Authorizes the Secretary of Veterans Affairs (VA), in lieu of making payments to state homes for furnishing nursing home care to veterans, to enter into agreements with such homes to furnish such care under federal provisions which allow the Secretary to transfer to non-VA homes (at the expense of the United States) veterans who have been furnished such care in a facility under the jurisdiction of the Department of Veterans Affairs.
Replaces provisions providing for payment of nursing home care at the lesser of the prevailing rate or the cost of daily care with provisions providing for payment at the rate determined for a state home that is the applicable or prevailing rate payable in the geographic area in which the state home is located.