[Congressional Record (Bound Edition), Volume 162 (2016), Part 11]
[House]
[Pages 14669-14672]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  VETERANS TRICARE CHOICE ACT OF 2016

  Mr. SMITH of Nebraska. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 5458) to provide for coordination between the 
TRICARE program and eligibility for making contributions to a health 
savings account, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5458

       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 ``Veterans TRICARE Choice Act 
     of 2016''.

     SEC. 2. COORDINATION BETWEEN TRICARE PROGRAM AND ELIGIBILITY 
                   TO MAKE CONTRIBUTIONS TO HEALTH SAVINGS 
                   ACCOUNTS.

       (a) In General.--Section 223(c)(1)(B) of the Internal 
     Revenue Code of 1986 is amended by striking ``and'' at the 
     end of clause (ii), by striking the period at the end of 
     clause (iii) and inserting ``, and'', and by adding at the 
     end the following new clause:
       ``(iv) coverage under the TRICARE program under chapter 55 
     of title 10, United States Code, for any period with respect 
     to which an election is in effect under section 1097e of such 
     title providing that the individual is ineligible to be 
     enrolled in (and receive benefits under) such program.''.
       (b) Provisions Relating to Election of Ineligibility Under 
     TRICARE.--

[[Page 14670]]

       (1) In general.--Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1097d the 
     following new section:

     ``Sec. 1097e. TRICARE program: election of eligibility

       ``(a) Election.--Beginning January 1, 2017, a TRICARE-
     eligible individual may elect at any time to be ineligible to 
     enroll in (and receive any benefits under) the TRICARE 
     program.
       ``(b) Change of Election.--(1) If a TRICARE-eligible 
     individual makes an election under subsection (a), the 
     TRICARE-eligible individual may later elect to be eligible to 
     enroll in the TRICARE program. An election made under this 
     subsection may be made only during a special enrollment 
     period.
       ``(2) The Secretary shall ensure that a TRICARE-eligible 
     individual who makes an election under subsection (a) may 
     efficiently enroll in the TRICARE program pursuant to an 
     election under paragraph (1), including by maintaining the 
     individual, as appropriate, in the health care enrollment 
     system under section 1099 of this title in an inactive 
     manner.
       ``(c) Period of Election.--If a TRICARE-eligible individual 
     makes an election under subsection (a), such election shall 
     be in effect beginning on the date of such election and 
     ending on the date that such individual makes an election 
     under subsection (b)(1) to enroll in the TRICARE program.
       ``(d) Health Savings Account Participation.--(1) For 
     provisions allowing participation in a health savings account 
     in connection with coverage under a high deductible health 
     plan during the period that the election under subsection (a) 
     is in effect, see section 223(c)(1)(B)(iv) of the Internal 
     Revenue Code of 1986.
       ``(2) The Secretary shall submit to the Commissioner of 
     Internal Revenue the name of, and any other information that 
     the Commissioner may require with respect to, each TRICARE-
     eligible individual who makes an election under subsection 
     (a) or (b), not later than 90 days after such election, for 
     purposes of determining the eligibility of such TRICARE-
     eligible individual for a health savings account described in 
     paragraph (1).
       ``(e) Records.--The Secretary shall ensure that a TRICARE-
     eligible individual who makes an election under subsection 
     (a) is maintained on the Defense Enrollment Eligibility 
     Reporting System, or successor system, regardless of whether 
     the individual is eligible for the TRICARE program during the 
     period of such election.
       ``(f) Provision of Information.--The Secretary shall 
     provide to each TRICARE-eligible individual who seeks to make 
     an election under subsection (a) information regarding--
       ``(1) health savings accounts in connection with coverage 
     under a high deductible health plan described in subsection 
     (d)(1), including a comparison of such health saving accounts 
     and the health care benefits the individual is eligible to 
     receive under the TRICARE program; and
       ``(2) changing such an election under subsection (b)(1).
       ``(g) Annual Report.--Not later than 60 days after the end 
     of each fiscal year, the Secretary shall submit to the 
     congressional defense committees a report on elections by 
     TRICARE-eligible individuals under this section that includes 
     the following:
       ``(1) The number of TRICARE-eligible individuals, as of the 
     date of the submittal of the report, who are ineligible to 
     enroll in (and receive any benefits under) the TRICARE 
     program pursuant to an election under subsection (a).
       ``(2) The number of TRICARE-eligible individuals who made 
     an election described under subsection (a) but, as of the 
     date of the submittal of the report, are enrolled in the 
     TRICARE program pursuant to a change of election under 
     subsection (b).
       ``(h) Definitions.--In this section:
       ``(1) The term `TRICARE-eligible individual' means an 
     individual who is--
       ``(A) eligible to be a covered beneficiary entitled to 
     health care benefits under the TRICARE program (determined 
     without regard to this section); and
       ``(B) not serving on active duty in the uniformed services.
       ``(2) The term `special enrollment period' means the period 
     in which a beneficiary under the Federal Employees Health 
     Benefits program under chapter 89 of title 5 may enroll in or 
     change a plan under such program by reason of a qualifying 
     event or during an open enrollment season. For purposes of 
     this section, such qualifying events shall also include 
     events determined appropriate by the Secretary of Defense, 
     including events relating to a member of the armed forces 
     being ordered to active duty.''.
       (2) Conforming amendment.--The table of sections at the 
     beginning of chapter 55 of such title is amended by inserting 
     after the item relating to section 1097d the following new 
     item:

``1097e. TRICARE program: election of eligibility.''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to months beginning after December 31, 2016.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Nebraska (Mr. Smith) and the gentleman from Washington (Mr. McDermott) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Nebraska.


                             General Leave

  Mr. SMITH of Nebraska. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks and include extraneous material on H.R. 5458, currently 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Nebraska?
  There was no objection.
  Mr. SMITH of Nebraska. Mr. Speaker, I yield myself such time as I may 
consume.
  I rise today in support of H.R. 5458, the Veterans TRICARE Choice Act 
of 2016. This legislation, introduced by the gentleman from Utah (Mr. 
Stewart), addresses a gap in current law which prevents veterans and 
their families with TRICARE coverage who also choose to participate in 
a high-deductible health plan from utilizing a health savings account, 
or HSA.
  While veterans or their family members who participate in TRICARE may 
also have private health insurance coverage, including high-deductible 
plans, they are prohibited from contributing to an HSA affiliated with 
a high-deductible plan. In order to contribute to an HSA under current 
law, an individual must permanently renounce their TRICARE eligibility 
because no mechanism to allow reenrollment currently exists.
  H.R. 5458 addresses this issue by allowing certain TRICARE-eligible 
individuals to voluntarily pause their TRICARE coverage for a period of 
time in which they choose to contribute to an HSA. The bill also 
creates special enrollment periods should these individuals choose to 
reenroll in TRICARE at a later date.
  Our veterans devoted their lives to defending our freedoms. We should 
not allow arbitrary, bureaucratic obstacles to stop them from making 
the best healthcare choices for themselves and their families. This 
bill creates a mechanism to improve veterans' health coverage options 
and provides them greater opportunities to save toward their own 
healthcare needs. It also ensures patients can be more engaged in their 
own care while eliminating the inconsistency in our Tax Code.
  I applaud the gentleman from Utah (Mr. Stewart) for bringing us this 
good idea today. I urge support.
  Mr. Speaker, I reserve the balance of my time.

                                      Committee on Armed Services,


                                     House of Representatives,

                                Washington, DC, November 17, 2016.
     Hon. Kevin Brady,
     Chairman, Committee on Ways and Means, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: I write concerning H.R. 5458, the 
     Veterans TRICARE Choice Act of 2016, which was referred to 
     the Committee on Armed Services. There are certain provisions 
     in the bill that fall within the Rule X jurisdiction of the 
     Committee on Armed Services.
       In order to expedite this legislation for floor 
     consideration, the Committee on Armed Services will forgo 
     action on this bill. This decision is conditional on our 
     mutual understanding that forgoing consideration in no way 
     diminishes or alters the jurisdictional interests of the 
     Committee on Armed Services in this bill, any subsequent 
     amendments, or similar legislation. I request you urge the 
     Speaker to appoint members of the Committee on Armed Services 
     to any conference committee convened to consider such 
     provisions.
       Please place a copy of this letter and your response 
     acknowledging our jurisdictional interest into the 
     Congressional Record during consideration of the measure on 
     the House floor.
           Sincerely,
                                    William M. ``Mac'' Thornberry,
     Chairman.
                                  ____

                                      Committee on Ways and Means,


                                     House of Representatives,

                                Washington, DC, November 28, 2016.
     Hon. William M. ``Mac'' Thornberry,
     Chairman, Committee on Armed Services, House of 
         Representatives, Washington, DC.
       Dear Chairman Thornberry, Thank you for your letter 
     regarding H.R. 5458, the ``Veterans TRICARE Choice Act.'' As 
     you noted, the Committee on Armed Services was granted an 
     additional referral on the bill.
       I am most appreciative of your decision to waive formal 
     consideration of H.R. 5458 so that it may proceed 
     expeditiously to the House floor. I acknowledge that although 
     you waived formal consideration of the bill, the Committee on 
     Armed Services is in no way waiving its jurisdiction over the 
     subject matter contained in those provisions of the bill that 
     fall within your Rule X jurisdiction. I would support your 
     effort to seek appointment of an appropriate number of 
     conferees

[[Page 14671]]

     on any House-Senate conference involving this legislation.
       I will include a copy of our letters in the Congressional 
     Record during consideration of this legislation on the House 
     floor.
           Sincerely,
                                                      Kevin Brady,
                                                         Chairman.

  Mr. McDERMOTT. Mr. Speaker, I yield myself such time as I may 
consume.
  While we are here today to debate H.R. 5458, which focuses on one 
small part of the transition for veterans completing their service and 
entering the civilian workforce, I wish to take a moment to reflect on 
a broader issue.
  While many veterans enter the workforce, and some may even be offered 
a health savings account as part of their insurance coverage, many 
millions depend on Medicare and Medicaid. Now, we in the Congress can't 
forget the role these programs play in caring for our veterans and 
their loved ones as they return to the workforce, as they age, or as 
they live with disabilities.
  For more than four decades, Medicare and Medicaid have helped 
Americans from all walks of life by improving their financial and 
health security; but if you have been paying attention to the news 
lately, you know these programs are under grave risk next year with a 
new Congress and a new President.
  As we speak today to honor veterans' service to our country, we must 
also think about the safety net that has been in place for many years 
to offer security. For example, today, nearly 1 in 10 veterans lacks 
health insurance at all. More than 340,000 uninsured veterans and their 
spouses live in States that have chosen not to expand Medicaid to cover 
more residents. If those States offered coverage, these veterans would 
have insurance if we really cared about them--but their Governors 
apparently don't.
  In Florida, more than 55,000 veterans and their spouses would be 
Medicaid eligible had the State chosen to cover individuals earning 
less than $21,000 a year. In North Carolina, 32,000 veterans and their 
spouses, and in Texas 67,000 veterans and their spouses would be 
eligible. But their Governors saw fit not to care.
  Slashing Medicare funding by more than $1 trillion, as Speaker Ryan 
has proposed, is not a way to help veterans. Yet that is what will be 
in store next year. That is what people are talking about as what we 
are going to do in the new year. Turning Medicare into a capped 
voucher, privatizing the program, shifting more costs on beneficiaries, 
won't help either.
  Now back to the bill at hand. For veterans who are receiving coverage 
through TRICARE, using employer coverage that offers health savings 
accounts coupled with high-deductible health plans can cause a problem. 
Under present law, eligibility for TRICARE coverage disqualifies a 
retiree from HSA eligibility because the TRICARE program is not a high-
deductible plan. This, I believe, is a good thing, and it keeps health 
care affordable for veterans, especially those who do not have the 
option for other coverage.
  While there is a difference of opinion in the committee on tax-
preferred health accounts, the legislation recognizes that some 
veterans may have that coverage and could run afoul of current law 
because of enrollment in TRICARE. H.R. 5458 would provide that military 
retirees may disclaim their eligibility for the TRICARE program. This 
would allow a retiree who enrolled in a high-deductible health plan to 
receive or make HSA contributions.
  When we considered this bill in the Committee on Ways and Means, the 
Department of Defense as well as the House Committee on Armed Services 
had some concerns with the approach in this bill, in particular, that 
TRICARE eligibility is a statutory entitlement that cannot be waived. 
If the NDAA conference language is passed later this week, this 
legislation will no longer be needed as TRICARE enrollment will be 
voluntary and retirees can move between employer-sponsored insurance 
and TRICARE, depending on which coverage is best for their current 
needs. In other words, this bill is going to last about 3 days, until 
we pass the NDAA on Friday and it is signed into law.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SMITH of Nebraska. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Utah (Mr. Stewart), the author of this 
bill.
  Mr. STEWART. Mr. Speaker, I thank the gentleman from Nebraska for the 
opportunity to speak on behalf of my bill, the Veterans TRICARE Choice 
Act.
  Mr. Speaker, it was my honor to serve for 14 years as a pilot in the 
Air Force, and for my family--my wife, my children, and me--those were 
some of the best years of our lives. I continue to be amazed at the 
quality of those who serve in our military. It shouldn't become cliche 
to say this: These are some of the finest young men and women that our 
country has ever produced; they are strong, intelligent, dedicated, 
courageous individuals who choose to use their talents to serve the 
rest of us.
  It makes me uncomfortable sometimes when I hear those of us who serve 
in Congress being called public servants when we know that the true 
public servants are the airmen, the seamen, the soldiers, the marines--
and their families; let's not forget their families and their sacrifice 
as well--those who spend their careers either fighting abroad or 
preparing for that eventuality. As Americans, we should make it a habit 
to always thank these servicemembers whenever we see them.
  As Members of Congress, it is our job to be wise in our foreign 
policy, to give our warfighters the resources they need to win and then 
to ensure that veterans receive the benefits that we have promised 
them. In fact, that third responsibility is the genesis for this bill, 
fixing a glitch that was brought to my attention.
  As the gentleman has said already, it is just a glitch, just a 
loophole in the current law that was brought to my attention by a group 
of airline pilots. These pilots, many of whom are veterans, realized 
that, as veterans, they were unable to take advantage of all the 
healthcare benefits offered by their civilian employers. Many of them 
wanted to use HSAs but, because of the TRICARE eligibility, were 
legally unable to do that.
  Mr. Speaker, HSAs are an innovative healthcare option that House 
Republicans have advanced as an important part of a market-driven, 
affordable healthcare system. In fact, HSAs are a critical component to 
the Speaker's Better Way agenda, which I think many of us are excited 
to see signed into law in the coming months. With that in mind, it 
makes no sense to lock veterans out of this benefit based on 
eligibility for TRICARE.
  These pilots came to my office and had a simple request: Give us an 
on-off switch for TRICARE so the veterans who wish to use an HSA while 
retaining their right to return to TRICARE in the future can do that if 
they choose. It made sense, so that is what we did with this bill. The 
Veterans TRICARE Choice Act allows a veteran to suspend his or her 
TRICARE benefits for the purpose of enrolling in a health savings plan. 
If, for whatever reason, the veteran wishes to return to TRICARE, he or 
she can do so. It is a simple, commonsense fix with broad, bipartisan 
support.
  I would like to thank Representative Tulsi Gabbard, a fellow veteran 
with a distinguished career in the United States Navy and a current 
member of the Hawaiian National Guard. Representative Gabbard and I 
have been fortunate to work together on this bill for almost 3 years 
now, and I am grateful for her work to bring this bill to this point.
  I would also like to thank Chairman Brady, Chairman Thornberry, 
Chairman Tiberi, Chairman Heck, and each of their staffs for their 
great work and their support in refining the bill and bringing it to 
the floor today. I am grateful for a similar measure that will be 
included in the National Defense Authorization Act we will be voting on 
later this week.
  Finally, I would like to thank Nathaniel Johnson, a former member of 
my staff, a member of the Utah National Guard, a former combat medic

[[Page 14672]]

who served in Afghanistan, and of course we called him Doc then. I 
would like to thank Doc, who felt compelled to see this bill through to 
its conclusion.
  Mr. Speaker, our veterans deserve our most profound gratitude. 
Nothing about their military service should prevent them from accessing 
the same benefits as their nonveteran coworkers. The very least we can 
do for them is ensure they receive the benefits we promised them and 
that the process goes forward as smoothly as possible. I recognize we 
have lots to do on that front, but I am hopeful the passage of this 
bill will be one small step forward in that direction.
  Mr. Speaker, I urge a ``yes'' vote.
  Mr. McDERMOTT. Mr. Speaker, I yield such time as she may consume to 
the gentlewoman from Hawaii (Ms. Gabbard).
  Ms. GABBARD. Mr. Speaker, the problem that this bill seeks to solve 
for our veterans is, unfortunately, not uncommon. I have heard from 
many of my fellow veterans, as has previously been explained, who have 
similarly not been able to access options widely available to their 
civilian coworkers because of the current limitations in the law; and 
that is what this bill seeks to do: correct it.
  The Veterans TRICARE Choice Act simply gives veterans and their 
dependents a choice: They can opt out of TRICARE and contribute to a 
health savings account with more flexibility and coverage options 
without fear of permanently losing their TRICARE coverage; and if their 
situation later changes, they will have the option to reenroll in 
TRICARE coverage, plain and simple.
  Our veterans and their families make tremendous sacrifices in service 
to our country, and that service should never limit their access to 
quality health care and their ability to make their own decisions about 
their own health and the health care for their families in the future.
  I would like to thank and congratulate my friend and colleague, Chris 
Stewart, for his leadership on pushing this issue forward, and I 
encourage my colleagues to join us in supporting H.R. 5458 today.

                              {time}  1515

  Mr. SMITH of Nebraska. Mr. Speaker, I reserve the balance of my time.
  Mr. McDERMOTT. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, this bill is one of those things that you fill time 
with, and I guess it is not going to hurt anything. So I would 
recommend that all of my colleagues vote for it. It will be moot on 
Friday, when we pass the NDAA.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SMITH of Nebraska. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I would like to take a moment to again thank Mr. Stewart 
for his efforts. This is a good bill that, as the gentlewoman from 
Hawaii mentioned, will help many folks--certainly, those that she has 
heard from and I know others have as well. I support more veterans 
having more options. I support the bill's passage and urge my 
colleagues to support it.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Nebraska (Mr. Smith) that the House suspend the rules 
and pass the bill, H.R. 5458, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________