II 109th CONGRESS 2d Session S. 2617 IN THE SENATE OF THE UNITED STATES April 7, 2006 Mr. Lautenberg (for himself, Mr. Hagel, Mr. Kerry, Mr. Menendez, Mrs. Lincoln, and Mr. DeWine) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To amend title 10, United States Code, to limit increases in the costs to retired members of the Armed Forces of health care services under the TRICARE program, and for other purposes.

1.

Short title

This Act may be cited as the Military Retirees Health Care Protection Act.

2.

Findings and sense of Congress

(a)

Findings

Congress makes the following findings: (1)Career members of the Armed Forces and their families endure unique and extraordinary demands, and make extraordinary sacrifices, over the course of 20-year to 30-year careers in protecting freedom for all Americans. (2)The nature and extent of these demands and sacrifices are never so evident as in wartime, not only during the current Global War on Terrorism, but also during the wars of the last 60 years when current retired members of the Armed Forces were on continuous call to go in harm’s way when and as needed. (3)The demands and sacrifices are such that few Americans are willing to bear or accept them for a multi-decade career. (4)A primary benefit of enduring the extraordinary sacrifices inherent in a military career is a range of extraordinary retirement benefits that a grateful Nation provides for those who choose to subordinate much of their personal life to the national interest for so many years. (5)One effect of such curtailment is that retired members of the Armed Forces are turning for health care services to the Department of Defense, and its TRICARE program, for the health care benefits in retirement that they earned by their service in the Armed Forces. (6)In some cases, civilian employers establish financial incentives for employees who are also eligible for participation in the TRICARE program to receive health care benefits under that program rather than under the health care benefits programs of such employers. (7)While the Department of Defense has made some efforts to contain increases in the cost of the TRICARE program, a large part of those efforts has been devoted to shifting a larger share of the costs of benefits under that program to retired members of the Armed Forces. (8)The cumulative increase in enrollment fees, deductibles, and copayments being proposed by the Department of Defense for health care benefits under the TRICARE program far exceeds the 31 percent increase in military retired pay since such fees, deductibles, and copayments were first required on the part of retired members of the Armed Forces 10 years ago. (9)Proposals of the Department of Defense for increases in the enrollment fees, deductibles, and copayments of retired members of the Armed Forces who are participants in the TRICARE program fail to recognize adequately that such members paid the equivalent of enormous in-kind premiums for health care in retirement through their extended sacrifices by service in the Armed Forces. (10)Some of the Nation’s health care providers refuse to accept participants in the TRICARE program as patients because that program pays them significantly less than commercial insurance programs, and imposes unique administrative requirements, for health care services. (11)The Department of Defense has chosen to count the accrual deposit to the Department of Defense Military Retiree Health Care Fund against the budget of the Department of Defense, contrary to the requirements of section 1116 of title 10, United States Code, as amended section 725 of Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 1991). (12)Senior officials of the Department of Defense leaders have reported to Congress that counting such deposits against the budget of the Department of Defense is impinging on other readiness needs of the Armed Forces, including weapons programs, an inappropriate situation which section 1116 of title 10, United States Code, was intended expressly to prevent. (b)

Sense of Congress

It is the sense of Congress that— (1)the Department of Defense and the Nation have a committed obligation to provide health care benefits to retired members of the Armed Forces that exceeds the obligation of corporate employers to provide health care benefits to their employees; (2)the Department of Defense has many additional options to constrain the growth of health care spending in ways that do not disadvantage retired members of the Armed Forces who participate or seek to participate in the TRICARE program and should pursue any and all such options rather than seeking large increases for enrollment fees, deductibles, and copayments for such retirees, and their families or survivors, who do participate in that program; (3)any percentage increase in fees, deductibles, and copayments that may be considered under the TRICARE program for retired members of the Armed Forces and their families or survivors should not in any case exceed the percentage increase in military retired pay; and (4)any percentage increase in fees, deductibles, and copayments under the TRICARE program that may be considered for members of the Armed Forces who are currently serving on active duty or in the Selected Reserve, and for the families of such members, should not exceed the percentage increase in basic pay or compensation for such members.

3.

Limitations on certain increases in health care costs for members of the uniformed services

(a)

Pharmacy benefits program

Section 1074g of title 10, United Stated Code, is amended by adding at the end the following new subparagraph: (C)The amount of any cost sharing requirements under this paragraph shall not be increased in any year by a percentage that exceeds the percentage increase of the most current previous adjustment to retired pay for members of the armed forces under section 1401a(b)(2) of this title. To the extent that such increase for any year is less than one dollar, the accumulated increase may be carried over from year to year, rounded to the nearest dollar. . (b)

Premiums for TRICARE Standard for reserve component members who commit to service in the Selected Reserve after active duty

Section 1076d(d)(3) of such title is amended— (1)by striking The monthly amount and inserting (A) Except as provided in subparagraph (B), the monthly amount; and (2)by adding at the end the following new subparagraph: (B)In any year after 2006, the percentage increase in the amount of the premium in effect for a month for TRICARE Standard coverage under this section may not exceed a percentage equal to the percentage of the most recent increase in the rate of basic pay authorized for members of the uniformed services for a year. . (c)

Copayments under CHAMPUS

Section 1086(b)(3) of such title is amended in the first sentence by inserting before the period at the end the following: , except that in no event may such charges exceed $535 per day. (d)

Prohibition on enrollment fees under CHAMPUS

Section 1086(b) of such title is further amended by adding at the end the following new paragraph: (5)A person covered by subsection (c) may not be charged an enrollment fee for coverage under this section. . (e)

Premiums and other charges under TRICARE

Section 1097(e) of such title is amended— (1)by inserting (1) before The Secretary of Defense; and (2)by adding at the end the following new paragraph: (2)In any year after 2006, the percentage increase in the amount of any premium, deductible, copayment or other charge established by the Secretary of Defense under this section may not exceed the percentage increase of the most current previous adjustment of retired pay for members and former members of the armed forces under section 1041a(b)(2) of this title. .