iness, recruitment and retention, civilian 
employers of Reserves, and equipment and 
supply resources of the National Guard 
and the other reserve components. 
(D) MATTERS
FOR
PARTICULAR
EMPHA-
SIS.—In the discussion of the matters included 
in the report under this subsection, the Sec-
retary of Defense shall place particular empha-
sis on— 
(i) lessons learned, including defi-
ciencies identified; and 
(ii) near-term and long-term correc-
tive actions to address the identified defi-
ciencies. 
(E) FORM OF REPORT.—The report shall 
be submitted in unclassified form, but may in-
clude a classified annex. 
SEC. 3. MILITARY PAY. 
(a) CORRECTION OF PAY PROBLEMS FOR ACTIVATED 
RESERVE COMPONENT PERSONNEL.— 
(1) REQUIREMENT
FOR
SENIOR
LEVEL
AC-
TION.—The Secretary of the Army shall designate a 
senior level official of the Department of the Army 
to implement—
(A) the recommendations for executive ac-
tion set forth in the report of the Comptroller 
General of the United States entitled ‘‘Military 
Pay, Army National Guard Personnel Mobilized 
to Active Duty Experienced Significant Pay 
Problems’’, dated November 2003; and 
(B) the recommendations for executive ac-
tion set forth in the report of the Comptroller 
General of the United States entitled ‘‘Military 
Pay, Army Reserve Soldiers Mobilized to Active 
Duty Experienced Significant Pay Problems’’, 
dated August 2004. 
(2) SUPERVISION
BY
COMPTROLLER
OF
DE-
PARTMENT
OF
DEFENSE.—The official designated 
under paragraph (1) shall report directly to, and be 
subject to the direction of, the Under Secretary of 
Defense (Comptroller) regarding performance of the 
duties that the official is designated to carry out 
under such paragraph. 
(3) TERMINATION
OF
REQUIREMENT.—The 
designation under paragraph (1) shall terminate 
upon the certification of the Under Secretary of De-
fense (Comptroller) to Congress that all rec-
ommendations referred to in such paragraph have 
been implemented.
(b) REENLISTMENT BONUS
FOR SELECTED RE-
SERVE.— 
(1) EXPANDED ELIGIBILITY.—Subsection (a)(1) 
of section 308b of title 37, United States Code, is 
amended by striking ‘‘14 years’’ and inserting ‘‘17 
years’’. 
(2) 
INCREASED
MAXIMUM
AMOUNT.—Sub-
section (b) of such section is amended by striking 
‘‘(b) BONUS AMOUNT; PAYMENT.—(1) The amount 
of a bonus under this section may not exceed—’’ 
and all that follows through the end of paragraph 
(1) and inserting the following: 
‘‘(b) BONUS AMOUNT.—The amount of a bonus 
under this section may not exceed $10,000.’’. 
(3) OPTION
TO
RECEIVE
LUMP-SUM
PAY-
MENT.—Section 308b of title 37, United States 
Code, is further amended— 
(A) by striking paragraphs (1) and (2) of 
subsection (c); and 
(B) in paragraph (2) of subsection (b)— 
(i) by striking ‘‘(2) Any bonus payable 
under this section’’ and inserting the fol-
lowing: 
‘‘(c) PAYMENT IN LUMP SUM OR INSTALLMENTS.— 
(1) A bonus payable to a member under this section shall
be paid, upon the election of the member, in one lump 
sum or in partial payments under paragraph (2). 
‘‘(2) Any bonus payable in partial payments under 
this section’’. 
(4) REDESIGNATION
OF
PROVISIONS.—Such 
section is further amended— 
(A) by redesignating subsections (d), (e), 
and (f), as subsections (e), (f), and (g), respec-
tively; and 
(B) in subsection (c)(3)— 
(i) by striking ‘‘(3) In the case of’’ 
and inserting ‘‘(d) PERSONNEL
IN CER-
TAIN CONTINGENCY OPERATIONS.—In the 
case of’’; and 
(ii) by striking ‘‘paragraph (1)(B) 
or’’. 
SEC. 4. TRICARE FOR RESERVE COMPONENT PERSONNEL. 
(a) EXPANDED ELIGIBILITY
OF READY RESERVE 
MEMBERS UNDER TRICARE PROGRAM.— 
(1) UNCONDITIONAL ELIGIBILITY.—Subsection 
(a) of section 1076b of title 10, United States Code, 
is amended by striking ‘‘is eligible, subject to sub-
section (h), to enroll in TRICARE’’ and all that fol-
lows through ‘‘an employer-sponsored health benefits 
plan’’ and inserting ‘‘, except for a member who is
enrolled or is eligible to enroll in a health benefits 
plan under chapter 89 of title 5, is eligible to enroll 
in TRICARE, subject to subsection (h)’’. 
(2) PERMANENT AUTHORITY.—Subsection (l) of 
such section is repealed. 
(3) CONFORMING REPEAL OF OBSOLETE PROVI-
SIONS.—Such section is further amended— 
(A) by striking subsections (i) and (j); and 
(B) by redesignating subsection (k) as sub-
section (i). 
(b) CONTINUATION
OF NON-TRICARE HEALTH 
BENEFITS PLAN COVERAGE
FOR CERTAIN RESERVES 
CALLED OR ORDERED TO ACTIVE DUTY AND THEIR DE-
PENDENTS.— 
(1) REQUIRED CONTINUATION.— 
(A) REQUIREMENT.—Chapter 55 of title 
10, United States Code, is amended by insert-
ing after section 1078a the following new sec-
tion: 
‘‘§ 1078b. Continuation of non-TRICARE health bene-
fits plan coverage for dependents of cer-
tain Reserves called or ordered to active 
duty 
‘‘(a) PAYMENT OF PREMIUMS.—The Secretary con-
cerned shall pay the applicable premium to continue in
force any qualified health benefits plan coverage for the 
members of the family of an eligible reserve component 
member for the benefits coverage continuation period if 
timely elected by the member in accordance with regula-
tions prescribed under subsection (j). 
‘‘(b) ELIGIBLE MEMBER; FAMILY MEMBERS.—(1) A 
member of a reserve component is eligible for payment of 
the applicable premium for continuation of qualified 
health benefits plan coverage under subsection (a) while 
serving on active duty pursuant to a call or order issued 
under a provision of law referred to in section 
101(a)(13)(B) of this title during a war or national emer-
gency declared by the President or Congress. 
‘‘(2) For the purposes of this section, the members 
of the family of an eligible reserve component member in-
clude only the member’s dependents described in subpara-
graphs (A), (D), and (I) of section 1072(2) of this title. 
‘‘(c) QUALIFIED HEALTH BENEFITS PLAN COV-
ERAGE.—For the purposes of this section, health benefits 
plan coverage for the members of the family of a reserve 
component member called or ordered to active duty is 
qualified health benefits plan coverage if— 
‘‘(1) the coverage was in force on the date on 
which the Secretary notified the reserve component 
member that issuance of the call or order was pend-