Adds an allowance of up to $78 for a service-connected veteran (50% or more disabled) whose spouse requires aid and attendance. This rate is in lieu of a rate for a spouse not so disabled. Estimated cost - $10.9 million.

Increased the clothing allowance rate from $175 to $190.

Estimated cost

$.8 million.

Provides for the payment of transportation expenses of service-connected deceased veterans to a national cemetery. Estimated cost - $.5 million.

$40,000.

Increased the limits of Mortgage Protection Life Insurance from $30,000 to
Estimated cost - $.1 million.

The total anticipated cost of the above compensation legislation is $397 million.

PART 25. READJUSTMENT BENEFITS

Funds in the amount of $588,450,000 are available for transfer to the Compensation and Pension Appropriation as trainee participation rates dropped below the peak of 1975-76. Improvement in the economy over the past year has resulted in au appreciable reduction in the number of Post-Korean conflict trainees, despite the attraction of an 8% rate increase provided by the enactment of PL 94-502.

PART 26. MEDICAL CARE

(Supplemental now requested, existing legislation)

For an additional amount for "Medical care", $34,967,000.

Justification

A fiscal year 1977 program supplemental appropriation of $34,967,000 is requested to provide funding support for: (1) the increased cost due to enactment of the Veterans Omnibus Health Care Act of 1976, Public Law 94-581, approved October 21, 1976; (2) the increased cost due to enactment of Public Law 94-417, approved September 21, 1976, which provides for higher per diem payments to be made to State home hospitals, domiciliaries, and nursing homes; and (3) the increased cost due to enactment of Public Law 94-397, approved September 3, 1976, which requires agencies to reimburse the Civil Service retirement fund on behalf of annuitants who have been re-employed in government service.

The makeup of this supplemental request is set forth in the following table and narrative statements:

1.

Increased cost of PL 94-581, the Veterans Omnibus Health Care Act of 1976. In addition to numerous technical changes to basic veterans legislation, PL 94-581, approved October 21, 1976, made the following changes in entitlement to care or in type of care to be provided by the Veterans Administration, funds for which are requested in this supplemental:

a. Family Mental Health Services for the immediate family or legal guardian of a veteran can be rendered as may be essential to the effective treatment and rehabilitation of the veteran. Such services, to include consultation, professional counseling, training, and mental health services, are authorized as necessary in connection with the treatment of a veteran for a service-connected disability, or, at the discretion of the Administrator, for a non-serviceconnected disability if such services are essential to permit the early discharge of such veteran from the hospital. It is estimated that 248,000 outpatient visits will be made in this connection during FY 1977. Average employment of 136 and $3,780,000 are requested to initiate these new services in 1977.

b.

Outpatient Dental Services and Treatment are now authorized for a nonservice-connected condition or disability of a veteran if treatment begins during a period of hospitalization and is reasonably necessary to complete such treatment after discharge. Prior to this amendment, treatment of non-serviceconnected dental conditions was authorized only on an inpatient basis. It is estimated that 25,000 dental treatments will be made in this connection in FY 1977. Average employment of 49 and $1,762,000 are requested to initiate these new services.

c.

Outpatient services for veterans with service-connected disabilities of 50% or more are now authorized. Prior to this amendment, a veteran could receive outpatient care and services for any disability if he had a service-connected disability rated at 80% or more. It is estimated that this change in entitlement will generate 183,000 outpatient visits in FY 1977. Average employment of 365 and $10,000,000 are requested to provide for this workload.