IIB 

109TH CONGRESS 

1ST SESSION H. R. 2046 

IN THE SENATE OF THE UNITED STATES 

MAY 24, 2005 

Received; read twice and referred to the Committee on Veterans’ Affairs 

AN ACT 

To amend the Servicemembers Civil Relief Act to limit premium increases on reinstated health insurance on 

servicemembers who are released from active military 

service, 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, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Servicemembers’ 

3 Health Insurance Protection Act of 2005’’. 

4 SEC. 2. LIMITATION ON PREMIUM INCREASES FOR REIN5 STATED HEALTH INSURANCE OF 

6 SERVICEMEMBERS RELEASED FROM ACTIVE 

7 MILITARY SERVICE. 

8 (a) PREMIUM PROTECTION.—Section 704 of the 

9 Servicemembers Civil Relief Act (50 U.S.C. App. 594) is 

10 amended by adding at the end the following new sub11 section: 

12 ‘‘(e) LIMITATION ON PREMIUM INCREASES.— 

13 ‘‘(1) PREMIUM PROTECTION.—The amount of 

14 the premium for health insurance coverage that was 

15 terminated by a servicemember and required to be 

16 reinstated under subsection (a) may not be in17 creased, for the balance of the period for which cov18 erage would have been continued had the coverage 

19 not been terminated, to an amount greater than the 

20 amount chargeable for such coverage before the ter21 mination. 

22 ‘‘(2) INCREASES OF GENERAL APPLICABILITY

23 NOT PRECLUDED.—Paragraph (1) does not prevent 

24 an increase in premium to the extent of any general 

25 increase in the premiums charged by the carrier of 

26 the health care insurance for the same health insur-
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1 ance coverage for persons similarly covered by such 

2 insurance during the period between the termination 

3 and the reinstatement.’’. 

4 (b) TECHNICAL AMENDMENT.—Subsection (b)(3) of 

5 such section is amended by striking ‘‘if the’’ and inserting 

6 ‘‘in a case in which the’’. 

7 SEC. 3. PRESERVATION OF EMPLOYER-SPONSORED 

8 HEALTH PLAN COVERAGE FOR CERTAIN RE9 SERVE-COMPONENT MEMBERS WHO AC10 QUIRE TRICARE ELIGIBILITY. 

11 (a) CONTINUATION OF COVERAGE.—Subsection 

12 (a)(1) of section 4317 of title 38, United States Code, is 

13 amended by inserting after ‘‘by reason of service in the 

14 uniformed services,’’ the following: ‘‘or such person be15 comes eligible for medical and dental care under chapter 

16 55 of title 10 by reason of subsection (d) of section 1074 

17 of that title,’’. 

18 (b) REINSTATEMENT OF COVERAGE.—Subsection (b) 

19 of such section is amended— 

20 (1) in paragraph (1)— 

21 (A) by inserting after ‘‘by reason of service 

22 in the uniformed services,’’ the following: ‘‘or by 

23 reason of the person’s having become eligible 

24 for medical and dental care under chapter 55 of 
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1 title 10 by reason of subsection (d) of section 

2 1074 of that title,’’; and 

3 (B) by inserting ‘‘or eligibility’’ before the 

4 period at the end of the first sentence; and 

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

6 paragraph: 

7 ‘‘(3) In the case of a person whose coverage under 

8 a health plan is terminated by reason of the person having 

9 become eligible for medical and dental care under chapter 

10 55 of title 10 by reason of subsection (d) of section 1074 

11 of that title but who subsequently does not commence a 

12 period of active duty under the order to active duty that 

13 established such eligibility because the order is canceled 

14 before such active duty commences, the provisions of para15 graph (1) relating to any exclusion or waiting period in 

16 connection with the reinstatement of coverage under a 

17 health plan shall apply to such person’s continued employ18 ment, upon the termination of such eligibility for medical 

19 and dental care under chapter 55 of title 10 that is inci20 dent to the cancellation of such order, in the same manner 

21 as if the person had become reemployed upon such termi22 nation of eligibility.’’. 
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1 SEC. 4. TECHNICAL CORRECTIONS TO VETERANS BENEFITS 

2 IMPROVEMENT ACT OF 2004. 

3 (a) CORRECTIONS.—Section 2101 of title 38, United 

4 States Code, as amended by section 401 of the Veterans 

5 Benefits Improvement Act of 2004 (Public Law 108–454; 

6 118 Stat. 3614), is amended— 

7 (1) by redesignating subsection (c) as sub8 section (d); 

9 (2) by inserting after subsection (b) a new sub10 section (c) consisting of the text of subsection (c) of 

11 such section 2101 as in effect immediately before 

12 the enactment of such Act, modified— 

13 (A) in paragraph (1)— 

14 (i) in the first sentence, by striking 

15 ‘‘paragraph (1), (2), or (3)’’ and inserting 

16 ‘‘subparagraph (A), (B), (C), or (D) of 

17 paragraph (2)’’; and 

18 (ii) in the second sentence, by striking 

19 ‘‘the second sentence’’ and inserting ‘‘para20 graph (3)’’; and 

21 (B) in paragraph (2)— 

22 (i) in the first sentence, by striking 

23 ‘‘paragraph (1)’’ and inserting ‘‘paragraph 

24 (2)’’; and 
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1 (ii) in the second sentence, by striking 

2 ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

3 (3)’’; and 

4 (3) in subsection (a)(3), by striking ‘‘subsection 

5 (c)’’ in the matter preceding subparagraph (A) and 

6 inserting ‘‘subsection (d)’’. 

7 (b) EFFECTIVE DATE.—The amendments made by 

8 subsection (a) shall take effect as of December 10, 2004, 

9 as if enacted immediately after the enactment of the Vet10 erans Benefits Improvement Act of 2004 on that date. 

11 SEC. 5. NOTIFICATION TO MEMBER’S SPOUSE OR NEXT OF 

12 KIN OF CERTAIN ELECTIONS UNDER 

13 SERVICEMEMBERS’ GROUP LIFE INSURANCE 

14 PROGRAM. 

15 (a) REPEAL.—Subsections (f) and (g) of section 1012 

16 of division A of the Emergency Supplemental Appropria17 tions Act for Defense, the Global War on Terror, and Tsu18 nami Relief Act, 2005 (Public Law 109–13), and the 

19 amendments made by those subsections, are repealed, and 

20 sections 1967 and 1970 of title 38, United States Code, 

21 shall be applied as if those subsections had not been en22 acted. 

23 (b) NOTIFICATION REQUIRED.—Section 1967 of title 

24 38, United States Code, is amended by adding at the end 

25 the following new subsection: 
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1 ‘‘(f)(1)(A) Whenever a member who is eligible for in2 surance under this subchapter executes a life insurance 

3 option specified in subparagraph (B), the Secretary con4 cerned shall notify the member’s spouse or, if the member 

5 is unmarried, the member’s next of kin, in writing, of the 

6 execution of that option. 

7 ‘‘(B) A life insurance option referred to in subpara8 graph (A) is any of the following: 

9 ‘‘(i) An election under subsection (a)(2)(A) not 

10 to be insured under this subchapter. 

11 ‘‘(ii) An election under subsection (a)(3)(B) for 

12 insurance of the member in an amount that is less 

13 than the maximum amount provided under sub14 section (a)(3)(A)(i). 

15 ‘‘(iii) An application under subsection (c) for in16 surance coverage under this subchapter or for a 

17 change in the amount of such insurance coverage. 

18 ‘‘(iv) In the case of a married member, a des19 ignation under section 1970(a) of this title of any 

20 person other than the spouse or a child of the mem21 ber as the beneficiary of the member for any amount 

22 of insurance under this subchapter. 

23 ‘‘(2) Whenever an unmarried member who is eligible 

24 for insurance under this subchapter marries, the Secretary 

25 concerned shall notify the member’s spouse in writing as 
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1 to whether the member is insured under this subchapter. 

2 In the case of a member who is so insured, the Secretary 

3 shall include with such notification— 

4 ‘‘(A) if the member has made an election de5 scribed in paragraph (1)(B)(ii), notice that the 

6 amount of such insurance is less than the maximum 

7 amount provided under subsection (a)(3)(A)(i); and 

8 ‘‘(B) if the member has designated a bene9 ficiary other than the spouse or a child of the mem10 ber for any amount of such insurance, notice that 

11 such a designation has been made. 

12 ‘‘(3)(A) Notification of a spouse under paragraph (1) 

13 or (2), or of any other person under paragraph (1), for 

14 purposes of this subsection shall consist of a good faith 

15 effort to provide information to the spouse or other person 

16 at the last address of the spouse or other person known 

17 to the Secretary concerned. 

18 ‘‘(B) Failure to provide such notification, or to pro19 vide such notification in a timely manner, does not affect 
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1 the validity of any life insurance option referred to in 

2 paragraph (1)(B).’’. 

Passed the House of Representatives May 23, 2005. 

Attest: JEFF TRANDAHL, 

Clerk.