Title IV, SEC. 4062. COVERAGE OF SERVICES PROVIDED TO MEDICARE BENEFICIARIES BY 
PLANS AND FACILITIES OF DEPARTMENT OF VETERANS AFFAIRS. 
      (a) In General. Title XVIII, as amended by sections 4001 and 4003, is 
    further amended by adding at the end the following new section: 

    ``treatment of plans and facilities of department of veterans affairs as 
  providers 

      ``Sec. 1895. (a) In General. Notwithstanding any other provision of this 
    title 

      ``(1) a VA health plan (as defined in section 1801(2) of title 38, United 
    States Code) shall be considered an eligible organization for purposes of 
    section 1876; and 

      ``(2) a health care facility of the Department of Veterans Affairs shall 
    be considered a provider of services under section 1861(u). 

      ``(b) Eligibility for Payments. 

      ``(1) VA health plans. The Secretary shall make payments to a VA health 
    plan during a year on behalf of any individuals entitled to benefits under 
    this title who are enrolled with such a plan during the year in the same 
    amounts and under the same terms and conditions under which the Secretary 
    makes payments to eligible organizations with a risk-sharing contract under 
    section 1876. 

      ``(2) Health care facilities. The Secretary shall make payments to a 
    health care facility of the Department of Veterans Affairs for services 
    provided to an individual entitled to benefits under this title in the same 
    amounts and under the same terms and conditions under which the Secretary 
    makes payments to provider of services under this title.''. 

      (b) Effective Date. The amendment made by subsection (a) shall apply to 
    items and services furnished under title XVIII of the Social Security Act 
    on or after January 1, 1998.