PROGRAMS RELATING TO THE SALE OF PHARMACEUTICALS.

SEC. 702. PROGRAMS RELATING TO THE SALE OF PHARMACEUTICALS. (a) Demonstration Project for Pharmaceuticals by Mail.—Not later than 18 months after the date of the enactment of this Act, the Secretary of Defense, in consultation with the administering Secretaries, shall— (1) establish a demonstration project that permits eligible persons described in subsection (c) to obtain prescription pharmaceuticals by mail in connection with medical care furnished to such persons under chapter 55 of title 10, United States Code; and (2) conduct the demonstration project in two or more regions selected by the Secretary, each of which consists of two or more States. (b) Retail Pharmacy Network.—To the maximum extent practicable, the Secretary of Defense shall include in each managed health care program initiated, awarded, or renewed by the Secretary after January 1, 1993, a program to supply prescription pharmaceuticals to eligible persons described in subsection (c) through a managed care network of community retail pharmacies in the area covered by the managed health care program. (c) Eligible Persons.—A person eligible to obtain pharmaceuticals under the demonstration project established under subsection (a) or the retail pharmacy network included in a managed health care program under subsection (b) is any person living in the area covered by the demonstration project or managed health care program— (1) who is eligible for medical care under a contract for medical care entered into by the Secretary of Defense under section 1079 or 1086 of title 10, United States Code; or (2) who— (A) would be eligible for medical care under a contract for medical care entered into under section 1086 of such title except for operation of subsection (d)(1) of such section; and (B) resides in an area that is adversely affected (as determined by the Secretary) by the closure of a health care facility of the uniformed services as a result of the 106 STAT. 2432closure or realignment of the military installation at which such facility is located. (d) Pharmaceuticals Offered; Purchase Fees.—The Secretary of Defense, in consultation with the administering Secretaries, shall— (A) determine the pharmaceuticals that may be obtained by eligible persons under the demonstration project established under subsection (a) or the retail pharmacy network included in a managed health care program under subsection (b); and (B) establish an appropriate fee, charge, or copayment to be paid by such persons for pharmaceuticals obtained under the demonstration project or managed health care program. (e) Report Regarding Demonstration Project.—Not later than two years after the establishment of the demonstration project under subsection (a), the Secretary of Defense shall submit to Congress a report— (1) describing the results of the demonstration project required by subsection (a); (2) containing such recommendations for revision of the demonstration project as the Secretary considers to be necessary; and (3) containing a plan (including a schedule) for implementing the demonstration project throughout the United States. (f) Definitions.—In this section, the terms “uniformed services” and “administering Secretaries” have the meanings given those terms in section 1072 of title 10, United States Code.