This document contains the text of a Congressional hearing called to examine the status of aging veterans and health care issues. Opening statements are given by Congressmen Jim Saxton, Thomas J. Tauke, and Christopher H. Smith, and testimonies are presented from 20 witnesses. Members of veterans' associations testifying include representatives from a Veterans' Administration medical center, the New Jersey Veterans' Memorial Home, Disabled American Veterans, and the Veterans' Administration Clinic Task Force. Witnesses from New Jersey include the director of the Home Health Agency Assembly of New Jersey, a representative of the mayor of Hamilton Township, the deputy commissioner of the New Jersey State Department of Health, an administrator with the Garden State Rehabilitation Hospital, the public health coordinator and a public health nurse with the Ocean County Health Department, and a member of the Ocean County Board of Social Services. Other witnesses include a representative of the Health Care Financing Administration, the president of Community Memorial Hospital, a counsel for the American Association of Retired Persons, an aide to Congressman James J. Howard, a senior citizen, and two veterans. Issues examined and discussed include limits on veterans health care benefits, alternatives to institutionalization, reimbursement rates, and health care costs. (NRB)