text: SECTION 1. EXPANSION OF FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM TO 
                INCLUDE RETIRED MEMBERS AND DEPENDENTS WHO ARE MEDICARE 
                ELIGIBLE.
  
      (a) Federal Employee Health Benefits Program Option.--The Secretary 
  of Defense, after consulting with the other administering Secretaries 
  under chapter 55 of title 10, United States Code, shall enter into an 
  agreement with the Office of Personnel Management under which certain 
  persons are offered enrollment in a health benefits plan under chapter 
  89 of title 5, United States Code, in lieu of receiving care in 
  treatment facilities of the uniformed services or through the Civilian 
  Health and Medical Program of the Uniformed Services or the TRICARE 
  program. The agreement may provide for enrollment limitations if the 
  Office of Personnel Management determines that the limitations are 
  necessary to allow for adequate planning for access for services under 
  chapter 89 of title 5, United States Code.
      (b) Eligible Persons.--(1) The following persons shall be eligible 
  for enrollment under this section:
              (A) A member or former member of the uniformed services 
          described in section 1074(b) of title 10, United States Code, 
          who is or becomes entitled to hospital insurance benefits under 
          part A of title XVIII of the Social Security Act (42 U.S.C. 
          1395c et seq.).
              (B) A dependent of a person described in subparagraph (A) 
          if the dependent is otherwise eligible for health care under 
          chapter 55 of title 10, United States Code and is or becomes 
          entitled to hospital insurance benefits under part A of title 
          XVIII of the Social Security Act (42 U.S.C. 1395c et seq.).
      (2) Persons described in paragraph (1) shall not be required to 
  satisfy any eligibility criteria specified in chapter 89 of title 5, 
  United States Code, as a condition for enrollment in a health benefits 
  plan offered through the Federal Employee Health Benefits program 
  pursuant to subsection (a).
      (c) Contributions.--(1) In the case of a person described in 
  subsection (b) who enrolls in a health benefits plan offered through 
  the Federal Employee Health Benefits program pursuant to subsection 
  (a), the administering Secretary concerned shall be responsible for 
  Government contributions that the Office of Personnel Management 
  determines are necessary to cover all costs in excess of beneficiary 
  contributions under paragraph (2).
      (2) The contribution required from an enrolled person under this 
  section shall be equal to the amount that would be withheld from the 
  pay of a similarly situated Federal employee who enrolls in a health 
  benefits plan under chapter 89 of title 5, United States Code.
      (d) Management of Participation.--The authority responsible for 
  approving retired or retainer pay or equivalent pay in the case of a 
  member or former member shall manage the participation of the member or 
  former member, and dependents of the member or former member, who 
  enroll in a health benefits plan offered through the Federal Employee 
  Health Benefits program pursuant to subsection (a). The Office of 
  Personnel Management shall maintain separate risk pools for persons 
  described in subsection (b) until such time as the Director of the 
  Office of Personnel Management determines that complete inclusion 
  chapter 89 of title 5, United States Code, of persons described in 
  subsection (b) will not adversely affect Federal employees and 
  annuitants enrolled in health benefits plans under such chapter.
      (e) Effect of Cancellation.--The cancellation by a person described 
  in subsection (b) of coverage under the Federal Employee Health 
  Benefits program shall be irrevocable for purposes of this section.
      (f) Reporting Requirements.--Not later than November 1 of each 
  year, the Secretary of Defense and the Director of the Office of 
  Personnel Management shall jointly submit a report to Congress 
  describing the provision of health care services to persons under this 
  section during the preceding fiscal year. The report shall address or 
  contain the following:
              (1) The number of persons enrolled in health benefits plans 
          offered through the Federal Employee Health Benefits program 
          pursuant to subsection (a), both in terms of total number and 
          as a percentage of all persons receiving health care through 
          the health care system of the uniformed services.
              (2) The out-of-pocket cost to enrollees under such health 
          benefits plans.
              (3) The cost to the Government (including the Department of 
          Defense, the Department of Transportation, and the Department 
          of Health and Human Services) of providing care under such 
          health benefits plans.
              (4) A comparison of the costs determined under paragraphs 
          (2) and (3) and the costs that would have otherwise been 
          incurred by the Government and enrollees under alternative 
          health care options available to the administering Secretaries.
              (5) The effect of this section on the cost, access, and 
          utilization rates of other health care options under the health 
          care system of the uniformed services.
      (g) Time for Option.--The Secretary of Defense shall begin to offer 
  the health benefits option under subsection (a) not later than October 
  1, 1997.
      (h) Conforming Amendments.--Chapter 89 of title 5, United States 
  Code, is amended--
              (1) in section 8905--
                      (A) by redesignating subsections (d) through (f) as 
                  subsections (e) through (g), respectively; and
                      (B) by inserting after subsection (c) the following 
                  new subsection:
      ``(d) An individual whom the Secretary of Defense determines is an 
  eligible person under the special authority provided to the Secretary 
  may enroll in a health benefits plan under this chapter in accordance 
  with the agreement between the Secretary and the Office and applicable 
  regulations under this chapter.'';
              (2) in section 8906(b)--
                      (A) in paragraph (1), by striking ``paragraphs (2) 
                  and (3)'' and inserting in lieu thereof ``paragraphs 
                  (2), (3), and (4)''; and
                      (B) by adding at the end the following new 
                  paragraph:
      ``(4) In the case of individuals who enroll in a health plan in 
  accordance with section 8905(d) of this title, the Government 
  contribution shall be determined in accordance with the agreement 
  between the Secretary and the Office.''; and
              (3) in section 8906(g)--
                      (A) in paragraph (1), by striking ``paragraph (2)'' 
                  and inserting in lieu thereof ``paragraphs (2) and 
                  (3)''; and
                      (B) by adding at the end the following new 
                  paragraph:
      ``(3) The Government contribution described in subsection (b)(4) 
  for beneficiaries who enroll in accordance with section 8905(d) of this 
  title shall be paid in accordance with the agreement between the 
  Secretary and the Office.''.
target: Directs the Secretary of Defense to enter into an agreement with the Office of Personnel Management (OPM) under which current or former military personnel who are or become entitled to hospital insurance benefits under part A of title XVIII (Medicare) of the Social Security Act are offered enrollment in a Federal employees health benefits plan in lieu of receiving care in military treatment facilities or through the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS).  Allows such enrollment for any dependent of such individual if the dependent is entitled to health care under CHAMPUS and is or becomes entitled to hospital insurance benefits under Medicare.  Outlines provisions concerning:  (1) contributions for such coverage; (2) management of member participation; and (3) cancellation of coverage.  Directs the Secretary and the OPM Director to report jointly to the Congress each year on the provision of such services to eligible persons during the preceding fiscal year.  Requires the Secretary to offer such health benefits option no later than October 1, 1997.
feat_title: To permit Medicare-eligible retired members of the Armed Forces and their Medicare-eligible dependents to enroll in the Federal Employees Health Benefits program.