) through (3) and inserting in lieu thereof the following: “(1) $8.70 for domiciliary care; and “(2) $20.35 for nursing home care and hospital care,”; and (2) by adding at the end the following new subsection: “(d) Whenever the Administrator makes a determination pursuant to section 620(a)(2)(A) of this title that the cost of care furnished by the Veterans’ Administration in a general hospital under the direct jurisdiction of the Administrator has increased, the Administrator may, effective no earlier than the date of such determination, increase the rates paid under subsection (a) of this section by a percentage not greater than the percentage by which the Administrator has determined that such cost of care has increased.”. (b) Effective Dates.— (1) The amendment made by subsection (a)(1) shall take effect as of January 1, 1988. (2) The amendment made by subsection (a)(2) shall take effect on October 1, 1988.