CLARIFICATION AND CORRECTION OF PROVISIONS RELATING TO HEALTH BENEFITS FOR CERTAIN FORMER SPOUSES

SEC. 731. CLARIFICATION AND CORRECTION OF PROVISIONS RELATING TO HEALTH BENEFITS FOR CERTAIN FORMER SPOUSES (a) Eligibility of Certain Former Spouses.—Section 1072(2) of title 10, United States Code, is amended— (1) by striking out “and” at the end of clause (F); (2) by striking out the period at the end of clause (G) and inserting in lieu thereof “; and”; and (3) by adding at the end the following new clause: “(H) a person who would qualify as a dependent under clause (G) but for the fact that the date of the final decree of divorce, dissolution, or annulment of the person is on or after April 1, 1985, except that the term does not include the person after the 103 STAT. 1482end of the one-year period beginning on the date of that final decree.”. (b) Availability of Conversion Health Policies and Extension of Eligibility for Medical and Dental Care.— (1) Chapter 55 of such title is amended by inserting after section 1086 the following new section: “§ 1086a. Certain former spouses: extension of period of eligibility for health benefits “(a) Availability of Conversion Health Policies.— The Secretary of Defense shall inform each person who has been a dependent for a period of one year or more under section 1072(2)(H) of this title of the availability of a conversion health policy for purchase by the person. “(b) Effect of Purchase.—(1) Subject to paragraph (2), if a person who is a dependent for a one-year period under section 1072(2)(H) of this title purchases a conversion health policy within that period (or within a reasonable time after that period as prescribed by the Secretary of Defense), the person shall continue to be eligible for medical and dental care in the manner described in section 1076 of this title and health benefits under section 1086 of this title until the end of the one-year period beginning on the later of— “(A) the date the person is no longer a dependent under section 1072(2)(H) of this title; and “(B) the date of the purchase of the policy. “(2) The extended period of eligibility provided under paragraph (1) shall apply only with regard to a condition of the person that— “(A) exists on the date on which coverage under the conversion health policy begins; and “(B) for which care is not provided under the policy solely on the grounds that the condition is a preexisting condition. “(c) Conversion Health Policy Defined.— In this section, the term ‘conversion health policy’ means a health insurance policy with a private insurer, developed through negotiations between the Secretary of Defense and the private insurer, that is available for purchase by or for the use of a person who is a dependent for a one-year period under section 1072(2)(H) of this title.”, (b) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1086 the following new item: “1086a. Certain former spouses: extension of period of eligibility for health benefits.”. (c) Conforming Amendments.—(1) Subsection (f) of section 1076 of such title is repealed. (2) Paragraph (3) of section 1086(c) of such title is amended to read as follows: “(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) Effective Date; Application of Amendments.—(1) The amendments made by this section apply to a person referred to in section 1072(2)(H) of title 10, United States Code (as added by subsection (a)), whose decree of divorce, dissolution, or annulment becomes final on or after the date of the enactment of this Act. (2) The amendments made by this section shall also apply to a person referred to in such section whose decree of divorce, dissolution, or annulment became final during the period beginning on 103 STAT. 1483September 29, 1988, and ending on the day before the date of the enactment of this Act, as if the amendments had become effective on September 29, 1988. (e) Transition.—(1) In the case of a person who qualified as a dependent under section 645(c) of the Department of Defense Authorization Act, 1985 (Public Law 98–525; 98 Stat. 2549), on September 28, 1988, the Secretary of Defense shall make a conversion health policy available for purchase by the person during the remaining period the person is considered to be a dependent under that section (or within a reasonable time after that period as prescribed by the Secretary of Defense). (2) Purchase of a conversion health policy under paragraph (1) by a person shall entitle the person to health care for preexisting conditions in the same manner and to the same extent as provided by section 1086a(b) of title 10, United States Code (as added by subsection (b)), until the end of the one-year period beginning on the later of— (A) the date the person is no longer qualified as a dependent under section 645(c) of the Department of Defense Authorization Act, 1985; and (B) the date of the purchase of the policy. (3) For purposes of this subsection, the term “conversion health policy” has the meaning given that term in section 1086a(c) of title 10, United States Code (as added by subsection (b)).