Reimbursement of a State home for high cost medications

Section 1745(a)(3) of title 38, United States Code, is amended— (1) by striking Payment and inserting (A) Subject to subparagraph (B), payment; and (2) by adding at the end the following new subparagraphs: (B) In addition to payment described in subparagraph (A), the Secretary shall, at the election of a covered State home— (i) reimburse the covered State home for a costly medication; or (ii) furnish such costly medication to the covered State home. (C) In this paragraph: (i) The term costly medication means a drug or medicine for which the average wholesale price for one month’s supply, plus a 3 percent transaction fee, exceeds 8.5 percent of the payment under subparagraph (A) by the Secretary to a covered State home for care provided to the veteran who receives such costly medication during such month. (ii) The term covered State home means a State home that, in the course of nursing home care provided pursuant to a contract (or agreement) under paragraph (1), provides to a veteran a costly medication..