To amend title 10, United States Code, to provide for expanded eligibility for participation by members of the Selected Reserve and their dependents in the TRICARE program.

SECTION 1. FINDINGS.

    Congress makes the following findings:
            (1) The Selected Reserve of the Ready Reserve of the Armed 
        Forces is the element of the Armed Forces of the United States 
        that has the capability quickly to augment the active duty 
        forces of the Armed Forces successfully in times of crisis.
            (2) The Selected Reserve has been assigned increasingly 
        critical levels of responsibility for carrying out the 
        worldwide military missions of the Armed Forces since the end 
        of the Cold War.
            (3) Members of the Selected Reserve have served proudly as 
        mobilized forces in numerous theaters from Europe to the 
        Pacific and South America, indeed, around the world.
            (4) The active duty forces of the Armed Forces cannot 
        successfully perform all of the national security missions of 
        the Armed Forces without augmentation by the Selected Reserve.
            (5) The high and increasing tempo of activity of the 
        Selected Reserve causes turbulence in the relationships of 
        members of the Selected Reserve with their families, employers, 
        and reserve units.
            (6) The turbulence often results from lengthy, sometimes 
        year-long, absences of the members of the Selected Reserve from 
        their families and their civilian jobs in the performance of 
        military duties necessary for the execution of essential 
        missions.
            (7) Family turbulence includes the difficulties associated 
        with vacillation between coverage of members' families for 
        health care under civilian health benefits plans and coverage 
        under the military health benefits options.
            (8) Up to 200,000 members of the Selected Reserve, 
        including, in particular, self-employed members, do not have 
        adequate health benefits.

SEC. 2. PARTICIPATION BY MEMBERS OF THE SELECTED RESERVE AND THEIR 
              DEPENDENTS IN THE TRICARE PROGRAM.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1076a the following new section:
``Sec. 1076b. TRICARE program: participation by members of the Selected 
              Reserve and their dependents
    ``(a) In General.--(1) A member of the Selected Reserve shall be 
eligible to receive health care under TRICARE Standard. Such a member 
shall be required to pay 40 percent of the premiums associated with 
participation in TRICARE Standard, and the Government shall be required 
to pay 60 percent of such premiums.
    ``(2) Participation of a member of the Selected Reserve in TRICARE 
Standard shall not effect the enrollment of such member in TRICARE 
Prime if such member is called to active duty.
    ``(b) Dependents.--(1) A dependent of a member of the Selected 
Reserve shall be eligible to receive health care under TRICARE 
Standard. Such a member shall be required to pay 40 percent of the 
premiums associated with participation by the dependent in TRICARE 
Standard, and the Government shall be required to pay 60 percent of 
such premiums.
    ``(2) Participation of a dependent of a member of the Selected 
Reserve in TRICARE Standard shall not effect the enrollment of such 
dependent in TRICARE Prime if such member is called to active duty.
    ``(c) Period for Election To Participate.--Each year the Secretary 
of Defense shall specify a period for election to participate in 
TRICARE Standard under subsections (a) and (b). The duration of the 
annual period may be any period of 90 or more days specified by the 
Secretary.
    ``(d) Termination of Participation.--(1) If the status of a person 
as a member of the Selected Reserve terminates, the participation of 
that person, or a dependent of such person, in TRICARE Standard by 
reason of eligibility under this section terminates on the effective 
date of that termination of status.
    ``(2) No portion of a premium paid for participation in TRICARE 
Standard under subsection (a) or (b) shall be refunded to a person 
whose participation in TRICARE Standard is terminated under paragraph 
(1).
    ``(e) Future Applicability of Premiums Already Paid.--Premiums paid 
for participation in TRICARE Standard under this section for a period 
during which a member or dependent is enrolled in TRICARE Prime as a 
result of the member being called to active duty shall be applied to a 
period during which the member or dependent is no longer enrolled in 
TRICARE Prime.
    ``(f) Selected Reserve.--In this section, the term `Selected 
Reserve' has the meaning of that term as used in section 10143 of this 
title.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of such chapter is amended by inserting after the item relating to 
section 1076a the following new item:

``1076b. TRICARE program: participation by members of the Selected 
                            Reserve and their dependents.''.

Summary: Makes a member of the Selected Reserve and his or her dependents eligible for health care under the TRICARE Standard. Requires the member to pay 40 percent of the premiums for such care, and the Government to pay the remaining 60 percent. States that participation in TRICARE Standard shall not effect enrollment of the member or dependent in TRICARE Prime if the member is called to active duty. Requires the Secretary to Defense to annually specify a period of at least 90 days for election to participate in TRICARE Standard. Terminates coverage upon termination of membership in the Selected Reserve.