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Union Calendar No. 45 

109TH CONGRESS 

1ST SESSION H. R. 2046 

[Report No. 109–88] 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 3, 2005 

Mr. BUYER (for himself, Mr. EVANS, Mr. BOOZMAN, and Ms. HERSETH) introduced the following bill; which was referred to the Committee on Veterans’ Affairs 

MAY 19, 2005 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

A BILL 

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’ Health 

3 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 subsection: 

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

12 ‘‘(1) PREMIUM PROTECTION.—The amount of the 

13 premium for health insurance coverage that was ter14 minated by a servicemember and required to be rein15 stated under subsection (a) may not be increased, for 

16 the balance of the period for which coverage would 

17 have been continued had the coverage not been termi18 nated, to an amount greater than the amount charge19 able for such coverage before the termination. 

20 ‘‘(2) INCREASES OF GENERAL APPLICABILITY

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

22 an increase in premium to the extent of any general 

23 increase in the premiums charged by the carrier of 

24 the health care insurance for the same health insur25 ance coverage for persons similarly covered by such 
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1 insurance during the period between the termination 

2 and the reinstatement.’’. 

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

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

5 ‘‘in a case in which the’’. 

6 SEC. 3. PRESERVATION OF EMPLOYER-SPONSORED HEALTH 

7 PLAN COVERAGE FOR CERTAIN RESERVE8 COMPONENT MEMBERS WHO ACQUIRE 

9 TRICARE ELIGIBILITY. 

10 (a) CONTINUATION OF COVERAGE.—Subsection (a)(1) 

11 of section 4317 of title 38, United States Code, is amended 

12 by inserting after ‘‘by reason of service in the uniformed 

13 services,’’ the following: ‘‘or such person becomes eligible for 

14 medical and dental care under chapter 55 of title 10 by 

15 reason of subsection (d) of section 1074 of that title,’’. 

16 (b) REINSTATEMENT OF COVERAGE.—Subsection (b) of 

17 such section is amended— 

18 (1) in paragraph (1)— 

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

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

21 reason of the person’s having become eligible for 

22 medical and dental care under chapter 55 of title 

23 10 by reason of subsection (d) of section 1074 of 

24 that title,’’; and 
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1 (B) by inserting ‘‘or eligibility’’ before the 

2 period at the end of the first sentence; and 

3 (2) by adding at the end the following new para4 graph: 

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

6 health plan is terminated by reason of the person having 

7 become eligible for medical and dental care under chapter 

8 55 of title 10 by reason of subsection (d) of section 1074 

9 of that title but who subsequently does not commence a pe10 riod of active duty under the order to active duty that estab11 lished such eligibility because the order is canceled before 

12 such active duty commences, the provisions of paragraph 

13 (1) relating to any exclusion or waiting period in connec14 tion with the reinstatement of coverage under a health plan 

15 shall apply to such person’s continued employment, upon 

16 the termination of such eligibility for medical and dental 

17 care under chapter 55 of title 10 that is incident to the 

18 cancellation of such order, in the same manner as if the 

19 person had become reemployed upon such termination of 

20 eligibility.’’. 

21 SEC. 4. TECHNICAL CORRECTIONS TO VETERANS BENEFITS 

22 IMPROVEMENT ACT OF 2004. 

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

24 States Code, as amended by section 401 of the Veterans Ben-
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1 efits Improvement Act of 2004 (Public Law 108–454; 118 

2 Stat. 3614), is amended— 

3 (1) by redesignating subsection (c) as subsection 

4 (d); 

5 (2) by inserting after subsection (b) a new sub6 section (c) consisting of the text of subsection (c) of 

7 such section 2101 as in effect immediately before the 

8 enactment of such Act, modified— 

9 (A) in paragraph (1)— 

10 (i) in the first sentence, by striking 

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

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

13 paragraph (2)’’; and 

14 (ii) in the second sentence, by striking 

15 ‘‘the second sentence’’ and inserting ‘‘para16 graph (3)’’; and 

17 (B) in paragraph (2)— 

18 (i) in the first sentence, by striking 

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

20 (2)’’; and 

21 (ii) in the second sentence, by striking 

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

23 (3)’’; and 
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1 (3) in subsection (a)(3), by striking ‘‘subsection 

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

3 inserting ‘‘subsection (d)’’. 

4 (b) EFFECTIVE DATE.—The amendments made by sub5 section (a) shall take effect as of December 10, 2004, as if 

6 enacted immediately after the enactment of the Veterans 

7 Benefits Improvement Act of 2004 on that date. 

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

9 KIN OF CERTAIN ELECTIONS UNDER 

10 SERVICEMEMBERS’ GROUP LIFE INSURANCE 

11 PROGRAM. 

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

13 of division A of the Emergency Supplemental Appropria14 tions Act for Defense, the Global War on Terror, and Tsu15 nami Relief Act, 2005 (Public Law 109–13), and the 

16 amendments made by those subsections, are repealed, and 

17 sections 1967 and 1970 of title 38, United States Code, shall 

18 be applied as if those subsections had not been enacted. 

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

20 38, United States Code, is amended by adding at the end 

21 the following new subsection: 

22 ‘‘(f)(1)(A) Whenever a member who is eligible for in23 surance under this subchapter executes a life insurance op24 tion specified in subparagraph (B), the Secretary concerned 

25 shall notify the member’s spouse or, if the member is un-
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1 married, the member’s next of kin, in writing, of the execu2 tion of that option. 

3 ‘‘(B) A life insurance option referred to in subpara4 graph (A) is any of the following: 

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

6 to be insured under this subchapter. 

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

8 insurance of the member in an amount that is less 

9 than the maximum amount provided under subsection 

10 (a)(3)(A)(i). 

11 ‘‘(iii) An application under subsection (c) for in12 surance coverage under this subchapter or for a 

13 change in the amount of such insurance coverage. 

14 ‘‘(iv) In the case of a married member, a des15 ignation under section 1970(a) of this title of any 

16 person other than the spouse or a child of the member 

17 as the beneficiary of the member for any amount of 

18 insurance under this subchapter. 

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

20 for insurance under this subchapter marries, the Secretary 

21 concerned shall notify the member’s spouse in writing as 

22 to whether the member is insured under this subchapter. 

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

24 shall include with such notification— 
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1 ‘‘(A) if the member has made an election de2 scribed in paragraph (1)(B)(ii), notice that the 

3 amount of such insurance is less than the maximum 

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

5 ‘‘(B) if the member has designated a beneficiary 

6 other than the spouse or a child of the member for 

7 any amount of such insurance, notice that such a des8 ignation has been made. 

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

10 or (2), or of any other person under paragraph (1), for pur11 poses of this subsection shall consist of a good faith effort 

12 to provide information to the spouse or other person at the 

13 last address of the spouse or other person known to the Sec14 retary concerned. 

15 ‘‘(B) Failure to provide such notification, or to provide 

16 such notification in a timely manner, does not affect the 

17 validity of any life insurance option referred to in para18 graph (1)(B).’’. 

Union Calendar No. 45 

109TH CONGRESS 

1ST SESSION H. R. 2046 

[Report No. 109–88] 

A BILL 

To amend the Servicemembers Civil Relief Act to 

poses. from active military service, and for other pursurance on servicemembers who are released limit premium increases on reinstated health inMAY 19, 2005 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,