; and (3) by adding at the end the following new subsection: (b) Limitation In the case of a member retired under this section based on a disability described in subclause (III) of subsection (a)(2)(B)(i), the Secretary concerned shall reduce retired pay, computed under section 1401 of this title and paid to such member, to the extent that the Secretary concerned determines such retired pay duplicates any other Federal or State benefit to such member based on such disability. . 3. Eligibility of a member of the National Guard who incurs a disability while performing State active duty for health care furnished by the Secretary of Veterans Affairs (a) Establishment Subchapter VIII of chapter 17 of title 38, United States Code, is amended by adding at the end the following new section: 1789A. Health care for members of the National Guard who incur disabilities while performing State active duty (a) In general Subject to subsection (b), a member of the National Guard who incurs a disability while performing State active duty shall be eligible for hospital care and medical services furnished by the Secretary to treat such disability and any illness or condition arising from such disability. (b) Limitation (1) The Secretary may only furnish hospital care and medical services under subsection (a) to the extent and in the amount provided in advance in appropriations Acts for such purpose. (2) The Secretary may provide reimbursement for hospital care or medical services provided to an individual under this section only after the individual or the provider of such care or services has exhausted without success all claims and remedies reasonably available to the individual or provider against a third party (as defined in section 1725(f) of this title) for payment of such care or services, including with respect to health-plan contracts (as defined in such section). (c) State active duty defined In this section, the term State active duty has the meaning given that term in section 4303 of this title. . (b) Clerical amendment