COLLECTION FROM THIRD-PARTY PAYERS OF REASONABLE COSTS OF HEALTH CARE SERVICES INCURRED ON BEHALF OF RETIRED PERSONS AND DEPENDENTS

SEC. 713. COLLECTION FROM THIRD-PARTY PAYERS OF REASONABLE COSTS OF HEALTH CARE SERVICES INCURRED ON BEHALF OF RETIRED PERSONS AND DEPENDENTS (a) Collection for Outpatient Care.— (1) Subsections (a)(1), (a)(2), (c), (f), and (g) of section 1095 of title 10, United States Code, are each amended by striking out “inpatient hospital care” and inserting in lieu thereof “health care services”. (b) Computation of Reasonable Costs.— Subsection (f) of such section is further amended— (1) by striking out “or” at the end of paragraph (1); (2) by redesignating paragraph (2) as paragraph (4); and (3) by inserting after paragraph (1) the following new paragraphs: “(2) all-inclusive per visit rates; “(3) diagnosis-related groups; or”. (c) Additional Third-Party Payers.— Such section is further amended by striking out subsection (h) and inserting in lieu thereof the following new subsections: “(h) In this section: “(1) The term ‘third-party payer’ means an entity that provides an insurance, medical service, or health plan by contract104 STAT. 1584 or agreement, including an automobile liability insurance or no fault insurance carrier. “(2) The term ‘insurance, medical service, or health plan’ includes an insurance plan described as Medicare supplemental insurance. “(i) (1) In the case of a third-party payer that is an automobile liability insurance or no fault insurance carrier, the right of the United States to collect under this section shall extend to health care services provided to a person entitled to health care under section 1074(a) of this title. “(2) In cases in which a tort liability is created upon some third person, collection from a third-party payer that is an automobile liability insurance or no fault insurance carrier shall be governed by the provisions of Public Law 87–693 (42 U.S.C. 2651 et seq.).”. (d) Technical and Clerical Amendments.— (1) Such section is further amended— (A) in subsection (a)(1) (as amended by subsection (a)), by striking out “covered by section 1074(b), 1076(a), or 1076(b) of this title” and inserting in lieu thereof “covered beneficiary”; and (B) in subsection (a)(2) (as amended by subsection (a)), by striking out “person covered by section 1074(b), 1076(a), or 1076(b) of this title” and inserting in lieu thereof “covered beneficiary”. (2) The heading of such section is amended to read as follows: “§ 1095. Health care services incurred on behalf of covered beneficiaries: collection from third-party payers”. (2) The item relating to such section in the table of sections at the beginning of chapter 55 of such title is amended to read as follows: “1095. Health care services incurred on behalf of covered beneficiaries: collection from third-party payers.”. (e) Effective Date.— The amendments made by subsection (a) shall apply with respect to health care services provided in a medical facility of the uniformed services after the date of the enactment of this Act, but not with respect to collection under any insurance, medical service, or health plan agreement entered into before the date of the enactment of this Act that the Secretary of Defense determines clearly excludes payment for such services. Such an exception shall apply until the amendment or renewal of such agreement after that date.