PLAN FOR REDESIGN OF MILITARY PHARMACY SYSTEM.

SEC. 703. PLAN FOR REDESIGN OF MILITARY PHARMACY SYSTEM. (a) Plan Required.— The Secretary of Defense shall submit to Congress a plan that would provide for a system-wide redesign of the military and contractor retail and mail-order pharmacy system of the Department of Defense by incorporating “best business practices” of the private sector. The Secretary shall work with contractors of TRICARE retail pharmacy and national mail-order pharmacy programs to develop a plan for the redesign of the pharmacy system that— (1) may include a plan for an incentive-based formulary for military medical treatment facilities and contractors of TRICARE retail pharmacies and the national mail-order pharmacy; and (2) shall include a plan for each of the following: (A) A uniform formulary for such facilities and contractors. (B) A centralized database that integrates the patient databases of pharmacies of military medical treatment facilities and contractor retail and mail-order programs to implement automated prospective drug utilization review systems. (C) A system-wide drug benefit for covered beneficiaries under chapter 55 of title 10, United States Code, who are entitled to hospital insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.). (b) Submission of Plan.— The Secretary shall submit the plan required under subsection (a) not later than March 1, 1999. (c) Suspension of Implementation of Program.— The Secretary shall suspend any plan to establish a national retail pharmacy program for the Department of Defense until— (1) the plan required under subsection (a) is submitted; and (2) the Secretary implements cost-saving reforms with respect to the military and contractor retail and mail order pharmacy system.