SEC. 2. FINDINGS. 
Congress finds the following: 
(1) No statutory health care program existed 
for members of the uniformed services who entered 
service prior to December 7, 1956, and retired after 
serving a minimum of 20 years. 
(2) Recruiters, re-enlistment counselors, and of-
ficers at all levels of the uniformed services, and 
other government officials, as agents of the United 
States Government, used recruiting tactics that al-
lowed members who entered the uniformed services 
prior to December 7, 1956, to believe they would be 
entitled to fully paid lifetime health care upon retire-
ment. 
(3) In the decision of Schism v. United States 
(No. 99–1402) on November 18, 2002, the United 
States Court of Appeals for the Federal Circuit said: 
‘‘[W]e must affirm the district court’s judgment and 
can do no more than hope Congress will make good 
on the promises recruiters made in good faith to 
plaintiffs and others of the World War II and Ko-
rean War era—from 1941 to 1956, when Congress 
enacted its first health care insurance act for mili-
tary members, excluding older retirees. . . . We can-
not readily imagine more sympathetic plaintiffs than 
the retired officers of the World War II and Korean 
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War era involved in this case. They served their 
country for at least 20 years with the understanding 
that when they retired they and their dependents 
would receive full free health care for life. The prom-
ise of such health care was made in good faith and 
relied upon. Again, however, because no authority 
existed to make such promises in the first place, and 
because Congress has never ratified or acquiesced to 
this promise, we have no alternative but to uphold 
the judgment against the retirees’ breach-of-contract 
claim. . . . Perhaps Congress will consider using its 
legal power to address the moral claims raised by 
[the plaintiffs] on their own behalf, and indirectly 
for other affected retirees.’’. 
(4) Only the United States Congress can make 
good on the promises recruiters made in good faith 
to plaintiffs and others of the World War II and Ko-
rean War era. 
SEC. 3. WAIVER OF MEDICARE PART B PREMIUM FOR CER-
TAIN MILITARY RETIREES. 
(a) IN GENERAL.—Section 1839 of the Social Secu-
rity Act (42 U.S.C. 1395r) is amended— 
(1) in subsection (a)(2), by striking ‘‘The 
monthly premium’’ and inserting ‘‘Except as pro-
vided in subsection (j), the monthly premium’’; and 
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(2) by adding at the end the following new sub-
section: 
‘‘(j)(1) The amount of the monthly premium for an 
eligible individual enrolled under this part is equal to $0. 
‘‘(2) For purposes of paragraph (1), the term ‘eligible 
individual’ means— 
‘‘(A) an individual who is entitled to retired or 
retainer pay based upon service in the uniformed 
services (as defined in section 101 of title 10, United 
States Code) that began before December 7, 1956; 
‘‘(B) the spouse (as determined under section 
7703 of the Internal Revenue Code of 1986) of an 
individual described in subparagraph (A); and 
‘‘(C) the widow or widower, as the case may be, 
of an individual described in subparagraph (A). 
‘‘(3) With respect to years beginning after the date 
of the enactment of this subsection, the monthly premium 
rate calculated under subsection (a)(3) for individuals en-
rolled under this part who are not eligible individuals 
under this subsection shall be determined without regard 
to benefits and administrative costs attributable to such 
eligible individuals during such years.’’. 
(b) CONFORMING AMENDMENT.—Subsection (i) of 
such section is amended by adding at the end the following 
new paragraph: 
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‘‘(7) INAPPLICABILITY
TO
CERTAIN
MILITARY 
RETIREES.—This subsection shall not apply to eligi-
ble individuals (as defined in subsection (j)(2)).’’. 
(c) EFFECTIVE DATE; REBATE MECHANISM.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to premiums for months be-
ginning on or after the date that is 45 days after 
the date of the enactment of this Act. 
(2) 
REBATE
METHOD.—The 
Secretary 
of 
Health and Human Services shall use the rebate 
method established pursuant to section 625(a)(2) of 
the Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003 (Public Law 108–173, 
117 Stat. 2318) to provide rebates to eligible indi-
viduals (as defined in subsection (j)(2) of section 
1839 of the Social Security Act, as added by sub-
section (a)) of any premium or premium penalty 
paid under such section for months described in 
paragraph (1). 
Æ 
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