To amend the Servicemembers Civil Relief Act to limit premium increases on reinstated health insurance on servicemembers who are released from active military service, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Servicemembers' Health Insurance 
Protection Act of 2005''.

SEC. 2. LIMITATION ON PREMIUM INCREASES FOR REINSTATED HEALTH INSURANCE 
              OF SERVICEMEMBERS RELEASED FROM ACTIVE MILITARY SERVICE.

    (a) Premium Protection.--Section 704 of the Servicemembers Civil 
Relief Act (50 U.S.C. App. 594) is amended by adding at the end the 
following new subsection:
    ``(e) Limitation on Premium Increases.--
            ``(1) Premium protection.--The amount of the premium for 
        health insurance coverage that was terminated by a 
        servicemember and required to be reinstated under subsection 
        (a) may not be increased, for the balance of the period for 
        which coverage would have been continued had the coverage not 
        been terminated, to an amount greater than the amount 
        chargeable for such coverage before the termination.
            ``(2) Increases of general applicability not precluded.--
        Paragraph (1) does not prevent an increase in premium to the 
        extent of any general increase in the premiums charged by the 
        carrier of the health care insurance for the same health 
        insurance coverage for persons similarly covered by such 
        insurance during the period between the termination and the 
        reinstatement.''.
    (b) Technical Amendment.--Subsection (b)(3) of such section is 
amended by striking ``if the'' and inserting ``in a case in which 
the''.

SEC. 3. PRESERVATION OF EMPLOYER-SPONSORED HEALTH PLAN COVERAGE FOR 
              CERTAIN RESERVE-COMPONENT MEMBERS WHO ACQUIRE TRICARE 
              ELIGIBILITY.

    (a) Continuation of Coverage.--Subsection (a)(1) of section 4317 of 
title 38, United States Code, is amended by inserting after ``by reason 
of service in the uniformed services,'' the following: ``or such person 
becomes eligible for medical and dental care under chapter 55 of title 
10 by reason of subsection (d) of section 1074 of that title,''.
    (b) Reinstatement of Coverage.--Subsection (b) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting after ``by reason of service in 
                the uniformed services,'' the following: ``or by reason 
                of the person's having become eligible for medical and 
                dental care under chapter 55 of title 10 by reason of 
                subsection (d) of section 1074 of that title,''; and
                    (B) by inserting ``or eligibility'' before the 
                period at the end of the first sentence; and
            (2) by adding at the end the following new paragraph:
    ``(3) In the case of a person whose coverage under a health plan is 
terminated by reason of the person having become eligible for medical 
and dental care under chapter 55 of title 10 by reason of subsection 
(d) of section 1074 of that title but who subsequently does not 
commence a period of active duty under the order to active duty that 
established such eligibility because the order is canceled before such 
active duty commences, the provisions of paragraph (1) relating to any 
exclusion or waiting period in connection with the reinstatement of 
coverage under a health plan shall apply to such person's continued 
employment, upon the termination of such eligibility for medical and 
dental care under chapter 55 of title 10 that is incident to the 
cancellation of such order, in the same manner as if the person had 
become reemployed upon such termination of eligibility.''.

SEC. 4. TECHNICAL CORRECTIONS TO VETERANS BENEFITS IMPROVEMENT ACT OF 
              2004.

    (a) Corrections.--Section 2101 of title 38, United States Code, as 
amended by section 401 of the Veterans Benefits Improvement Act of 2004 
(Public Law 108-454; 118 Stat. 3614), is amended--
            (1) by redesignating subsection (c) as subsection (d);
            (2) by inserting after subsection (b) a new subsection (c) 
        consisting of the text of subsection (c) of such section 2101 
        as in effect immediately before the enactment of such Act, 
        modified--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by striking 
                        ``paragraph (1), (2), or (3)'' and inserting 
                        ``subparagraph (A), (B), (C), or (D) of 
                        paragraph (2)''; and
                            (ii) in the second sentence, by striking 
                        ``the second sentence'' and inserting 
                        ``paragraph (3)''; and
                    (B) in paragraph (2)--
                            (i) in the first sentence, by striking 
                        ``paragraph (1)'' and inserting ``paragraph 
                        (2)''; and
                            (ii) in the second sentence, by striking 
                        ``paragraph (2)'' and inserting ``paragraph 
                        (3)''; and
            (3) in subsection (a)(3), by striking ``subsection (c)'' in 
        the matter preceding subparagraph (A) and inserting 
        ``subsection (d)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as of December 10, 2004, as if enacted immediately after 
the enactment of the Veterans Benefits Improvement Act of 2004 on that 
date.

SEC. 5. NOTIFICATION TO MEMBER'S SPOUSE OR NEXT OF KIN OF CERTAIN 
              ELECTIONS UNDER SERVICEMEMBERS' GROUP LIFE INSURANCE 
              PROGRAM.

    (a) Repeal.--Subsections (f) and (g) of section 1012 of division A 
of the Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Tsunami Relief Act, 2005 (Public Law 109-13), 
and the amendments made by those subsections, are repealed, and 
sections 1967 and 1970 of title 38, United States Code, shall be 
applied as if those subsections had not been enacted.
    (b) Notification Required.--Section 1967 of title 38, United States 
Code, is amended by adding at the end the following new subsection:
    ``(f)(1)(A) Whenever a member who is eligible for insurance under 
this subchapter executes a life insurance option specified in 
subparagraph (B), the Secretary concerned shall notify the member's 
spouse or, if the member is unmarried, the member's next of kin, in 
writing, of the execution of that option.
    ``(B) A life insurance option referred to in subparagraph (A) is 
any of the following:
            ``(i) An election under subsection (a)(2)(A) not to be 
        insured under this subchapter.
            ``(ii) An election under subsection (a)(3)(B) for insurance 
        of the member in an amount that is less than the maximum amount 
        provided under subsection (a)(3)(A)(i).
            ``(iii) An application under subsection (c) for insurance 
        coverage under this subchapter or for a change in the amount of 
        such insurance coverage.
            ``(iv) In the case of a married member, a designation under 
        section 1970(a) of this title of any person other than the 
        spouse or a child of the member as the beneficiary of the 
        member for any amount of insurance under this subchapter.
    ``(2) Whenever an unmarried member who is eligible for insurance 
under this subchapter marries, the Secretary concerned shall notify the 
member's spouse in writing as to whether the member is insured under 
this subchapter. In the case of a member who is so insured, the 
Secretary shall include with such notification--
            ``(A) if the member has made an election described in 
        paragraph (1)(B)(ii), notice that the amount of such insurance 
        is less than the maximum amount provided under subsection 
        (a)(3)(A)(i); and
            ``(B) if the member has designated a beneficiary other than 
        the spouse or a child of the member for any amount of such 
        insurance, notice that such a designation has been made.
    ``(3)(A) Notification of a spouse under paragraph (1) or (2), or of 
any other person under paragraph (1), for purposes of this subsection 
shall consist of a good faith effort to provide information to the 
spouse or other person at the last address of the spouse or other 
person known to the Secretary concerned.
    ``(B) Failure to provide such notification, or to provide such 
notification in a timely manner, does not affect
the validity of any life insurance option referred to in paragraph 
(1)(B).''.

            Passed the House of Representatives May 23, 2005.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Servicemembers' Health Insurance Protection Act of 2005 - Amends the Servicemembers Civil Relief Act to entitle a servicemember ordered to active duty, upon release from active duty, to reinstatement of health insurance in effect on the day before service commenced without any premium increase for the balance of the period for which there would have been coverage had it not been terminated. Permits a health care insurance carrier to increase a servicemember's premium if there was general premium increase for similarly covered individuals during the period between the termination and the reinstatement.

Amends the Uniformed Services Employment and Reemployment Rights Act (USERRA) to preserve employer-sponsored health plan reinstatement rights for certain Reserve-component members who prior to entering active duty acquire TRICARE (a Department of Defense managed health care program) eligibility.

Makes technical corrections to the Veterans Benefits Improvement Act of 2004.

Amends the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief Act, 2005 to repeal provisions revising codified law concerning elections of members to reduce or decline insurance, and the redesignation of beneficiaries, under the Servicemembers' Group Life Insurance (SGLI) program. Reinstates the codified provisions as if such amendments had not been enacted.

Requires that, whenever a member eligible for SGLI insurance executes a life insurance option (an option not to be insured, to be insured for less than the maximum coverage amount, or to designate a person other than a spouse or child as a beneficiary), the Secretary of the military department concerned shall notify the member's spouse or (if not married) next of kin of the execution of such option. Requires that, whenever an unmarried member who is eligible for such insurance marries, the Secretary concerned shall notify the member's spouse as to whether the member is insured under SGLI, what insurance coverage elections the member has made, and whether the member has designated a beneficiary other that the spouse or a child of such member.