269
within such section so as to appear following 
subsection (d); and 
(C) by striking paragraph (3) of subsection 
(f). 
(2) The heading for such section is amended to 
read as follows: 
‘‘§ 1076d. TRICARE program: TRICARE standard cov-
erage for members of the Selected Re-
serve’’. 
(d) REPEAL OF OBSOLETE PROVISION.—Effective 
October 1, 2007, section 1076b of title 10, United States 
Code, is repealed. 
(e) CLERICAL AMENDMENTS.—Effective October 1, 
2007, the table of sections at the beginning of chapter 55 
of title 10, United States Code, is amended—
(1) by striking the item relating to section 
1076b; and 
(2) by striking the item relating to section 
1076d and inserting the following:
‘‘1076d. TRICARE program: TRICARE Standard coverage for members of the 
Selected Reserve.’’.
(f) SAVINGS PROVISION.—Enrollments in TRICARE 
Standard that are in effect on the day before the date of 
the enactment of this Act under section 1076d of title 10, 
United States Code, as in effect on such day, shall be con-
270
tinued until terminated after such day under such section 
1076d as amended by this section. 
(g) EFFECTIVE DATE.—The Secretary of Defense 
shall ensure that health care under TRICARE Standard 
is provided under section 1076d of title 10, United States 
Code, as amended by this section, beginning not later than 
October 1, 2007. 
SEC. 710. EXTENSION TO TRICARE OF MEDICARE PROHIBI-
TION OF FINANCIAL INCENTIVES NOT TO EN-
ROLL IN GROUP HEALTH PLAN. 
(a) IN GENERAL.—Section 1097b of title 10, United 
States Code, is amended by redesignating subsection (c) 
as subsection (d) and by adding the following after sub-
section (b): 
‘‘(c) PROHIBITION OF FINANCIAL INCENTIVES NOT 
TO ENROLL IN A GROUP HEALTH PLAN.—(1) Except as 
provided in this subsection, the provisions of section 
1862(b)(3)(C) of the Social Security Act shall apply with 
respect to financial or other incentives for an individual 
eligible for benefits under section 1086 of this title not 
to enroll (or to terminate enrollment) under a health plan 
which would (in the case of such enrollment) be a primary 
plan under sections 1079(j)(1) and 1086(g) of this title 
in the same manner as such section 1862(b)(3)(C) applies 
to financial or other incentives for an individual entitled
271
to benefits under title XVIII of the Social Security Act 
not to enroll (or to terminate enrollment) under a group 
health plan or a large group health plan which would (in 
the case of enrollment) be a primary plan (as defined in 
section 1862(b)(2)(A) of such Act). 
‘‘(2)(A) The Secretary of Defense may by regulation 
adopt such exceptions to the prohibition referenced and 
applied under paragraph (1) as the Secretary deems ap-
propriate and such paragraph (1) shall be implemented 
taking into account the adoption of such exceptions. 
‘‘(B) The Secretary of Defense and the Secretary of 
Health and Human Services are authorized to enter into 
agreements for carrying out this subsection. Any such 
agreement shall provide that any expenses incurred by the 
Secretary of Health and Human Services pertaining to 
carrying out this subsection shall be reimbursed by the 
Secretary of Defense. 
‘‘(C) Authorities of the Inspector General of the De-
partment of Defense shall be available for oversight and 
investigations of responsibilities of employers and other 
entities under this subsection. 
‘‘(D) Information obtained under section 1095(k) of 
this title may be used in carrying out this subsection in 
the same manner as information obtained under section 
1862(b)(5) may be used in carrying out section 1862(b).
272
‘‘(E) Any amounts collected in carrying out para-
graph (1) shall be handled in accordance with section 
1079a of this title. 
‘‘(3) In addition to any penalty applied under the au-
thority of paragraph (1), the Secretary of Defense may 
by regulation provide that repeated violations by an em-
ployer or other entity of the prohibition referenced and 
applied under paragraph (1) are grounds for exclusion of 
the employer or other entity from any contract or sub-
contract to provide goods or services to, or any financial 
assistance from, the Department of Defense.’’. 
(b) CONFORMING AMENDMENT.—Section 1095(k)(5) 
of such title is amended by striking ‘‘and 1086(d)’’ and 
inserting ‘‘, 1086(d), and 1097b(c)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect January 1, 2008. 
Subtitle B—Studies and Reports 
SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE 
FUTURE OF MILITARY HEALTH CARE. 
(a) REQUIREMENT TO ESTABLISH.—The Secretary 
of Defense shall establish within the Department of De-
fense a task force to examine matters relating to the fu-
ture of military health care. 
(b) COMPOSITION.—
273
(1) MEMBERS.—The task force shall consist of 
not more than 14 members appointed by the Sec-
retary of Defense from among individuals described 
in paragraph (2) who have demonstrated expertise in 
the area of health care programs and costs. 
(2) RANGE OF MEMBERS.—The individuals ap-
pointed to the task force shall include—
(A) at least one member of each of the 
Medical Departments of the Army, Navy, and 
Air Force; 
(B) a number of persons from outside the 
Department of Defense equal to the total num-
ber of personnel from within the Department of 
Defense (whether members of the Armed 
Forces or civilian personnel) who are appointed 
to the task force; 
(C) persons who have experience in—
(i) health care actuarial forecasting; 
(ii) health care program development; 
(iii) health care budget management; 
(iv) evidence-based medicine; 
(v) health care performance measure-
ment; 
(vi) health care quality improvement; 
and
274
(vii) academic institute research in 
health care services; 
(D) at least one member from the Institute 
of Medicine; 
(E) at least one member from the Defense 
Business Board; and 
(F) at least one representative from a mili-
tary or veterans service organization who has 
experience in health care. 
(3) INDIVIDUALS APPOINTED OUTSIDE THE DE-
PARTMENT OF DEFENSE.—
(A) Individuals appointed to the task force 
from outside the Department of Defense may 
include officers or employees of other depart-
ments or agencies of the Federal Government, 
officers or employees of State and local govern-
ments, or individuals from the private sector. 
(B) Individuals appointed to the task force 
from outside the Department of Defense shall 
include—
(i) an officer or employee of the De-
partment of Veterans Affairs; and 
(ii) an officer or employee of the De-
partment of Health and Human Services.
275
(4) DEADLINE
FOR
APPOINTMENT.—All ap-
pointments of individuals to the task force shall be 
made not later than 90 days after the date of the 
enactment of this Act. 
(5) CO-CHAIRS OF TASK FORCE.—There shall 
be two co-chairs of the task force. One of the co-
chairs shall be designated by the Secretary of De-
fense at the time of appointment from among the 
Department of Defense personnel appointed to the 
task force. The other co-chair shall be selected from 
among the members appointed from outside the De-
partment of Defense by members so appointed. 
(c) ASSESSMENT AND RECOMMENDATIONS ON THE 
FUTURE OF MILITARY HEALTH CARE.—
(1) IN GENERAL.—Not later than 12 months 
after the date on which all members of the task 
force have been appointed, the task force shall sub-
mit to the Secretary a report containing an assess-
ment of, and recommendations for, sustaining the 
military health care services being provided to mem-
bers of the Armed Forces, retirees, and their fami-
lies. 
(2) UTILIZATION OF OTHER EFFORTS.—In pre-
paring the report, the task force shall take into con-
sideration the findings and recommendation included
276
in the Healthcare for Military Retirees Task Group 
of the Defense Business Board, previous Govern-
ment Accountability Office reports, studies and re-
views by the Assistant Secretary of Defense for 
Health Affairs, and any other studies or research 
conducted by organizations regarding improvements 
to sustain the military health care system. 
(3) ELEMENTS.—The assessment and rec-
ommendations (including recommendations for legis-
lative or administrative action) shall include meas-
ures to improve the following: 
(A) Wellness initiatives and disease man-
agement programs of the Department of De-
fense, including health risk tracking and the 
use of rewards for wellness. 
(B) Education programs focused on pre-
vention awareness and patient-initiated health 
care. 
(C) The ability to account for the true and 
accurate cost of health care in the military 
health system. 
(D) Alternative health care initiatives to 
manage patient behavior and costs. 
(E) The appropriate command and control 
structure within the Department of Defense
277
and the Armed Forces to manage the military 
health system. 
(F) The adequacy of the military health 
care procurement system, including methods to 
streamline existing procurement activities. 
(G) The appropriate mix of military and 
civilian personnel to meet future readiness and 
high-quality health care service requirements. 
(H) The beneficiary and Government cost 
sharing structure required to sustain the mili-
tary health benefits over the long term. 
(I) Programs focused on managing the 
health care needs of Medicare-eligible military 
beneficiaries. 
(J) Efficient and cost effective contracts 
for health care services, including performance-
based requirements for health care provider re-
imbursement. 
(c) ADMINISTRATIVE MATTERS.—
(1) COMPENSATION.—Each member of the task 
force who is a member of the Armed Forces or a ci-
vilian officer or employee of the United States shall 
serve without compensation (other than compensa-
tion to which entitled as a member of the Armed 
Forces or an officer or employee of the United
278
States, as the case may be). Other members of the 
task force shall be treated for purposes of section 
3161 of title 5, United States Code, as having been 
appointed under subsection (b) of such section. 
(2) OVERSIGHT.—The Under Secretary of De-
fense for Personnel and Readiness shall oversee the 
activities of the task force. 
(3) ADMINISTRATIVE
SUPPORT.—The Wash-
ington Headquarters Services of the Department of 
Defense shall provide the task force with personnel, 
facilities, and other administrative support as nec-
essary for the performance of the duties of the task 
force. 
(4) ACCESS TO FACILITIES.—The Under Sec-
retary of Defense for Personnel and Readiness shall, 
in coordination with the Secretaries of the military 
departments, ensure appropriate access by the task 
force to military installations and facilities for pur-
poses of the discharge of the duties of the task force. 
(e) REPORT.—
(1) IN GENERAL.—The task force shall submit 
to the Secretary of Defense a report on its activities 
under this section. The report shall include— 
(A) a description of the activities of the 
task force;
279
(B) the assessment and recommendations 
required by subsection (c); and 
(C) such other matters relating to the ac-
tivities of the task force that the task force con-
siders appropriate. 
(2) TRANSMITTAL
TO
CONGRESS.—Not later 
than 90 days after receipt of the report under para-
graph (1), the Secretary shall transmit the report to 
the Committees on Armed Services of the Senate 
and the House of Representatives. The Secretary 
may include in the transmittal such comments on 
the report as the Secretary considers appropriate. 
(f) PLAN REQUIRED.—Not later than 6 months after 
receipt of the report from the task force under subsection 
(e)(1), the Secretary of Defense shall develop a plan based 
on the recommendations of the task force and submit the 
plan to the Committees on Armed Services of the Senate 
and the House of Representatives. 
(g) TERMINATION.—The task force shall terminate 
90 days after the date on which the report of the task 
force is submitted to Congress under subsection (e)(2). 
SEC. 712. STUDY AND PLAN RELATING TO CHIROPRACTIC 
HEALTH CARE SERVICES. 
(a) STUDY REQUIRED.—