To amend title 38, United States Code, to provide for increased flexibility in establishing rates for reimbursement of State homes by the Secretary of Veterans Affairs for nursing home care provided to veterans.

[AI summary unavailable — showing source text] Directs the Secretary of Veterans Affairs (VA) to enter into a contract or agreement with each state home to pay for nursing home care provided in the home to certain veterans with service-connected disabilities. Requires such payment to be based on a methodology, developed by the Secretary in consultation with the home state, to adequately reimburse the state home for the care provided under such contract or agreement. (Current law requires payment at the lesser of the prevailing rate in the geographic area for non-VA nursing homes or the daily cost of care, both of which are determined by the Secretary.)…