MODIFICATION OF PROHIBITION ON REQUIREMENT OF NONAVAILABILITY STATEMENT OR PREAUTHORIZATION.

SEC. 735. MODIFICATION OF PROHIBITION ON REQUIREMENT OF NONAVAILABILITY STATEMENT OR PREAUTHORIZATION. (a) Clarification of Covered Beneficiaries.—Subsection (a) of section 721 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-184) is amended by striking “covered beneficiary under chapter 55 of title 10, United States Code, who is enrolled in TRICARE Standard,” and inserting “covered beneficiary under TRICARE Standard pursuant to chapter 55 of title 10, United States Code,”. (b) Repeal of Requirement for Notification Regarding Health Care Received From Another Source.—Subsection (b) of such section is repealed. (c) Waiver Authority.—Such section, as so amended, is further amended by striking subsection (c) and inserting the following new subsections: “(b) Waiver Authority.—The Secretary may waive the prohibition in subsection (a) if— “(1) the Secretary— “(A) demonstrates that significant costs would be avoided by performing specific procedures at the affected military medical treatment facility or facilities; “(B) determines that a specific procedure must be provided at the affected military medical treatment facility or facilities to ensure the proficiency levels of the practitioners at the facility or facilities; or “(C) determines that the lack of nonavailability statement data would significantly interfere with TRICARE contract administration; “(2) the Secretary provides notification of the Secretary’s intent to grant a waiver under this subsection to covered beneficiaries who receive care at the military medical treatment facility or facilities that will be affected by the decision to grant a waiver under this subsection; “(3) the Secretary notifies the Committees on Armed Services of the House of Representatives and the Senate of the Secretary’s intent to grant a waiver under this subsection, 115 STAT. 1172the reason for the waiver, and the date that a nonavailability statement will be required; and “(4) 60 days have elapsed since the date of the notification described in paragraph (3). “(c) Waiver Exception for Maternity Care.—Subsection (b) shall not apply with respect to maternity care.”. (d) Effective Date.—(1) Subsection (a) of such section is amended by striking “under any new contract for the provision of health care services”. (2) Subsection (d) of such section is amended by striking “take effect on October 1, 2001.” and inserting “take effect on the earlier of the following: “(1) The date that a new contract entered into by the Secretary to provide health care services under TRICARE Standard takes effect. “(2) The date that is two years after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2002.”. (e) Report.—Not later than March 1, 2002, the Secretary of Defense shall submit to the Committees on Armed Services of the House of Representatives and the Senate a report on the Secretary’s plans for implementing section 721 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, as amended by this section.