To amend part B of title XVIII of the Social Security Act to waive Medicare part B premiums for certain military retirees.

Summary: Keeping Faith With the Greatest Generation Military Retirees Act of 2010 - Amends title XVIII (Medicare) of the Social Security Act to waive the monthly part B premium (Supplementary Medical Insurance Benefits for the Aged and Disabled) with respect to: (1) an individual who is entitled to military retired or retainer pay based upon service that began before December 7, 1956; and (2) the spouse, widow, or widower of such individuals.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keeping Faith With the Greatest 
Generation Military Retirees Act of 2010''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) No statutory health care program existed for members of 
        the uniformed services who entered service prior to December 7, 
        1956, and retired after serving a minimum of 20 years.
            (2) Recruiters, re-enlistment counselors, and officers at 
        all levels of the uniformed services, and other government 
        officials, as agents of the United States Government, used 
        recruiting tactics that allowed members who entered the 
        uniformed services prior to December 7, 1956, to believe they 
        would be entitled to fully paid lifetime health care upon 
        retirement.
            (3) In the decision of Schism v. United States (No. 99-
        1402) on November 18, 2002, the United States Court of Appeals 
        for the Federal Circuit said: ``[W]e must affirm the district 
        court's judgment and can do no more than hope Congress will 
        make good on the promises recruiters made in good faith to 
        plaintiffs and others of the World War II and Korean War era--
        from 1941 to 1956, when Congress enacted its first health care 
        insurance act for military members, excluding older retirees. . 
        . . We cannot readily imagine more sympathetic plaintiffs than 
        the retired officers of the World War II and Korean War era 
        involved in this case. They served their country for at least 
        20 years with the understanding that when they retired they and 
        their dependents would receive full free health care for life. 
        The promise of such health care was made in good faith and 
        relied upon. Again, however, because no authority existed to 
        make such promises in the first place, and because Congress has 
        never ratified or acquiesced to this promise, we have no 
        alternative but to uphold the judgment against the retirees' 
        breach-of-contract claim. . . . Perhaps Congress will consider 
        using its legal power to address the moral claims raised by 
        [the plaintiffs] on their own behalf, and indirectly for other 
        affected retirees.''.
            (4) Only the United States Congress can make good on the 
        promises recruiters made in good faith to plaintiffs and others 
        of the World War II and Korean War era.

SEC. 3. WAIVER OF MEDICARE PART B PREMIUM FOR CERTAIN MILITARY 
              RETIREES.

    (a) In General.--Section 1839 of the Social Security Act (42 U.S.C. 
1395r) is amended--
            (1) in subsection (a)(2), by striking ``The monthly 
        premium'' and inserting ``Except as provided in subsection (j), 
        the monthly premium''; and
            (2) by adding at the end the following new subsection:
    ``(j)(1) The amount of the monthly premium for an eligible 
individual enrolled under this part is equal to $0.
    ``(2) For purposes of paragraph (1), the term `eligible individual' 
means--
            ``(A) an individual who is entitled to retired or retainer 
        pay based upon service in the uniformed services (as defined in 
        section 101 of title 10, United States Code) that began before 
        December 7, 1956;
            ``(B) the spouse (as determined under section 7703 of the 
        Internal Revenue Code of 1986) of an individual described in 
        subparagraph (A); and
            ``(C) the widow or widower, as the case may be, of an 
        individual described in subparagraph (A).
    ``(3) With respect to years beginning after the date of the 
enactment of this subsection, the monthly premium rate calculated under 
subsection (a)(3) for individuals enrolled under this part who are not 
eligible individuals under this subsection shall be determined without 
regard to benefits and administrative costs attributable to such 
eligible individuals during such years.''.
    (b) Conforming Amendment.--Subsection (i) of such section is 
amended by adding at the end the following new paragraph:
            ``(7) Inapplicability to certain military retirees.--This 
        subsection shall not apply to eligible individuals (as defined 
        in subsection (j)(2)).''.
    (c) Effective Date; Rebate Mechanism.--
            (1) In general.--The amendments made by this section shall 
        apply to premiums for months beginning on or after the date 
        that is 45 days after the date of the enactment of this Act.
            (2) Rebate method.--The Secretary of Health and Human 
        Services shall use the rebate method established pursuant to 
        section 625(a)(2) of the Medicare Prescription Drug, 
        Improvement, and Modernization Act of 2003 (Public Law 108-173, 
        117 Stat. 2318) to provide rebates to eligible individuals (as 
        defined in subsection (j)(2) of section 1839 of the Social 
        Security Act, as added by subsection (a)) of any premium or 
        premium penalty paid under such section for months described in 
        paragraph (1).