REPORT ON DELIVERY OF HEALTH CARE BENEFITS THROUGH THE MILITARY HEALTH CARE SYSTEM.

SEC. 733. REPORT ON DELIVERY OF HEALTH CARE BENEFITS THROUGH THE MILITARY HEALTH CARE SYSTEM.(a) Report Required.—Not later than February 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report on the delivery of health care benefits through the military health care system.(b) Elements.—The report under subsection (a) shall include the following:(1) An analysis of the organization and costs of delivering health care benefits to current and retired members of the Armed Forces and their families.(2) An analysis of the costs of ensuring medical readiness throughout the Armed Forces in support of national security objectives.(3) An assessment of the role of health benefits in the recruitment and retention of members of the Armed Forces, whether in the regular components or the reserve components of the Armed Forces.(4) An assessment of the experience of the military departments during fiscal years 2003, 2004, and 2005 in recruitment and retention of military and civilian medical and dental personnel, whether in the regular components or the reserve components of the Armed Forces, in light of military and civilian medical manpower requirements.(5) A description of requirements for graduate medical education for military medical care providers and options for meeting such requirements, including civilian medical training programs.(c) Recommendations.—In addition to the matters specified in subsection (b), the report under subsection (a) shall also include such recommendations for legislative or administrative action as the Secretary considers necessary to improve efficiency and quality in the provision of health care benefits through the military health care system, including recommendations on—(1) the organization and delivery of health care benefits;(2) mechanisms required to measure costs more accurately;(3) mechanisms required to measure quality of care, and access to care, more accurately;(4) Department of Defense participation in the Medicare Advantage Program, formerly Medicare plus Choice;119 STAT. 3353(5) the use of flexible spending accounts and health savings accounts for military retirees under the age of 65;(6) incentives for eligible beneficiaries of the military health care system to retain private employer-provided health care insurance;(7) means of improving integrated systems of disease management, including chronic illness management;(8) means of improving the safety and efficiency of pharmacy benefits management;(9) the management of enrollment options for categories of eligible beneficiaries in the military health care system;(10) reform of the provider payment system, including the potential for use of a pay-for-performance system in order to reward quality and efficiency in the TRICARE system;(11) means of improving efficiency in the administration of the TRICARE program, to include the reduction of headquarters and redundant management layers, and maximizing efficiency in the claims processing system;(12) other improvements in the efficiency of the military health care system; and(13) any other matters the Secretary considers appropriate to improve the efficiency and quality of military health care benefits.