II 

109TH CONGRESS 

2D SESSION S. 2617 

To amend title 10, United States Code, to limit increases in the costs 

to retired members of the Armed Forces of health care services under 

the TRICARE program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 7, 2006 

Mr. LAUTENBERG (for himself, Mr. HAGEL, Mr. KERRY, Mr. MENENDEZ, 

Mrs. LINCOLN, and Mr. DEWINE) introduced the following bill; which 

was read twice and referred to the Committee on Armed Services 

A BILL 

To amend title 10, United States Code, to limit increases 

in the costs to retired members of the Armed Forces 

of health care services under the TRICARE program, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military Retirees 

5 Health Care Protection Act’’. 

6 SEC. 2. FINDINGS AND SENSE OF CONGRESS. 

7 (a) FINDINGS.—Congress makes the following find8 ings: 


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1 (1) Career members of the Armed Forces and 

2 their families endure unique and extraordinary de3 mands, and make extraordinary sacrifices, over the 

4 course of 20-year to 30-year careers in protecting 

5 freedom for all Americans. 

6 (2) The nature and extent of these demands 

7 and sacrifices are never so evident as in wartime, 

8 not only during the current Global War on Ter9 rorism, but also during the wars of the last 60 years 

10 when current retired members of the Armed Forces 

11 were on continuous call to go in harm’s way when 

12 and as needed. 

13 (3) The demands and sacrifices are such that 

14 few Americans are willing to bear or accept them for 

15 a multi-decade career. 

16 (4) A primary benefit of enduring the extraor17 dinary sacrifices inherent in a military career is a 

18 range of extraordinary retirement benefits that a 

19 grateful Nation provides for those who choose to 

20 subordinate much of their personal life to the na21 tional interest for so many years. 

22 (5) One effect of such curtailment is that re23 tired members of the Armed Forces are turning for 

24 health care services to the Department of Defense, 

25 and its TRICARE program, for the health care benVerDate Aug 31 2005 22:33 Apr 12, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2617.IS S2617

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1 efits in retirement that they earned by their service 

2 in the Armed Forces. 

3 (6) In some cases, civilian employers establish 

4 financial incentives for employees who are also eligi5 ble for participation in the TRICARE program to 

6 receive health care benefits under that program 

7 rather than under the health care benefits programs 

8 of such employers. 

9 (7) While the Department of Defense has made 

10 some efforts to contain increases in the cost of the 

11 TRICARE program, a large part of those efforts has 

12 been devoted to shifting a larger share of the costs 

13 of benefits under that program to retired members 

14 of the Armed Forces. 

15 (8) The cumulative increase in enrollment fees, 

16 deductibles, and copayments being proposed by the 

17 Department of Defense for health care benefits 

18 under the TRICARE program far exceeds the 31 

19 percent increase in military retired pay since such 

20 fees, deductibles, and copayments were first required 

21 on the part of retired members of the Armed Forces 

22 10 years ago. 

23 (9) Proposals of the Department of Defense for 

24 increases in the enrollment fees, deductibles, and co25 payments of retired members of the Armed Forces 


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1 who are participants in the TRICARE program fail 

2 to recognize adequately that such members paid the 

3 equivalent of enormous in-kind premiums for health 

4 care in retirement through their extended sacrifices 

5 by service in the Armed Forces. 

6 (10) Some of the Nation’s health care providers 

7 refuse to accept participants in the TRICARE pro8 gram as patients because that program pays them 

9 significantly less than commercial insurance pro10 grams, and imposes unique administrative require11 ments, for health care services. 

12 (11) The Department of Defense has chosen to 

13 count the accrual deposit to the Department of De14 fense Military Retiree Health Care Fund against the 

15 budget of the Department of Defense, contrary to 

16 the requirements of section 1116 of title 10, United 

17 States Code, as amended section 725 of Ronald W. 

18 Reagan National Defense Authorization Act for Fis19 cal Year 2005 (Public Law 108–375; 118 Stat. 

20 1991). 

21 (12) Senior officials of the Department of De22 fense leaders have reported to Congress that count23 ing such deposits against the budget of the Depart24 ment of Defense is impinging on other readiness 

25 needs of the Armed Forces, including weapons proVerDate Aug 31 2005 22:33 Apr 12, 2006 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2617.IS S2617

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1 grams, an inappropriate situation which section 

2 1116 of title 10, United States Code, was intended 

3 expressly to prevent. 

4 (b) SENSE OF CONGRESS.—It is the sense of Con5 gress that— 

6 (1) the Department of Defense and the Nation 

7 have a committed obligation to provide health care 

8 benefits to retired members of the Armed Forces 

9 that exceeds the obligation of corporate employers to 

10 provide health care benefits to their employees; 

11 (2) the Department of Defense has many addi12 tional options to constrain the growth of health care 

13 spending in ways that do not disadvantage retired 

14 members of the Armed Forces who participate or 

15 seek to participate in the TRICARE program and 

16 should pursue any and all such options rather than 

17 seeking large increases for enrollment fees, 

18 deductibles, and copayments for such retirees, and 

19 their families or survivors, who do participate in that 

20 program; 

21 (3) any percentage increase in fees, deductibles, 

22 and copayments that may be considered under the 

23 TRICARE program for retired members of the 

24 Armed Forces and their families or survivors should 


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1 not in any case exceed the percentage increase in 

2 military retired pay; and 

3 (4) any percentage increase in fees, deductibles, 

4 and copayments under the TRICARE program that 

5 may be considered for members of the Armed Forces 

6 who are currently serving on active duty or in the 

7 Selected Reserve, and for the families of such mem8 bers, should not exceed the percentage increase in 

9 basic pay or compensation for such members. 

10 SEC. 3. LIMITATIONS ON CERTAIN INCREASES IN HEALTH 

11 CARE COSTS FOR MEMBERS OF THE UNI12 FORMED SERVICES. 

13 (a) PHARMACY BENEFITS PROGRAM.—Section 1074g 

14 of title 10, United Stated Code, is amended by adding at 

15 the end the following new subparagraph: 

16 ‘‘(C) The amount of any cost sharing requirements 

17 under this paragraph shall not be increased in any year 

18 by a percentage that exceeds the percentage increase of 

19 the most current previous adjustment to retired pay for 

20 members of the armed forces under section 1401a(b)(2) 

21 of this title. To the extent that such increase for any year 

22 is less than one dollar, the accumulated increase may be 

23 carried over from year to year, rounded to the nearest dol24 lar.’’. 


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1 (b) PREMIUMS FOR TRICARE STANDARD FOR RE2 SERVE COMPONENT MEMBERS WHO COMMIT TO SERVICE

3 IN THE SELECTED RESERVE AFTER ACTIVE DUTY.—Sec4 tion 1076d(d)(3) of such title is amended— 

5 (1) by striking ‘‘The monthly amount’’ and in6 serting ‘‘(A) Except as provided in subparagraph 

7 (B), the monthly amount’’; and 

8 (2) by adding at the end the following new sub9 paragraph: 

10 ‘‘(B) In any year after 2006, the percentage increase 

11 in the amount of the premium in effect for a month for 

12 TRICARE Standard coverage under this section may not 

13 exceed a percentage equal to the percentage of the most 

14 recent increase in the rate of basic pay authorized for 

15 members of the uniformed services for a year.’’. 

16 (c) COPAYMENTS UNDER CHAMPUS.—Section 

17 1086(b)(3) of such title is amended in the first sentence 

18 by inserting before the period at the end the following: 

19 ‘‘, except that in no event may such charges exceed $535 

20 per day’’. 

21 (d) PROHIBITION ON ENROLLMENT FEES UNDER

22 CHAMPUS.—Section 1086(b) of such title is further 

23 amended by adding at the end the following new para24 graph: 


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1 ‘‘(5) A person covered by subsection (c) may 

2 not be charged an enrollment fee for coverage under 

3 this section.’’. 

4 (e) PREMIUMS AND OTHER CHARGES UNDER

5 TRICARE.—Section 1097(e) of such title is amended— 

6 (1) by inserting ‘‘(1)’’ before ‘‘The Secretary of 

7 Defense’’; and 

8 (2) by adding at the end the following new 

9 paragraph: 

10 ‘‘(2) In any year after 2006, the percentage increase 

11 in the amount of any premium, deductible, copayment or 

12 other charge established by the Secretary of Defense 

13 under this section may not exceed the percentage increase 

14 of the most current previous adjustment of retired pay for 

15 members and former members of the armed forces under 

16 section 1041a(b)(2) of this title.’’. 

Æ 


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