[Congressional Record Volume 149, Number 44 (Wednesday, March 19, 2003)]
[Senate]
[Pages S3995-S3996]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS--Tuesday, March 
                                18, 2003

      By Mr. KENNEDY:
  S. 647. A bill to amend title 10, United States Code, to provide for 
Department of Defense funding of continuation of health benefits plan 
coverage for certain Reserves called or ordered to active duty and 
their dependents, and for other purposes.
  Mr. KENNEDY. Mr. President, today I am introducing a bill to close an 
unfortunate loophole in health insurance coverage for families of 
reserve and guard members who are called up for active duty.
  As we face the likelihood of war with Iraq, one hundred and fifty 
thousand members of the National Guard and the Reserves have been 
mobilized for service. These soldiers, sailors, marines, and airmen are 
standing by their country in a time of national emergency. But unless 
the Congress takes immediate action, too many of the spouses and 
children of these brave men and women may find the quality of their 
health care reduced.
  Today's military relies more heavily than ever before on the reserve 
and guard. Currently, over 150,000 National Guard and reserve soldiers, 
sailors, Marines and airmen have been mobilized. They are spending an 
average of thirteen times longer on active duty today than compared to 
a decade ago.
  Our men and women in uniform are working and training hard for the 
serious challenges before them. They are living in the desert, enduring 
harsh conditions, and contemplating the horrors of the approaching war. 
At the same time, they must put their lives on hold, dealing with 
family crises by phone and email. We must do our best to take care of 
those they have left at home.
  During the Vietnam War, only 20 percent of all Army personnel were 
married. Today over 50 percent of the active military are married. 
These numbers are even higher in the guard and reserves. This service 
places heavy strain on the families who are left behind to worry and 
cope with the sudden new demands of running a household alone.
  For the guard and reservists' families, a recall to active duty 
brings new bureaucratic challenges. Employers are not required to keep 
paying the health insurance for reservists while they are deployed. 
Many guardsmen and reservists may not be able to afford to pay for 
health care for their families while they are away.
  If a guardsman or reservist is activated for more than thirty days, 
their family is eligible to enroll in the TRICARE program. However, 
during that first month, the family may not have any health insurance. 
In addition, if their family doctor does not participate in TRICARE, 
the family must find a new doctor while coping with all the other 
demands of the service member's absence. A family with a sick child and 
a father or mother sent off to war should not have to cope with the 
added burden of giving up the family doctor they trust.
  The bill I am introducing will assure continuity of health insurance 
coverage for families of reservists and National Guard personnel called 
to active duty. Under this bill, these families retain the option of 
private health insurance coverage during the period of active duty, 
rather than enrolling in TRICARE.
  The bill amends the COBRA coverage rules to specify that loss of 
employment-based coverage due to active-duty allows them to use the 
COBRA mechanism to retain their health care coverage. The Federal 
Government will pay the cost of premiums not covered by employers. This 
assistance will relieve some of the financial burden on families when 
the service member leaves a more lucrative private sector job to serve 
in the military. The Federal Government will also pay the cost of 
continuing family coverage purchased in the individual insurance 
market, for those who do not have employment-based coverage.
  The cost of this modest additional help for the families of our 
servicemen will be small, since spouses and children who continue to 
use their private insurance policies will not be using TRICARE medical 
services that would otherwise be the government's responsibility.
  This bill will not change the health care coverage for service 
members who will continue to receive health care

[[Page S3996]]

through the military medical system. Nor will it change the health care 
coverage for active duty family members who retain TRICARE eligibility 
and receive health care either through the direct care system or 
TRICARE network.
  When reservists and members of the National Guard are called to 
active duty in time of international crisis, they are asked to put 
their lives on the line for their country. The least we can do for them 
is assure that their families can continue to receive quality health 
care without interruption during their absence.
  I urge my colleagues to move promptly to enact this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 647

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

     SECTION 1. DEPARTMENT OF DEFENSE PAYMENT FOR CONTINUATION OF 
                   NON-TRICARE HEALTH BENEFITS COVERAGE FOR 
                   CERTAIN MOBILIZED RESERVES.

       (a) Payment of Premiums.--
       (1) Requirement to pay premiums.--Chapter 55 of title 10, 
     United States Code, is amended by inserting after section 
     1078a the following new section:

     ``Sec. 1078b. Continuation of non-TRICARE health benefits 
       plan coverage for certain Reserves called or ordered to 
       active duty and their dependents

       ``(a) Payment of Premiums.--The Secretary concerned shall 
     pay the applicable premium to continue in force any qualified 
     health benefits plan coverage for an eligible reserve 
     component member for the benefits coverage continuation 
     period if timely elected by the member in accordance with 
     regulations prescribed under subsection (h).
       ``(b) Eligible Member.--A member of a reserve component who 
     is called or ordered to active duty for a period of more than 
     30 days under a provision of law referred to in section 
     101(a)(13)(B) of this title is eligible for payment of the 
     applicable premium for continuation of qualified health 
     benefits plan coverage under subsection (a).
       ``(c) Qualified Health Benefits Plan Coverage.--For the 
     purposes of this section, health benefits plan coverage for a 
     member called or ordered to active duty is qualified health 
     benefits plan coverage if--
       ``(1) the coverage was in force on the date on which the 
     Secretary notified the member that issuance of the call or 
     order was pending or, if no such notification was provided, 
     the date of the call or order; and
       ``(2) on that date, the coverage applied to the member and 
     dependents of the member.
       ``(d) Applicable Premium.--The applicable premium payable 
     under this section for continuation of health benefits plan 
     coverage in the case of a member is the amount of the premium 
     payable by the member for the coverage of the member and 
     dependents.
       ``(e) Benefits Coverage Continuation Period.--The benefits 
     coverage continuation period under this section for qualified 
     health benefits plan coverage in the case of a member called 
     or ordered to active duty is the period that--
       ``(1) begins on the date of the call or order; and
       ``(2) ends on the earlier of the date on which--
       ``(A) the member's eligibility for transitional health care 
     under section 1145(a) of this title terminates under 
     paragraph (3) of such section;
       ``(B) the member or the dependents of the member eligible 
     for benefits under the qualified health benefits plan 
     coverage become covered by another health benefits plan that 
     is not TRICARE; or
       ``(C) the member elects to terminate the continued 
     qualified health benefits plan coverage of the dependents of 
     the member.
       ``(f) Extension of Period of COBRA Coverage.--
     Notwithstanding any other provision of law--
       ``(1) any period of coverage under a COBRA continuation 
     provision (as defined in section 9832(d)(1) of the Internal 
     Revenue Code of 1986) for a member under this section shall 
     be deemed to be equal to the benefits coverage continuation 
     period for such member under this section; and
       ``(2) with respect to the election of any period of 
     coverage under a COBRA continuation provision (as so 
     defined), rules similar to the rules under section 
     4980B(f)(5)(C) of such Code shall apply.
       ``(g) Special Rule With Respect to Individual Health 
     Insurance Coverage.--With respect to a member of a reserve 
     component described in subsection (b) who was enrolled in 
     individual health insurance coverage (as such term is defined 
     in section 2791(b)(5) of the Public Health Service Act) on 
     the date on which the member was called or ordered to active 
     duty, the health insurance issuer may not--
       ``(1) decline to offer such coverage to, or deny re-
     enrollment of, such individual during the benefits coverage 
     continuation period described in subsection (e);
       ``(2) impose any preexisting condition exclusion (as 
     defined in section 2701(b)(1)(A) of the Public Health Service 
     Act) with respect to the re-enrollment of such member for 
     such coverage during such period; or
       ``(3) increase the premium rate for re-enrollment of such 
     member under such coverage during such period above the rate 
     that was paid for the coverage prior to the date of such call 
     or order.
       ``(h) Nonduplication of Benefits.--A dependent of a member 
     who is eligible for benefits under qualified health benefits 
     plan coverage paid on behalf of a member by the Secretary 
     concerned under this section is not eligible for benefits 
     under TRICARE during a period of the coverage for which so 
     paid.
       ``(i) Revocability of Election.--A member who makes an 
     election under subsection (a) may revoke the election. Upon 
     such a revocation, the member's dependents shall become 
     eligible for TRICARE as provided for under this chapter.
       ``(j) Regulations.--The Secretary of Defense shall 
     prescribe regulations for carrying out this section. The 
     regulations shall include such requirements for making an 
     election of payment of applicable premiums as the Secretary 
     considers appropriate.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1078a the following new item:

``1078b. Continuation of non-TRICARE health benefits plan coverage for 
              certain Reserves called or ordered to active duty and 
              their dependents.''.

       (b) Applicability.--Section 1078b of title 10, United 
     States Code (as added by subsection (a)), shall apply with 
     respect to calls or orders of members of reserve components 
     of the Armed Forces to active duty as described in subsection 
     (b) of such section, that are issued by the Secretary of a 
     military department on or after the date of the enactment of 
     this Act.

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