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Stat. 1654A–170) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(3) The amount determined for a person under para-
graph (1) shall be increased to reflect increases in cost of
living since the basic pay referred to in paragraph (1)(B)
was paid to or for that person, calculated on the basis of
the Consumer Price Index (all items—United States city
average) published monthly by the Bureau of Labor Statis-
tics.’’.
(b) RECALCULATION OF PREVIOUS PAYMENTS.—In the
case of any payment of back pay made to or for a person
under section 667 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 before the date of
the enactment of this Act, the Secretary of the Navy shall—
(1) recalculate the amount of back pay to which
the person is entitled by reason of the amendment
made by subsection (a); and
(2) if the amount of back pay, as so recalculated,
exceeds the amount of back pay so paid, pay the per-
son, or the surviving spouse of the person, an amount
equal to the excess.
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TITLE VII—HEALTH CARE
PROVISIONS
SEC. 701. INCLUSION OF TRICARE RETAIL PHARMACY PRO-
GRAM IN FEDERAL PROCUREMENT OF PHAR-
MACEUTICALS.
(a) IN GENERAL.—Section 1074g of title 10, United
States Code, is amended—
(1) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(2) by inserting after subsection (e) the following
new subsection (f):
‘‘(f) 
PROCUREMENT
OF
PHARMACEUTICALS
BY
TRICARE RETAIL PHARMACY PROGRAM.—With respect to
any prescription filled on or after October 1, 2007, the
TRICARE retail pharmacy program shall be treated as an
element of the Department of Defense for purposes of the
procurement of drugs by Federal agencies under section
8126 of title 38 to the extent necessary to ensure that phar-
maceuticals paid for by the Department of Defense that are
provided by pharmacies under the program to eligible cov-
ered beneficiaries under this section are subject to the pric-
ing standards in such section 8126.’’.
(b) REGULATIONS.—The Secretary of Defense shall,
after consultation with the other administering Secretaries
under chapter 55 of title 10, United States Code, modify
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the regulations under subsection (h) of section 1074g of title
10, United States Code (as redesignated by subsection (a)(1)
of this section), to implement the requirements of subsection
(f) of section 1074g of title 10, United States Code (as
amended by subsection (a)(2) of this section). The Secretary
shall so modify such regulations not later than December
31, 2007.
SEC. 702. SURVEYS ON CONTINUED VIABILITY OF TRICARE
STANDARD AND TRICARE EXTRA.
(a) REQUIREMENT FOR SURVEYS.—
(1) IN GENERAL.—The Secretary of Defense shall
conduct surveys of health care providers and bene-
ficiaries who use TRICARE in the United States to
determine, utilizing a reconciliation of the responses
of providers and beneficiaries to such surveys, each of
the following:
(A) How many health care providers in
TRICARE Prime service areas selected under
paragraph (3)(A) are accepting new patients
under 
each 
of 
TRICARE 
Standard 
and
TRICARE Extra.
(B) How many health care providers in ge-
ographic areas in which TRICARE Prime is not
offered are accepting patients under each of
TRICARE Standard and TRICARE Extra.