Veterans' Health Care Benefits Administration Act of 1987

Veterans' Health Care Benefits Administration Act of 1987 - Amends Federal veterans' benefits provisions to authorize the Administrator of Veterans Affairs to contract with non-Veterans Administration (VA) facilities for the provision of medical emergency care for veterans in authorized community nursing homes when VA facilities are not capable of providing such emergency service. Adds hospitalization for observation and examination to determine VA benefit eligibility to those services authorized to be contracted out.

Allows the per diem cost of community nursing home care purchased by the VA in Alaska and Hawaii to equal 50 percent of VA-purchased hospital care in such States.

Authorizes the Administrator to furnish hospital care and medical services to a veteran who is sojourning or residing abroad: (1) for a service-connected disability; or (2) when needed in a vocational rehabilitation program outside the United States. (Currently, such benefits are available only for veterans with service-connected disabilities who: (1) are citizens of the United States sojourning or residing abroad; or (2) are in the Republic of the Philippines.)

Amends the Veterans' Health Care Amendments of 1979 to repeal a specified provision requiring annual reports from the Chief Medical Director of the VA to the Congress concerning the implementation of certain contracting-out provisions under such Act, and on the number of veterans provided contract treatment in each State.