A bill to require the Secretary of Health and Human Services to establish a Medicare demonstration project for veterans.

Directs the Secretary of Health and Human Services to conduct a two- to three-year demonstration project in which 15 to 25 non-Federal hospitals waive the right to collect deductibles and coinsurance amounts for inpatient and outpatient hospital services furnished to eligible veterans under title XVIII (Medicare) of the Social Security Act.

Requires the Secretary to evaluate and report to the Congress on the effect the project has on Medicare expenditures and the utilization of hospital services.