I
104TH CONGRESS
2D SESSION
H. R. 3012
To amend title 10, United States Code, to permit covered beneficiaries under
the military health care system who are also entitled to medicare to
enroll in the Federal Employees Health Benefits program.
IN THE HOUSE OF REPRESENTATIVES
MARCH 5, 1996
Mr. MORAN (for himself, Mr. SAXTON, Mr. DAVIS, Mr. FROST, Mr. PASTOR,
Mr. DEUTSCH, Mr. FARR of California, Mr. COLEMAN, Mr. HASTINGS of
Florida, Ms. NORTON, Mr. FILNER, Mr. BILBRAY, Mr. GENE GREEN of
Texas, Ms. LOFGREN, and Mr. NORWOOD) introduced the following bill;
which was referred to the Committee on National Security, and in addi-
tion to the Committee on Government Reform and Oversight, 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 amend title 10, United States Code, to permit covered
beneficiaries under the military health care system who
are also entitled to medicare to enroll in the Federal
Employees Health Benefits program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. INCLUSION OF MEDICARE ELIGIBLE COVERED
BENEFICIARIES 
IN 
FEDERAL 
EMPLOYEES
HEALTH BENEFITS PROGRAM.
(a) FEHBP OPTION.—(1) Chapter 55 of title 10,
United States Code, is amended by inserting after section
1079 the following new section:
‘‘§ 1079a. Health care coverage through Federal Em-
ployees Health Benefits program
‘‘(a) FEHBP OPTION.—The Secretary of Defense,
after consulting with the other administering Secretaries,
shall enter into an agreement with the Office of Personnel
Management under which covered beneficiaries described
in subsection (b) will be offered an opportunity to enroll
in a health benefits plan offered through the Federal Em-
ployee Health Benefits program under chapter 89 of title
5, in lieu of receiving care under this chapter in treatment
facilities of the uniformed services or through the Civilian
Health and Medical Program of the Uniformed Services
or the TRICARE program. The agreement may provide
for limitations on enrollment of covered beneficiaries in
the Federal Employee Health Benefits program if the Of-
fice of Personnel Management determines the limitations
are necessary to allow for adequate planning for access
for services under Federal Employee Health Benefits pro-
gram.
‘‘(b) ELIGIBLE COVERED BENEFICIARIES.—A cov-
ered beneficiary referred to in subsection (a) is a member
or former member of the uniformed services described in
section 1074(b) of this title, and any dependents of the
member described in section 1076(b) of this title, who is
or becomes entitled to hospital insurance benefits under
part A of title XVIII of the Social Security Act (42 U.S.C.
1395c et seq.). The covered beneficiary shall not be re-
quired to satisfy any eligibility criteria specified in chapter
89 of title 5 as a condition for enrollment in a health bene-
fits plan offered through the Federal Employee Health
Benefits program pursuant to subsection (a).
‘‘(c) CONTRIBUTIONS.—(1) In the case of covered
beneficiaries described in subsection (b) who enroll in a
health benefits plan offered through the Federal Employee
Health Benefits program pursuant to subsection (a), the
administering Secretary concerned shall be responsible for
Government contributions that the Office of Personnel
Management determines are necessary to cover all costs
in excess of beneficiary contributions under paragraph (2).
‘‘(2) The contribution required from an enrolled cov-
ered beneficiary shall be equal to the amount that would
be withheld from the pay of a similarly situated Federal
employee who enrolls in a health benefits plan under chap-
ter 89 of title 5.
‘‘(d) MANAGEMENT
OF PARTICIPATION.—The au-
thority responsible for approving retired or retainer pay
or equivalent pay in the case of a member or former mem-
ber shall manage the participation of the member or
former member, and dependents of the member or former
member, who enroll in a health benefits plan offered
through the Federal Employee Health Benefits program
pursuant to subsection (a). The Office of Personnel Man-
agement shall maintain separate risk pools for enrolled
covered beneficiaries until such time as the Director of the
Office of Personnel Management determines that complete
inclusion of enrolled covered beneficiaries under chapter
89 of title 5 will not adversely affect Federal employees
and annuitants enrolled in health benefits plans under
such chapter.
‘‘(e) EFFECT OF CANCELLATION.—The cancellation
by a covered beneficiary of coverage under the Federal
Employee Health Benefits program shall be irrevocable for
purposes of this section.
‘‘(f) REPORTING REQUIREMENTS.—Not later than
November 1 of each year, the Secretary of Defense and
the Director of the Office of Personnel Management shall
jointly submit a report to Congress describing the provi-
sion of health care services to covered beneficiaries under
this section during the preceding fiscal year. The report
shall address or contain the following:
‘‘(1) The number of covered beneficiaries en-
rolled in health benefits plans offered through the
Federal Employee Health Benefits program pursu-
ant to subsection (a), both in terms of total number
and as a percentage of all covered beneficiaries re-
ceiving health care through the health care system
of the uniformed services.
‘‘(2) The out-of-pocket cost to enrollees under
such health benefits plans.
‘‘(3) The cost to the Government (including the
Department of Defense, the Department of Trans-
portation, and the Department of Health and
Human Services) of providing care under such
health benefits plans.
‘‘(4) A comparison of the costs determined
under paragraphs (2) and (3) and the costs that
would have otherwise been incurred by the Govern-
ment and enrollees under alternative health care op-
tions available to the administering Secretaries.
‘‘(5) The effect of this section on the cost, ac-
cess, and utilization rates of other health care op-
tions under the health care system of the uniformed
services.
‘‘(g) TIME FOR OPTION.—The Secretary of Defense
shall begin to offer the health benefits option under sub-
section (a) not later than January 1, 1997.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1079 the following new item:
‘‘1079a. Health care coverage through Federal Employees Health Benefits pro-
gram.’’.
(b) CONFORMING AMENDMENTS.—Chapter 89 of
title 5, United States Code, is amended—
(1) in section 8905—
(A) 
by 
redesignating 
subsections 
(d)
through (f) as subsections (e) through (g), re-
spectively; and
(B) by inserting after subsection (c) the
following new subsection:
‘‘(d) An individual whom the Secretary of Defense de-
termines is an eligible covered beneficiary under section
1079a(b) of title 10 may enroll in a health benefits plan
under this chapter in accordance with the agreement
under section 1079a(a) of title 10 between the Secretary
and the Office and applicable regulations under this chap-
ter.’’;
(2) in section 8906(b)—
(A) in paragraph (1), by striking ‘‘para-
graphs (2) and (3)’’ and inserting in lieu there-
of ‘‘paragraphs (2), (3), and (4)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(4) In the case of individuals who enroll in a health
plan in accordance with section 8905(d) of this title, the
Government contribution shall be determined under sec-
tion 1079a(c) of title 10.’’; and
(3) in section 8906(g)—
(A) in paragraph (1), by striking ‘‘para-
graph (2)’’ and inserting in lieu thereof ‘‘para-
graphs (2) and (3)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) The Government contribution described in sub-
section (b)(4) for beneficiaries who enroll in accordance
with section 8905(d) of this title shall be paid as provided
in section 1079a(c) of title 10.’’.
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