COORDINATION OF BENEFITS WITH MEDICARE.

SEC. 711. COORDINATION OF BENEFITS WITH MEDICARE. Section 1086(d) of title 10, United States Code, is amended by striking out paragraph (3) and inserting in lieu thereof the following: “(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.”.