[Congressional Record Volume 153, Number 29 (Thursday, February 15, 2007)]
[Senate]
[Pages S2025-S2027]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LAUTENBERG (for himself, Mr. Hagel, Mr. Kerry, and Mrs. 
        Lincoln):
  S. 604. A bill to amend title 10, United States Code, to limit 
increases in the certain costs of health care services under the 
heaalth care programs of the Department of Defense, and for the 
purposes; to the Committee on Armed Services.
  Mr. LAUTENBERG. Mr. President, I rise to introduce the Military 
Health

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Care Protection Act along with my colleagues, Senators Hagel, Kerry, 
and Lincoln.
  This important legislation will keep the Pentagon from dramatically 
raising health care fees on active duty military personnel, National 
Guard, Reserves, retirees and their families.
  Our bill will limit increases to TRICARE military health insurance 
enrollment fees, deductibles, and pharmacy co-payments for those 
military retirees who are enrolled in TRICARE. Under this legislation, 
increases in these health care fees cannot exceed the rate of growth in 
uniformed services beneficiaries' military compensation, thereby 
protecting beneficiaries from an undue financial burden.
  Our bill will also cap increases to TRICARE military health insurance 
pharmacy co-payments at current levels for those active duty military 
personnel, National Guard, Reserves members, and their families. Under 
this legislation, increases in such fees also cannot exceed the rate of 
growth in uniformed services beneficiaries' military compensation.
  Just last week, the Department of Defense (DOD) submitted its Fiscal 
Year 2008 budget to Congress. Within that budget, a cut of $1.86 
billion was made to TRICARE out of the Defense Health Program budget. 
Such a cut would require a doubling of fees on senior enlisted retirees 
and a tripling of such fees for officer retirees. This would mean 
increases of up to $1,000 annually for some military retirees. While 
the Department of Defense temporarily halted plans to raise fees last 
year at the direction of Congress, we are again faced with this 
challenge. We must pass legislation now that limits the amount of any 
health care increase and protects beneficiaries from extreme health 
care fee increases in the future.
  With this bill, Senator Hagel and I reiterate our commitment to our 
troops and future veterans by assuring them that just as they protected 
us, we will take care of them when their service ends.
  Last year, Congress rejected the same increases that the Pentagon is 
proposing again for this year. I ask the support of my colleagues to 
pass this legislation this year to prevent these significant increases 
permanently.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 604

       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 ``Military Health Care 
     Protection Act''.

     SEC. 2. FINDINGS AND SENSE OF CONGRESS.

       (a) Findings.--Congress makes the following findings:
       (1) Career members of the uniformed services 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) Many private sector firms are curtailing health 
     benefits and shifting significantly higher costs to their 
     employees, and one effect of such curtailment is that retired 
     members of the uniformed services 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 uniform.
       (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 uniformed services.
       (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 33-percent increase in military retired pay 
     since such fees, deductibles, and copayments were first 
     required on the part of retired members of the uniformed 
     services 11 years ago.
       (9) Proposals of the Department of Defense for increases in 
     the enrollment fees, deductibles, and copayments of retired 
     members of the uniformed services 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 uniform.
       (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.
       (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 uniformed services 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 uniformed services 
     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 uniformed services 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 uniformed services 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 for such members.

     SEC. 3. LIMITATIONS ON CERTAIN INCREASES IN HEALTH CARE COSTS 
                   FOR MEMBERS OF THE UNIFORMED SERVICES.

       (a) Pharmacy Benefits Program.--Section 1074g(a)(6) 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 may not be increased in any year by a 
     percentage that exceeds the percentage increase of the most 
     recent increase in 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.--
     Section 1076d(d)(3) of such title is amended--
       (1) by striking ``The monthly amount'' and inserting ``(A) 
     Subject to subparagraph (B), the monthly amount''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Effective as of October 1, 2007, 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.--Paragraph (3) of section 
     1086(b) of such title is amended in the first sentence by 
     striking ``during the period beginning on April 1, 2006, and 
     ending on September 30, 2007.'' and inserting ``after March 
     31, 2006''.
       (d) Prohibition on Enrollment Fees for Certain Persons 
     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) Automatic Enrollment for Certain Persons Under 
     CHAMPUS.--Section 1086(b) of such title is further amended by 
     adding at the end the following new paragraph:
       ``(6) A person covered by subsection (c) shall not be 
     subject to denial of claims for

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     coverage under this section for failure to enroll for such 
     coverage. To the extent enrollment may be required, 
     enrollment shall be automatic for any such person filing a 
     claim under this section.''.
       (f) 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) Effective as of October 1, 2007, the percentage 
     increase in the amount of any premium, deductible, copayment 
     or other charge prescribed by the Secretary under this 
     subsection may not exceed the percentage increase of the most 
     recent increase in retired pay for members and former members 
     of the armed forces under section 1041a(b)(2) of this 
     title.''.
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