
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1097]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
                   CHAPTER 55--MEDICAL AND DENTAL CARE
 
Sec. 1097. Contracts for medical care for retirees, dependents, 
        and survivors: alternative delivery of health care
        
    (a) In General.--The Secretary of Defense, after consulting with the 
other administering Secretaries, may contract for the delivery of health 
care to which covered beneficiaries are entitled under this chapter. The 
Secretary may enter into a contract under this section with any of the 
following:
        (1) Health maintenance organizations.
        (2) Preferred provider organizations.
        (3) Individual providers, individual medical facilities, or 
    insurers.
        (4) Consortiums of such providers, facilities, or insurers.

    (b) Scope of Coverage Under Health Care Plans.--A contract entered 
into under this section may provide for the delivery of--
        (1) selected health care services;
        (2) total health care services for selected covered 
    beneficiaries; or
        (3) total health care services for all covered beneficiaries who 
    reside in a geographical area designated by the Secretary.

    (c) Coordination With Facilities of the Uniformed Services.--The 
Secretary of Defense may provide for the coordination of health care 
services provided pursuant to any contract or agreement under this 
section with those services provided in medical treatment facilities of 
the uniformed services. Subject to the availability of space and 
facilities and the capabilities of the medical or dental staff, the 
Secretary may not deny access to facilities of the uniformed services to 
a covered beneficiary on the basis of whether the beneficiary enrolled 
or declined enrollment in any program established under, or operating in 
connection with, any contract under this section. Notwithstanding the 
preferences established by sections 1074(b) and 1076 of this title, the 
Secretary shall, as an incentive for enrollment, establish reasonable 
preferences for services in facilities of the uniformed services for 
covered beneficiaries enrolled in any program established under, or 
operating in connection with, any contract under this section.
    (d) Coordination With Other Health Care Programs.--In the case of a 
covered beneficiary who is enrolled in a managed health care program not 
operated under the authority of this chapter, the Secretary may contract 
under this section with such other managed health care program for the 
purpose of coordinating the beneficiary's dual entitlements under such 
program and this chapter. A managed health care program with which 
arrangements may be made under this subsection includes any health 
maintenance organization, competitive medical plan, health care 
prepayment plan, or other managed care program recognized pursuant to 
regulations issued by the Secretary.
    (e) Charges for Health Care.--The Secretary of Defense may prescribe 
by regulation a premium, deductible, copayment, or other charge for 
health care provided under this section. In the case of contracts for 
health care services under this section or health care plans offered 
under section 1099 of this title for which the Secretary permits covered 
beneficiaries who are covered by section 1086 of this title and who 
participate in such contracts or plans to pay an enrollment fee in lieu 
of meeting the applicable deductible amount specified in section 1086(b) 
of this title, the Secretary may establish the same (or a lower) 
enrollment fee for covered beneficiaries described in section 1086(d)(1) 
of this title who also participate in such contracts or plans. Without 
imposing additional costs on covered beneficiaries who participate in 
contracts for health care services under this section or health care 
plans offered under section 1099 of this title, the Secretary shall 
permit such covered beneficiaries to pay, on a quarterly basis, any 
enrollment fee required for such participation.

(Added Pub. L. 99-661, div. A, title VII, Sec. 701(a)(1), Nov. 14, 1986, 
100 Stat. 3895; amended Pub. L. 103-337, div. A, title VII, Secs. 713, 
714(a), Oct. 5, 1994, 108 Stat. 2802; Pub. L. 104-106, div. A, title 
VII, Secs. 712, 713, Feb. 10, 1996, 110 Stat. 374.)


                               Amendments

    1996--Subsec. (c). Pub. L. 104-106, Sec. 712, substituted 
``Notwithstanding the preferences established by sections 1074(b) and 
1076 of this title, the Secretary shall'' for ``However, the Secretary 
may''.
    Subsec. (e). Pub. L. 104-106, Sec. 713, inserted at end ``Without 
imposing additional costs on covered beneficiaries who participate in 
contracts for health care services under this section or health care 
plans offered under section 1099 of this title, the Secretary shall 
permit such covered beneficiaries to pay, on a quarterly basis, any 
enrollment fee required for such participation.''
    1994--Subsec. (c). Pub. L. 103-337, Sec. 714(a)(2), added subsec. 
(c). Former subsec. (c) redesignated (e).
    Pub. L. 103-337, Sec. 713, inserted at end ``In the case of 
contracts for health care services under this section or health care 
plans offered under section 1099 of this title for which the Secretary 
permits covered beneficiaries who are covered by section 1086 of this 
title and who participate in such contracts or plans to pay an 
enrollment fee in lieu of meeting the applicable deductible amount 
specified in section 1086(b) of this title, the Secretary may establish 
the same (or a lower) enrollment fee for covered beneficiaries described 
in section 1086(d)(1) of this title who also participate in such 
contracts or plans.''
    Subsecs. (d), (e). Pub. L. 103-337, Sec. 714(a), added subsec. (d) 
and redesignated former subsec. (c) as (e).

                  Section Referred to in Other Sections

    This section is referred to in sections 1072, 1096, 1100 of this 
title.
