[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3699 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3699

   To establish a demonstration project to authorize certain covered 
  beneficiaries under the military health care system (including the 
 dependents of active duty military personnel and retired members and 
 their dependents) to enroll in the Federal Employees Health Benefits 
 program and to ensure their future health security through the use of 
                       medical savings accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 1996

    Mr. Stearns (for himself, Mr. Mica, and Mr. Canady of Florida) 
 introduced the following bill; which was referred to the Committee on 
  National Security, and in addition to the Committees on Government 
     Reform and Oversight, and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
   To establish a demonstration project to authorize certain covered 
  beneficiaries under the military health care system (including the 
 dependents of active duty military personnel and retired members and 
 their dependents) to enroll in the Federal Employees Health Benefits 
 program and to ensure their future health security through the use of 
                       medical savings accounts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEMONSTRATION PROJECT FOR IMPROVED HEALTH CARE ACCESS FOR 
              MILITARY COVERED BENEFICIARIES THROUGH THE FEDERAL 
              EMPLOYEES HEALTH BENEFITS PROGRAM AND MEDICAL SAVINGS 
              ACCOUNTS.

    (a) Participation in Federal Employees Health Benefits Program.--
The Secretary of Defense shall conduct a demonstration project in at 
least one region of the TRICARE program to provide covered 
beneficiaries described in subsection (b) with the option to receive 
health care prescribed by section 1077 of title 10, United States Code, 
through the Federal Employees Health Benefits program under chapter 89 
of title 5, United States Code, in addition to the other health care 
options available to the covered beneficiaries. The Secretary shall 
carry out the demonstration project during the two-year period 
beginning on the date covered beneficiaries first enroll under the 
project.
    (b) Persons Eligible for Participation.--Eligibility to participate 
in the demonstration project is limited to covered beneficiaries under 
chapter 55 of title 10, United States Code, who--
            (1) reside in the TRICARE region in which the demonstration 
        project is conducted, but outside of the enrollment catchment 
        area used for TRICARE Prime; or
            (2) reside in the TRICARE region in which the demonstration 
        project is conducted and are entitled to hospital insurance 
        benefits under part A of title XVIII of the Social Security Act 
        (42 U.S.C. 1395c et seq.).
    (c) Special Rule for Medicare Participants.--The payment 
limitations contained in section 1086(d)(3) of title 10, United States 
Code, shall apply in the case of covered beneficiaries described in 
subsection (b)(2) who are not eligible to participate in the TRICARE or 
CHAMPUS programs, by reason of section 1086(d)(1) of title 10, United 
States Code, but who are eligible to participate in the demonstration 
project.
    (d) Use of Medical Savings Accounts.--In the case of participants 
in the demonstration project, the Secretary of the Treasury shall 
permit a participant during the demonstration project to take as a 
credit against the tax imposed under the Internal Revenue Code of 1986 
for a taxable year an amount equal to 25 percent of the amount paid in 
cash during such year by or on behalf of the participant to a medical 
savings account, subject to such restrictions on the total amount of 
the cash contribution and such other requirements as the Secretary may 
prescribe.
    (e) Definitions.--For purposes of this section:
            (1) Covered beneficiaries.--The term ``covered 
        beneficiary'' means a beneficiary under chapter 55 of title 10, 
        United States Code, other than a beneficiary under section 
        1074(a) of such title. Such term includes--
                    (A) the spouse and children of a member of the 
                Armed Forces on active duty; and
                    (B) members and former members of the uniformed 
                services who are entitled to retired or retainer pay, 
                or equivalent pay, and their dependents.
            (2) Tricare.--The term ``TRICARE'' means the managed health 
        care program that is established by the Secretary of Defense 
        under the authority of chapter 55 of title 10, United States 
        Code, principally section 1097 of such title, and includes the 
        competitive selection of contractors to financially underwrite 
        the delivery of health care services under the Civilian Health 
        and Medical Program of the Uniformed Services.
            (3) Medical savings account.--The term ``medical savings 
        account'' means a trust created or organized in the United 
        States exclusively for the purpose of paying the qualified 
        medical expenses of the individual for whose benefit the trust 
        is established.
    (f) Report on Implementation Plan.--Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense shall 
submit a report to Congress containing the plan prepared by the 
Secretary of Defense and the Secretary of the Treasury to implement the 
demonstration project and to permit participants to maintain and use 
medical savings accounts.
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