CLARIFICATIONS AND IMPROVEMENTS REGARDING THE DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND.

SEC. 711. CLARIFICATIONS AND IMPROVEMENTS REGARDING THE DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND. (a) Clarification Regarding Coverage.—Subsection (b) of section 1111 of title 10, United States Code, is amended to read as follows: “(b) In this chapter: “(1) The term ‘uniformed services retiree health care programs’ means the provisions of this title or any other provision of law creating an entitlement to or eligibility for health care for a member or former member of a participating uniformed service who is entitled to retired or retainer pay, and an eligible dependent under such program. 115 STAT. 1165 “(2) The term ‘eligible dependent’ means a dependent described in section 1076(a)(2) (other than a dependent of a member on active duty), 1076(b), 1086(c)(2), or 1086(c)(3) of this title. “(3) The term ‘medicare-eligible’, with respect to any person, means entitled to benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.). “(4) The term ‘participating uniformed service’ means the Army, Navy, Air Force, and Marine Corps, and any other uniformed service that is covered by an agreement entered into under subsection (c).”. (b) Participation of Other Uniformed Services.—(1) Section 1111 of such title is further amended by adding at the end the following new subsection: “(c) The Secretary of Defense may enter into an agreement with any other administering Secretary (as defined in section 1072(3) of this title) for participation in the Fund by a uniformed service under the jurisdiction of that Secretary. Any such agreement shall require that Secretary to determine contributions to the Fund on behalf of the members of the uniformed service under the jurisdiction of that Secretary in a manner comparable to the determination with respect to contributions to the Fund made by the Secretary of Defense under section 1116 of this title, and such administering Secretary may make such contributions.”. (2) Section 1112 of such title is amended by adding at the end the following new paragraph: “(4) Amounts paid into the Fund pursuant to section 1111(c) of this title.”. (3) Section 1115 of such title is amended— (A) in subsection (a), by inserting “participating” before “uniformed services”; (B) in subparagraphs (A)(ii) and (B)(ii) of subsection (b)(1), by inserting “under the jurisdiction of the Secretary of Defense” after “uniformed services”; (C) in subsection (b)(2), by inserting “(or to the other executive department having jurisdiction over the participating uniformed service)” after “Department of Defense”; and (D) in subparagraphs (A) and (B) of subsection (c)(1), by inserting “participating” before “uniformed services”. (4) Section 1116(a) of such title is amended in paragraphs (1)(B) and (2)(B) by inserting “under the jurisdiction of the Secretary of Defense” after “uniformed services”. (c) Clarification of Payments From the Fund.—(1) Subsection (a) of section 1113 of such title is amended to read as follows: “(a) There shall be paid from the Fund amounts payable for the costs of all uniformed service retiree health care programs for the benefit of members or former members of a participating uniformed service who are entitled to retired or retainer pay and are medicare eligible, and eligible dependents who are medicare eligible.”. (2) Such section is further amended by adding at the end the following new subsections: “(c)(1) In carrying out subsection (a), the Secretary of Defense may transfer periodically from the Fund to applicable appropriations of the Department of Defense, or to applicable appropriations of other departments or agencies, such amounts as the Secretary 115 STAT. 1166determines necessary to cover the costs chargeable to those appropriations for uniformed service retiree health care programs for beneficiaries under those programs who are medicare-eligible. Such transfers may include amounts necessary for the administration of such programs. Amounts so transferred shall be merged with and be available for the same purposes and for the same time period as the appropriation to which transferred. Upon a determination that all or part of the funds transferred from the Fund are not necessary for the purposes for which transferred, such amounts may be transferred back to the Fund. This transfer authority is in addition to any other transfer authority that may be available to the Secretary. “(2) A transfer from the Fund under paragraph (1) may not be made to an appropriation after the end of the second fiscal year after the fiscal year that the appropriation is available for obligation. A transfer back to the Fund under paragraph (1) may not be made after the end of the second fiscal year after the fiscal year for which the appropriation to which the funds were originally transferred is available for obligation. “(d) The Secretary of Defense shall by regulation establish the method or methods for calculating amounts to be transferred under subsection (c). Such method or methods may be based (in whole or in part) on a proportionate share of the volume (measured as the Secretary determines appropriate) of health care services provided or paid for under uniformed service retiree health care programs for beneficiaries under those programs who are medicare-eligible in relation to the total volume of health care services provided or paid for under Department of Defense health care programs. “(e) The regulations prescribed by the Secretary under subsection (d) shall be provided to the Comptroller General not less than 60 days before such regulations become effective. The Comptroller General shall, not later than 30 days after receiving such regulations, report to the Secretary of Defense and Congress on the adequacy and appropriateness of the regulations. “(f) If the Secretary of Defense enters into an agreement with another administering Secretary pursuant to section 1111(c), the Secretary of Defense may take the actions described in subsections (c), (d), and (e) on behalf of the beneficiaries and programs of the other participating uniformed service.”. (d) Source of Funds for Monthly Accrual Payments Into the Fund.—Section 1116 of such title is further amended— (1) in subsection (a)(2)(B) (as amended by subsection (b)(4)), by striking the sentence beginning “Amounts paid into”; and (2) by adding at the end the following new subsection: “(c) Amounts paid into the Fund under subsection (a) shall be paid from funds available for the health care programs of the participating uniformed services under the jurisdiction of the respective administering Secretaries”. (e) Technical Amendments.—(1) Sections 1111(a), 1115(c)(2), 1116(a)(1)(A), and 1116(a)(2)(A) of such title are amended by striking “Department of Defense retiree health care programs” and inserting “uniformed services retiree health care programs”. (2) The heading for section 1111 of such title is amended to read as follows: 115 STAT. 1167 “§ 1111. Establishment and purpose of Fund; definitions; authority to enter into agreements”. (3) The item relating to section 1111 in the table of sections at the beginning of chapter 56 of such title is amended to read as follows: “1111. Establishment and purpose of Fund; definitions; authority to enter into agreements.”. (f) Effective Date.—The amendments made by this section shall take effect as if included in the enactment of chapter 56 of title 10, United States Code, by section 713(a)(1) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106–398; 114 Stat. 1654A-179). (g) First Year Contributions.—With respect to contributions under section 1116(a) of title 10, United States Code, for the first year that the Department of Defense Medicare-Eligible Retiree Health Care Fund is established under chapter 56 of such title, if the Board of Actuaries is unable to execute its responsibilities with respect to such section, the Secretary of Defense may make contributions under such section using methods and assumptions developed by the Secretary.