A bill to amend section 1729 of title 38, United States Code, to improve the Department of Veterans Affairs medical care cost-recovery program.

Makes permanent (currently, expires August 1, 1994) the authority of the United States (through the Department of Veterans Affairs) to recover from third-party insurers the cost of Department care provided to certain veterans with service-connected disabilities that could have been provided by such third party insurer. Requires unobligated balances present in the Department of Veterans Affairs Medical-Care Cost Recovery Fund at the close of a fiscal year and determined to be excess by the Secretary of Veterans Affairs to be deposited, by January 1 of the following fiscal year, to appropriations available to Department medical centers to be allocated on a basis proportionate to contributions. (Currenty, such excess Fund amounds are deposited into the Treasury as miscellaneous receipts.)