[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2013 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2013

To restore health care equity for Medicare-eligible uniformed services 
                   retirees, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 27, 2000

Mr. Lott (for Mr. McCain) introduced the following bill; which was read 
         twice and referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To restore health care equity for Medicare-eligible uniformed services 
                   retirees, and for other purposes.

    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 ``Honoring Health Care Commitments to 
Servicemembers Past and Present Act of 2000''.

SEC. 2. SENSE OF SENATE ON HEALTH CARE FOR MEMBERS OF THE UNIFORMED 
              SERVICES WHO FIRST BECAME MEMBERS BEFORE JUNE 7, 1956, 
              AND THEIR DEPENDENTS.

    It is the sense of the Senate that--
            (1) urgent priority should be given to the enactment of 
        legislation that provides health care coverage for Medicare-
        eligible members and former members of the uniformed services 
        who first became members of the uniformed services before June 
        7, 1956, and for their dependents, at no cost to such members, 
        former members, and dependents; and
            (2) the bill proposing to provide the health care coverage 
        described in paragraph (1), which has been introduced in the 
        Senate, should--
                    (A) receive priority of consideration by the 
                committee of the Senate having jurisdiction over the 
                bill; and
                    (B) become the pending business of the Senate 
                immediately after its reporting to the Senate by the 
                committee of the Senate described in paragraph (1).

SEC. 3. PARTICIPATION OF MEDICARE-ELIGIBLE BENEFICIARIES IN CERTAIN 
              DEPARTMENT OF DEFENSE PHARMACY PROGRAMS.

    (a) In General.--Not later than October 1, 2000, the Secretary of 
Defense shall--
            (1) expand and make permanent the demonstration project for 
        pharmaceuticals by mail established under subsection (a) of 
        section 702 of the National Defense Authorization Act for 
        Fiscal Year 1993 (10 U.S.C. 1079 note) in order to permit 
        individuals described in subsection (b) worldwide to obtain 
        pharmaceuticals through the project; and
            (2) modify each managed health care program which includes 
        a managed care network of community retail pharmacies under 
        subsection (b) of such section 702 to supply prescription 
        pharmaceuticals to the individuals described in subsection (b) 
        of this section through such network in the area covered by 
        such program.
    (b) Eligible Individuals.--(1) Except as provided in paragraph (2), 
an individual eligible to obtain pharmaceuticals under this section is 
a member or former member of the uniformed services described in 
section 1074(b) of title 10, United States Code, a dependent of a 
member described in subsection (a)(2)(B) or (b) of section 1076 of that 
title, or a dependent of a member who died while on active duty for a 
period of more than 30 days, who is entitled to hospital insurance 
benefits under part A of title XVIII of the Social Security Act (42 
U.S.C. 1395 et seq.).
    (2) An individual described in paragraph (1) is not eligible to 
obtain pharmaceuticals under this section if the individual is covered 
by a health benefits plan offered through the Federal Employees Health 
Benefits program, whether as an employee under chapter 89 of title 5, 
United States Code, or pursuant to section 1108 of title 10, United 
States Code.
    (c) Fees and Charges.--(1) Subject to paragraph (2), the amount of 
the deductible, copayment, annual fee, or other fee, if any, paid by an 
eligible individual described in subsection (b) who obtains a 
pharmaceutical under this section through the project referred to in 
subsection (a)(1) or a retail pharmacy network referred to in 
subsection (a)(2) shall not exceed the amount of the deductible 
copayment, annual fee, or other fee paid by other persons for such 
pharmaceutical through the project or the pharmacy network, as the case 
may be.
    (2) An eligible individual described in subsection (b) shall not be 
charged an enrollment fee for participation in the project or a retail 
pharmacy network under this section.
    (3) The Secretary of Defense may not establish or collect any new 
fee or charge under the project referred to in subsection (a)(1), or 
any retail pharmacy network referred to in subsection (a)(2), by reason 
of the participation of eligible individuals described in subsection 
(b) in the project or network under this section.

SEC. 4. NATIONWIDE EXPANSION OF MEDICARE SUBVENTION.

    (a) Participants.--Effective October 1, 2000, subsection (a)(4) of 
section 1896 of the Social Security Act (42 U.S.C. 1395ggg) is amended 
by adding after subparagraph (D) the following new flush matter:
        ``Notwithstanding the first sentence of this subparagraph, the 
        term does not include any individual who is covered by a health 
        benefits plan offered through the Federal Employees Health 
        Benefits program, whether as an employee under chapter 89 of 
        title 5, United States Code, or pursuant to section 1108 of 
        title 10, United States Code.''.
    (b) Repeal of Limitation on Number of Sites.--Effective October 1, 
2000, paragraph (2) of section 1896(b) of such Act is amended to read 
as follows:
            ``(2) Location of sites.--
                    ``(A) In general.--The program shall be conducted 
                in any site designated jointly by the administering 
                Secretaries.
                    ``(B) Fee-for-service.--If feasible, at least 1 of 
                the sites designated under subparagraph (A) shall be 
                conducted using the fee-for-service reimbursement 
                method described in subsection (l)(1).
                    ``(C) Uniformed services treatment facilities.--If 
                feasible, designated providers covered by section 722 
                of the National Defense Authorization Act for 1997 
                (Public Law 104-201; 10 U.S.C. 1073 note) shall be 
                included among the sites designated by the 
                administering Secretaries.''.
    (c) Making Project Permanent; Changes in Project References.--
            (1) Elimination of time limitation.--Paragraph (4) of 
        section 1896(b) of such Act is repealed.
            (2) Conforming changes of references to demonstration 
        project.--Section 1896 of such Act is further amended--
                    (A) in the heading, by striking ``DEMONSTRATION 
                PROJECT'' and inserting ``PROGRAM'';
                    (B) by amending subsection (a)(2) to read as 
                follows:
            ``(2) Program.--The term `program' means the program 
        carried out under this section.'';
                    (C) in the heading to subsection (b), by striking 
                ``Demonstration Project'' and inserting ``Program'';
                    (D) by striking ``demonstration project'' or 
                ``project'' each place either appears and inserting 
                ``program''; and
                    (E) in subsection (k)(2)--
                            (i) in the heading, by striking ``extension 
                        and expansion of demonstration project'' and 
                        inserting ``program''; and
                            (ii) by striking subparagraphs (A) through 
                        (C) and inserting the following:
                    ``(A) whether there is a cost to the health care 
                program under this title in conducting the program 
                under this section; and
                    ``(B) whether the terms and conditions of the 
                program should be modified.''.
            (3) Repeal of obsolete reporting requirement.--Paragraph 
        (5) of section 1896(b) of such Act is repealed.
    (d) Correction of Reference to Medicare-Eligible Retirees.--Section 
1896 of such Act is further amended--
            (1) in the heading, by striking ``MILITARY RETIREES'' and 
        inserting ``UNIFORMED SERVICES RETIREES'';
            (2) in paragraph (4) of subsection (a)--
                    (A) in the caption, by striking ``Military 
                Retiree'' and inserting ``Uniformed Services Retiree''; 
                and
                    (B) by striking ``military retiree'' and inserting 
                ``uniformed services retiree''; and
            (3) by striking ``military retirees'' each place it appears 
        and inserting ``uniformed services retirees''.
    (e) Permitting Payment on a Fee-for-Service Basis.--
            (1) In general.--Section 1896 of the Social Security Act is 
        further amended by adding at the end the following new 
        subsection:
    ``(l) Reimbursement on Fee-for-Service Basis.--
            ``(1) Reimbursement at designated sites.--In the case of a 
        Medicare health care service provided at a site, if any, 
        designated for operation under the fee-for-service model under 
        subsection (b)(2)(B), the Secretary shall reimburse the 
        Secretary of Defense at a rate equal to 95 percent of the 
        amount that otherwise would be payable under this title on a 
        noncapitated basis for the service if the site were not part of 
        the program under this section.
            ``(2) Reimbursement for unenrolled individuals.--
        Notwithstanding subsection (i), in the case of Medicare-
        eligible uniformed services retirees or dependents who are not 
        enrolled in the program under this section, the Secretary may 
        reimburse the Secretary of Defense for Medicare health care 
        services provided to such retirees or dependents at a military 
        treatment facility under the program at a rate that does not 
        exceed the rate of payment that would otherwise be made under 
        this title for such services.
            ``(3) Inapplicability of limitations on federal payments.--
        Sections 1814(c) and 1835(d), and paragraphs (2) and (3) of 
        section 1862(a), do not apply to the making of payments under 
        this subsection.''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsections (b)(1)(B)(v) and 
                (b)(1)(B)(viii)(I), by inserting ``or subsection (l)'' 
                after ``subsection (i)'';
                    (B) in subsection (d)(1)(A), by inserting 
                ``(insofar as it provides for the enrollment of 
                individuals and payment on the basis described in 
                subsection (i))'' before ``shall meet'';
                    (C) in subsection (d)(1)(A), by inserting ``and the 
                program (insofar as it provides for payment for 
                Medicare health care services provided at a military 
                treatment facility on the basis described in subsection 
                (l)) shall meet all requirements that are applicable to 
                facilities that provide such services under this 
                title'' after ``Medicare payments'';
                    (D) in subsection (d)(2), by inserting ``, insofar 
                as it provides for the enrollment of individuals and 
                payment on the basis described in subsection (i),'' 
                before ``shall comply'';
                    (E) in subsection (g)(1), by inserting ``insofar as 
                it provides for the enrollment of individuals and 
                payment on the basis described in subsection (i),'' 
                before ``the Secretary of Defense'';
                    (F) in subsection (i)(1), by inserting ``and 
                subsection (l)'' after ``of this subsection'';
                    (G) in subsection (i)(4), by inserting ``and 
                subsection (l)'' after ``under this subsection''; and
                    (H) in subsection (j)(2)(B)(ii), by inserting ``or 
                subsection (l)'' after ``subsection (i)(1)''.
            (3) Effective date.--The amendments made by this subsection 
        take effect on October 1, 2000, and apply to services furnished 
        on or after such date.
    (f) Elimination of Restriction on Eligibility.--Section 1896(b)(1) 
of such Act is amended by adding at the end the following new 
subparagraph:
                    ``(C) Elimination of restrictive policy.--If the 
                enrollment capacity in the program has been reached at 
                a particular site designated under paragraph (2) and 
                the Secretary therefore limits enrollment at the site 
                to medicare-eligible uniformed services retirees and 
                dependents who are enrolled in TRICARE Prime (as 
                defined for purposes of chapter 55 of title 10, United 
                States Code) at the site immediately before attaining 
                65 years of age, participation in the program by a 
                retiree or dependent at such site shall not be 
                restricted based on whether the retiree or dependent 
                has a civilian primary care manager instead of a 
                military primary care manager.''.
    (g) Medigap Protection for Enrollees.--Section 1896 of such Act is 
further amended by adding at the end the following new subsection:
    ``(m) Medigap Protection for Enrollees.--
            ``(1) In general.--Subject to paragraph (2), the provisions 
        of section 1882(s)(3) (other than clauses (i) through (iv) of 
        subparagraph (B)) and section 1882(s)(4) shall apply to any 
        enrollment (and termination of enrollment) in the program (for 
        which payment is made on the basis described in subsection (i)) 
        in the same manner as they apply to enrollment (and termination 
        of enrollment) with a Medicare+Choice organization in a 
        Medicare+Choice plan.
            ``(2) Rule of construction.--In applying paragraph (1)--
                    ``(A) in the case of enrollments occurring before 
                October 1, 2000, any reference in clause (v) or (vi) of 
                section 1882(s)(3)(B) to 12 months is deemed a 
                reference to the period ending on September 30, 2001; 
                and
                    ``(B) the notification required under section 
                1882(s)(3)(D) shall be provided in a manner specified 
                by the Secretary of Defense in consultation with the 
                Secretary.''.

SEC. 5. INCLUSION OF MEDICARE-ELIGIBLE UNIFORMED SERVICES BENEFICIARIES 
              IN FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM.

    (a) FEHBP Option.--(1) Section 1108 of title 10, United States 
Code, is amended to read as follows:
``Sec. 1108. Health care coverage through Federal Employees Health 
              Benefits program
    ``(a) FEHBP Option.--(1) The Secretary of Defense, after consulting 
with the other administering Secretaries, shall enter into an agreement 
with the Office of Personnel Management under which a Medicare-eligible 
covered beneficiary described in subsection (b) will be offered an 
opportunity to enroll in a health benefits plan offered through the 
Federal Employees Health Benefits program under chapter 89 of title 5.
    ``(2) The agreement may provide for limitations on enrollment of 
Medicare-eligible covered beneficiaries in the Federal Employees Health 
Benefits program if the Office of Personnel Management determines the 
limitations are necessary to allow for adequate planning for access for 
services under the Federal Employees Health Benefits program.
    ``(b) Medicare-Eligible Covered Beneficiary Described.--A Medicare-
eligible covered beneficiary referred to in subsection (a) is a covered 
beneficiary under this chapter who for any reason is or becomes 
entitled to hospital insurance benefits under part A of title XVIII of 
the Social Security Act (42 U.S.C. 1395 et seq.). The covered 
beneficiary shall not be required to satisfy any eligibility criteria 
specified in chapter 89 of title 5 as a condition for enrollment in a 
health benefits plan offered through the Federal Employees Health 
Benefits program pursuant to subsection (a).
    ``(c) Limitations on Enrollment.--The number of Medicare-eligible 
covered beneficiaries enrolled in the Federal Employees Health Benefits 
program under this section shall not exceed 275,000.
    ``(d) Continued Participation in Uniformed Services Health 
System.--(1) A Medicare-eligible covered beneficiary who enrolls in the 
Federal Employees Health Benefits program under this section shall not 
be eligible to receive health care under section 1086 or 1097 of this 
title.
    ``(2)(A) Subject to such limitations as the Secretary of Defense, 
after consultation with the other administering Secretaries, a 
Medicare-eligible covered beneficiary described in paragraph (1) may 
continue to receive health care in a military medical treatment 
facility on a space available basis.
    ``(B) A treatment facility providing care under subparagraph (A) 
shall be reimbursed by the Federal Employees Health Benefits program 
for the cost of such care at rates not to exceed the rates of 
reimbursement for such care under the program if such care had been 
provided by a health care provider other than the treatment facility.
    ``(e) Limitations on Other Health Care Coverage.--(1) A Medicare-
eligible covered beneficiary who is covered by a health benefits plan 
through the Federal Employees Health Benefits program under subsection 
(a) may not, during a period of coverage under such plan under this 
section--
            ``(A) be enrolled in a health benefits plan under the 
        Federal Employees Health Benefits program as an employee under 
        chapter 89 of title 5;
            ``(B) be enrolled in the Medicare subvention program for 
        military retirees under section 1896 of the Social Security Act 
        (42 U.S.C. 1395ggg);
            ``(C) otherwise obtain pharmaceuticals by mail under 
        section 702(a) of Public Law 102-484 (10 U.S.C. 1079 note) 
        pursuant to section 3(a)(1) of the Honoring Health Care 
        Commitments to Servicemembers Past and Present Act of 2000; or
            ``(D) otherwise obtain pharmaceuticals through a network of 
        retail pharmacies under section 702(b) of Public Law 102-484 
        pursuant to section 3(a)(2) of the Honoring Health Care 
Commitments to Servicemembers Past and Present Act of 2000.
    ``(2) A Medicare-eligible covered beneficiary who is also eligible 
for participation in the Federal Employees Health Benefits program as 
an employee under chapter 89 of title 5 shall participate in the 
program, if at all, under that chapter.
    ``(f) Contributions.--(1) In the case of a Medicare-eligible 
covered beneficiary who enrolls in a health benefits plan offered 
through the Federal Employees Health Benefits program pursuant to 
subsection (a), the administering Secretary concerned shall be 
responsible for Government contributions that the Office of Personnel 
Management determines are necessary to cover all costs in excess of 
beneficiary contributions under paragraph (2).
    ``(2) The contribution required from the enrolled Medicare-eligible 
covered beneficiary shall be equal to the amount that would be withheld 
from the pay of a similarly situated Federal employee who enrolls in a 
health benefits plan under chapter 89 of title 5.
    ``(g) Management of Participation.--(1) If an enrolled Medicare-
eligible covered beneficiary is a member or former member of the 
uniformed services described in section 1074(b) of this title, the 
authority responsible for approving retired or retainer pay or 
equivalent pay for the member or former member shall manage the 
participation of the enrolled member or former member in a health 
benefits plan offered through the Federal Employees Health Benefits 
program pursuant to subsection (a).
    ``(2) If an enrolled Medicare-eligible covered beneficiary is a 
dependent of a member or former member, the authority that is, or would 
be, responsible for approving retired or retainer pay or equivalent pay 
for the member or former member shall manage the participation of the 
dependent in a health benefits plan offered through the Federal 
Employees Health Benefits program under subsection (a).
    ``(3) The Office of Personnel Management shall maintain separate 
risk pools for enrolled Medicare-eligible covered beneficiaries until 
such time as the Director of the Office of Personnel Management 
determines that complete inclusion of enrolled Medicare-eligible 
covered beneficiaries under chapter 89 of title 5 will not adversely 
affect Federal employees and annuitants enrolled in health benefits 
plans under such chapter.
    ``(h) Effect of Cancellation.--The cancellation by a Medicare-
eligible covered beneficiary of coverage under the Federal Employees 
Health Benefits program under this section shall be irrevocable for 
purposes of this section.
    ``(i) Reporting Requirements.--Not later than November 1 of each 
year, the administering Secretaries and the Director of the Office of 
Personnel Management shall jointly submit to Congress a report 
describing the provision of health care services to Medicare-eligible 
covered beneficiaries under this section during the preceding fiscal 
year. The report shall address or contain the following:
            ``(1) The number of Medicare-eligible covered beneficiaries 
        enrolled in health benefits plans offered through the Federal 
        Employees Health Benefits program pursuant to subsection (a), 
        both in terms of total number and as a percentage of all 
        Medicare-eligible covered beneficiaries receiving health care 
        through the health care system of the uniformed services.
            ``(2) The out-of-pocket cost to enrolled Medicare-eligible 
        covered beneficiaries under such health benefits plans.
            ``(3) The cost to the Government (including the Department 
        of Defense, the Department of Transportation, and the 
        Department of Health and Human Services) of providing care 
        under such health benefits plans as a result of this section.
            ``(4) A comparison of the costs determined under paragraphs 
        (2) and (3) and the costs that would have otherwise been 
        incurred by the Government and enrolled Medicare-eligible 
        covered beneficiaries under alternative health care options 
        available to the administering Secretaries.
            ``(5) The effect of this section on the cost, access, and 
        utilization rates of other health care options under the health 
        care system of the uniformed services.
    ``(j) Time for Option.--The Secretary of Defense shall begin to 
offer the health benefits option under subsection (a) on January 1, 
2001, with an initial open enrollment period conducted in the fall of 
2000.''.
    (2) The item relating to section 1108 in the table of sections at 
the beginning of such chapter is amended to read as follows:

``1108. Health care coverage through Federal Employees Health Benefits 
                            program.''.
    (b) Conforming Amendments.--Chapter 89 of title 5, United States 
Code, is amended--
            (1) in section 8905--
                    (A) by redesignating subsections (d) through (f) as 
                subsections (e) through (g), respectively; and
                    (B) by inserting after subsection (c) the 
                following:
    ``(d) Subject to subsection (e) of section 1108 of title 10, an 
individual whom an administering Secretary (as defined in section 1073 
of such title) determines is a Medicare-eligible covered beneficiary 
under subsection (b) of such section 1108 may enroll in a health 
benefits plan under this chapter in accordance with the agreement 
entered into under subsection (a) of such section 1108 between the 
Secretary of Defense and the Office and in accordance with applicable 
regulations under this chapter.'';
            (2) in section 8906(b), by striking paragraph (4) and 
        inserting the following new paragraph (4):
    ``(4) In the case of individuals who enroll in a health plan in 
accordance with section 8905(d) of this title, the Government 
contribution shall be determined under section 1108(f) of title 10.''; 
and
            (3) in section 8906(g), by striking paragraph (3) and 
        inserting the following new paragraph (3):
    ``(3) The Government contribution described in subsection (b)(4) 
for beneficiaries who enroll in accordance with section 8905(d) of this 
title shall be paid as provided in section 1108(f) of title 10.''.

SEC. 6. ELIMINATION OF COPAYMENTS, DEDUCTIBLES, AND OTHER FEES FOR CARE 
              FOR DEPENDENTS UNDER TRICARE PRIME.

    (a) Elimination.--Section 1097a of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Prohibition on Copayments and Other Fees for Care for 
Dependents.--No copayment, deductible, annual fee, or other fee may be 
collected for or with respect to any medical care provided a dependent 
(as described in subparagraph (A), (D), or (I) of section 1072(2) of 
this title) of a member of the uniformed services who is enrolled in 
TRICARE Prime.''.
    (b) Conforming and Clerical Amendments.--(1) The section heading of 
such section is amended by adding at the end the following: ``; 
prohibition on fees for certain beneficiaries''.
    (2) The item relating to such section at the beginning of chapter 
55 of such title is amended by inserting before the period the 
following: ``; prohibition on fees for certain beneficiaries''.

SEC. 7. HEALTH CARE COVERAGE OF IMMEDIATE FAMILY MEMBERS UNDER PROGRAM 
              FOR MEMBERS ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM 
              CARE.

    Section 1079 of title 10, United States Code, is amended by adding 
at the end the following:
    ``(p)(1)(A) Subject to such exceptions as the Secretary of Defense 
considers necessary, coverage for medical care under this section for 
the dependents referred to in subsection (a) of a member of the armed 
forces covered by section 1074(c) of this title who are residing with 
the member, and standards with respect to timely access to such care, 
shall be comparable to coverage for medical care and standards for 
timely access to such care under the managed care option of the TRICARE 
program known as TRICARE Prime.
    ``(B) No copayment, deductible, or annual fee may be collected for 
or with respect to any medical care provided a dependent under 
subparagraph (A).
    ``(2) The Secretary of Defense shall enter into arrangements with 
contractors under the TRICARE program or with other appropriate 
contractors for the timely and efficient processing of claims under 
this subsection.
    ``(3) The Secretary of Defense may not require dependents referred 
to in subsection (a) of a member of the armed forces described in 
section 1074(c)(3)(B) of this title to receive routine primary medical 
care at a military medical treatment facility.''.

SEC. 8. UNIFORMED SERVICES RETIREE HEALTH CARE ACCOUNT.

    (a) Establishment.--Chapter 55 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1110. Uniformed Services Retiree Health Care Account
    ``(a) Establishment.--There is established in the Treasury an 
account to be known as `Uniformed Services Retiree Health Care Account' 
(in this section referred to as the `Account').
    ``(b) Transfers to Account.--There shall be transferred to the 
Account any unexpired funds (as determined by the Secretary of Defense, 
after consultation with the other administering Secretaries) in the 
Defense Health Program account that, as a result of economies, 
efficiencies, and other savings achieved in the medical care and health 
care programs of the Department of Defense, are excess to the 
requirements of such programs.
    ``(c) Use of Funds.--(1) Amounts in the Account may be used for 
purposes of covering the costs incurred by the Secretary of Defense and 
the other administering Secretaries in administering section 1108 of 
this title and the provisions of the Honoring Health Care Commitments 
to Servicemembers Past and Present Act of 2000 (including the 
amendments made by that Act).
    ``(2) Notwithstanding any other provision of law, amounts in the 
Account shall remain available until expended.
    ``(d) Unexpired Funds Defined.--In this section, the term 
`unexpired funds' means funds appropriated for a definite period of 
time that remain available for obligation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1110. Uniformed Services Retiree Health Care Account.''.

SEC. 9. CONTRACT AUTHORITY FOR RECOVERY OF OVERPAYMENTS UNDER THE 
              TRICARE PROGRAM.

    Section 1097b of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) Contract Authority for Recovery of Overpayments.--The 
Secretary of Defense may enter into contracts with appropriate private 
entities for purposes of recovering amounts of overpayments to health 
care providers under the TRICARE program. Services under contracts 
under this subsection may include audit services and such other 
services as the Secretary of Defense considers appropriate.''.

SEC. 10. ENHANCEMENT OF EFFICIENCY OF ADMINISTRATION OF MILITARY HEALTH 
              CARE SYSTEM.

    (a) In General.--The Secretary of Defense, after consultation with 
the other administering Secretaries, shall take appropriate actions--
            (1) to enhance the efficiency of administration of the 
        provision of health care services under chapter 55 of title 10, 
        United States Code, including the TRICARE program, in matters 
        relating to marketing, beneficiary enrollment, beneficiary and 
        provider education, claims processing, and the scheduling of 
        appointments; and
            (2) otherwise to improve the quality of service provided 
        under that chapter.
    (b) Particular Actions.--The actions taken by the Secretary of 
Defense under subsection (a) shall include the following:
            (1) Simplification of administrative processes.
            (2) Use of the Internet for critical administrative 
        processes.
    (c) Definitions.--In this section the terms ``administering 
Secretaries'' and ``TRICARE program'' shall have the meanings given 
such terms in section 1072 of title 10, United States Code.

SEC. 11. NATIONWIDE ENROLLMENT CARD UNDER THE TRICARE PROGRAM.

    (a) Requirement.--The Secretary of Defense, after consultation with 
the other administering Secretaries, shall issue to covered 
beneficiaries under the TRICARE program an enrollment card which shall 
serve as an enrollment card for participation in the TRICARE program 
nationwide. The purpose of the enrollment card is to facilitate the 
ready portability of benefits under the TRICARE program.
    (b) Definitions.--In this section the terms ``administering 
Secretaries'' and ``TRICARE program'' shall have the meanings given 
such terms in section 1072 of title 10, United States Code.
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