Medicare Subvention Demonstration for Veterans Act of 1999

Medicare Subvention Demonstration for Veterans Act of 1999 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to authorize the Secretaries of Health and Human Services (HHS) and of Veterans Affairs (VA) to establish a demonstration project under which the HHS Secretary, acting under a coordinated care health plan model, shall reimburse the VA Secretary from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund for Medicare health care services furnished to targeted Medicare-eligible veterans who volunteer for such project. Requires the demonstration project to be conducted at up to eight sites jointly designated by the Secretaries. Directs the VA Secretary to establish and operate coordinated care health plans to provide benefits to the targeted veterans enrolled in the project.

Modifies the current Medicare subvention demonstration project for military retirees, permitting a one year extension of the project and, under certain conditions, permitting payment on a fee-for-service basis.

Increases from 45 percent to 51 percent the amount that may be reduced, for cost reporting periods after FY 1999, from the amount of Medicare enrollee bad debt that is otherwise treated as allowable costs for purposes of determining the reasonable costs of Medicare-reimbursable outpatient hospital services furnished to Medicare enrollees.