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.
Directs the Secretary of the military department concerned to pay the applicable premium to continue in force during the duty period any qualified health benefits plan coverage of a member of the reserves who is called or ordered to active duty for more than 30 days during a war or national emergency. Prohibits the private health insurance issuer of such a member from declining coverage or re-enrollment, imposing re-enrollment exclusions, or increasing premiums during such benefits coverage continuation period.
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.