CONDITIONS ON EXPANSION OF CHAMPUS REFORM INITIATIVE

SEC. 715. [10 U.S.C. 1073 note] CONDITIONS ON EXPANSION OF CHAMPUS REFORM INITIATIVE (a) Certification of Cost-Effectiveness.—The Secretary of Defense may not proceed with the proposed expansion of the CHAMPUS reform initiative underway in the States of California and Hawaii until not less than 90 days after the date on which the Secretary certifies to the Congress that— (1) such CHAMPUS reform initiative has been demonstrated to be more cost-effective than the Civilian Health and Medical Program of the Uniformed Services or any other health care demonstration program being conducted by the Secretary; (2) the contractor selected to underwrite the delivery of health care under the CHAMPUS reform initiative will accomplish the expansion without the disruption of services to beneficiaries under the Civilian Health and Medical Program of the Uniformed Services or delays in the processing of claims; and (3) such contractor is currently, and projected to remain, financially able to underwrite the CHAMPUS reform initiative. (b) Report on Certification.—Not later than 30 days after the date on which the Secretary of Defense submits the certification required by subsection (a), the Comptroller General of the United States and the Director of the Congressional Budget Office shall jointly submit to Congress a report evaluating such certification. (c) CHAMPUS Reform Initiative Defined.—For purposes of this section, the term “CHAMPUS reform initiative” has the meaning given that term in section 702(d)(1) of the Department of Defense Authorization Act for Fiscal Year 1987 (10 U.S.C. 1073 note). * * * * * * *