109TH CONGRESS
1ST SESSION
H. R. 2046
AN ACT
To amend the Servicemembers Civil Relief Act to
limit premium increases on reinstated health in-
surance on servicemembers who are released
from active military service, and for other pur-
poses.
109TH CONGRESS
1ST SESSION
H. R. 2046
AN ACT
To amend the Servicemembers Civil Relief Act to limit pre-
mium increases on reinstated health insurance on
servicemembers who are released from active military
service, and for other purposes.
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 ‘‘Servicemembers’
Health Insurance Protection Act of 2005’’.
SEC. 2. LIMITATION ON PREMIUM INCREASES FOR REIN-
STATED 
HEALTH 
INSURANCE 
OF
SERVICEMEMBERS RELEASED FROM ACTIVE
MILITARY SERVICE.
(a) PREMIUM PROTECTION.—Section 704 of the
Servicemembers Civil Relief Act (50 U.S.C. App. 594) is
amended by adding at the end the following new sub-
section:
‘‘(e) LIMITATION ON PREMIUM INCREASES.—
‘‘(1) PREMIUM PROTECTION.—The amount of
the premium for health insurance coverage that was
terminated by a servicemember and required to be
reinstated under subsection (a) may not be in-
creased, for the balance of the period for which cov-
erage would have been continued had the coverage
not been terminated, to an amount greater than the
amount chargeable for such coverage before the ter-
mination.
‘‘(2) INCREASES OF GENERAL APPLICABILITY
NOT PRECLUDED.—Paragraph (1) does not prevent
an increase in premium to the extent of any general
increase in the premiums charged by the carrier of
the health care insurance for the same health insur-
ance coverage for persons similarly covered by such
insurance during the period between the termination
and the reinstatement.’’.
(b) TECHNICAL AMENDMENT.—Subsection (b)(3) of
such section is amended by striking ‘‘if the’’ and inserting
‘‘in a case in which the’’.
SEC. 
3. 
PRESERVATION 
OF 
EMPLOYER-SPONSORED
HEALTH PLAN COVERAGE FOR CERTAIN RE-
SERVE-COMPONENT 
MEMBERS 
WHO 
AC-
QUIRE TRICARE ELIGIBILITY.
(a) 
CONTINUATION
OF
COVERAGE.—Subsection
(a)(1) of section 4317 of title 38, United States Code, is
amended by inserting after ‘‘by reason of service in the
uniformed services,’’ the following: ‘‘or such person be-
comes eligible for medical and dental care under chapter
55 of title 10 by reason of subsection (d) of section 1074
of that title,’’.
(b) REINSTATEMENT OF COVERAGE.—Subsection (b)
of such section is amended—
(1) in paragraph (1)—
(A) by inserting after ‘‘by reason of service
in the uniformed services,’’ the following: ‘‘or by
reason of the person’s having become eligible
for medical and dental care under chapter 55 of
title 10 by reason of subsection (d) of section
1074 of that title,’’; and
(B) by inserting ‘‘or eligibility’’ before the
period at the end of the first sentence; and
(2) by adding at the end the following new
paragraph:
‘‘(3) In the case of a person whose coverage under
a health plan is terminated by reason of the person having
become eligible for medical and dental care under chapter
55 of title 10 by reason of subsection (d) of section 1074
of that title but who subsequently does not commence a
period of active duty under the order to active duty that
established such eligibility because the order is canceled
before such active duty commences, the provisions of para-
graph (1) relating to any exclusion or waiting period in
connection with the reinstatement of coverage under a
health plan shall apply to such person’s continued employ-
ment, upon the termination of such eligibility for medical
and dental care under chapter 55 of title 10 that is inci-
dent to the cancellation of such order, in the same manner
as if the person had become reemployed upon such termi-
nation of eligibility.’’.
SEC. 4. TECHNICAL CORRECTIONS TO VETERANS BENEFITS
IMPROVEMENT ACT OF 2004.
(a) CORRECTIONS.—Section 2101 of title 38, United
States Code, as amended by section 401 of the Veterans
Benefits Improvement Act of 2004 (Public Law 108–454;
118 Stat. 3614), is amended—
(1) by redesignating subsection (c) as sub-
section (d);
(2) by inserting after subsection (b) a new sub-
section (c) consisting of the text of subsection (c) of
such section 2101 as in effect immediately before
the enactment of such Act, modified—
(A) in paragraph (1)—
(i) in the first sentence, by striking
‘‘paragraph (1), (2), or (3)’’ and inserting
‘‘subparagraph (A), (B), (C), or (D) of
paragraph (2)’’; and
(ii) in the second sentence, by striking
‘‘the second sentence’’ and inserting ‘‘para-
graph (3)’’; and
(B) in paragraph (2)—
(i) in the first sentence, by striking
‘‘paragraph (1)’’ and inserting ‘‘paragraph
(2)’’; and
(ii) in the second sentence, by striking
‘‘paragraph (2)’’ and inserting ‘‘paragraph
(3)’’; and
(3) in subsection (a)(3), by striking ‘‘subsection
(c)’’ in the matter preceding subparagraph (A) and
inserting ‘‘subsection (d)’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect as of December 10, 2004,
as if enacted immediately after the enactment of the Vet-
erans Benefits Improvement Act of 2004 on that date.
SEC. 5. NOTIFICATION TO MEMBER’S SPOUSE OR NEXT OF
KIN 
OF 
CERTAIN 
ELECTIONS 
UNDER
SERVICEMEMBERS’ GROUP LIFE INSURANCE
PROGRAM.
(a) REPEAL.—Subsections (f) and (g) of section 1012
of division A of the Emergency Supplemental Appropria-
tions Act for Defense, the Global War on Terror, and Tsu-
nami Relief Act, 2005 (Public Law 109–13), and the
amendments made by those subsections, are repealed, and
sections 1967 and 1970 of title 38, United States Code,
shall be applied as if those subsections had not been en-
acted.
(b) NOTIFICATION REQUIRED.—Section 1967 of title
38, United States Code, is amended by adding at the end
the following new subsection:
‘‘(f)(1)(A) Whenever a member who is eligible for in-
surance under this subchapter executes a life insurance
option specified in subparagraph (B), the Secretary con-
cerned shall notify the member’s spouse or, if the member
is unmarried, the member’s next of kin, in writing, of the
execution of that option.
‘‘(B) A life insurance option referred to in subpara-
graph (A) is any of the following:
‘‘(i) An election under subsection (a)(2)(A) not
to be insured under this subchapter.
‘‘(ii) An election under subsection (a)(3)(B) for
insurance of the member in an amount that is less
than the maximum amount provided under sub-
section (a)(3)(A)(i).
‘‘(iii) An application under subsection (c) for in-
surance coverage under this subchapter or for a
change in the amount of such insurance coverage.
‘‘(iv) In the case of a married member, a des-
ignation under section 1970(a) of this title of any
person other than the spouse or a child of the mem-
ber as the beneficiary of the member for any amount
of insurance under this subchapter.
‘‘(2) Whenever an unmarried member who is eligible
for insurance under this subchapter marries, the Secretary
concerned shall notify the member’s spouse in writing as
to whether the member is insured under this subchapter.
In the case of a member who is so insured, the Secretary
shall include with such notification—
‘‘(A) if the member has made an election de-
scribed in paragraph (1)(B)(ii), notice that the
amount of such insurance is less than the maximum
amount provided under subsection (a)(3)(A)(i); and
‘‘(B) if the member has designated a bene-
ficiary other than the spouse or a child of the mem-
ber for any amount of such insurance, notice that
such a designation has been made.
‘‘(3)(A) Notification of a spouse under paragraph (1)
or (2), or of any other person under paragraph (1), for
purposes of this subsection shall consist of a good faith
effort to provide information to the spouse or other person
at the last address of the spouse or other person known
to the Secretary concerned.
‘‘(B) Failure to provide such notification, or to pro-
vide such notification in a timely manner, does not affect
the validity of any life insurance option referred to in
paragraph (1)(B).’’.
Passed the House of Representatives May 23, 2005.
Attest:
Clerk.