II 
114TH CONGRESS 
2D SESSION 
H. R. 5458 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 30, 2016 
Received 
AN ACT 
To provide for coordination between the TRICARE program 
and eligibility for making contributions to a health sav-
ings account, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans TRICARE 
Choice Act of 2016’’. 
SEC. 2. COORDINATION BETWEEN TRICARE PROGRAM AND 
ELIGIBILITY TO MAKE CONTRIBUTIONS TO 
HEALTH SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Section 223(c)(1)(B) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘and’’ 
at the end of clause (ii), by striking the period at the end 
of clause (iii) and inserting ‘‘, and’’, and by adding at the 
end the following new clause: 
‘‘(iv) coverage under the TRICARE 
program under chapter 55 of title 10, 
United States Code, for any period with 
respect to which an election is in effect 
under section 1097e of such title providing 
that the individual is ineligible to be en-
rolled in (and receive benefits under) such 
program.’’. 
(b) PROVISIONS RELATING TO ELECTION OF INELI-
GIBILITY UNDER TRICARE.— 
(1) IN
GENERAL.—Chapter 55 of title 10, 
United States Code, is amended by inserting after 
section 1097d the following new section: 
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‘‘§ 1097e. TRICARE program: election of eligibility 
‘‘(a) ELECTION.—Beginning January 1, 2017, a 
TRICARE-eligible individual may elect at any time to be 
ineligible to enroll in (and receive any benefits under) the 
TRICARE program. 
‘‘(b) CHANGE OF ELECTION.—(1) If a TRICARE-eli-
gible individual makes an election under subsection (a), 
the TRICARE-eligible individual may later elect to be eli-
gible to enroll in the TRICARE program. An election 
made under this subsection may be made only during a 
special enrollment period. 
‘‘(2) The Secretary shall ensure that a TRICARE- 
eligible individual who makes an election under subsection 
(a) may efficiently enroll in the TRICARE program pur-
suant to an election under paragraph (1), including by 
maintaining the individual, as appropriate, in the health 
care enrollment system under section 1099 of this title in 
an inactive manner. 
‘‘(c) PERIOD OF ELECTION.—If a TRICARE-eligible 
individual makes an election under subsection (a), such 
election shall be in effect beginning on the date of such 
election and ending on the date that such individual makes 
an election under subsection (b)(1) to enroll in the 
TRICARE program. 
‘‘(d) HEALTH SAVINGS ACCOUNT PARTICIPATION.— 
(1) For provisions allowing participation in a health sav-
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ings account in connection with coverage under a high de-
ductible health plan during the period that the election 
under 
subsection 
(a) 
is 
in 
effect, 
see 
section 
223(c)(1)(B)(iv) of the Internal Revenue Code of 1986. 
‘‘(2) The Secretary shall submit to the Commissioner 
of Internal Revenue the name of, and any other informa-
tion that the Commissioner may require with respect to, 
each TRICARE-eligible individual who makes an election 
under subsection (a) or (b), not later than 90 days after 
such election, for purposes of determining the eligibility 
of such TRICARE-eligible individual for a health savings 
account described in paragraph (1). 
‘‘(e) RECORDS.—The Secretary shall ensure that a 
TRICARE-eligible individual who makes an election under 
subsection (a) is maintained on the Defense Enrollment 
Eligibility Reporting System, or successor system, regard-
less of whether the individual is eligible for the TRICARE 
program during the period of such election. 
‘‘(f) PROVISION OF INFORMATION.—The Secretary 
shall provide to each TRICARE-eligible individual who 
seeks to make an election under subsection (a) information 
regarding— 
‘‘(1) health savings accounts in connection with 
coverage under a high deductible health plan de-
scribed in subsection (d)(1), including a comparison 
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of such health saving accounts and the health care 
benefits the individual is eligible to receive under the 
TRICARE program; and 
‘‘(2) changing such an election under subsection 
(b)(1). 
‘‘(g) ANNUAL REPORT.—Not later than 60 days after 
the end of each fiscal year, the Secretary shall submit to 
the congressional defense committees a report on elections 
by TRICARE-eligible individuals under this section that 
includes the following: 
‘‘(1) The number of TRICARE-eligible individ-
uals, as of the date of the submittal of the report, 
who are ineligible to enroll in (and receive any bene-
fits under) the TRICARE program pursuant to an 
election under subsection (a). 
‘‘(2) The number of TRICARE-eligible individ-
uals who made an election described under sub-
section (a) but, as of the date of the submittal of the 
report, are enrolled in the TRICARE program pur-
suant to a change of election under subsection (b). 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘TRICARE-eligible individual’ 
means an individual who is— 
‘‘(A) eligible to be a covered beneficiary en-
titled to health care benefits under the 
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TRICARE program (determined without regard 
to this section); and 
‘‘(B) not serving on active duty in the uni-
formed services. 
‘‘(2) The term ‘special enrollment period’ means 
the period in which a beneficiary under the Federal 
Employees Health Benefits program under chapter 
89 of title 5 may enroll in or change a plan under 
such program by reason of a qualifying event or dur-
ing an open enrollment season. For purposes of this 
section, such qualifying events shall also include 
events determined appropriate by the Secretary of 
Defense, including events relating to a member of 
the armed forces being ordered to active duty.’’. 
(2) CONFORMING AMENDMENT.—The table of 
sections at the beginning of chapter 55 of such title 
is amended by inserting after the item relating to 
section 1097d the following new item: 
‘‘1097e. TRICARE program: election of eligibility.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to months beginning after De-
cember 31, 2016. 
Passed the House of Representatives November 29, 
2016. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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