5-23-05, House Agreed to Bill by Voice Vote
Referred to Senate

May 24, 2005

Received; read twice and referred to the Committee on Veterans' Affairs

To amend the Servicemembers Civil Relief Act to limit premium increases on reinstated health insurance on servicemembers who are released from active military service, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Servicemembers' Health Insurance Protection Act of 2005'.

SEC. 2. LIMITATION ON PREMIUM INCREASES FOR REINSTATED HEALTH INSURANCE OF SERVICEMEMBERS RELEASED FROM ACTIVE MILITARY SERVICE.

(a) Premium Protection- Section 704 of the Servicemembers Civil Relief Act (50 U.S.C. App. 594) is amended by adding at the end the following new subsection:

`(e) Limitation on Premium Increases-

`(1) PREMIUM PROTECTION- The amount of the premium for health insurance coverage that was terminated by a servicemember and required to be reinstated under subsection (a) may not be increased, for the balance of the period for which coverage would have been continued had the coverage not been terminated, to an amount greater than the amount chargeable for such coverage before the termination.

`(2) INCREASES OF GENERAL APPLICABILITY NOT PRECLUDED- Paragraph (1) does not prevent an increase in premium to the extent of any general increase in the premiums charged by the carrier of the health care insurance for the same health insurance coverage for persons similarly covered by such insurance during the period between the termination and the reinstatement.'.

(b) Technical Amendment- Subsection (b)(3) of such section is amended by striking `if the' and inserting `in a case in which the'.

SEC. 3. PRESERVATION OF EMPLOYER-SPONSORED HEALTH PLAN COVERAGE FOR CERTAIN RESERVE-COMPONENT MEMBERS WHO ACQUIRE TRICARE ELIGIBILITY.

(a) Continuation of Coverage- Subsection (a)(1) of section 4317 of title 38, United States Code, is amended by inserting after `by reason of service in the uniformed services,' the following: `or such person becomes eligible for medical and dental care under chapter 55 of title 10 by reason of subsection (d) of section 1074 of that title,'.

(b) Reinstatement of Coverage- Subsection (b) of such section is amended--

(1) in paragraph (1)--

(A) by inserting after `by reason of service in the uniformed services,' the following: `or by reason of the person's having become eligible for medical and dental care under chapter 55 of title 10 by reason of subsection (d) of section 1074 of that title,'; and

(B) by inserting `or eligibility' before the period at the end of the first sentence; and

(2) by adding at the end the following new paragraph:

`(3) In the case of a person whose coverage under a health plan is terminated by reason of the person having become eligible for medical and dental care under chapter 55 of title 10 by reason of subsection (d) of section 1074 of that title but who subsequently does not commence a period of active duty under the order to active duty that established such eligibility because the order is canceled before such active duty commences, the provisions of paragraph (1) relating to any exclusion or waiting period in connection with the reinstatement of coverage under a health plan shall apply to such person's continued employment, upon the termination of such eligibility for medical and dental care under chapter 55 of title 10 that is incident to the cancellation of such order, in the same manner as if the person had become reemployed upon such termination of eligibility.'.

SEC. 4. TECHNICAL CORRECTIONS TO VETERANS BENEFITS IMPROVEMENT ACT OF 2004.

(a) Corrections- Section 2101 of title 38, United States Code, as amended by section 401 of the Veterans

Benefits Improvement Act of 2004 (Public Law 108-454; 118 Stat. 3614), is amended--

(1) by redesignating subsection (c) as subsection (d);

(2) by inserting after subsection (b) a new subsection (c) consisting of the text of subsection (c) of such section 2101 as in effect immediately before the enactment of such Act, modified--

(A) in paragraph (1)--

(i) in the first sentence, by striking `paragraph (1), (2), or (3)' and inserting `subparagraph (A), (B), (C), or (D) of paragraph (2)'; and

(ii) in the second sentence, by striking `the second sentence' and inserting `paragraph (3)'; and

(B) in paragraph (2)--

(i) in the first sentence, by striking `paragraph (1)' and inserting `paragraph (2)'; and

(ii) in the second sentence, by striking `paragraph (2)' and inserting `paragraph (3)'; and

(3) in subsection (a)(3), by striking `subsection (c)' in the matter preceding subparagraph (A) and inserting `subsection (d)'.

(b) Effective Date- The amendments made by subsection (a) shall take effect as of December 10, 2004, as if enacted immediately after the enactment of the Veterans Benefits Improvement Act of 2004 on that date.

SEC. 5. NOTIFICATION TO MEMBER'S SPOUSE OR NEXT OF KIN OF CERTAIN ELECTIONS UNDER SERVICEMEMBERS' GROUP LIFE INSURANCE PROGRAM.

(a) Repeal- Subsections (f) and (g) of section 1012 of division A of the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief Act, 2005 (Public Law 109-13), and the amendments made by those subsections, are repealed, and sections 1967 and 1970 of title 38, United States Code, shall be applied as if those subsections had not been enacted.

(b) Notification Required- Section 1967 of title 38, United States Code, is amended by adding at the end the following new subsection:

`(f)(1)(A) Whenever a member who is eligible for insurance under this subchapter executes a life insurance option specified in subparagraph (B), the Secretary concerned shall notify the member's spouse or, if the member is unmarried, the member's next of kin, in writing, of the execution of that option.

`(B) A life insurance option referred to in subparagraph (A) is any of the following:

`(i) An election under subsection (a)(2)(A) not to be insured under this subchapter.

`(ii) An election under subsection (a)(3)(B) for insurance of the member in an amount that is less than the maximum amount provided under subsection (a)(3)(A)(i).

`(iii) An application under subsection (c) for insurance coverage under this subchapter or for a change in the amount of such insurance coverage.

`(iv) In the case of a married member, a designation under section 1970(a) of this title of any person other than the spouse or a child of the member as the beneficiary of the member for any amount of insurance under this subchapter.

`(2) Whenever an unmarried member who is eligible for insurance under this subchapter marries, the Secretary concerned shall notify the member's spouse in writing as to whether the member is insured under this subchapter. In the case of a member who is so insured, the Secretary shall include with such notification--

`(A) if the member has made an election described in paragraph (1)(B)(ii), notice that the amount of such insurance is less than the maximum amount provided under subsection (a)(3)(A)(i); and

`(B) if the member has designated a beneficiary other than the spouse or a child of the member for any amount of such insurance, notice that such a designation has been made.

`(3)(A) Notification of a spouse under paragraph (1) or (2), or of any other person under paragraph (1), for purposes of this subsection shall consist of a good faith effort to provide information to the spouse or other person at the last address of the spouse or other person known to the Secretary concerned.

`(B) Failure to provide such notification, or to provide such notification in a timely manner, does not affect

the validity of any life insurance option referred to in paragraph (1)(B).'.

Passed the House of Representatives May 23, 2005.

Attest:

JEFF TRANDAHL,

Clerk.

END