II 

110TH CONGRESS 

1ST SESSION S. 604 

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

costs of health care services under the health care programs of the 

Department of Defense, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 15, 2007 

Mr. LAUTENBERG (for himself, Mr. HAGEL, Mr. KERRY, and Mrs. LINCOLN) 

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 certain costs of health care services under the 

health care programs of the Department of Defense, 

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 Health Care 

5 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 uniformed services 

2 and their families endure unique and extraordinary 

3 demands, and make extraordinary sacrifices, over 

4 the course of 20-year to 30-year careers in pro5 tecting 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) Many private sector firms are curtailing 

23 health benefits and shifting significantly higher costs 

24 to their employees, and one effect of such curtail25 ment is that retired members of the uniformed servVerDate Aug 31 2005 00:06 Feb 18, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S604.IS S604

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1 ices are turning for health care services to the De2 partment of Defense, and its TRICARE program, 

3 for the health care benefits in retirement that they 

4 earned by their service in uniform. 

5 (6) In some cases, civilian employers establish 

6 financial incentives for employees who are also eligi7 ble for participation in the TRICARE program to 

8 receive health care benefits under that program 

9 rather than under the health care benefits programs 

10 of such employers. 

11 (7) While the Department of Defense has made 

12 some efforts to contain increases in the cost of the 

13 TRICARE program, a large part of those efforts has 

14 been devoted to shifting a larger share of the costs 

15 of benefits under that program to retired members 

16 of the uniformed services. 

17 (8) The cumulative increase in enrollment fees, 

18 deductibles, and copayments being proposed by the 

19 Department of Defense for health care benefits 

20 under the TRICARE program far exceeds the 33- 

21 percent increase in military retired pay since such 

22 fees, deductibles, and copayments were first required 

23 on the part of retired members of the uniformed 

24 services 11 years ago. 


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1 (9) Proposals of the Department of Defense for 

2 increases in the enrollment fees, deductibles, and co3 payments of retired members of the uniformed serv4 ices who are participants in the TRICARE program 

5 fail to recognize adequately that such members paid 

6 the equivalent of enormous in-kind premiums for 

7 health care in retirement through their extended sac8 rifices by service in uniform. 

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

10 refuse to accept participants in the TRICARE pro11 gram as patients because that program pays them 

12 significantly less than commercial insurance pro13 grams, and imposes unique administrative require14 ments, for health care services. 

15 (11) The Department of Defense has chosen to 

16 count the accrual deposit to the Department of De17 fense Military Retiree Health Care Fund against the 

18 budget of the Department of Defense, contrary to 

19 the requirements of section 1116 of title 10, United 

20 States Code. 

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 00:06 Feb 18, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S604.IS S604

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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 uniformed serv9 ices that exceeds the obligation of corporate employ10 ers to provide health care benefits to their employ11 ees; 

12 (2) the Department of Defense has many addi13 tional options to constrain the growth of health care 

14 spending in ways that do not disadvantage retired 

15 members of the uniformed services who participate 

16 or seek to participate in the TRICARE program, 

17 and should pursue any and all such options rather 

18 than seeking large increases for enrollment fees, 

19 deductibles, and copayments for such retirees, and 

20 their families or survivors, who do participate in that 

21 program; 

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

23 and copayments that may be considered under the 

24 TRICARE program for retired members of the uni25 formed services and their families or survivors 


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1 should not in any case exceed the percentage in2 crease in 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 uniformed 

6 services who are currently serving on active duty or 

7 in the Selected Reserve, and for the families of such 

8 members, should not exceed the percentage increase 

9 in basic pay 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 

14 1074g(a)(6) of title 10, United Stated Code, is amended 

15 by adding at the end the following new subparagraph: 

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

17 under this paragraph may not be increased in any year 

18 by a percentage that exceeds the percentage increase of 

19 the most recent increase in retired pay for members of 

20 the armed forces under section 1401a(b)(2) of this title. 

21 To the extent that such increase for any year is less than 

22 one dollar, the accumulated increase may be carried over 

23 from year to year, rounded to the nearest dollar.’’. 

24 (b) PREMIUMS FOR TRICARE STANDARD FOR RE25 SERVE COMPONENT MEMBERS WHO COMMIT TO SERVICE


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1 IN THE SELECTED RESERVE.—Section 1076d(d)(3) of 

2 such title is amended— 

3 (1) by striking ‘‘The monthly amount’’ and in4 serting ‘‘(A) Subject to subparagraph (B), the 

5 monthly amount’’; and 

6 (2) by adding at the end the following new sub7 paragraph: 

8 ‘‘(B) Effective as of October 1, 2007, the percentage 

9 increase in the amount of the premium in effect for a 

10 month for TRICARE Standard coverage under this sec11 tion may not exceed a percentage equal to the percentage 

12 of the most recent increase in the rate of basic pay author13 ized for members of the uniformed services for a year.’’. 

14 (c) COPAYMENTS UNDER CHAMPUS.—Paragraph 

15 (3) of section 1086(b) of such title is amended in the first 

16 sentence by striking ‘‘during the period beginning on April 

17 1, 2006, and ending on September 30, 2007.’’ and insert18 ing ‘‘after March 31, 2006’’. 

19 (d) PROHIBITION ON ENROLLMENT FEES FOR CER20 TAIN PERSONS UNDER CHAMPUS.—Section 1086(b) of 

21 such title is further amended by adding at the end the 

22 following new paragraph: 

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

24 not be charged an enrollment fee for coverage under 

25 this section.’’. 


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1 (e) AUTOMATIC ENROLLMENT FOR CERTAIN PER2 SONS UNDER CHAMPUS.—Section 1086(b) of such title 

3 is further amended by adding at the end the following new 

4 paragraph: 

5 ‘‘(6) A person covered by subsection (c) shall 

6 not be subject to denial of claims for coverage under 

7 this section for failure to enroll for such coverage. 

8 To the extent enrollment may be required, enroll9 ment shall be automatic for any such person filing 

10 a claim under this section.’’. 

11 (f) PREMIUMS AND OTHER CHARGES UNDER

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

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

14 Defense’’; and 

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

16 paragraph: 

17 ‘‘(2) Effective as of October 1, 2007, the percentage 

18 increase in the amount of any premium, deductible, copay19 ment or other charge prescribed by the Secretary under 

20 this subsection may not exceed the percentage increase of 

21 the most recent increase in retired pay for members and 

22 former members of the armed forces under section 

23 1041a(b)(2) of this title.’’. 

Æ 


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