
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1086]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
                   CHAPTER 55--MEDICAL AND DENTAL CARE
 
Sec. 1086. Contracts for health benefits for certain members, 
        former members, and their dependents
        
    (a) To assure that health benefits are available for the persons 
covered by subsection (c), the Secretary of Defense, after consulting 
with the other administering Secretaries, shall contract under the 
authority of this section for health benefits for those persons under 
the same insurance, medical service, or health plans he contracts for 
under section 1079(a) of this title. However, eye examinations may not 
be provided under such plans for persons covered by subsection (c).
    (b) For persons covered by this section the plans contracted for 
under section 1079(a) of this title shall contain the following 
provisions for payment by the patient:
        (1) Except as provided in clause (2), the first $150 each fiscal 
    year of the charges for all types of care authorized by this section 
    and received while in an outpatient status and 25 percent of all 
    subsequent charges for such care during a fiscal year.
        (2) A family group of two or more persons covered by this 
    section shall not be required to pay collectively more than the 
    first $300 each fiscal year of the charges for all types of care 
    authorized by this section and received while in an outpatient 
    status and 25 percent of the additional charges for such care during 
    a fiscal year.
        (3) 25 percent of the charges for inpatient care. The Secretary 
    of Defense may exempt a patient from paying such charges if the 
    hospital to which the patient is admitted does not impose a legal 
    obligation on any of its patients to pay for inpatient care.
        (4) A member or former member of a uniformed service covered by 
    this section by reason of section 1074(b) of this title, or an 
    individual or family group of two or more persons covered by this 
    section, may not be required to pay a total of more than $3,000 for 
    health care received during any fiscal year under a plan contracted 
    for under section 1079(a) of this title.

    (c) Except as provided in subsection (d), the following persons are 
eligible for health benefits under this section:
        (1) Those covered by sections 1074(b) and 1076(b) of this title, 
    except those covered by section 1072(2)(E) of this title.
        (2) A dependent (other than a dependent covered by section 
    1072(2)(E) of this title) of a member of a uniformed service--
            (A) who died while on active duty for a period of more than 
        30 days; or
            (B) who died from an injury, illness, or disease incurred or 
        aggravated--
                (i) while on active duty under a call or order to active 
            duty of 30 days or less, on active duty for training, or on 
            inactive duty training; or
                (ii) while traveling to or from the place at which the 
            member is to perform, or has performed, such active duty, 
            active duty for training, or inactive duty training.

        (3) A dependent covered by clause (F), (G), or (H) of section 
    1072(2) of this title who is not eligible under paragraph (1).

    (d)(1) A person who is entitled to hospital insurance benefits under 
part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et 
seq.) is not eligible for health benefits under this section.
    (2) The prohibition contained in paragraph (1) shall not apply to a 
person referred to in subsection (c) who--
        (A) is enrolled in the supplementary medical insurance program 
    under part B of such title (42 U.S.C. 1395j et seq.); and
        (B) in the case of a person under 65 years of age, is entitled 
    to hospital insurance benefits under part A of title XVIII of the 
    Social Security Act pursuant to subparagraph (A) or (C) of section 
    226(b)(2) of such Act (42 U.S.C. 426(b)(2)) or section 226A(a) of 
    such Act (42 U.S.C. 426-1(a)).

    (3)(A) Subject to subparagraph (B), if a person described in 
paragraph (2) receives medical or dental care for which payment may be 
made under medicare and a plan contracted for under subsection (a), the 
amount payable for that care under the plan shall be the amount of the 
actual out-of-pocket costs incurred by the person for that care over the 
sum of--
        (i) the amount paid for that care under medicare; and
        (ii) the total of all amounts paid or payable by third party 
    payers other than medicare.

    (B) The amount payable for care under a plan pursuant to 
subparagraph (A) may not exceed the total amount that would be paid 
under the plan if payment for that care were made solely under the plan.
    (C) In this paragraph:
        (i) The term ``medicare'' means title XVIII of the Social 
    Security Act (42 U.S.C. 1395 et seq.).
        (ii) The term ``third party payer'' has the meaning given such 
    term in section 1095(h)(1) of this title.

    (4) The administering Secretaries shall develop a mechanism by which 
persons described in subparagraph (B) of paragraph (2) who do not 
satisfy the condition specified in subparagraph (A) of such paragraph 
are promptly notified of their ineligibility for health benefits under 
this section. In developing the notification mechanism, the 
administering Secretaries shall consult with the administrator of the 
Health Care Financing Administration.
    (e) A person covered by this section may elect to receive inpatient 
medical care either in (1) Government facilities, under the conditions 
prescribed in sections 1074 and 1076-1078 of this title, or (2) the 
facilities provided under a plan contracted for under this section. 
However, under joint regulations issued by the administering 
Secretaries, the right to make this election may be limited for those 
persons residing in an area where adequate facilities of the uniformed 
service are available. In addition, subsections (b) and (c) of section 
1080 of this title shall apply in making the determination whether to 
issue a nonavailability of health care statement for a person covered by 
this section.
    (f) The provisions of section 1079(h) of this title shall apply to 
payments for services by an individual health-care professional (or 
other noninstitutional health-care provider) under a plan contracted for 
under subsection (a).
    (g) Section 1079(j) of this title shall apply to a plan contracted 
for under this section, except that no person eligible for health 
benefits under this section may be denied benefits under this section 
with respect to care or treatment for any service-connected disability 
which is compensable under chapter 11 of title 38 solely on the basis 
that such person is entitled to care or treatment for such disability in 
facilities of the Department of Veterans Affairs.
    (h)(1) Subject to paragraph (2), the Secretary of Defense may, upon 
request, make payments under this section for a charge for services for 
which a claim is submitted under a plan contracted for under subsection 
(a) to a hospital that does not impose a legal obligation on any of its 
patients to pay for such services.
    (2) A payment under paragraph (1) may not exceed the average amount 
paid for comparable services in the geographic area in which the 
hospital is located or, if no comparable services are available in that 
area, in an area similar to the area in which the hospital is located.
    (3) The Secretary of Defense shall periodically review the billing 
practices of each hospital the Secretary approves for payment under this 
subsection to ensure that the hospital's practices of not billing 
patients for payment are not resulting in increased costs to the 
Government.
    (4) The Secretary of Defense may require each hospital the Secretary 
approves for payment under this subsection to provide evidence that it 
has sources of revenue to cover unbilled costs.

(Added Pub. L. 89-614, Sec. 2(7), Sept. 30, 1966, 80 Stat. 865; amended 
Pub. L. 95-485, title VIII, Sec. 806(a)(2), Oct. 20, 1978, 92 Stat. 
1622; Pub. L. 96-173, Sec. 1, Dec. 29, 1979, 93 Stat. 1287; Pub. L. 96-
513, title V, Secs. 501(14), 511(36), (39), Dec. 12, 1980, 94 Stat. 
2908, 2923; Pub. L. 97-86, title IX, Sec. 906(a)(2), Dec. 1, 1981, 95 
Stat. 1117; Pub. L. 97-252, title X, Sec. 1004(c), Sept. 8, 1982, 96 
Stat. 737; Pub. L. 98-94, title IX, Sec. 931(b), Sept. 24, 1983, 97 
Stat. 649; Pub. L. 98-525, title VI, Sec. 632(a)(2), Oct. 19, 1984, 98 
Stat. 2543; Pub. L. 98-557, Sec. 19(13), Oct. 30, 1984, 98 Stat. 2870; 
Pub. L. 99-145, title VI, Sec. 652(b), Nov. 8, 1985, 99 Stat. 657; Pub. 
L. 99-661, div. A, title VI, Sec. 604(f)(1)(C), Nov. 14, 1986, 100 Stat. 
3877; Pub. L. 100-180, div. A, title VII, Sec. 721(b), Dec. 4, 1987, 101 
Stat. 1115; Pub. L. 100-456, div. A, title VI, Sec. 646(b), Sept. 29, 
1988, 102 Stat. 1989; Pub. L. 101-189, div. A, title VII, 
Sec. 731(c)(2), title XVI, Sec. 1621(a)(3), Nov. 29, 1989, 103 Stat. 
1482, 1603; Pub. L. 101-510, div. A, title VII, Sec. 712(b), Nov. 5, 
1990, 104 Stat. 1583; Pub. L. 102-190, div. A, title VII, Sec. 704(a), 
(b)(1), Dec. 5, 1991, 105 Stat. 1401; Pub. L. 102-484, div. A, title 
VII, Secs. 703(a), 705(a), Oct. 23, 1992, 106 Stat. 2432; Pub. L. 103-
35, title II, Sec. 203(b)(2), May 31, 1993, 107 Stat. 102; Pub. L. 103-
160, div. A, title VII, Sec. 716(b)(2), Nov. 30, 1993, 107 Stat. 1693; 
Pub. L. 103-337, div. A, title VII, Sec. 711, Oct. 5, 1994, 108 Stat. 
2801; Pub. L. 104-106, div. A, title VII, Sec. 732, Feb. 10, 1996, 110 
Stat. 381; Pub. L. 104-201, div. A, title VII, Sec. 734(a)(2), (b)(2), 
Sept. 23, 1996, 110 Stat. 2598; Pub. L. 106-398, Sec. 1 [[div. A], title 
VII, Secs. 712(a)(1), 759], Oct. 30, 2000, 114 Stat. 1654, 1654A-176, 
1654A-200.)

                       References in Text

    The Social Security Act, referred to in subsec. (d), is act Aug. 14, 
1935, ch. 531, 49 Stat. 620, as amended. Title XVIII of the Act is 
classified generally to subchapter XVIII (Sec. 1395 et seq.) of chapter 
7 of Title 42, The Public Health and Welfare. Parts A and B of title 
XVIII of the Act are classified generally to parts A (Sec. 1395c et 
seq.) and B (Sec. 1395j et seq.), respectively, of subchapter XVIII of 
chapter 7 of Title 42. For complete classification of this Act to the 
Code, see section 1305 of Title 42 and Tables.


                            Prior Provisions

    A prior section 1086, act Aug. 10, 1956, ch. 1041, 70A Stat. 88, 
authorized the mailing of official post cards, ballots, voting 
instructions, and envelopes, free of postage, prior to repeal by Pub. L. 
85-861, Sec. 36(B)(5), Sept. 2, 1958, 72 Stat. 1570, as superseded by 
the Federal Voting Assistance Act of 1955 which is classified to 
subchapter I-D (Sec. 1973cc et seq.) of chapter 20 of Title 42, The 
Public Health and Welfare.


                               Amendments

    2000--Subsec. (b)(4). Pub. L. 106-398, Sec. 1 [[div. A], title VII, 
Sec. 759], substituted ``$3,000'' for ``$7,500''.
    Subsec. (d)(2). Pub. L. 106-398, Sec. 1 [[div. A], title VII, 
Sec. 712(a)(1)(A)], added par. (2) and struck out former par. (2) which 
read as follows: ``The prohibition contained in paragraph (1) shall not 
apply in the case of a person referred to in subsection (c) who--
        ``(A) is entitled to hospital insurance benefits under part A of 
    title XVIII of the Social Security Act pursuant to subparagraph (A) 
    or (C) of section 226(b)(2) of such Act (42 U.S.C. 426(b)(2)) or 
    section 226A(a) of such Act (42 U.S.C. 426-1(a));
        ``(B) is under 65 years of age; and
        ``(C) is enrolled in the supplementary medical insurance program 
    under part B of such title (42 U.S.C. 1395j et seq.).''
    Subsec. (d)(4). Pub. L. 106-398, Sec. 1 [[div. A], title VII, 
Sec. 712(a)(1)(B)], substituted ``subparagraph (B) of paragraph (2) who 
do not satisfy the condition specified in subparagraph (A) of such 
paragraph'' for ``paragraph (1) who satisfy only the criteria specified 
in subparagraphs (A) and (B) of paragraph (2), but not subparagraph (C) 
of such paragraph,''.
    1996--Subsec. (d)(4). Pub. L. 104-106 added par. (4).
    Subsec. (e). Pub. L. 104-201 substituted ``inpatient medical care'' 
for ``benefits'' in first sentence and ``subsections (b) and (c) of 
section 1080'' for ``section 1080(b)'' in last sentence.
    1994--Subsec. (d)(3). Pub. L. 103-337 added par. (3) and struck out 
former par. (3) which read as follows: ``If a person described in 
paragraph (2) receives medical or dental care for which payment may be 
made under both title XVIII of the Social Security Act (42 U.S.C. 1395 
et seq.) and a plan contracted for under subsection (a), the amount 
payable for that care under the plan may not exceed the difference 
between--
        ``(A) the sum of any deductibles, coinsurance, and balance 
    billing charges that would be imposed on the person if payment for 
    that care were made solely under that title; and
        ``(B) the sum of any deductibles, coinsurance, and balance 
    billing charges that would be imposed on the person if payment for 
    that care were made solely under the plan.''
    1993--Subsec. (d). Pub. L. 103-35 made technical amendment to 
directory language of Pub. L. 102-190, Sec. 704(a). See 1991 Amendment 
note below.
    Subsec. (e). Pub. L. 103-160 inserted at end ``In addition, section 
1080(b) of this title shall apply in making the determination whether to 
issue a nonavailability of health care statement for a person covered by 
this section.''
    1992--Subsec. (b)(4). Pub. L. 102-484, Sec. 703(a), substituted 
``$7,500'' for ``$10,000''.
    Subsec. (d)(2)(A). Pub. L. 102-484, Sec. 705(a), inserted before 
semicolon ``or section 226A(a) of such Act (42 U.S.C. 426-1(a))''.
    1991--Subsec. (c). Pub. L. 102-190, Sec. 704(b)(1)(A), substituted 
``Except as provided in subsection (d), the following'' for ``The 
following'' in introductory provisions and struck out at end ``However, 
a person who is entitled to hospital insurance benefits under part A of 
title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.) is not 
eligible for health benefits under this section.''
    Subsec. (d). Pub. L. 102-190, Sec. 704(a), as amended by Pub. L. 
103-35, added subsec. (d) and struck out former subsec. (d) which read 
as follows: ``The provisions of section 1079(j) of this title shall 
apply to a plan covered by this section.''
    Subsec. (g). Pub. L. 102-190, Sec. 704(b)(1)(B), substituted 
``Section 1079(j) of this title shall apply to a plan contracted for 
under this section, except that'' for ``Notwithstanding subsection (d) 
or any other provision of this chapter,''.
    1990--Subsec. (b)(1), (2). Pub. L. 101-510 substituted ``$150'' for 
``$50'' in par. (1) and ``$300'' for ``$100'' in par. (2).
    1989--Subsec. (c)(3). Pub. L. 101-189, Sec. 731(c)(2), amended par. 
(3) generally. Prior to amendment, par. (3) read as follows: ``A 
dependent covered by section 1072(2)(F) of this title.''
    Subsec. (g). Pub. L. 101-189, Sec. 1621(a)(3), substituted 
``facilities of the Department of Veterans Affairs'' for ``Veterans' 
Administration facilities''.
    1988--Subsec. (b)(3). Pub. L. 100-456, Sec. 646(b)(1), inserted 
provision authorizing Secretary of Defense to exempt a patient from 
paying such charges if the hospital to which the patient is admitted 
does not impose a legal obligation on any of its patients to pay for 
inpatient care.
    Subsec. (h). Pub. L. 100-456, Sec. 646(b)(2), added subsec. (h).
    1987--Subsec. (b)(4). Pub. L. 100-180 added par. (4).
    1986--Subsec. (c)(2)(B). Pub. L. 99-661 inserted reference to 
disease.
    1985--Subsec. (c)(2). Pub. L. 99-145 amended par. (2) generally. 
Prior to amendment, par. (2) read as follows: ``A dependent of a member 
of a uniformed service who died while on active duty for a period of 
more than thirty days, except a dependent covered by section 1072(2)(E) 
of this title.''
    1984--Subsec. (a). Pub. L. 98-557, Sec. 19(13)(A), substituted 
reference to other administering Secretaries for reference to Secretary 
of Health and Human Services.
    Pub. L. 98-525 inserted ``However, eye examinations may not be 
provided under such plans for persons covered by subsection (c).''
    Subsec. (e). Pub. L. 98-557, Sec. 19(13)(B), substituted reference 
to the administering Secretaries for reference to the Secretary of 
Defense and the Secretary of Health and Human Services.
    1983--Subsec. (d). Pub. L. 98-94 substituted ``The provisions of 
section 1079(j) of this title shall apply to a plan covered by this 
section'' for ``No benefits shall be payable under any plan covered by 
this section in the case of a person enrolled in any other insurance, 
medical service, or health plan provided by law or through employment 
unless that person certifies that the particular benefit he is claiming 
is not payable under the other plan''.
    1982--Subsec. (c)(3). Pub. L. 97-252 added par. (3).
    1981--Subsec. (f). Pub. L. 97-86 substituted ``services by an 
individual health-care professional (or other noninstitutional health-
care provider)'' for ``physician services''.
    1980--Subsec. (a). Pub. L. 96-513, Sec. 511(36), substituted 
``Secretary of Health and Human Services'' for ``Secretary of Health, 
Education, and Welfare''.
    Subsec. (b). Pub. L. 96-513, Sec. 511(39)(A), substituted 
``percent'' for ``per centum'' wherever appearing.
    Subsec. (c). Pub. L. 96-513, Secs. 501(14), 511(39)(B), substituted 
``section 1072(2)(E)'' for ``section 1072(2)(F)'' in pars. (1) and (2) 
and, in provisions following par. (2), substituted ``part A of title 
XVIII of the Social Security Act (42 U.S.C. 1395c et seq.)'' for ``title 
I of the Social Security Amendments of 1965 (79 Stat. 286)''.
    1979--Subsec. (g). Pub. L. 96-173 added subsec. (g).
    1978--Subsec. (f). Pub. L. 95-485 added subsec. (f).


                    Effective Date of 2000 Amendment

    Pub. L. 106-398, Sec. 1 [[div. A], title VII, Sec. 712(a)(3)], Oct. 
30, 2000, 114 Stat. 1654, 1654A-177, provided that: ``The amendments 
made by paragraphs (1) and (2) [amending this section and section 
1395ggg of Title 42, The Public Health and Welfare] shall take effect on 
October 1, 2001.''


                    Effective Date of 1992 Amendment

    Section 703(b) of Pub. L. 102-484 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply with respect 
to fiscal years beginning after September 30, 1992.''


                    Effective Date of 1991 Amendment

    Section 704(c) of Pub. L. 102-190, which provided that subsection 
(d) of this section was to apply with respect to health care benefits or 
services received by a person described in such subsection on or after 
Dec. 5, 1991, was repealed by Pub. L. 102-484, div. A, title VII, 
Sec. 705(c)(1), Oct. 23, 1992, 106 Stat. 2433.


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-510 applicable with respect to health care 
provided under this section and section 1079 of this title on or after 
Apr. 1, 1991, see section 712(c) of Pub. L. 101-510, set out as a note 
under section 1079 of this title.


                    Effective Date of 1989 Amendment

    Amendment by section 731(c)(2) of Pub. L. 101-189 applicable to a 
person referred to in 10 U.S.C. 1072(2)(H) whose decree of divorce, 
dissolution, or annulment becomes final on or after Nov. 29, 1989, and 
to a person so referred to whose decree became final during the period 
from Sept. 29, 1988 to Nov. 28, 1989, as if the amendment had become 
effective on Sept. 29, 1988, see section 731(d) of Pub. L. 101-189, set 
out as a note under section 1072 of this title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-456 applicable with respect to medical care 
received after September 30, 1988, see section 646(c) of Pub. L. 100-
456, set out as a note under section 1079 of this title.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-180 applicable with respect to fiscal years 
beginning after September 30, 1987, see section 721(c) of Pub. L. 100-
180, set out as a note under section 1079 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-661 applicable with respect to persons who, 
after Nov. 14, 1986, incur or aggravate an injury, illness, or disease 
or die, see section 604(g) of Pub. L. 99-661, set out as a note under 
section 1074a of this title.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-145 applicable only with respect to 
dependents of members of the uniformed services whose deaths occur after 
Sept. 30, 1985, see section 652(c) of Pub. L. 99-145, set out as a note 
under section 1076 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-525 applicable only to health care furnished 
after Sept. 30, 1984, see section 632(a)(3) of Pub. L. 98-525, set out 
as a note under section 1079 of this title.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 98-94 effective Oct. 1, 1983, see section 
931(c) of Pub. L. 98-94, set out as a note under section 1079 of this 
title.


         Effective Date of 1982 Amendment; Transition Provisions

    Amendment by Pub. L. 97-252 effective Feb. 1, 1983, and applicable 
in the case of any former spouse of a member or former member of the 
uniformed services whether final decree of divorce, dissolution, or 
annulment of marriage of former spouse and such member or former member 
is dated before, on, or after Feb. 1, 1983, see section 1006 of Pub. L. 
97-252, set out as an Effective Date; Transition Provisions note under 
section 1408 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-86 to apply with respect to claims submitted 
for payment for services provided after the end of the 30-day period 
beginning on Dec. 1, 1981, see section 906(b) of Pub. L. 97-86, set out 
as a note under section 1079 of this title.


                    Effective Date of 1980 Amendment

    Amendment by section 501(14) of Pub. L. 96-513 effective Sept. 15, 
1981, and amendment by section 511(36), (39) of Pub. L. 96-513 effective 
Dec. 12, 1980, see section 701 of Pub. L. 96-513, set out as a note 
under section 101 of this title.


                    Effective Date of 1979 Amendment

    Section 2 of Pub. L. 96-173 provided that: ``The amendment made by 
the first section of this Act [amending this section] shall take effect 
on October 1, 1979.''


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-485 applicable with respect to claims 
submitted for payment for services provided on or after the first day of 
the first calendar year beginning after Oct. 20, 1978, see section 
806(b) of Pub. L. 95-485, set out as a note under section 1079 of this 
title.


                             Effective Date

    For effective date of section, see section 3 of Pub. L. 89-614, set 
out as a note under section 1071 of this title.


  Transitional Authority To Provide Continued Health Care Coverage for 
         Certain Persons Unaware of Loss of CHAMPUS Eligibility

    Pub. L. 105-261, div. A, title VII, Sec. 704, Oct. 17, 1998, 112 
Stat. 2057, provided that:
    ``(a) Transitional Coverage.--The administering Secretaries may 
continue eligibility of a person described in subsection (b) for health 
care coverage under the Civilian Health and Medical Program of the 
Uniformed Services based on a determination that such continuation is 
appropriate to assure health care coverage for any such person who may 
have been unaware of the loss of eligibility to receive health benefits 
under that program.
    ``(b) Persons Eligible.--A person shall be eligible for transitional 
health care coverage under subsection (a) if the person--
        ``(1) is a person described in paragraph (1) of subsection (d) 
    of section 1086 of title 10, United States Code;
        ``(2) in the absence of such paragraph, would be eligible for 
    health benefits under such section; and
        ``(3) satisfies the criteria specified in subparagraphs (A) and 
    (B) of paragraph (2) of such subsection.
    ``(c) Extent of Transitional Authority.--The authority to continue 
eligibility under this section shall apply with respect to health care 
services provided between October 1, 1998, and July 1, 1999.
    ``(d) Definition.--In this section, the term `administering 
Secretaries' has the meaning given that term in section 1072(3) of title 
10, United States Code.''


  Waiver of Collection of Payments Due From Certain Persons Unaware of 
                       Loss of CHAMPUS Eligibility

    Section 743 of Pub. L. 104-106 provided that:
    ``(a) Authority To Waive Collection.--The administering Secretaries 
may waive the collection of payments otherwise due from a person 
described in subsection (b) as a result of the receipt by the person of 
health benefits under section 1086 of title 10, United States Code, 
after the termination of the person's eligibility for such benefits.
    ``(b) Persons Eligible for Waiver.--A person shall be eligible for 
relief under subsection (a) if the person--
        ``(1) is a person described in paragraph (1) of subsection (d) 
    of section 1086 of title 10, United States Code;
        ``(2) in the absence of such paragraph, would have been eligible 
    for health benefits under such section; and
        ``(3) at the time of the receipt of such benefits, satisfied the 
    criteria specified in subparagraphs (A) and (B) of paragraph (2) of 
    such subsection.
    ``(c) Extent of Waiver Authority.--The authority to waive the 
collection of payments pursuant to this section shall apply with regard 
to health benefits provided under section 1086 of title 10, United 
States Code, to persons described in subsection (b) during the period 
beginning on January 1, 1967, and ending on the later of--
        ``(1) the termination date of any special enrollment period 
    provided under title XVIII of the Social Security Act (42 U.S.C. 
    1395 et seq.) specifically for such persons; and
        ``(2) July 1, 1996.
    ``(d) Definitions.--For purposes of this section, the term 
`administering Secretaries' has the meaning given such term in section 
1072(3) of title 10, United States Code.''


     Minimum Amount Payable for Services Provided Under This Section

    Pub. L. 103-335, title VIII, Sec. 8052, Sept. 30, 1994, 108 Stat. 
2629, provided that: ``Notwithstanding any other provision of law, of 
the funds appropriated for the Defense Health Program during this fiscal 
year and hereafter, the amount payable for services provided under this 
section shall not be less than the amount calculated under the 
coordination of benefits reimbursement formula utilized when CHAMPUS is 
a secondary payor to medical insurance programs other than Medicare, and 
such appropriations as necessary shall be available (notwithstanding the 
last sentence of section 1086(c) of title 10, United States Code) to 
continue Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS) benefits, until age 65, under such section for a former member 
of a uniformed service who is entitled to retired or retainer pay or 
equivalent pay, or a dependent of such a member, or any other 
beneficiary described by section 1086(c) of title 10, United States 
Code, who becomes eligible for hospital insurance benefits under part A 
of title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) [42 
U.S.C. 1395c et seq.] solely on the grounds of physical disability, or 
end stage renal disease: Provided, That expenses under this section 
shall only be covered to the extent that such expenses are not covered 
under parts A and B of title XVIII of the Social Security Act [42 U.S.C. 
1395c et seq., 1395; et seq.] and are otherwise covered under CHAMPUS: 
Provided further, That no reimbursement shall be made for services 
provided prior to October 1, 1991.''


    Authorization To Apply Section 1079 Payment Rules for Spouse and 
            Children of Member Who Dies While on Active Duty

    Pub. L. 103-160, div. A, title VII, Sec. 704, Nov. 30, 1993, 107 
Stat. 1687, provided that in the case of an eligible dependent of a 
member of a uniformed service who died while on active duty for a period 
of more than 30 days, the administering Secretary could apply the 
payment provisions set forth in section 1079(b) of this title (in lieu 
of the payment provisions set forth in section 1086(b) of this title), 
with respect to health benefits received by the dependent under such 
section 1086 in connection with an illness or medical condition for 
which the dependent was receiving treatment under chapter 55 of this 
title at time of death of the member, prior to repeal by Pub. L. 103-
337, div. A, title VII, Sec. 707(d), Oct. 5, 1994, 108 Stat. 2801.
    [Section 707(d) of Pub. L. 103-337 provided in part that: ``The 
repeal of such section [section 704 of Pub. L. 103-160, formerly set out 
above] shall not terminate the special payment rules provided in such 
section with respect to any person eligible for such payment rules on 
the date of the enactment of this Act [Oct. 5, 1994].'']


           Coverage of Care Provided Since September 30, 1991

    Section 705(b) of Pub. L. 102-484 provided that: ``Subsection (d) of 
section 1086 of title 10, United States Code, as added by section 704(a) 
of the National Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190; 105 Stat. 1401) and amended by subsection (a) of 
this section, shall apply with respect to health care benefits or 
services received after September 30, 1991, by a person described in 
subsection (d)(2) of such section 1086 if such benefits or services 
would have been covered under a plan contracted for under such section 
1086.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1072, 1074g, 1079, 1082, 
1086a, 1087, 1095, 1096, 1097, 1097b, 1098, 1100, 1104, 1105 of this 
title; title 38 section 1713; title 42 sections 300e-1, 1395cc, 1395ggg.
