(B) Covered employee The term covered employee means a physician, podiatrist, optometrist, or dentist subject to market pay under section 7431 of title 38, United States Code, as amended by subsection (a). 202. Increased pay cap for directors of medical centers and Veterans Integrated Service Networks of Department of Veterans Affairs (a) Increased pay cap (1) In general Subchapter I of chapter 74 of title 38, United States Code, is amended by adding at the end the following new section: 7414. Pay for directors of medical centers and directors of Veterans Integrated Service Networks (a) In general To reflect the recruitment and retention needs of the Department for the assignment of a particular director in a medical center or Veterans Integrated Service Network of the Department, the Secretary shall prescribe a system of pay for individuals appointed under section 7401(4) of this title. (b) Market pay (1) In general The annual amount of the market rate of pay of an individual appointed under section 7401(4) of this title— (A) shall be determined by the Secretary on a case-by-case basis