A bill to amend title 10, United States Code, to limit increases in the certain costs of health care services under the health care programs of the Department of Defense, and for other purposes.

SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS AND SENSE OF CONGRESS.

    (a) Findings.--Congress makes the following findings:
            (1) Career members of the uniformed services 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) Many private sector firms are curtailing health 
        benefits and shifting significantly higher costs to their 
        employees, and one effect of such curtailment is that retired 
        members of the uniformed services 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 uniform.
            (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 uniformed services.
            (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 33-percent increase in military retired pay since 
        such fees, deductibles, and copayments were first required on 
        the part of retired members of the uniformed services 11 years 
        ago.
            (9) Proposals of the Department of Defense for increases in 
        the enrollment fees, deductibles, and copayments of retired 
        members of the uniformed services 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 uniform.
            (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.
            (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 uniformed services 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 uniformed services 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 uniformed services 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 uniformed services 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 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(a)(6) 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 may not be increased in any year by a percentage that exceeds 
the percentage increase of the most recent increase in 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.--Section 1076d(d)(3) of such 
title is amended--
            (1) by striking ``The monthly amount'' and inserting ``(A) 
        Subject to subparagraph (B), the monthly amount''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Effective as of October 1, 2007, 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.--Paragraph (3) of section 1086(b) of 
such title is amended in the first sentence by striking ``during the 
period beginning on April 1, 2006, and ending on September 30, 2007.'' 
and inserting ``after March 31, 2006''.
    (d) Prohibition on Enrollment Fees for Certain Persons 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) Automatic Enrollment for Certain Persons Under CHAMPUS.--
Section 1086(b) of such title is further amended by adding at the end 
the following new paragraph:
            ``(6) A person covered by subsection (c) shall not be 
        subject to denial of claims for coverage under this section for 
        failure to enroll for such coverage. To the extent enrollment 
        may be required, enrollment shall be automatic for any such 
        person filing a claim under this section.''.
    (f) 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) Effective as of October 1, 2007, the percentage increase in 
the amount of any premium, deductible, copayment or other charge 
prescribed by the Secretary under this subsection may not exceed the 
percentage increase of the most recent increase in retired pay for 
members and former members of the armed forces under section 
1041a(b)(2) of this title.''.

Summary: Military 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 after March 31, 2006 (currently, during the period beginning on April 1, 2006, and ending on September 30, 2007); (2) charging an enrollment fee under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS); and (3) a person from being denied a claim due to failure to enroll.