239
‘‘(ii) PROCEDURES.—Such an election 
shall be in writing, signed by the partici-
pant, and made in such form and manner 
as the Secretary concerned may prescribe. 
Such an election shall be effective the first 
day of the first month following the month 
in which the election is received by the 
Secretary. 
‘‘(iii) VITIATION
OF
ELECTION
BY 
PARTICIPANT
WHO
DIES
WITHIN
TWO 
YEARS
OF
ELECTION.—If a person pro-
viding an annuity under a election under 
clause (i) dies before the end of the two-
year period beginning on the effective date 
of the election—
‘‘(I) the election is vitiated; and 
‘‘(II) the amount by which the 
person’s retired pay was reduced 
under section 1452 of this title that is 
attributable to the election shall be 
paid in a lump sum to the person who 
would have been the deceased person’s 
beneficiary under the vitiated election 
if the deceased person had died after 
the end of such two-year period.’’.
240
(b) CHANGE IN PREMIUM FOR COVERAGE OF NEW 
BENEFICIARY.—Section 1452(c) of such title is amended 
by adding at the end the following new paragraph: 
‘‘(5) RULE FOR DESIGNATION OF NEW INSUR-
ABLE INTEREST BENEFICIARY FOLLOWING DEATH 
OF ORIGINAL BENEFICIARY.—The Secretary of De-
fense shall prescribe in regulations premiums which 
a participant making an election under section 
1448(b)(1)(G) of this title shall be required to pay 
for participating in the Plan pursuant to that elec-
tion. The total amount of the premiums to be paid 
by a participant under the regulations shall be equal 
to the sum of the following: 
‘‘(A) The total additional amount by which 
the retired pay of the participant would have 
been reduced before the effective date of the 
election if the original beneficiary (i) had not 
died and had been covered under the Plan 
through the date of the election, and (ii) had 
been the same number of years younger than 
the participant (if any) as the new beneficiary 
designated under the election. 
‘‘(B) Interest on the amounts by which the 
retired pay of the participant would have been 
so reduced, computed from the dates on which
241
the retired pay would have been so reduced at 
such rate or rates and according to such meth-
odology as the Secretary of Defense determines 
reasonable. 
‘‘(C) Any additional amount that the Sec-
retary determines necessary to protect the actu-
arial soundness of the Department of Defense 
Military Retirement Fund against any increased 
risk for the fund that is associated with the 
election.’’. 
(c) TRANSITION.—
(1) TRANSITION PERIOD.—In the case of a par-
ticipant in the Survivor Benefit Plan who made a 
covered insurable-interest election (as defined in 
paragraph (2)) and whose designated beneficiary 
under that election dies before the date of the enact-
ment of this Act or during the 18-month period be-
ginning on such date, the time period applicable for 
purposes of the limitation in the third sentence of 
subparagraph (G)(i) of section 1448(b)(1) of title 
10, United States Code, as added by subsection (a), 
shall be the two-year period beginning on the date 
of the enactment of this Act (rather than the 180-
day period specified in that sentence).
242
(2) 
COVERED
INSURABLE-INTEREST
ELEC-
TIONS.—For purposes of paragraph (1), a covered 
insurable-interest election is an election under sec-
tion 1448(b)(1) of title 10, United States Code, 
made before the date of the enactment of this Act, 
or during the 18-month period beginning on such 
date, by a participant in the Survivor Benefit Plan 
to provide an annuity under that plan to a natural 
person with an insurable interest in that person. 
(3) SURVIVOR BENEFIT PLAN.—For purposes 
of this subsection, the term ‘‘Survivor Benefit Plan’’ 
means the program under subchapter II of chapter 
73 of title 10, United States Code. 
SEC. 642. RETROACTIVE PAYMENT OF ADDITIONAL DEATH 
GRATUITY FOR CERTAIN MEMBERS NOT PRE-
VIOUSLY COVERED. 
(a) SPECIFICATION OF ADDITIONAL MEMBERS COV-
ERED.—Section 1478(d)(2) of title 10, United States 
Code, is amended by striking ‘‘May 11, 2005’’ and insert-
ing ‘‘August 31, 2005’’. 
(b) FUNDING.—Amounts for payments under section 
1478(d) of title 10, United States Code, as amended by 
subsection (a), with respect to deaths during the period 
beginning on May 12, 2005, and ending on August 31, 
2005, may be derived from appropriations available to for
243
the Department of Defense for fiscal year 2006 or fiscal 
year 2007. 
SEC. 643. EQUITY IN COMPUTATION OF DISABILITY RE-
TIRED PAY FOR RESERVE COMPONENT MEM-
BERS WOUNDED IN ACTION. 
Section 1208(b) of title 10, United States Code, is 
amended by adding at the end the following new sentence: 
‘‘However, in the case of such a member who is retired 
under this chapter, or whose name is placed on the tem-
porary disability retired list under this chapter, because 
of a disability incurred after the date of the enactment 
of this sentence for which the member is awarded the Pur-
ple Heart, the member shall be credited, for the purposes 
of this chapter, with the number of years of service that 
would be counted if computing the member’s years of serv-
ice under section 12732 of this title.’’. 
SEC. 644. STUDY ON RETENTION OF MEMBERS OF THE 
ARMED 
FORCES 
WITHIN 
SPECIAL 
OPER-
ATIONS COMMAND. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Rep-
resentatives a report on means to improve retention of 
members of the Armed Forces who have a special oper-
244
ations forces designation. The report shall include the fol-
lowing: 
(1) The effect on retention of such members if 
special pays were included in the computation of re-
tired pay for those members with a minimum of 48 
months of Hostile Fire Pay (consecutive or non-
consecutive) at the time of retirement. 
(2) Information on the cost of training of mem-
bers of the Armed Forces who have a special oper-
ations forces designation, with such information dis-
played separately for each such designation and 
shown as aggregate costs of training for such mem-
bers at the 4-year, 8-year, 12-year, 16-year, and 20-
year points of service. 
(3) A statement, in the case of members of the 
Armed Forces with a special operations forces des-
ignation who have been deployed at least twice, of 
the average amount spent on special operations 
unique training, both predeployment and during de-
ployment. 
(4) For each component of the United States 
Special Operations Command, an estimate of when 
the assigned strength of that component will be not 
less than 90 percent of the authorized strength of 
that component, taking into account anticipated
245
growth that is mentioned in the most recent Quad-
rennial Defense Review. 
(5) The average amount of time a member of 
the Armed Forces with a special operations forces 
designation is deployed to areas that warrant Hostile 
Fire Pay. 
(6) The percentage of members of the Armed 
Forces with a special operations forces designation 
who have accumulated over 48 months of Hostile 
Fire Pay and the percentage who have accumulated 
over 60 months of such pay. 
SEC. 645. SENSE OF CONGRESS CONCERNING ELIGIBILITY 
OF CERTAIN ADDITIONAL DEPENDENT CHIL-
DREN FOR ANNUITIES UNDER MILITARY SUR-
VIVOR BENEFIT PLAN. 
It is the sense of Congress that eligibility for a sur-
viving child annuity in lieu of a surviving spouse annuity 
under the military Survivor Benefit Plan for a child of 
a member of the Armed Forces dying while on active duty 
should be extended so as to cover children of members 
dying after October 7, 2001 (the beginning of Operation 
Enduring Freedom), rather than only children of members 
dying after November 23, 2003.
246
Subtitle E—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits 
SEC. 651. TREATMENT OF PRICE SURCHARGES OF TO-
BACCO PRODUCTS AND CERTAIN OTHER 
MERCHANDISE 
SOLD 
AT 
COMMISSARY 
STORES. 
(a) MERCHANDISE PROCURED FROM EXCHANGES.—
Subsection (c)(3) of section 2484 of title 10, United States 
Code, is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; 
(2) by striking ‘‘Subsections’’ and inserting 
‘‘Except as provided in subparagraph (B), sub-
sections’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) When a military exchange is the vendor of to-
bacco products or other merchandise authorized for sale 
in a commissary store under paragraph (1), any revenue 
above the cost of procuring the merchandise shall be allo-
cated as if the revenue were a uniform sales price sur-
charge described in subsection (d).’’. 
(b) MERCHANDISE TREATED
AS NONCOMMISSARY 
STORE INVENTORY.—Subsection (g) of such section is 
amended—
247
(1) by inserting ‘‘(1)’’ before ‘‘Notwith-
standing’’; 
(2) by striking ‘‘Subsections’’ and inserting 
‘‘Except as provided in paragraph (2), subsections’’; 
and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) When tobacco products are authorized for sale 
in a commissary store as noncommissary store inventory, 
any revenue above the cost of procuring the tobacco prod-
ucts shall be allocated as if the revenue were a uniform 
sales price surcharge described in subsection (d).’’. 
SEC. 652. LIMITATION ON USE OF DEPARTMENT OF DE-
FENSE LEASE AUTHORITY TO UNDERMINE 
COMMISSARIES AND EXCHANGES AND OTHER 
MORALE, WELFARE, AND RECREATION PRO-
GRAMS AND NONAPPROPRIATED FUND IN-
STRUMENTALITIES. 
Section 2667(f) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(5) Except in the case of a lease under this sub-
section, a lease of real property may not be entered into 
under this section to fascilitate the establishment or oper-
ation of an ancillary supporting facility (as defined in sec-
248
tion 2871 of this title) if, as determined by the Secretary 
concerned, the facility is to be used for providing merchan-
dise or services in direct competition with—
‘‘(A) the Army and Air Force Exchange Serv-
ice; 
‘‘(B) the Navy Exchange Service Command; 
‘‘(C) a Marine Corps exchange; 
‘‘(D) the Defense Commissary Agency; or 
‘‘(E) any nonappropriated fund activity of the 
Department of Defense for the morale, welfare, and 
recreation of members of the armed forces.’’. 
SEC. 653. USE OF NONAPPROPRIATED FUNDS TO SUPPLE-
MENT OR REPLACE APPROPRIATED FUNDS 
FOR CONSTRUCTION OF FACILITIES OF EX-
CHANGE STORES SYSTEM AND OTHER NON-
APPROPRIATED FUND INSTRUMENTALITIES, 
MILITARY LODGING FACILITIES, AND COM-
MUNITY FACILITIES. 
(a) IN GENERAL.—Subchapter III of chapter 147 of 
title 10, United States Code, is amended by inserting after 
section 2491c the following new section:
249
‘‘§ 2491d. Use of nonappropriated funds to supple-
ment or replace appropriated funds for 
construction of facilities of exchange 
stores system and other nonappropriated 
fund instrumentalities, military lodging 
facilities, and community facilities 
‘‘(a) USE OF NONAPPROPRIATED FUNDS.—The Sec-
retary of Defense may authorize the use of non-
appropriated funds in lieu of or to supplement funds ap-
propriated to the Department of Defense for the construc-
tion of the following: 
‘‘(1) Facilities of the exchange stores system 
and other revenue-generating facilities operated by 
nonappropriated fund instrumentalities of the De-
partment of Defense for the morale, welfare, and 
recreation of members of the armed forces. 
‘‘(2) Facilities of other nonappropriated fund 
instrumentalities of the Department of Defense for 
the morale, welfare, and recreation of members of 
the armed forces. 
‘‘(3) Military lodging facilities used to provide 
temporary lodging to authorized members of the 
armed forces, including temporary duty lodging, per-
manent change of station lodging, recreational lodg-
ing, and military treatment facility lodging.
250
‘‘(4) Community facilities intended to supple-
ment mission activities, such as military museums 
and service academy extra-curricular activities, or to 
facilitate private organizations or enterprises, such 
as financial services, memorials, and thrift shop fa-
cilities, on military installations. 
‘‘(b) USE CRITERIA.—The Secretary of Defense may 
prescribe by regulation the criteria under which non-
appropriated funds may be used under subsection (a). 
‘‘(c) CONGRESSIONAL NOTIFICATION.—When a deci-
sion is made to use nonappropriated funds under sub-
section (a), the Secretary of Defense shall submit a report 
to the congressional defense committees containing the 
reasons for using nonappropriated funds in lieu of or to 
supplement appropriated funds and the amount of non-
appropriated funds to be used. The nonappropriated funds 
may be used only after the end of the 21-day period begin-
ning on the date the report is received by such committees 
or, if earlier, the end of the 14-day period beginning on 
the date on which a copy of the report is provided in an 
electronic medium pursuant to section 480 of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by insert-
ing after the item relating to section 2491c the end the 
following new item:
251
‘‘2491d. Use of nonappropriated funds to supplement or replace appropriated 
funds for construction of facilities of exchange stores system 
and other nonappropriated fund instrumentalities, military 
lodging facilities, and community facilities.’’.
SEC. 654. REPORT ON COST EFFECTIVENESS OF PUR-
CHASING 
COMMERCIAL 
INSURANCE 
FOR 
COMMISSARY AND EXCHANGE FACILITIES 
AND FACILITIES OF OTHER MORALE, WEL-
FARE, AND RECREATION PROGRAMS AND 
NONAPPROPRIATED FUND INSTRUMENTAL-
ITIES. 
(a) REPORT REQUIRED.—Not later than July 31, 
2007, the Secretary of Defense shall submit to Congress 
a report evaluating the cost effectiveness of the Defense 
Commissary Agency and the nonappropriated fund activi-
ties specified in subsection (b) purchasing commercial in-
surance to protect financial interests in facilities operated 
by the Defense Commissary Agency or those non-
appropriated fund activities. 
(b) COVERED NONAPPROPRIATED FUND ACTIVI-
TIES.—The report shall apply with respect to—
(1) the Army and Air Force Exchange Service; 
(2) the Navy Exchange Service Command; 
(3) a Marine Corps exchange; and 
(4) any nonappropriated fund activity of the 
Department of Defense for the morale, welfare, and 
recreation of members of the armed forces.
252
Subtitle F—Other Matters 
SEC. 661. REPEAL OF ANNUAL REPORTING REQUIREMENT 
REGARDING EFFECTS OF RECRUITMENT AND 
RETENTION INITIATIVES. 
(a) REPEAL.—Section 1015 of title 37, United States 
Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 19 of title 37, United States 
Code, is amended by striking the item relating to section 
1015. 
SEC. 662. PILOT PROJECT FOR PROVISION OF GOLF CARTS 
ACCESSIBLE FOR DISABLED PERSONS AT 
MILITARY GOLF COURSES. 
(a) PILOT PROJECT REQUIRED.—The Secretary of 
Defense shall conduct a pilot project at a significant num-
ber of military golf courses, to be selected by the Sec-
retary, for the purpose of developing—
(1) an implementation strategy to make avail-
able, as soon as practicable at all military golf 
courses in the United States, an adequate supply of 
golf carts that are accessible for disabled persons au-
thorized to use such courses; and 
(2) a Department-wide campaign to increase 
the awareness among such disabled persons of the 
availability of accessible golf carts and to promote
253
the use of military golf courses by such disabled per-
sons. 
(b) REQUIRED
NUMBER
OF
ACCESSIBLE
GOLF 
CARTS.—The Secretary shall provide at least two acces-
sible golf carts at each pilot project location. 
(c) PILOT PROJECT LOCATIONS.—The military golf 
courses selected to participate in the pilot project shall be 
geographically dispersed, except that at least one of the 
military golf courses shall be in the Washington metropoli-
tan area. The Secretary may not select a military golf 
course to participate in the pilot project if that military 
golf course already has golf carts that are accessible for 
disabled persons. 
(d) DEPARTMENT
OF
DEFENSE
HEALTH
CARE 
AWARENESS.—Military medical treatment facilities shall 
provide information to patients about the pilot project and 
the availability of accessible golf carts at military golf 
courses participating in the pilot project and at other mili-
tary golf courses that already provide accessible golf carts. 
(e) DURATION.—The Secretary shall conduct the 
pilot project for a minimum of one year. 
(f) REPORT REQUIRED.—Not later than 180 days 
after the conclusion of the pilot project, the Secretary shall 
submit a report to Congress containing the results of the 
project and the recommendations of the Secretary regard-
254
ing how to make an adequate supply of accessible golf 
carts available at all military golf courses in the United 
States. 
SEC. 663. ENHANCED AUTHORITY TO REMIT OR CANCEL IN-
DEBTEDNESS OF MEMBERS OF THE ARMED 
FORCES INCURRED ON ACTIVE DUTY. 
(a) PERIOD OF EXERCISE OF SERVICE SECRETARY 
AUTHORITY AFTER SEPARATION FROM ACTIVE DUTY.—
Sections 4837(b), 6161(b), and 9837(b) of title 10, United 
States Code, are each amended by striking ‘‘one-year pe-
riod’’ each place it appears and inserting ‘‘five-year pe-
riod’’. 
(b) TWO-YEAR EXTENSION OF ENHANCED AUTHOR-
ITY.—Subsections (a)(3), (b)(3), and (c)(3) of section 683 
of the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109–163; 119 Stat. 3322) are amended 
by striking ‘‘December 31, 2007’’ in the first sentence and 
inserting ‘‘December 31, 2009’’. 
SEC. 664. PHASED RECOVERY OF OVERPAYMENTS OF PAY 
MADE TO MEMBERS OF THE UNIFORMED 
SERVICES. 
(a) 
PHASE
RECOVERY
REQUIRED; 
MAXIMUM 
MONTHLY INSTALLMENT.—Subsection (c) of section 1007 
of title 37, United States Code, is amended by adding at 
the end the following new paragraph:
255
‘‘(3) If the indebtedness of a member of the uni-
formed services to the United States is due to the overpay-
ment of pay or allowances to the member through no fault 
of the member, the amount of the overpayment shall be 
recovered in monthly installments. The amount deducted 
from the pay of the member for a month to recover the 
overpayment amount may not exceed 20 percent of the 
member’s pay for that month.’’. 
(b) RECOVERY DELAY FOR INJURED MEMBERS.—
Such subsection is further amended by inserting after 
paragraph (3), as added by subsection (a), the following 
new paragraph: 
‘‘(4) If a member of the uniformed services is injured 
or wounded under the circumstances described in section 
310(a)(2)(C) of this title or, while in the line of duty, in-
curs a wound, injury, or illness in a combat operation or 
combat zone designated by the Secretary of Defense, any 
overpayment of pay or allowances made to the member 
while the member recovers from the wound, injury, or ill-
ness may not be deducted from the member’s pay until 
after the end of the 90-day period beginning on the date 
on which the member is notified of the overpayment.’’. 
(c) CONFORMING AMENDMENTS.—Such subsection is 
further amended—
256
(1) by inserting ‘‘(1)’’ before ‘‘Under regula-
tions’’; 
(2) by striking ‘‘his pay’’ both places it appears 
and inserting ‘‘the member’s pay’’; 
(3) by striking ‘‘However, after’’ and inserting 
the following: 
‘‘(2) After’’; and 
(4) by inserting ‘‘by a member of the uniformed 
services’’ after ‘‘actually received’’. 
SEC. 665. SENSE OF CONGRESS CALLING FOR PAYMENT TO 
WORLD WAR II VETERANS WHO SURVIVED 
BATAAN DEATH MARCH. 
(a) IN GENERAL.—It is the sense of Congress that—
(1) there should be paid to each living Battan 
Death March survivor an amount that is $4 for each 
day of captivity during World War II, compounded 
annually at a 3 percent annual rate of interest; and 
(2) in the case of a Battan Death March sur-
vivor who is deceased and who has an unremarried 
surviving spouse, such a payment should be made to 
that surviving spouse. 
(b) BATAAN DEATH MARCH SURVIVOR.—In this sec-
tion, the term ‘‘Bataan Death March survivor’’ means an 
individual who as a member of the Armed Forces during 
World War II was captured on the peninsula of Bataan
257
or island of Corregidor in the territory of the Philippines 
by Japanese forces and participated in and survived the 
Bataan Death March. 
TITLE VII—HEALTH CARE 
PROVISIONS
Subtitle A—TRICARE Program Improvements 
Sec. 701. TRICARE coverage for forensic examination following sexual assault 
or domestic violence. 
Sec. 702. Authorization of anesthesia and other costs for dental care for chil-
dren and certain other patients. 
Sec. 703. Improvements to descriptions of cancer screening. 
Sec. 704. Prohibition on increases in certain health care costs for members of 
the uniformed services. 
Sec. 705. Services of mental health counselors. 
Sec. 706. Demonstration project on coverage of selected over-the-counter medi-
cations under the pharmacy benefit program. 
Sec. 707. Requirement to reimburse certain travel expenses of certain bene-
ficiaries covered by TRICARE for life. 
Sec. 708. Inflation adjustment of differential payments to children’s hospitals 
participating in TRICARE program. 
Sec. 709. Expanded eligibility of Selected Reserve members under TRICARE 
program. 
Sec. 710. Extension to TRICARE of medicare prohibition of financial incen-
tives not to enroll in group health plan. 
Subtitle B—Studies and Reports 
Sec. 711. Department of Defense task force on the future of military health 
care. 
Sec. 712. Study and plan relating to chiropractic health care services. 
Sec. 713. Comptroller General study and report on Defense Health Program. 
Sec. 714. Transfer of custody of the Air Force Health Study assets to Medical 
Follow-up Agency. 
Sec. 715. Study on allowing dependents of activated members of Reserve Com-
ponents to retain civilian health care coverage. 
Sec. 716. Study of health effects of exposure to depleted uranium. 
Subtitle C—Other Matters 
Sec. 721. Costs of incentive payments to employees for TRICARE enrollment 
made unallowable for contractors. 
Sec. 722. Requirement for military medical personnel to be trained in preserva-
tion of remains. 
Subtitle D—Pharmacy Benefits Program Improvements 
Sec. 731. TRICARE pharmacy program cost-share requirements.
258
Subtitle A—TRICARE Program 
Improvements 
SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINA-
TION FOLLOWING SEXUAL ASSAULT OR DO-
MESTIC VIOLENCE. 
Section 1079(a) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(17) Forensic examinations following a sexual 
assault or domestic violence may be provided.’’. 
SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER 
COSTS FOR DENTAL CARE FOR CHILDREN 
AND CERTAIN OTHER PATIENTS. 
Section 1079(a)(1) of title 10, United States Code, 
is amended to read as follows: 
‘‘(1) With respect to dental care—
‘‘(A) except as provided in subparagraph 
(B), only that care required as a necessary ad-
junct to medical or surgical treatment may be 
provided; and 
‘‘(B) in connection with dental treatment 
for patients with developmental, mental, or 
physical disabilities or for pediatric patients age 
5 or under, only institutional and anesthesia 
services may be provided.’’.
259
SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER 
SCREENING. 
(a) TERMS RELATED TO PRIMARY AND PREVENTIVE 
HEALTH
CARE
SERVICES
FOR
WOMEN.—Section 
1074d(b) of title 10, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘Papanicolaou 
tests (pap smear)’’ and inserting ‘‘Cervical cancer 
screening’’; and 
(2) in paragraph (2), by striking ‘‘Breast ex-
aminations 
and 
mammography’’ 
and 
inserting 
‘‘Breast cancer screening’’. 
(b) TERMS RELATED TO CONTRACTS FOR MEDICAL 
CARE FOR SPOUSES AND CHILDREN.—Section 1079(a)(2) 
of such title is amended—
(1) in the matter preceding subparagraph (A), 
by striking ‘‘the schedule of pap smears and mam-
mograms’’ and inserting ‘‘the schedule and method 
of breast and cervical cancer screenings’’; and 
(2) in subparagraph (B), by striking ‘‘pap 
smears and mammograms or’’ and inserting ‘‘cer-
vical, breast,’’. 
SEC. 
704. 
PROHIBITION 
ON 
INCREASES 
IN 
CERTAIN 
HEALTH CARE COSTS FOR MEMBERS OF THE 
UNIFORMED SERVICES. 
(a) PROHIBITION ON INCREASE IN CHARGES UNDER 
CONTRACTS FOR MEDICAL CARE.—Section 1097(e) of
260
title 10, United States Code, is amended by adding at the 
end the following: ‘‘A premium, deductible, copayment, or 
other charge prescribed by the Secretary under this sub-
section may not be increased during the period beginning 
on April 1, 2006, and ending on December 31, 2007.’’. 
(b) PROHIBITION ON INCREASE IN CHARGES FOR IN-
PATIENT CARE.—Section 1086(b)(3) of title 10, United 
States Code, is amended by inserting after ‘‘charges for 
inpatient care’’ the following: ‘‘, except that in no case 
may the charges for inpatient care for a patient exceed 
$535 per day during the period beginning on April 1, 
2006, and ending on December 31, 2007.’’. 
(c) PROHIBITION
ON
INCREASE
IN
PREMIUMS 
UNDER TRICARE COVERAGE FOR CERTAIN MEMBERS 
IN THE SELECTED RESERVE.—Section 1076d(d)(3) of 
title 10, United States Code, is amended by adding at the 
end the following: ‘‘During the period beginning on April 
1, 2006, and ending on December 31, 2007, the monthly 
amount of the premium may not be increased above the 
amount in effect for the month of March 2006.’’. 
(d) PROHIBITION
ON
INCREASE
IN
PREMIUMS 
UNDER TRICARE COVERAGE FOR MEMBERS OF THE 
READY
RESERVE.—Section 1076b(e)(3) of title 10, 
United States Code, is amended by adding at the end the 
following: ‘‘During the period beginning on April 1, 2006,
261
and ending on October 31, 2007, the monthly amount of 
a premium under paragraph (2) may not be increased 
above the amount in effect for the first month health care 
is provided under this section as amended by Public Law 
109–163.’’. 
SEC. 705. SERVICES OF MENTAL HEALTH COUNSELORS. 
(a) REIMBURSEMENT OF MENTAL HEALTH COUN-
SELORS UNDER TRICARE.—
(1) REIMBURSEMENT
UNDER
TRICARE.—Sec-
tion 1079(a)(8) of title 10, United States Code, is 
amended—
(A) by inserting ‘‘or licensed or certified 
mental health counselors’’ after ‘‘certified mar-
riage and family therapists’’ both places it ap-
pears; and 
(B) by inserting ‘‘or licensed or certified 
mental health counselors’’ after ‘‘that the thera-
pists.’’
(2) AUTHORITY TO ASSESS MEDICAL OR PSY-
CHOLOGICAL NECESSITY OF SERVICE OR SUPPLY.—
Section 1079(a)(13) of such title is amended by in-
serting ‘‘, licensed or certified mental health coun-
selor, ’’ after ‘‘certified marriage and family thera-
pist’’. 
(b) SERVICES OF MENTAL HEALTH COUNSELORS.—
262
(1) AUTHORITY
TO
ENTER
INTO
PERSONAL 
SERVICES
CONTRACTS.—Section 704(c)(2) of the 
National Defense Authorization Act for Fiscal Year 
1995 (Public Law 103–337; 108 Stat. 2799; 10 
U.S.C. 1091 note) is amended by inserting ‘‘mental 
health counselors,’’ after ‘‘psychologists,’’. 
(2) APPLICABILITY
OF
LICENSURE
REQUIRE-
MENT FOR HEALTH-CARE PROFESSIONALS.—Section 
1094 (e)(2) of title 10, United States Code, is 
amended by inserting ‘‘mental health counselor,’’ 
after ‘‘psychologist,’’. 
SEC. 706. DEMONSTRATION PROJECT ON COVERAGE OF SE-
LECTED OVER-THE-COUNTER MEDICATIONS 
UNDER THE PHARMACY BENEFIT PROGRAM. 
(a) REQUIREMENT
TO
CONDUCT
DEMONSTRA-
TION.—The Secretary of Defense shall conduct a dem-
onstration project under section 1092 of title 10, United 
States Code, to allow particular over-the-counter medica-
tions to be included on the uniform formulary under sec-
tion 1074g of such title. 
(b) ELEMENTS OF DEMONSTRATION PROJECT.—
(1) 
INCLUSION
OF
CERTAIN
OVER-THE-
COUNTER MEDICATIONS.—As part of the demonstra-
tion project, the Secretary shall modify uniform for-
mulary specifications under section 1074g(a)(2) of
263
such title to include on the uniform formulary any 
pharmaceutical agent that does not require a pre-
scription (commonly referred to as an over-the-
counter medication) if the Pharmacy and Thera-
peutics Committee finds that the over-the-counter 
medication is a clinically effective and cost-effective 
alternative to a pharmaceutical agent that requires 
a prescription. If the Pharmacy and Therapeutics 
Committee makes such a finding, the over-the-
counter medication shall be considered to be in the 
same therapeutic class of pharmaceutical agents that 
the agent requiring a prescription is in, and to the 
same extent as any agent in the class that requires 
a prescription. Such an over-the-counter medication 
shall be made available to a beneficiary through the 
demonstration program only if the medication is in 
place of a pharmaceutical agent requiring a prescrip-
tion and the beneficiary has a prescription for that 
pharmaceutical agent. 
(2) CONDUCT THROUGH MILITARY FACILITIES, 
RETAIL PHARMACIES, OR MAIL ORDER PROGRAM.—
The Secretary shall conduct the demonstration 
project through at least two of the means described 
in subparagraph (E) of section 1074g(a)(2) through 
which over-the-counter medications are provided and
264
may conduct the demonstration project throughout 
the entire pharmacy benefits program or at a limited 
number of sites. If the project is conducted at a lim-
ited number of sites, the number of sites shall be not 
less than five in each TRICARE region for each of 
the two means described in such subparagraph (E). 
(3) PERIOD
OF
DEMONSTRATION.—The Sec-
retary shall provide for conducting the demonstra-
tion project for a period of time necessary to evalu-
ate the feasibility and cost effectiveness of the dem-
onstration. Such period shall be at least as long as 
the period covered by pharmacy contracts in exist-
ence on the date of the enactment of this Act (in-
cluding any extensions of the contracts), or five 
years, whichever is shorter. 
(4) IMPLEMENTATION
DEADLINE.—Implemen-
tation of the demonstration project shall begin not 
later than May 1, 2007. 
(c) REPORT.—Not later than 60 days before the end 
of the demonstration project, the Secretary shall submit 
to the Committees on Armed Services of the House of 
Representatives and the Senate a report on the dem-
onstration project. The report shall contain an evaluation 
by the Secretary of the costs and benefits of the project, 
and recommendations on whether permanent authority
265
should be provided to cover over-the-counter medications 
under the pharmacy benefits program. 
(d) CONTINUATION OF DEMONSTRATION PROJECT.—
If the Secretary recommends in the report under sub-
section (c) that permanent authority should be provided, 
the Secretary may continue the demonstration project for 
up to one year after submitting the report. 
SEC. 707. REQUIREMENT TO REIMBURSE CERTAIN TRAVEL 
EXPENSES OF CERTAIN BENEFICIARIES COV-
ERED BY TRICARE FOR LIFE. 
(a) REQUIREMENT.—Section 1074i of title 10, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(c) TRICARE FOR LIFE BENEFICIARIES.—
‘‘(1) An eligible TRICARE for Life beneficiary 
shall be provided reimbursement for travel expenses 
to a military medical treatment facility if—
‘‘(A) the purpose of the travel is for a fol-
low-up appointment for medical treatment of a 
condition of the beneficiary; and 
‘‘(B) the initial appointment for medical 
treatment of the condition was at the same fa-
cility. 
‘‘(2) Reimbursement under this subsection 
shall, as nearly as practicable, be under the same
266
terms and conditions, and shall be at the same rate, 
as apply to beneficiary travel reimbursement pro-
vided under subsection (a), except that reimburse-
ment shall be provided—
‘‘(A) for no more than 3 follow-up appoint-
ments; and 
‘‘(B) only if adequate follow-up medical 
treatment, as determined under the TRICARE 
program, cannot be obtained within 100 miles 
of the residence of the beneficiary. 
‘‘(3) In this subsection, the term ‘eligible 
TRICARE for Life beneficiary’ means a person—
‘‘(A) who is eligible for health benefits 
under section 1086 of this title by reason of 
subsection (d)(2)(A) of that section; 
‘‘(B) who attained age 65 after an initial 
appointment for medical treatment at a military 
medical treatment facility; and 
‘‘(C) who resides more than 100 miles 
from the military medical treatment facility and 
was referred to such facility for treatment by a 
specialty care provider.’’. 
(b) EFFECTIVE DATE.—Subsection (c) of section 
1074i of title 10, United States Code, as added by sub-
267
section (a), shall apply with respect to beneficiaries who 
attain age 65 after the date of the enactment of this Act. 
SEC. 708. INFLATION ADJUSTMENT OF DIFFERENTIAL PAY-
MENTS TO CHILDREN’S HOSPITALS PARTICI-
PATING IN TRICARE PROGRAM. 
(a) ANNUAL INFLATION ADJUSTMENT.—Beginning 
in fiscal year 2007, the Secretary of Defense shall annu-
ally adjust for inflation the TRICARE children’s hospital 
differential payment rate. The adjustment for a fiscal year 
shall be the same as the applicable percentage increase 
defined under section 1886(d)(3)(B)(i) of the Social Secu-
rity Act (42 U.S.C. 1395ww(d)(3)(B)(i)) for that fiscal 
year for hospitals located in large urban areas. 
(b) TRICARE CHILDREN’S HOSPITAL DIFFEREN-
TIAL
PAYMENT
RATE.—In this section, the term 
‘‘TRICARE children’s hospital differential payment rate’’ 
means the differential payment rate by the Department 
of Defense to children’s hospitals for health care services 
for dependent children of members of the uniformed serv-
ices under the TRICARE program. 
SEC. 709. EXPANDED ELIGIBILITY OF SELECTED RESERVE 
MEMBERS UNDER TRICARE PROGRAM. 
(a) GENERAL ELIGIBILITY.—Subsection (a) of sec-
tion 1076d of title 10, United States Code, is amended—
268
(1) by striking ‘‘(a) ELIGIBILITY.—A member’’ 
and inserting ‘‘(a) ELIGIBILITY.—(1) Except as pro-
vided in paragraph (2), a member’’; 
(2) by striking ‘‘after the member completes’’ 
and all that follows through ‘‘one or more whole 
years following such date’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) Paragraph (1) does not apply to a member who 
is enrolled, or is eligible to enroll, in a health benefits plan 
under chapter 89 of title 5.’’. 
(b) CONDITION
FOR
TERMINATION
OF
ELIGI-
BILITY.—Subsection (b) of such section is amended—
(1) by striking ‘‘(b) PERIOD OF COVERAGE.—
(1) TRICARE Standard’’ and all that follows 
through ‘‘(4) Eligibility’’ and inserting ‘‘(b) TERMI-
NATION
OF ELIGIBILITY UPON TERMINATION
OF 
SERVICE.—Eligibility’’; and 
(2) by striking paragraph (5). 
(c) CONFORMING AMENDMENTS.—
(1) Such section is further amended—
(A) by striking subsection (e); 
(B) by redesignating subsection (g) as sub-
section (e) and transferring such subsection