Veterans TRICARE Choice Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans TRICARE Choice Act''.

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 Internal 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 1097d of 
                        such title providing that the individual is 
                        ineligible to be enrolled in (and receive 
                        benefits under) such program.''.
    (b) Provisions Relating to Election of Ineligibility Under 
TRICARE.--
            (1) In general.--Chapter 55 of title 10, United States 
        Code, is amended by inserting after section 1097c the following 
        new section:
``Sec. 1097d. TRICARE program: Election of eligibility
    ``(a) Election.--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-eligible individual 
makes an election under subsection (a), the TRICARE-eligible individual 
may later elect to be eligible 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 pursuant 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 savings account in connection with 
coverage under a high deductible 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 information 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, regardless of whether the individual is eligible for the 
TRICARE program during the period of such election.
    ``(f) 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 individuals, as of the 
        date of the submittal of the report, who are ineligible to 
        enroll in (and receive any benefits under) the TRICARE program 
        pursuant to an election under subsection (a).
            ``(2) The number of TRICARE-eligible individuals who made 
        an election described under subsection (a) but, as of the date 
        of the submittal of the report, are enrolled in the TRICARE 
        program pursuant to a change of election under subsection (b).
    ``(g) Definitions.--In this section:
            ``(1) The term `TRICARE-eligible individual' means an 
        individual who is eligible to be a covered beneficiary entitled 
        to health care benefits under the TRICARE program (determined 
        without regard to this section).
            ``(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 during 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 1097c the following new 
        item:

``1097d. TRICARE program: Election of eligibility.''.

Summary: Veterans TRICARE Choice Act  Allows an individual who is eligible to participate in the TRICARE program (a Department of Defense [DOD] managed health care program) to: (1) elect to be ineligible to enroll in such program, (2) make tax deductible contributions to a health savings account during the period such individual elects to be ineligible for TRICARE coverage, and (3) enroll in the TRICARE program at a later date during a special enrollment period. Requires DOD to: (1) submit to the Internal Revenue Service information on each TRICARE-eligible individual who makes such election for purposes of determining such individual's eligibility for a health savings account; and (2) report to Congress, annually, on elections by TRICARE-eligible individuals under this Act.