To ensure that future funding for health care for former members of the Armed Forces takes into account changes in population and inflation.

SA 1937. Ms. STABENOW (for herself, Mr. Johnson, Mr. Thune, Mr.
Akaka, Mrs. Murray, Mr. Dayton, Mr. Nelson of Florida, Mr. Lautenberg,
Mr. Salazar, Mrs. Lincoln, Mr. Corzine, Mr. Baucus, Ms. Landrieu, Mr.
Jeffords, Mr. Bayh, and Mr. Bingaman) submitted an amendment intended
to be proposed by her to the bill H.R. 2863, making appropriations for
the Department of Defense for the fiscal year ending September 30,
2006, and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:
Sec. __. (a) Funding for Veterans Health Care to Address
Changes in Population and Inflation.--Chapter 3 of title 38,
United States Code, is amended by adding at the end the
following new section:

``Sec. 320. Funding for veterans health care to address
changes in population and inflation

``(a) By the enactment of this section, Congress and the
President intend to ensure access to health care for all
veterans. Upon the enactment of this section, funding for the
programs, functions, and activities of the Veterans Health
Administration specified in subsection (d) to accomplish this
objective shall be provided through a combination of
discretionary and mandatory funds. The discretionary amount
should be equal to the fiscal year 2005 discretionary funding
for such programs, functions, and activities, and should
remain unchanged each fiscal year thereafter. The annual
level of mandatory amount shall be adjusted according to the
formula specified in subsection (c).
``(b) On the first day of each fiscal year, the Secretary
of the Treasury shall make available to the Secretary of
Veterans Affairs the amount determined under subsection (c)
with respect to that fiscal year. Each such amount is
available, without fiscal year limitation, for the programs,
functions, and activities of the Veterans Health
Administration, as specified in subsection (d). There is
hereby appropriated, out of any sums in the Treasury not
otherwise appropriated, amounts necessary to implement this
section.
``(c)(1) The amount applicable to fiscal year 2006 under
this subsection is the amount equal to--
``(A) 130 percent of the amount obligated by the Department
during fiscal year 2004 for the purposes specified in
subsection (d), minus
``(B) the amount appropriated for those purposes for fiscal
year 2005.
``(2) The amount applicable to any fiscal year after fiscal
year 2006 under this subsection is the amount equal to the
product of the following, minus the amount appropriated for
the purposes specified for subsection (d) for fiscal year
2005:
``(A) The sum of--
``(i) the number of veterans enrolled in the Department
health care system under section 1705 of this title as of
July 1 preceding the beginning of such fiscal year; and
``(ii) the number of persons eligible for health care under
chapter 17 of this title who are not covered by clause (i)
and who were provided hospital care or medical services under
such chapter at any time during the fiscal year preceding
such fiscal year.
``(B) The per capita baseline amount, as increased from
time to time pursuant to paragraph (3)(B).
``(3)(A) For purposes of paragraph (2)(B), the term `per
capita baseline amount' means the amount equal to--
``(i) the amount obligated by the Department during fiscal
year 2005 for the purposes specified in subsection (d),
divided by
``(ii) the number of veterans enrolled in the Department
health care system under section 1705 of this title as of
September 30, 2004.
``(B) With respect to any fiscal year, the Secretary shall
provide a percentage increase (rounded to the nearest dollar)
in the per capita baseline amount equal to the percentage by
which--

[[Page S10833]]

``(i) the Consumer Price Index (all Urban Consumers, United
States City Average, Hospital and related services,
Seasonally Adjusted), published by the Bureau of Labor
Statistics of the Department of Labor for the 12-month period
ending on the June 30 preceding the beginning of the fiscal
year for which the increase is made, exceeds
``(ii) such Consumer Price Index for the 12-month period
preceding the 12-month period described in clause (i).
``(d)(1) Except as provided in paragraph (2), the purposes
for which amounts made available pursuant to subsection (b)
shall be all programs, functions, and activities of the
Veterans Health Administration.
``(2) Amounts made available pursuant to subsection (b) are
not available for--
``(A) construction, acquisition, or alteration of medical
facilities as provided in subchapter I of chapter 81 of this
title (other than for such repairs as were provided for
before the date of the enactment of this section through the
Medical Care appropriation for the Department); or
``(B) grants under subchapter III of chapter 81 of this
title.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``320. Funding for veterans health care to address changes in
population and inflation.''.
______