article: SECTION 1. EXPANSION OF FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM TO INCLUDE RETIRED MEMBERS AND DEPENDENTS WHO ARE MEDICARE ELIGIBLE. (a) Federal Employee Health Benefits Program Option.--The Secretary of Defense, after consulting with the other administering Secretaries under chapter 55 of title 10, United States Code, shall enter into an agreement with the Office of Personnel Management under which certain persons are offered enrollment in a health benefits plan under chapter 89 of title 5, United States Code, in lieu of receiving care in treatment facilities of the uniformed services or through the Civilian Health and Medical Program of the Uniformed Services or the TRICARE program. The agreement may provide for enrollment limitations if the Office of Personnel Management determines that the limitations are necessary to allow for adequate planning for access for services under chapter 89 of title 5, United States Code. (b) Eligible Persons.--(1) The following persons shall be eligible for enrollment under this section: (A) A member or former member of the uniformed services described in section 1074(b) of title 10, United States Code, who is or becomes entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.). (B) A dependent of a person described in subparagraph (A) if the dependent is otherwise eligible for health care under chapter 55 of title 10, United States Code and is or becomes entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.). (2) Persons described in paragraph (1) shall not be required to satisfy any eligibility criteria specified in chapter 89 of title 5, United States Code, as a condition for enrollment in a health benefits plan offered through the Federal Employee Health Benefits program pursuant to subsection (a). (c) Contributions.--(1) In the case of a person described in subsection (b) who enrolls in a health benefits plan offered through the Federal Employee Health Benefits program pursuant to subsection (a), the administering Secretary concerned shall be responsible for Government contributions that the Office of Personnel Management determines are necessary to cover all costs in excess of beneficiary contributions under paragraph (2). (2) The contribution required from an enrolled person under this section shall be equal to the amount that would be withheld from the pay of a similarly situated Federal employee who enrolls in a health benefits plan under chapter 89 of title 5, United States Code. (d) Management of Participation.--The authority responsible for approving retired or retainer pay or equivalent pay in the case of a member or former member shall manage the participation of the member or former member, and dependents of the member or former member, who enroll in a health benefits plan offered through the Federal Employee Health Benefits program pursuant to subsection (a). The Office of Personnel Management shall maintain separate risk pools for persons described in subsection (b) until such time as the Director of the Office of Personnel Management determines that complete inclusion chapter 89 of title 5, United States Code, of persons described in subsection (b) will not adversely affect Federal employees and annuitants enrolled in health benefits plans under such chapter. (e) Effect of Cancellation.--The cancellation by a person described in subsection (b) of coverage under the Federal Employee Health Benefits program shall be irrevocable for purposes of this section. (f) Reporting Requirements.--Not later than November 1 of each year, the Secretary of Defense and the Director of the Office of Personnel Management shall jointly submit a report to Congress describing the provision of health care services to persons under this section during the preceding fiscal year. The report shall address or contain the following: (1) The number of persons enrolled in health benefits plans offered through the Federal Employee Health Benefits program pursuant to subsection (a), both in terms of total number and as a percentage of all persons receiving health care through the health care system of the uniformed services. (2) The out-of-pocket cost to enrollees under such health benefits plans. (3) The cost to the Government (including the Department of Defense, the Department of Transportation, and the Department of Health and Human Services) of providing care under such health benefits plans. (4) A comparison of the costs determined under paragraphs (2) and (3) and the costs that would have otherwise been incurred by the Government and enrollees under alternative health care options available to the administering Secretaries. (5) The effect of this section on the cost, access, and utilization rates of other health care options under the health care system of the uniformed services. (g) Time for Option.--The Secretary of Defense shall begin to offer the health benefits option under subsection (a) not later than October 1, 1997. (h) Conforming Amendments.--Chapter 89 of title 5, United States Code, is amended-- (1) in section 8905-- (A) by redesignating subsections (d) through (f) as subsections (e) through (g), respectively; and (B) by inserting after subsection (c) the following new subsection: ``(d) An individual whom the Secretary of Defense determines is an eligible person under the special authority provided to the Secretary may enroll in a health benefits plan under this chapter in accordance with the agreement between the Secretary and the Office and applicable regulations under this chapter.''; (2) in section 8906(b)-- (A) in paragraph (1), by striking ``paragraphs (2) and (3)'' and inserting in lieu thereof ``paragraphs (2), (3), and (4)''; and (B) by adding at the end the following new paragraph: ``(4) In the case of individuals who enroll in a health plan in accordance with section 8905(d) of this title, the Government contribution shall be determined in accordance with the agreement between the Secretary and the Office.''; and (3) in section 8906(g)-- (A) in paragraph (1), by striking ``paragraph (2)'' and inserting in lieu thereof ``paragraphs (2) and (3)''; and (B) by adding at the end the following new paragraph: ``(3) The Government contribution described in subsection (b)(4) for beneficiaries who enroll in accordance with section 8905(d) of this title shall be paid in accordance with the agreement between the Secretary and the Office.''.
summary: Directs the Secretary of Defense to enter into an agreement with the Office of Personnel Management (OPM) under which current or former military personnel who are or become entitled to hospital insurance benefits under part A of title XVIII (Medicare) of the Social Security Act are offered enrollment in a Federal employees health benefits plan in lieu of receiving care in military treatment facilities or through the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS). Allows such enrollment for any dependent of such individual if the dependent is entitled to health care under CHAMPUS and is or becomes entitled to hospital insurance benefits under Medicare. Outlines provisions concerning: (1) contributions for such coverage; (2) management of member participation; and (3) cancellation of coverage. Directs the Secretary and the OPM Director to report jointly to the Congress each year on the provision of such services to eligible persons during the preceding fiscal year. Requires the Secretary to offer such health benefits option no later than October 1, 1997.