II 109th CONGRESS 2d Session S. 3550 IN THE SENATE OF THE UNITED STATES June 21, 2006 Mr. Graham introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To allow members of the Selected Reserve enrolled in the TRICARE program to pay premiums with pre-tax dollars.

1.

Pre-tax premiums for members of the Selected Reserve

(a)

In general

The Secretary of Defense shall institute a premium conversion plan under which members of the Selected Reserve who are participating in the TRICARE program (as defined in section 1072(7) of title 10, United States Code) may choose between cash and health benefits under such program. The premium conversion program shall be designed to meet the requirements of section 125 of the Internal Revenue Code of 1986. (b)

Default selection

Unless a member makes an election provided under the premium conversion plan, the member shall be treated as having chosen health benefits under the TRICARE program.