TRAUMATIC INJURY PROTECTION

TRAUMATIC INJURY PROTECTIONSec. 1032. Traumatic Injury Protection. (a) In General.—Subchapter III of chapter 19, Title 38, United States Code, is amended—(1) in section 1965, by adding at the end the following: “(11) The term ‘activities of daily living’ means the inability to independently perform 2 of the 6 following functions: “(A) Bathing. “(B) Continence. “(C) Dressing. “(D) Eating. “(E) Toileting. “(F) Transferring.”; and (2) by adding at the end the following: “§ 1980A. Traumatic injury protection “(a) A member who is insured under subparagraph (A)(i), (B), or (C)(i) of section 1967(a)(1) shall automatically be issued a traumatic injury protection rider that will provide for a payment not to exceed $100,000 if the member, while so insured, sustains a traumatic injury that results in a loss described in subsection (b)(1). The maximum amount payable for all injuries resulting from the same traumatic event shall be limited to $100,000. If a member suffers more than 1 such loss as a result of traumatic injury, payment will be made in accordance with the schedule in subsection (d) for the single loss providing the highest payment. “(b)(1) A member who is issued a traumatic injury protection rider under subsection (a) is insured against such traumatic injuries, as prescribed by the Secretary, in collaboration with the Secretary of Defense, including, but not limited to—“(A) total and permanent loss of sight; “(B) loss of a hand or foot by severance at or above the wrist or ankle; “(C) total and permanent loss of speech; “(D) total and permanent loss of hearing in both ears; “(E) loss of thumb and index finger of the same hand by severance at or above the metacarpophalangeal joints; “(F) quadriplegia, paraplegia, or hemiplegia; “(G) burns greater than second degree, covering 30 percent of the body or 30 percent of the face; and “(H) coma or the inability to carry out the activities of daily living resulting from traumatic injury to the brain. “(2) For purposes of this subsection—“(A) the term ‘quadriplegia’ means the complete and irreversible paralysis of all 4 limbs; “(B) the term ‘paraplegia’ means the complete and irreversible paralysis of both lower limbs; and “(C) the term ‘hemiplegia’ means the complete and irreversible paralysis of the upper and lower limbs on 1 side of the body. “(3) The Secretary, in collaboration with the Secretary of Defense, shall prescribe, by regulation, the conditions under which coverage against loss will not be provided. “(c) A payment under this section may be made only if—“(1) the member is insured under Servicemembers’ Group Life Insurance when the traumatic injury is sustained; 119 STAT. 258“(2) the loss results directly from that traumatic injury and from no other cause; and “(3) the member suffers the loss before the end of the period prescribed by the Secretary, in collaboration with the Secretary of Defense, which begins on the date on which the member sustains the traumatic injury, except, if the loss is quadriplegia, paraplegia, or hemiplegia, the member suffers the loss not later than 365 days after sustaining the traumatic injury. “(d) Payments under this section for losses described in subsection (b)(1) shall be—“(1) made in accordance with a schedule prescribed by the Secretary, in collaboration with the Secretary of Defense; “(2) based on the severity of the covered condition; and “(3) in an amount that is equal to not less than $25,000 and not more than $100,000. “(e)(1) During any period in which a member is insured under this section and the member is on active duty, there shall be deducted each month from the member’s basic or other pay until separation or release from active duty an amount determined by the Secretary of Veterans Affairs as the premium allocable to the pay period for providing traumatic injury protection under this section (which shall be the same for all such members) as the share of the cost attributable to provided coverage under this section, less any costs traceable to the extra hazards of such duty in the uniformed services. “(2) During any month in which a member is assigned to the Ready Reserve of a uniformed service under conditions which meet the qualifications set forth in section 1965(5)(B) of this title and is insured under a policy of insurance purchased by the Secretary of Veterans Affairs under section 1966 of this title, there shall be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary of Veterans Affairs (which shall be the same for all such members) as the share of the cost attributable to provided coverage under this section, less any costs traceable to the extra hazards of such duty in the uniformed services. Any amounts so contributed on behalf of any member shall be collected by the Secretary of the concerned service from such member (by deduction from pay or otherwise) and shall be credited to the appropriation from which such contribution was made in advance on a monthly basis. “(3) The Secretary of Veterans Affairs shall determine the premium amounts to be charged for traumatic injury protection coverage provided under this section. “(4) The premium amounts shall be determined on the basis of sound actuarial principles and shall include an amount necessary to cover the administrative costs to the insurer or insurers providing such insurance. “(5) Each premium rate for the first policy year shall be continued for subsequent policy years, except that the rate may be adjusted for any such subsequent policy year on the basis of the experience under the policy, as determined by the Secretary of Veterans Affairs in advance of that policy year. “(6) The cost attributable to insuring such member under this section, less the premiums deducted from the pay of the member’s uniformed service, shall be paid by the Secretary of Defense to 119 STAT. 259 the Secretary of Veterans Affairs. This amount shall be paid on a monthly basis, and shall be due within 10 days of the notice provided by the Secretary of Veterans Affairs to the Secretary of the concerned uniformed service. “(7) The Secretary of Defense shall provide the amount of appropriations required to pay expected claims in a policy year, as determined according to sound actuarial principles by the Secretary of Veterans Affairs. “(8) The Secretary of Defense shall forward an amount to the Secretary of Veterans Affairs that is equivalent to half the anticipated cost of claims for the current fiscal year, upon the effective date of this legislation. “(f) The Secretary of Defense shall certify whether any member claiming the benefit under this section is eligible. “(g) Payment for a loss resulting from traumatic injury will not be made if the member dies before the end of the period prescribed by the Secretary, in collaboration with the Secretary of Defense, which begins on the date on which the member sustains the injury. If the member dies before payment to the member can be made, the payment will be made according to the member’s most current beneficiary designation under Servicemembers’ Group Life Insurance, or a by law designation, if applicable. “(h) Coverage for loss resulting from traumatic injury provided under this section shall cease at midnight on the date of the member’s separation from the uniformed service. Payment will not be made for any loss resulting from injury incurred after the date a member is separated from the uniformed services. “(i) Insurance coverage provided under this section is not convertible to Veterans’ Group Life Insurance.” . (b) Clerical Amendment.—The table of sections for chapter 19 of title 38, United States Code, is amended by adding after the item relating to section 1980 the following: “1980A. Traumatic injury protection.”. (c) Retroactive Provision.—(1) In general.—Any member who experienced a traumatic injury (as described in section 1980A(b)(1) of title 38, United States Code) between October 7, 2001, and the effective date under subsection (d), is eligible for coverage provided in such section 1980A if the qualifying loss was a direct result of injuries incurred in Operation Enduring Freedom or Operation Iraqi Freedom. (2) Certification; payment.—The Secretary of Defense shall—(A) certify to the Office of Servicemembers’ Group Life Insurance the names and addresses of those members the Secretary of Defense determines to be eligible for retroactive traumatic injury benefits under such section 1980A; and (B) forward to the Secretary of Veterans Affairs, at the time the certification is made under subparagraph (A), an amount of money equal to the amount the Secretary of Defense determines to be necessary to pay all cost related to claims for retroactive benefits under such section 1980A. (d) Effective Date.—119 STAT. 260 (1) In general.—The amendments made by this section shall take effect on the first day of the first month beginning more than 180 days after the date of enactment of this Act. (2) Rulemaking.—Before the effective date described in paragraph (1), the Secretary of Veterans Affairs, in collaboration with the Secretary of Defense, shall issue regulations to carry out the amendments made by this section.