
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC1741]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
    CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE
 
                  SUBCHAPTER V--PAYMENTS TO STATE HOMES
 
Sec. 1741. Criteria for payment

    (a)(1) The Secretary shall pay each State at the per diem rate of--
        (A) $8.70 for domiciliary care; and
        (B) $20.35 for nursing home care and hospital care,

for each veteran receiving such care in a State home, if such veteran is 
eligible for such care in a Department facility.
    (2) The Secretary may pay each State per diem at a rate determined 
by the Secretary for each veteran receiving extended care services 
described in any of paragraphs (4) through (6) of section 1710B(a) of 
this title under a program administered by a State home, if such veteran 
is eligible for such care under laws administered by the Secretary.
    (b) In no case shall the payments made with respect to any veteran 
under this section exceed one-half of the cost of the veterans' care in 
such State home.
    (c) Whenever the Secretary makes a determination pursuant to section 
1720(a)(2)(A) of this title that the cost of care furnished by the 
Department in a general hospital under the direct jurisdiction of the 
Secretary has increased, the Secretary 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 Secretary has determined that such cost of care has increased.
    (d) Subject to section 1743 of this title, the payment of per diem 
for care furnished in a State home facility shall commence on the date 
of the completion of the inspection for recognition of the facility 
under section 1742(a) of this title if the Secretary determines, as a 
result of that inspection, that the State home meets the standards 
described in such section.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1146, Sec. 641; Pub. L. 86-625, 
July 12, 1960, 74 Stat. 424; Pub. L. 87-819, Sec. 1, Oct. 15, 1962, 76 
Stat. 935; Pub. L. 88-450, Sec. 3(a), Aug. 19, 1964, 78 Stat. 500; Pub. 
L. 90-432, Sec. 1, July 26, 1968, 82 Stat. 448; Pub. L. 91-178, Sec. 1, 
Dec. 30, 1969, 83 Stat. 836; Pub. L. 93-82, title IV, Sec. 403(a), Aug. 
2, 1973, 87 Stat. 196; Pub. L. 94-417, Sec. 1(a), Sept. 21, 1976, 90 
Stat. 1277; Pub. L. 94-581, title II, Sec. 202(o), Oct. 21, 1976, 90 
Stat. 2856; Pub. L. 96-151, title I, Sec. 101(b)(1), Dec. 20, 1979, 93 
Stat. 1092; Pub. L. 98-160, title I, Sec. 105(a), Nov. 21, 1983, 97 
Stat. 998; Pub. L. 100-322, title I, Sec. 134(a), May 20, 1988, 102 
Stat. 507; renumbered Sec. 1741 and amended Pub. L. 102-83, 
Secs. 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 
Stat. 404-406; Pub. L. 102-585, title IV, Sec. 406, Nov. 4, 1992, 106 
Stat. 4954; Pub. L. 104-66, title I, Sec. 1141(a), Dec. 21, 1995, 109 
Stat. 726; Pub. L. 104-262, title III, Sec. 342(a), Oct. 9, 1996, 110 
Stat. 3206; Pub. L. 106-117, title I, Sec. 101(g), Nov. 30, 1999, 113 
Stat. 1550.)


                            Prior Provisions

    Prior sections 1740 and 1741 were renumbered sections 3540 and 3541 
of this title, respectively.


                               Amendments

    1999--Subsec. (a)(2). Pub. L. 106-117 substituted ``extended care 
services described in any of paragraphs (4) through (6) of section 
1710B(a) of this title under a program administered by a State home'' 
for ``adult day health care in a State home''.
    1996--Subsec. (a). Pub. L. 104-262 designated existing provisions as 
par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), 
respectively, and added par. (2).
    1995--Subsecs. (c) to (e). Pub. L. 104-66 redesignated subsecs. (d) 
and (e) as (c) and (d), respectively, and struck out former subsec. (c) 
which read as follows: ``The Secretary shall submit every three years to 
the Committees on Veterans' Affairs of the Senate and House of 
Representatives a report on the adequacy of the rates provided in 
subsection (a) of this section in light of projections over each of the 
following five years of the demand on the Department for the provision 
of nursing home care to veterans eligible for such care under this 
section and sections 1710 and 1720 of this title. The first such report 
shall be submitted not later than June 30, 1986.''
    1992--Subsec. (e). Pub. L. 102-585 added subsec. (e).
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 641 of this 
title as this section.
    Subsec. (a). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator'' in introductory provisions.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration'' in concluding provisions.
    Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1710 and 
1720'' for ``610 and 620''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator''.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration''.
    Subsec. (d). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``1720(a)(2)(A)'' for ``620(a)(2)(A)''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' wherever appearing.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration''.
    1988--Subsec. (a). Pub. L. 100-322, Sec. 134(a)(1), added cls. (1) 
and (2) and struck out former cls. (1) to (3) which read as follows:
    ``(1) $7.30 for domiciliary care,
    ``(2) $17.05 for nursing home care, and
    ``(3) $15.25 for hospital care,''.
    Subsec. (d). Pub. L. 100-322, Sec. 134(a)(2), added subsec. (d).
    1983--Subsec. (a). Pub. L. 98-160, Sec. 105(a)(1), substituted 
``$7.30'' for ``$6.35'' in par. (1), ``$17.05'' for ``$12.10'' in par. 
(2), and ``$15.25'' for ``$13.25'' in par. (3).
    Subsec. (c). Pub. L. 98-160, Sec. 105(a)(2), added subsec. (c).
    1979--Subsec. (a). Pub. L. 96-151 substituted ``$6.35'' for 
``$5.50'', ``$12.10'' for ``$10.50'', and ``$13.25'' for ``$11.50''.
    1976--Pub. L. 94-581 struck out ``of any war or of service after 
January 31, 1955'' after ``for each veteran'' in provisions following 
par. (3).
    Pub. L. 94-417 designated existing provisions as subsec. (a), 
increased from $4.50 to $5.50 the per diem rate for domiciliary care, 
from $6 to $10.50 the per diem rate for nursing home care, and from $10 
to $11.50 the per diem rate for hospital care, struck out ``of any war 
or of service after January 31, 1955'' after ``for each veteran'', ``, 
in the case of such a veteran receiving domiciliary or hospital care,'' 
after ``if'', and provisions relating to the case of a veteran receiving 
nursing home care, and added subsec. (b).
    1973--Pub. L. 93-82 increased from $3.50 to $4.50 the per diem rate 
for domiciliary care, from $5 to $6 the per diem rate for nursing home 
care, and from $7.50 to $10 the per diem rate for hospital care, and 
substituted ``veteran of any war or of service after January 31, 1955'' 
for ``veteran of any war''.
    1969--Pub. L. 91-178 increased from $3.50 to $7.50 the per diem 
payment for hospital care.
    1968--Pub. L. 90-432 increased from $2.50 to $3.50 the per diem rate 
for hospital or domiciliary care and from $3.50 to $5.00 the per diem 
rate for nursing home care as the amounts the Administrator shall pay 
each State providing such services for veterans.
    1964--Pub. L. 88-450 amended section generally and, among other 
changes, authorized payment at the per diem rate of $3.50 for each 
veteran receiving nursing care in a State home, if such veteran meets 
the requirements of paragraph (1), (2), or (3) of section 610(a) of this 
title, except that the requirement in clause (B) of such paragraph (1) 
shall, for this purpose, refer to the inability to defray the expenses 
of necessary nursing home care, and eliminated provisions which 
permitted reduction of the amount payable to the State homes under 
certain conditions and prohibited payments to State homes where a bar or 
canteen is maintained therein where intoxicating liquors are sold.
    1962--Subsec. (b). Pub. L. 87-819 provided that no reduction shall 
be made by the retention or collection by a State home of amounts from 
the estate of a deceased veteran if such amounts are placed in a post or 
other special fund for the benefit of the State home or its inhabitants 
in providing the benefits enumerated in clauses (A) to (C).
    1960--Subsec. (a). Pub. L. 86-625 substituted ``at the per diem rate 
of $2.50 per diem for each veteran'' for ``at the annual rate of $700.00 
for each veteran''.


                    Effective Date of 1988 Amendment

    Section 134(b) of Pub. L. 100-322 provided that:
    ``(1) The amendment made by subsection (a)(1) [amending this 
section] shall take effect as of January 1, 1988.
    ``(2) The amendment made by subsection (a)(2) [amending this 
section] shall take effect on October 1, 1988.''


                    Effective Date of 1983 Amendment

    Section 105(b) of Pub. L. 98-160 provided that: ``The amendments 
made by subsection (a) [amending this section] shall take effect on 
April 1, 1984.''


                    Effective Date of 1979 Amendment

    Section 101(b)(2) of Pub. L. 96-151 provided that: ``The amendments 
made by paragraph (1) [amending this section] shall take effect on 
January 1, 1980, but, with respect to fiscal year 1980, shall take 
effect only to such extent and in such amounts as may be specifically 
provided for such purpose in appropriation Acts.''


                    Effective Date of 1976 Amendments

    Amendment by Pub. L. 94-581 effective Oct. 21, 1976, see section 211 
of Pub. L. 94-581, set out as a note under section 111 of this title.
    Section 1(c) of Pub. L. 94-417 provided that:
    ``(1) The amendments made by subsection (a) of this section 
[amending this section] shall be effective on October 1, 1976.
    ``(2) At the time of the first payment to a State under section 641 
[now 1741] of title 38, United States Code, as amended by subsection (a) 
of this section, the Administrator of Veterans' Affairs shall pay such 
State, in a lump sum, an amount equal to the difference between the 
total amount paid each such State under such section 641 [now 1741] for 
care provided by such State in a State home from January 1, 1976, to 
October 1, 1976, and the amount such State would have been paid for 
providing such care if the amendment made by subsection (a) of this 
section had been effective on January 1, 1976.''


                    Effective Date of 1973 Amendment

    Amendment by Pub. L. 93-82 effective Sept. 1, 1973, see section 501 
of Pub. L. 93-82, set out as a note under section 1701 of this title.


                    Effective Date of 1964 Amendment

    Section 3(c) of Pub. L. 88-450 provided that: ``The amendment made 
by this section [amending this section] shall take effect on January 1, 
1965; except that subsection (b) of section 641 [now 1741] of title 38, 
United States Code, as in effect immediately before such date, shall 
remain in effect with respect to any amounts retained or collected by 
any State home before such date.''


                Payments to States for Nursing Home Care

    Section 3(b) of Pub. L. 88-450 provided that: ``No payment shall be 
made to any State home solely by reason of the amendment made by this 
section [amending this section] on account of nursing home care 
furnished any veteran except where such care is furnished the veteran by 
the State home for the first time after the effective date of this 
section [Jan. 1, 1965].''

                  Section Referred to in Other Sections

    This section is referred to in sections 2303, 5503, 8122, 8126, 8134 
of this title; title 42 sections 1396a, 1396r-8.
