[Congressional Record Volume 146, Number 68 (Tuesday, June 6, 2000)]
[Senate]
[Pages S4565-S4566]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WARNER:
  S. 2669. A bill to amend title 10, United States Code, to extend to 
persons over age 64 eligibility for medical care under CHAMPUS and 
TRICARE; to extend the TRICARE Senior Prime demonstration program in 
conjunction with the extension of eligibility under CHAMPUS and TRICARE 
to such persons, and for other purposes; to the Committee on Armed 
Services.


       legislation regarding medicare-eligible military retirees

  Mr. WARNER. Mr. President, today I am introducing a bill, S. 2669, to 
afford members the opportunity to examine the issues related to the 
complicated military medical program. We desire to change the existing 
program to encompass, in the future, retirees over age 65.
  Beginning in World War II promises were made to military members that 
they and their families would be provided health care if they served a 
full career. Subsequent legislation was enacted which cut off medical 
benefits at age 65, leaving them to depend on the Medicare system, 
which has provided to be inefficient. This is a breach of promise made 
on behalf of our country to retirees who devoted a significant portion 
of their lives with careers in service to their country. I recognize 
with profound sorrow how we broke this promise to these retirees.
  I have gone back and carefully examined these issues. There is no 
statutory foundation providing for entitlement to military health care 
benefits. It does not exist. It is a myth. But good faith 
representation was made to these members. Who made the commitment is 
irrelevant. I know personally that these representations were made. I 
served in the military and heard the same promises.
  My Committee has made a determination, a bipartisan decision, that we 
would fix the issue of health care for our older retirees, this year. 
We have started with a series of bills, strengthening them as we went 
along, listening to those beneficiaries who use the system. The 
legislation I bring to the floor today repeals the restriction barring 
65 and older military retirees and their families from continued access 
to the military health care system. If enacted, this legislation will 
provide an equal benefit for all military health care system 
beneficiaries, retirees, reservists, guardsmen and families. This puts 
all beneficiaries in the same class. It is fairly expensive, but we 
need to do it.
  The legislation is a quantum leap over the provisions included in the 
Committee markup of the annual Defense bill. While the markup includes 
a comprehensive drug benefit regardless of age, the legislation goes 
further and provides uninterrupted access to complete health care 
services.
  As a result of my initiatives, all military retirees, irrespective of 
age, will now enjoy the same health care benefit.
  In Town Hall meetings, I have listened carefully to the health care 
concerns of military retirees--particularly those over age 65 who have 
lost their entitlement to health care within the current military 
health care system. The constant theme that runs through their requests 
is that, once they reach the point at which they are eligible for 
Medicare, they are no longer guaranteed care from the military health 
care system. This discriminatory characteristic of our current system--
that has been in effect since 1964--reduces retiree medical benefits 
and requires a significant change in the manner in which health care is 
obtained at a point in the lives of our older military retirees when 
stability and confidence are most important. This bill, in effect, 
repeals the 1964 law.
  The bill that I am proposing today would eliminate the current 
discrimination based on age and would permit military retirees 
and their dependents to be served by the military health care system 
throughout their lives. Under my proposal, it would not matter whether 
the military retiree is 47 years old or 77 years old. He or she will be 
covered by the military health care system while on active duty and 
throughout their retirement. No new systems will be required, although 
the existing military system may require assistance from the Congress 
to strengthen its ability to serve all retirees. This bill eliminates 
the confusing and ineffective transfer of funds from Medicare to the 
Department of Defense. Military retirees will not be required to pay 
the high cost of additional basic or supplemental insurance premiums to 
ensure their health care needs are met. Military readiness will not be 
adversely impacted and our commitment to those who served a full career 
will be fulfilled.

  In order to permit the Department of Defense to plan for restoring 
the health care benefit to all retirees, my bill would be effective on 
October 1, 2001. While some may advocate an earlier effective date, it 
is simply not feasible to expand the medical coverage to the 1.8 
million Medicare-eligible retirees overnight.
  What is apparent to me is that the will of the Congress, reflecting 
the will of the Nation, is that now is the time to act on this issue. 
My bill would eliminate the discriminatory practice that caused concern 
among our military retirees and will restore full benefits of the 
military health care system to all retirees.
  Access to military health care has reached a crisis point. With the 
reduction in the number of military hospitals and with the growth in 
the retiree population, addressing the health care needs of our older 
retirees has become increasingly difficult. These beneficiaries should 
be assured that their health care needs will be met. They were promised 
a healthcare benefit, they served to earn a benefit, and our country 
needs to fulfill the commitments that were made to them.
  I am well aware of the legislative alternatives that have been 
proposed to address military retiree health care needs. I have 
struggled to examine the most acute needs of these beneficiaries and 
have struggled to develop a plan that equally benefits all our 
retirees, not just those fortunate enough to live near a military 
medical facility, or those fortunate enough to be selected through some 
sort of lottery to be allowed to participate in the various pilot 
programs now underway. My goal is to provide health care through a 
means that is available to all beneficiaries, in an equitable and 
complete manner.
  As I have made it clear throughout the year, improving the military 
health care system has been the Committee's top quality of life 
initiative this year. My Committee has held hearings and listened to a 
variety of beneficiary representatives. I have traveled throughout my 
state and listened to the concerns of retirees. I conducted an 
extensive town hall meeting in Norfolk in March. I have met with many 
retirees and their representatives at my office, during my travels, and 
even in social settings. I have listened.
  This extensive review has allowed me to examine carefully how to 
approach this issue. The number one priority I

[[Page S4566]]

heard from retirees was the importance of access to pharmaceuticals. 
This inspired me to develop S. 2087, which provided a mail order 
pharmacy benefit for all military beneficiaries, including--for the 
first time--all Medicare eligible retirees. S. 2087 also addressed a 
number of other issues with the military health care system including 
some critical improvements to the TRICARE program for both active duty 
and retirees and their family members. I appreciate the bipartisan 
support of so many of my colleagues in crafting and introducing this 
critical first step.

  In my many meetings with retirees, and through discussions with my 
colleagues, I came to understand the need to further enhance S. 2087. I 
proposed amendments to the budget resolution to increase the funding 
available to address retiree health care needs. Then, again with 
bipartisan support, I crafted a new piece of legislation which improved 
and enhanced the pharmacy provisions of the original legislation. With 
special assistance from Senator Snowe and Senator Kennedy, the new S. 
2486 included an enhanced pharmacy benefit with no enrollment fees, 
that included both retail and mail order programs. This improved 
legislation addressed the major unmet need of retirees, access to 
pharmaceuticals, and provides an equitable benefit, one that is not 
discriminatory based on age. This legislation was included during 
Committee consideration of the Fiscal Year 2001 National Defense 
Authorization Bill, with the overwhelming support of Committee members.
  The bill now before the Congress compliments my earlier efforts and 
those of the Committee. This bill, in conjunction with the provisions 
in the Defense Authorization Bill, would provide a complete health care 
benefit for all military retirees. I urge my colleagues to support this 
important legislation.
  Mr. President, I ask unanimous consent that the bill and my statement 
be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2669

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

     SECTION 1. CONDITIONS FOR ELIGIBILITY FOR CHAMPUS UPON THE 
                   ATTAINMENT OF 65 YEARS OF AGE.

       (a) Eligibility of Medicare Eligible Persons.--Section 
     1086(d) of title 10, United States Code, is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) The prohibition contained in paragraph (1) shall not 
     apply to a person referred to in subsection (c) who--
       ``(A) is enrolled in the supplementary medical insurance 
     program under part B of such title (42 U.S.C. 1395j et seq.); 
     and
       ``(B) in the case of a person under 65 years of age, is 
     entitled to hospital insurance benefits under part A of title 
     XVIII of the Social Security Act pursuant to subparagraph (A) 
     or (C) of section 226(b)(2) of such Act (42 U.S.C. 426(b)(2)) 
     or section 226A(a) of such Act (42 U.S.C. 426-1(a)).''; and
       (2) in paragraph (4), by striking ``paragraph (1) who 
     satisfy only the criteria specified in subparagraphs (A) and 
     (B) of paragraph (2), but not subparagraph (C) of such 
     paragraph,'' and inserting ``subparagraph (B) of paragraph 
     (2) who do not satisfy the condition specified in 
     subparagraph (A) of such paragraph''.
       (b) Extension of TRICARE Senior Prime Demonstration 
     Program.--Paragraph (4) of section 1896(b) of the Social 
     Security Act (42 U.S.C. 1395ggg(b)) is amended by striking 
     ``3-year period beginning on January 1, 1998'' and inserting 
     ``period beginning on January 1, 1998, and ending on December 
     31, 2002''.
       (c) Repeal of Related Demonstration Program.--Section 702 
     of the National Defense Authorization Act for Fiscal Year 
     1993 (Public Law 102-484; 106 Stat. 2431; 10 U.S.C. 1079 
     note) is repealed.
       (d) Effective Dates.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect on 
     October 1, 2001.
       (2) The amendment made by subsection (b) shall take effect 
     on the date of the enactment of this Act.
                                 ______