I
106TH CONGRESS
2D SESSION
H. R. 4030
To enhance benefits for active and retired military personnel.
IN THE HOUSE OF REPRESENTATIVES
MARCH 16, 2000
Mr. SMITH of Washington introduced the following bill; which was referred to
the Committee on Armed Services, and in addition to the Committees on
Ways and Means, Commerce, and Government Reform, for a period to
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To enhance benefits for active and retired military personnel.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Enhancement of Mili-
tary Benefits Act’’.
SEC. 2. 2001 PAY RAISE FOR MEMBERS OF THE UNIFORMED
SERVICES.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The
adjustment to become effective during fiscal year 2001 re-
quired by section 1009 of title 37, United States Code,
in the rates of monthly basic pay authorized members of
the uniformed services shall not be made.
(b) INCREASE IN BASIC PAY.—Effective on January
1, 2001, the rates of monthly basic pay for members of
the uniformed services are increased by 4.8 percent.
SEC. 3. EXPANSION OF MEDICARE SUBVENTION PROJECT
FOR MILITARY RETIREES AND DEPENDENTS.
(a) EXPANSION OF SITES.—
(1) EXPANSION TO 16 SITES.—Effective Janu-
ary 1, 2001, subsection (b)(2) of section 1896 of the
Social Security Act (42 U.S.C. 1395ggg) is amended
by striking ‘‘6’’ and inserting ‘‘16’’.
(2) FUTURE REPEAL OF LIMITATION ON NUM-
BER OF SITES.—Effective October 1, 2003, para-
graph (2) of section 1896(b) of such Act is amended
to read as follows:
‘‘(2) LOCATION OF SITES.—The program shall
be conducted in any site designated jointly by the
administering Secretaries.’’.
(b) MAKING PROJECT PERMANENT; CHANGES
IN
PROJECT REFERENCES.—
(1) ELIMINATION OF TIME LIMITATION.—Para-
graph (4) of section 1896(b) of such Act is repealed.
(2) TREATMENT OF CAPS.—Subsection (i)(4) of
section 1896 of such Act is amended by adding at
the end the following:
‘‘This paragraph shall not apply after calendar year
2001.’’.
(3) CONFORMING CHANGES OF REFERENCES TO
DEMONSTRATION PROJECT.—Section 1896 of such
Act is further amended—
(A) in the heading, by striking ‘‘DEM-
ONSTRATION
PROJECT’’ and inserting ‘‘PRO-
GRAM’’;
(B) by amending subsection (a)(2) to read
as follows:
‘‘(2) PROGRAM.—The term ‘program’ means
the program carried out under this section.’’;
(C) in the heading to subsection (b), by
striking ‘‘DEMONSTRATION PROJECT’’ and in-
serting ‘‘PROGRAM’’;
(D) by striking ‘‘demonstration project’’ or
‘‘project’’ each place either appears and insert-
ing ‘‘program’’;
(E) in subsection (k)(2)—
(i) by striking ‘‘EXTENSION AND EX-
PANSION
OF
DEMONSTRATION
PROJECT’’
and inserting ‘‘PROGRAM’’; and
(ii) by striking subparagraphs (A)
through (C) and inserting the following:
‘‘(A) whether there is a cost to the health
care program under this title in conducting the
program under this section; and
‘‘(B) whether the terms and conditions of
the program should be modified.’’.
(4) ADDITIONAL CONFORMING AMENDMENT.—
Paragraph (5) of section 1896(b) of such Act is re-
pealed.
(c) PERMITTING PAYMENT ON A FEE-FOR-SERVICE
BASIS.—
(1) IN GENERAL.—Section 1896 of the Social
Security Act is further amended by adding at the
end the following new subsection:
‘‘(l) PAYMENT ON A FEE-FOR-SERVICE BASIS.—In-
stead of the payment method described in subsection (i)(1)
and in the case of individuals who are not enrolled in the
program in the manner described in subsection (d)(1), the
Secretary may reimburse the Secretary of Defense for
services provided under the program at a rate that does
not exceed the rate of payment that would otherwise be
made under this title for such services if sections 1814(c)
and 1835(d), and paragraphs (2) and (3) of section
1862(a), did not apply.’’.
(2) CONFORMING AMENDMENTS.—Such section
is further amended—
(A) 
in 
subsections 
(b)(1)(B)(v) 
and
(b)(1)(B)(viii)(I), by inserting ‘‘or subsection
(l)’’ after ‘‘subsection (i)’;
(B) in subsection (b)(2), by adding at the
end the following: ‘‘If feasible, at least one of
the sites shall be conducted using the fee-for-
service reimbursement method described in sub-
section (l).’’;
(C) in subsection (d)(1)(A), by inserting
‘‘(insofar as it provides for the enrollment of in-
dividuals and payment on the basis described in
subsection (i))’’ before ‘‘shall meet’’;
(D) in subsection (d)(1)(A), by inserting
‘‘and the program (insofar as it provides for
payment for facility services on the basis de-
scribed in subsection (l)) shall meet all require-
ments for such facilities under this title’’ after
‘‘medicare payments’’;
(E) in subsection (d)(2), by inserting ‘‘, in-
sofar as it provides for the enrollment of indi-
viduals and payment on the basis described in
subsection (i),’’ before ‘‘shall comply’’;
(F) in subsection (g)(1), by inserting ‘‘, in-
sofar as it provides for the enrollment of indi-
viduals and payment on the basis described in
subsection (i),’’ before ‘‘the Secretary of De-
fense’’;
(G) in subsection (i)(1), by inserting ‘‘and
subsection (l)’’ after ‘‘of this subsection’’;
(H) in subsection (i)(4), by inserting ‘‘and
subsection (l)’’ after ‘‘under this subsection’’;
and
(I) in subsection (j)(2)(B)(ii), by inserting
‘‘or subsection (l)’’ after ‘‘subsection (i)(1)’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection take effect on January 1, 2001,
and apply to services furnished on or after such
date.
(d) ELIMINATION
OF
RESTRICTION
ON
ELIGI-
BILITY.—Section 1896(b)(1) of such Act is amended by
adding at the end the following new subparagraph:
‘‘(C) ELIMINATION OF RESTRICTIVE POL-
ICY.—If the enrollment capacity in the program
has been reached at a particular site designated
under paragraph (2) and the Secretary there-
fore limits enrollment at the site to medicare-
eligible military retirees and dependents who
are enrolled in TRICARE Prime (as defined for
purposes of chapter 55 of title 10, United
States Code) at the site immediately before at-
taining 65 years of age, participation in the
program by a retiree or dependent at such site
shall not be restricted based on whether the re-
tiree or dependent has a civilian primary care
manager instead of a military primary care
manager.’’.
(e) MEDIGAP PROTECTION FOR ENROLLEES.—Sec-
tion 1896 of such Act is further amended by adding at
the end the following new subsection:
‘‘(m) MEDIGAP PROTECTION FOR ENROLLEES.—(1)
Subject to paragraph (2), the provisions of section
1882(s)(3) (other than clauses (i) through (iv) of subpara-
graph (B)) and 1882(s)(4) of the Social Security Act shall
apply to any enrollment (and termination of enrollment)
in the program (for which payment is made on the basis
described in subsection (i)) in the same manner as they
apply to enrollment (and termination of enrollment) with
a Medicare+Choice organization in a Medicare+Choice
plan.
‘‘(2) In applying paragraph (1)—
‘‘(A) in the case of enrollments occurring before
January 1, 2001, any reference in clause (v) or (vi)
of section 1882(s)(3)(B) of such Act to 12 months
is deemed a reference to the period ending on De-
cember 31, 2001; and
‘‘(B) the notification required under section
1882(s)(3)(D) of such Act shall be provided in a
manner specified by the Secretary of Defense in con-
sultation with the Director of the Office of Per-
sonnel Management.’’.
SEC. 4. INCREASE IN MILITARY SURVIVOR BENEFIT PLAN
ANNUITIES FOR BENEFICIARIES 62 YEARS OF
AGE AND OLDER.
(a) REPEAL OF ANNUITY REDUCTION AT AGE 62.—
(1) Subsection (a) of section 1451 of title 10, United
States Code, is amended to read as follows:
‘‘(a) COMPUTATION OF ANNUITY FOR A SPOUSE,
FORMER SPOUSE, OR CHILD.—
‘‘(1) STANDARD ANNUITY.—In the case of a
standard annuity provided to a beneficiary under
section 1450(a) of this title (other than under sec-
tion 1450(a)(4)), the monthly annuity shall be the
amount equal to 55 percent of the base amount.
‘‘(2) RESERVE-COMPONENT ANNUITY.—In the
case of a reserve-component annuity provided to a
beneficiary under section 1450(a) of this title (other
than under section 1450(a)(4)), the monthly annuity
payable to the beneficiary shall be the amount equal
to a percentage of the base amount that—
‘‘(A) is less than 55 percent; and
‘‘(B) is determined under subsection (f).’’.
(2) Subsection (c)(1) of such section is amended to
read as follows:
‘‘(1) IN GENERAL.—In the case of an annuity
provided under section 1448(d) or 1448(f) of this
title, the amount of the monthly annuity shall be the
amount equal to 55 percent of the retired pay to
which the member or former member would have
been entitled if the member or former member had
been entitled to that pay based upon his years of ac-
tive service when he died.’’.
(3) Subsections (d) and (e) of such section are re-
pealed.
(b) TERMINATION
OF SUPPLEMENTAL SBP PRO-
GRAM.—The Secretary of Defense shall terminate the
Supplemental Survivor Benefit Plan program under sub-
chapter III of chapter 73 of title 10, United States Code,
effective on the date specified in subsection (d). No annu-
ity may be paid under that subchapter, and no reduction
in retired pay may be made under that subchapter, for
any period on or after that date.
(c) RECOMPUTATION OF ANNUITIES.—Effective as of
the date specified in subsection (d), the Secretary con-
cerned shall recompute annuities payable under sub-
chapter II of chapter 73 of title 10, United States Code,
as necessary so that each such annuity is in the amount
that would be in effect if initially computed under section
1450 of title 10, United States Code, as amended by sub-
section (a).
(d) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2000, and
shall apply to payments under chapter 73 of title 10,
United States Code, for months beginning on or after that
date.
SEC. 5. INCLUSION OF UNIFORMED SERVICES RETIREES
AND DEPENDENTS IN FEDERAL EMPLOYEES
HEALTH BENEFITS PROGRAM.
(a) IN GENERAL.—Chapter 55 of title 10, United
States Code, is amended by inserting after section 1108
the following new section:
‘‘§ 1108a. Health care coverage through Federal Em-
ployees Health Benefits program: retirees
and dependents
‘‘(a) FEHBP OPTION.—The Secretary of Defense,
after consulting with the other administering Secretaries,
shall enter into an agreement with the Office of Personnel
pool for purposes of establishing premium rates for eligible
beneficiaries who enroll in such a plan in accordance with
this section.
‘‘(2) The Director shall determine total subscription
charges for self only or for family coverage for eligible
beneficiaries who enroll in a health benefits plan under
chapter 89 of title 5 in accordance with this section. The
subscription charges shall include premium charges paid
to the plan and amounts described in section 8906(c) of
title 5 for administrative expenses and contingency re-
serves.
‘‘(d) GOVERNMENT CONTRIBUTIONS.—The Secretary
of Defense shall be responsible for the Government con-
tribution for an eligible beneficiary who enrolls in a health
benefits plan under chapter 89 of title 5 in accordance
with this section, except that the amount of the contribu-
tion may not exceed the amount of the Government con-
tribution which would be payable if the electing beneficiary
were an employee (as defined for purposes of such chap-
ter) enrolled in the same health benefits plan and level
of benefits.’’.
(b) CONFORMING AMENDMENTS.—(1) The table of
sections at the beginning of chapter 55 of title 10, United
States Code, is amended by inserting after the item relat-
ing to section 1108 the following new item: