A bill to amend title 10, United States Code, to limit increases in the costs to retired members of the Armed Forces of health care services under the TRICARE program, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Retirees Health Care 
Protection Act''.

SEC. 2. FINDINGS AND SENSE OF CONGRESS.

    (a) Findings.--Congress makes the following findings:
            (1) Career members of the Armed Forces and their families 
        endure unique and extraordinary demands, and make extraordinary 
        sacrifices, over the course of 20-year to 30-year careers in 
        protecting freedom for all Americans.
            (2) The nature and extent of these demands and sacrifices 
        are never so evident as in wartime, not only during the current 
        Global War on Terrorism, but also during the wars of the last 
        60 years when current retired members of the Armed Forces were 
        on continuous call to go in harm's way when and as needed.
            (3) The demands and sacrifices are such that few Americans 
        are willing to bear or accept them for a multi-decade career.
            (4) A primary benefit of enduring the extraordinary 
        sacrifices inherent in a military career is a range of 
        extraordinary retirement benefits that a grateful Nation 
        provides for those who choose to subordinate much of their 
        personal life to the national interest for so many years.
            (5) One effect of such curtailment is that retired members 
        of the Armed Forces are turning for health care services to the 
        Department of Defense, and its TRICARE program, for the health 
        care benefits in retirement that they earned by their service 
        in the Armed Forces.
            (6) In some cases, civilian employers establish financial 
        incentives for employees who are also eligible for 
        participation in the TRICARE program to receive health care 
        benefits under that program rather than under the health care 
        benefits programs of such employers.
            (7) While the Department of Defense has made some efforts 
        to contain increases in the cost of the TRICARE program, a 
        large part of those efforts has been devoted to shifting a 
        larger share of the costs of benefits under that program to 
        retired members of the Armed Forces.
            (8) The cumulative increase in enrollment fees, 
        deductibles, and copayments being proposed by the Department of 
        Defense for health care benefits under the TRICARE program far 
        exceeds the 31 percent increase in military retired pay since 
        such fees, deductibles, and copayments were first required on 
        the part of retired members of the Armed Forces 10 years ago.
            (9) Proposals of the Department of Defense for increases in 
        the enrollment fees, deductibles, and copayments of retired 
        members of the Armed Forces who are participants in the TRICARE 
        program fail to recognize adequately that such members paid the 
        equivalent of enormous in-kind premiums for health care in 
        retirement through their extended sacrifices by service in the 
        Armed Forces.
            (10) Some of the Nation's health care providers refuse to 
        accept participants in the TRICARE program as patients because 
        that program pays them significantly less than commercial 
        insurance programs, and imposes unique administrative 
        requirements, for health care services.
            (11) The Department of Defense has chosen to count the 
        accrual deposit to the Department of Defense Military Retiree 
        Health Care Fund against the budget of the Department of 
        Defense, contrary to the requirements of section 1116 of title 
        10, United States Code, as amended section 725 of Ronald W. 
        Reagan National Defense Authorization Act for Fiscal Year 2005 
        (Public Law 108-375; 118 Stat. 1991).
            (12) Senior officials of the Department of Defense leaders 
        have reported to Congress that counting such deposits against 
        the budget of the Department of Defense is impinging on other 
        readiness needs of the Armed Forces, including weapons 
        programs, an inappropriate situation which section 1116 of 
        title 10, United States Code, was intended expressly to 
        prevent.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Department of Defense and the Nation have a 
        committed obligation to provide health care benefits to retired 
        members of the Armed Forces that exceeds the obligation of 
        corporate employers to provide health care benefits to their 
        employees;
            (2) the Department of Defense has many additional options 
        to constrain the growth of health care spending in ways that do 
        not disadvantage retired members of the Armed Forces who 
        participate or seek to participate in the TRICARE program and 
        should pursue any and all such options rather than seeking 
        large increases for enrollment fees, deductibles, and 
        copayments for such retirees, and their families or survivors, 
        who do participate in that program;
            (3) any percentage increase in fees, deductibles, and 
        copayments that may be considered under the TRICARE program for 
        retired members of the Armed Forces and their families or 
        survivors should not in any case exceed the percentage increase 
        in military retired pay; and
            (4) any percentage increase in fees, deductibles, and 
        copayments under the TRICARE program that may be considered for 
        members of the Armed Forces who are currently serving on active 
        duty or in the Selected Reserve, and for the families of such 
        members, should not exceed the percentage increase in basic pay 
        or compensation for such members.

SEC. 3. LIMITATIONS ON CERTAIN INCREASES IN HEALTH CARE COSTS FOR 
              MEMBERS OF THE UNIFORMED SERVICES.

    (a) Pharmacy Benefits Program.--Section 1074g of title 10, United 
Stated Code, is amended by adding at the end the following new 
subparagraph:
    ``(C) The amount of any cost sharing requirements under this 
paragraph shall not be increased in any year by a percentage that 
exceeds the percentage increase of the most current previous adjustment 
to retired pay for members of the armed forces under section 
1401a(b)(2) of this title. To the extent that such increase for any 
year is less than one dollar, the accumulated increase may be carried 
over from year to year, rounded to the nearest dollar.''.
    (b) Premiums for TRICARE Standard for Reserve Component Members Who 
Commit to Service in the Selected Reserve After Active Duty.--Section 
1076d(d)(3) of such title is amended--
            (1) by striking ``The monthly amount'' and inserting ``(A) 
        Except as provided in subparagraph (B), the monthly amount''; 
        and
            (2) by adding at the end the following new subparagraph:
    ``(B) In any year after 2006, the percentage increase in the amount 
of the premium in effect for a month for TRICARE Standard coverage 
under this section may not exceed a percentage equal to the percentage 
of the most recent increase in the rate of basic pay authorized for 
members of the uniformed services for a year.''.
    (c) Copayments Under CHAMPUS.--Section 1086(b)(3) of such title is 
amended in the first sentence by inserting before the period at the end 
the following: ``, except that in no event may such charges exceed $535 
per day''.
    (d) Prohibition on Enrollment Fees Under CHAMPUS.--Section 1086(b) 
of such title is further amended by adding at the end the following new 
paragraph:
            ``(5) A person covered by subsection (c) may not be charged 
        an enrollment fee for coverage under this section.''.
    (e) Premiums and Other Charges Under TRICARE.--Section 1097(e) of 
such title is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense''; and
            (2) by adding at the end the following new paragraph:
    ``(2) In any year after 2006, the percentage increase in the amount 
of any premium, deductible, copayment or other charge established by 
the Secretary of Defense under this section may not exceed the 
percentage increase of the most current previous adjustment of retired 
pay for members and former members of the armed forces under section 
1041a(b)(2) of this title.''.

Summary: Military Retirees Health Care Protection Act - Expresses the sense of Congress that: (1) the Department of Defense (DOD) and the nation have a committed obligation to provide health benefits to retired military personnel that exceeds the obligation of corporate employers to their employees; (2) DOD has many additional options to constrain the growth of health care spending in ways that do not disadvantage retirees, and should pursue such options rather than seeking large fee increases for retirees and their dependents; and (3) any percentage increase in health care fees, deductibles, or copayments for retirees and their families, and for members of the Selected Reserve currently serving on active duty and their families, should not exceed the percentage increase in military retired pay or basic pay, respectively.

Limits to the previous percentage increase in retired or basic pay the authorized annual fee increase under: (1) the DOD pharmacy benefits program; and (2) certain premiums and other charges under the TRICARE program (a DOD managed health care program).

Prohibits: (1) charges for DOD inpatient care from exceeding $535 per day; and (2) charging an enrollment fee under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS).