[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1963 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1963

To amend title 10, United States Code, to permit certain beneficiaries 
   of the military health care system to enroll in Federal employees 
                         health benefits plans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 21, 1998

 Mr. Thurmond (for himself and Mr. Coverdell) introduced the following 
      bill; which was read twice and referred to the Committee on 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To amend title 10, United States Code, to permit certain beneficiaries 
   of the military health care system to enroll in Federal employees 
                         health benefits plans.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Health Care Fairness Act''.

SEC. 2. INCLUSION OF CERTAIN COVERED BENEFICIARIES IN FEDERAL EMPLOYEES 
              HEALTH BENEFITS PROGRAM.

    (a) FEHBP Option.--(1) Chapter 55 of title 10, United States Code, 
is amended by inserting after section 1079a the following new section:
``Sec. 1079b. Health care coverage through Federal Employees Health 
              Benefits program
    ``(a) FEHBP Option.--(1) Subject to the availability of funds to 
carry out this section for a fiscal year, eligible beneficiaries 
described in subsection (b) shall be afforded an opportunity to enroll 
in any health benefits plan under the Federal Employee Health Benefits 
program under chapter 89 of title 5, United States Code, offering 
medical care comparable to the care authorized by section 1077 of this 
title to be provided under section 1076 of this title (in this section 
referred to as an `FEHBP plan').
    ``(2) The Secretary of Defense and the other administering 
Secretaries shall jointly enter into an agreement with the Director of 
the Office of Personnel Management to carry out paragraph (1).
    ``(b) Eligible Beneficiaries.--(1) An eligible beneficiary referred 
to in subsection (a) is a covered beneficiary who is a military retiree 
(except a military retiree retired under chapter 1223 of this title), a 
dependent of such a retiree described in section 1072(2)(B) or (C), or 
a dependent described in section 1072(2)(A), (D), or (I) of such a 
retiree who enrolls in an FEHBP plan, who,--
            ``(A) is not guaranteed access under TRICARE to health care 
        that is comparable to the health care benefits provided under 
        the service benefit plan offered under the Federal Employee 
        Health Benefits program;
            ``(B) is eligible to enroll in the TRICARE program but is 
        not enrolled because of the location of the beneficiary, a 
        limitation on the total enrollment, or any other reason; or
            ``(C) is entitled to hospital insurance benefits under part 
        A of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
        seq.).
    ``(2) In addition to the eligibility requirements described in 
paragraph (1), during the first two years that covered beneficiaries 
are offered the opportunity to enroll in an FEHBP plan under subsection 
(a), eligible beneficiaries shall be limited to--
            ``(A) except as provided in subparagraph (B), military 
        retirees 65 years of age or older; and
            ``(B) military retirees retired under chapter 61 of this 
        title.
    ``(3) An eligible beneficiary shall not be required to satisfy any 
eligibility criteria specified in chapter 89 of title 5 as a condition 
for enrollment in an FEHBP plan.
    ``(c) Priority of Enrollment.--(1) Eligible beneficiaries shall be 
permitted to enroll in an FEHBP plan based on the order in which such 
beneficiaries apply to enroll in the plan.
    ``(2) The Secretary shall maintain a list of eligible beneficiaries 
who apply to enroll in an FEHBP plan, but whom the Secretary is not 
able to enroll because of the lack of available funds to carry out this 
section.
    ``(d) Period of Enrollment.--The Secretary shall provide a period 
of enrollment for eligible beneficiaries in an FEHBP plan for a period 
of 90 days--
            ``(1) before implementation of the program described in 
        subsection (a); and
            ``(2) each subsequent year thereafter.
    ``(e) Term of Enrollment.--(1) The minimum period of enrollment in 
an FEHBP plan shall be three years.
    ``(2) A beneficiary who elects to enroll in an FEHBP plan, and who 
subsequently discontinues enrollment in the plan before the end of the 
period described in paragraph (1), shall not be eligible to reenroll in 
the plan.
    ``(f) Receipt of Care in MTF.--An eligible beneficiary enrolled in 
an FEHBP plan may receive care at a military medical treatment facility 
subject to the availability of space in such facility, except that the 
plan shall reimburse the facility for the cost of such treatment. The 
plan may adjust beneficiary copayments so that receipt of such care at 
a military medical treatment facility results in no additional costs to 
the plan, as compared with the costs that would have been incurred if 
care had been received from a provider in the plan.
    ``(g) Contributions.--(1) Contributions shall be made for an 
enrollment of an eligible beneficiary in a plan of the Federal Employee 
Health Benefits program under this section as if the beneficiary were 
an employee of the Federal Government.
    ``(2) The administering Secretary concerned shall be responsible 
for the Government contributions that the Director of the Office of 
Personnel Management determines would be payable by the Secretary under 
section 8906 of title 5 for an enrolled eligible beneficiary if the 
beneficiary were an employee of the Secretary.
    ``(3) Each eligible beneficiary enrolled in an FEHBP plan shall be 
required to contribute the amount that would be withheld from the pay 
of a similarly situated Federal employee who is enrolled in the same 
health benefits plan under chapter 89 of title 5.
    ``(h) Management of Participation.--The Director of the Office of 
Personnel Management shall manage the participation of an eligible 
beneficiary in a health benefits plan of the Federal Employee Health 
Benefits program pursuant to an enrollment under this section. The 
Director shall maintain separate risk pools for participating eligible 
beneficiaries until such time as the Director determines that inclusion 
of participating eligible beneficiaries under chapter 89 of title 5 
will not adversely affect Federal employees and annuitants enrolled in 
health benefits plans under such chapter.
    ``(i) Reporting Requirements.--(1) Not later than November 1 of 
each year, the Secretary of Defense and the Director of the Office of 
Personnel Management shall jointly submit to Congress a report 
describing the provision of health care services to enrollees under 
this section during the preceding fiscal year. The report shall address 
or contain the following:
            ``(A) The number of eligible beneficiaries who are 
        participating in health benefits plans of the Federal Employee 
        Health Benefits program pursuant to an enrollment under this 
        section, both in terms of total number and as a percentage of 
        all covered beneficiaries who are receiving health care through 
        the health care system of the uniformed services.
            ``(B) The extent to which eligible beneficiaries use the 
        health care services available to the beneficiaries under 
        health benefits plans pursuant to enrollments under this 
        section.
            ``(C) The cost to enrollees for health care under such 
        health benefits plans.
            ``(D) The cost to the Department of Defense, the Department 
        of Transportation, the Department of Health and Human Services, 
        and any other departments and agencies of the Federal 
        Government of providing care to eligible beneficiaries pursuant 
        to enrollments in such health benefits plans under this 
        section.
            ``(E) A comparison of the costs determined under paragraphs 
        (C) and (D) and the costs that would otherwise have been 
        incurred by the United States and enrollees under alternative 
        health care options available to the administering Secretaries.
            ``(F) The effects of the exercise of authority under this 
        section on the cost, access, and utilization rates of other 
        health care options under the health care system of the 
        uniformed services.
    ``(2) Not later than the date that is four years after the date of 
enactment of the National Defense Authorization Act for fiscal year 
1999, the Secretary of Defense shall submit to Congress a report 
describing--
            ``(A) whether the Secretary recommends that a health care 
        option for retired covered beneficiaries equivalent to the 
        option described in subsection (a) be permanently offered to 
        such beneficiaries; and
            ``(B) the estimated costs of offering such an option.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1079a the 
following:

``1079b. Health care coverage through Federal Employees Health Benefits 
                            program.''.
    (b) Conforming Amendments.--(1) Section 8905 of title 5, United 
States Code, is amended--
            (A) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively; and
            (B) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) An individual whom the Secretary of Defense determines is an 
eligible beneficiary under subsection (b) of section 1079b of title 10 
may enroll in a health benefits plan under this chapter in accordance 
with the agreement entered into under subsection (a) of such section 
between the Secretary and the Office and with applicable regulations 
under this chapter.''.
    (2) Section 8906 of title 5, United States Code, is amended--
            (A) in subsection (b)--
                    (i) in paragraph (1), by striking ``paragraphs (2) 
                and (3)'' and inserting in lieu thereof ``paragraphs 
                (2), (3), and (4)''; and
                    (ii) by adding at the end the following new 
                paragraph:
    ``(4) In the case of individuals who enroll in a health plan under 
section 8905(d) of this title, the Government contribution shall be 
determined under section 1079b(g) of title 10.''; and
            (B) in subsection (g)--
                    (i) in paragraph (1), by striking ``paragraph (2)'' 
                and inserting in lieu thereof ``paragraphs (2) and 
                (3)''; and
                    (ii) by adding at the end the following new 
                paragraph:
    ``(3) The Government contribution described in subsection (b)(4) 
for beneficiaries who enroll under section 8905(d) of this title shall 
be paid as provided in section 1079b(g) of title 10.''.
    (c) Implementation.--The Secretary of Defense--
            (1) shall begin to offer the health benefits option under 
        section 1079b(a) of title 10, United States Code (as added by 
        subsection (a)) not later than the date that is 6 months after 
        the date of the enactment of this Act; and
            (2) shall continue to offer such option through the year 
        2003, and to provide care to eligible covered beneficiaries 
        under such section through the year 2005.
    (d) Funding From Authorized Appropriations.--Of the funds 
authorized to be appropriated for the Department of Defense for 
military personnel for fiscal years 1999 through 2005, amounts shall be 
available for carrying out section 1079b of title 10, United States 
Code (as added by subsection (a)), as follows:
            (1) For fiscal year 1999, $100,000,000.
            (2) For fiscal year 2000, $200,000,000.
            (3) For fiscal year 2001, $300,000,000.
            (4) For fiscal year 2002, $400,000,000.
            (5) For fiscal year 2003, $500,000,000.
            (6) For each of fiscal years 2004 and 2005, such sums as 
        are necessary.
                                 <all>