I 

110TH CONGRESS 

1ST SESSION H. R. 1223 

To amend part B of title XVIII of the Social Security Act to waive Medicare 

part B premiums for certain military retirees. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2007 

Mr. VAN HOLLEN (for himself, Mr. EDWARDS, Mr. MILLER of Florida, and 

Mr. JONES of North Carolina) introduced the following bill; which was 

referred to the Committee on Energy and Commerce, and in addition to 

the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend part B of title XVIII of the Social Security 

Act to waive Medicare part B premiums for certain military retirees. 

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 ‘‘Keeping Faith With 

5 the Greatest Generation Military Retirees Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) No statutory health care program existed 

2 for members of the uniformed services who entered 

3 service prior to December 7, 1956, and retired after 

4 serving a minimum of 20 years. 

5 (2) Recruiters, re-enlistment counselors, and of6 ficers at all levels of the uniformed services, and 

7 other government officials, as agents of the United 

8 States Government, used recruiting tactics that al9 lowed members who entered the uniformed services 

10 prior to December 7, 1956, to believe they would be 

11 entitled to fully paid lifetime health care upon retire12 ment. 

13 (3) In the United States Court of Appeals for 

14 the Federal Circuit decision of November 18, 2002, 

15 in Schism v. United States (No. 99–1402), the 

16 Court said: ‘‘Accordingly, we must affirm the dis17 trict court’s judgment and can do no more than 

18 hope Congress will make good on the promises re19 cruiters made in good faith to plaintiffs and others 

20 of the World War II and Korean War era—from 

21 1941 to 1956, when Congress enacted its first 

22 health care insurance act for military members, ex23 cluding older retirees. . . . We cannot readily imag24 ine more sympathetic plaintiffs than the retired offi25 cers of the World War II and Korean War era inVerDate Aug 31 2005 22:03 Mar 01, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1223.IH H1223

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1 volved in this case. They served their country for at 

2 least 20 years with the understanding that when 

3 they retired they and their dependents would receive 

4 full free health care for life. The promise of such 

5 health care was made in good faith and relied upon. 

6 Again, however, because no authority existed to 

7 make such promises in the first place, and because 

8 Congress has never ratified or acquiesced to this 

9 promise, we have no alternative but to uphold the 

10 judgment against the retirees’ breach-of-contract 

11 claim. . . . Perhaps Congress will consider using its 

12 legal power to address the moral claims raised by 

13 [the plaintiffs] on their own behalf, and indirectly 

14 for other affected retirees.’’. 

15 (4) Only the United States Congress can make 

16 good on the promises recruiters made in good faith 

17 to plaintiffs and others of the World War II and Ko18 rean War era. 

19 SEC. 3. WAIVER OF MEDICARE PART B PREMIUM FOR CER20 TAIN MILITARY RETIREES. 

21 (a) IN GENERAL.—Section 1839 of the Social Secu22 rity Act (42 U.S.C. 1395r) is amended— 

23 (1) in subsection (a)(2), by striking ‘‘The 

24 monthly premium’’ and inserting ‘‘Except as pro25 vided in subsection (j), the monthly premium’’; and 


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1 (2) by adding at the end the following new sub2 section: 

3 ‘‘(j)(1) The amount of the monthly premium for an 

4 eligible individual enrolled under this part is equal to $0. 

5 ‘‘(2) For purposes of paragraph (1), the term ‘eligible 

6 individual’ means— 

7 ‘‘(A) an individual who is entitled to retired or 

8 retainer pay based upon service in the uniformed 

9 services (as defined in section 101 of title 10, United 

10 States Code) that began before December 7, 1956; 

11 ‘‘(B) the spouse (as determined under section 

12 7703 of the Internal Revenue Code of 1986) of an 

13 individual described in subparagraph (A); and 

14 ‘‘(C) the widow or widower, as the case may be, 

15 of an individual described in subparagraph (A). 

16 ‘‘(3) With respect to years beginning after the date 

17 of the enactment of this subsection, the monthly premium 

18 rate calculated under subsection (a)(3) for individuals en19 rolled under this part who are not eligible individuals 

20 under this subsection shall be determined without regard 

21 to benefits and administrative costs attributable to such 

22 eligible individuals during such years.’’. 

23 (b) CONFORMING AMENDMENT.—Subsection (i) of 

24 such section is amended by adding at the end the following 

25 new paragraph: 


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1 ‘‘(7) INAPPLICABILITY TO CERTAIN MILITARY

2 RETIREES.—This subsection shall not apply to eligi3 ble individuals (as defined in subsection (j)(2)).’’. 

4 (c) EFFECTIVE DATE; REBATE MECHANISM.— 

5 (1) IN GENERAL.—The amendments made by 

6 this section shall apply to premiums for months be7 ginning more than 45 days after the date of the en8 actment of this Act. 

9 (2) REBATE MECHANISM.—The Secretary of 

10 Health and Human Services shall use the rebate 

11 methodology established pursuant to section 

12 625(a)(2) of the Medicare Prescription Drug, Im13 provement, and Modernization Act of 2003 (Public 

14 Law 108–173, 117 Stat. 2318) to provide rebates to 

15 eligible individuals (as defined in subsection (j)(2) of 

16 section 1839 of the Social Security Act, as added by 

17 subsection (a)) of any premium or premium penalty 

18 paid under such section for months described in 

19 paragraph (1). 

Æ 


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