FEDERAL PREEMPTION REGARDING CONTRACTS FOR MEDICAL AND DENTAL CARE

SEC. 725. FEDERAL PREEMPTION REGARDING CONTRACTS FOR MEDICAL AND DENTAL CARE (a) In General.—(1) Chapter 55 of title 10, United States Code, is amended by adding at the end the following new section: “§ 1103. Contracts for medical and dental care: State and local preemption “(a) The provisions of any contract under this chapter which relate to the nature and extent of coverage of benefits (including payments with respect to benefits) shall preempt any law of a State or local government, or any regulation issued under such a law, which relates to health insurance or plans to the extent that such law or regulation is inconsistent with such contractual provisions. “(b) In this section, the term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and each territory and possession of the United States.” (2) The table of sections at the beginning of such chapter is amended by adding at the end the following: “1103.Contracts for medical and dental care: State and local preemption.”. 101 STAT. 1117 (b) Applicability.—Section 1103 of such title, as added by subsection (a), shall apply with respect to any contract entered into after October 1, 1987.