text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Veterans TRICARE Choice Act''.
  
  SEC. 2. COORDINATION BETWEEN TRICARE PROGRAM AND ELIGIBILITY TO MAKE 
                CONTRIBUTIONS TO HEALTH SAVINGS ACCOUNTS.
  
      (a) In General.--Section 223(c)(1)(B) of the Internal Revenue Code 
  of 1986 is amended by striking ``and'' at the end of clause (ii), by 
  striking the period at the end of clause (iii) and inserting ``, and'', 
  and by adding at the end the following new clause:
                              ``(iv) coverage under the TRICARE program 
                          under chapter 55 of title 10, United States 
                          Code, for any period with respect to which an 
                          election is in effect under section 1097d of 
                          such title providing that the individual is 
                          ineligible to be enrolled in (and receive 
                          benefits under) such program.''.
      (b) Provisions Relating to Election of Ineligibility Under 
  TRICARE.--
              (1) In general.--Chapter 55 of title 10, United States 
          Code, is amended by inserting after section 1097c the following 
          new section:
  ``Sec. 1097d. TRICARE program: Election of eligibility
      ``(a) Election.--A TRICARE-eligible individual may elect at any 
  time to be ineligible to enroll in (and receive any benefits under) the 
  TRICARE program.
      ``(b) Change of Election.--(1) If a TRICARE-eligible individual 
  makes an election under subsection (a), the TRICARE-eligible individual 
  may later elect to be eligible to enroll in the TRICARE program. An 
  election made under this subsection may be made only during a special 
  enrollment period.
      ``(2) The Secretary shall ensure that a TRICARE-eligible individual 
  who makes an election under subsection (a) may efficiently enroll in 
  the TRICARE program pursuant to an election under paragraph (1), 
  including by maintaining the individual, as appropriate, in the health 
  care enrollment system under section 1099 of this title in an inactive 
  manner.
      ``(c) Period of Election.--If a TRICARE-eligible individual makes 
  an election under subsection (a), such election shall be in effect 
  beginning on the date of such election and ending on the date that such 
  individual makes an election under subsection (b)(1) to enroll in the 
  TRICARE program.
      ``(d) Health Savings Account Participation.--(1) For provisions 
  allowing participation in a health savings account in connection with 
  coverage under a high deductible health plan during the period that the 
  election under subsection (a) is in effect, see section 
  223(c)(1)(B)(iv) of the Internal Revenue Code of 1986.
      ``(2) The Secretary shall submit to the Commissioner of Internal 
  Revenue the name of, and any other information that the Commissioner 
  may require with respect to, each TRICARE-eligible individual who makes 
  an election under subsection (a) or (b), not later than 90 days after 
  such election, for purposes of determining the eligibility of such 
  TRICARE-eligible individual for a health savings account described in 
  paragraph (1).
      ``(e) Records.--The Secretary shall ensure that a TRICARE-eligible 
  individual who makes an election under subsection (a) is maintained on 
  the Defense Enrollment Eligibility Reporting System, or successor 
  system, regardless of whether the individual is eligible for the 
  TRICARE program during the period of such election.
      ``(f) Annual Report.--Not later than 60 days after the end of each 
  fiscal year, the Secretary shall submit to the congressional defense 
  committees a report on elections by TRICARE-eligible individuals under 
  this section that includes the following:
              ``(1) The number of TRICARE-eligible individuals, as of the 
          date of the submittal of the report, who are ineligible to 
          enroll in (and receive any benefits under) the TRICARE program 
          pursuant to an election under subsection (a).
              ``(2) The number of TRICARE-eligible individuals who made 
          an election described under subsection (a) but, as of the date 
          of the submittal of the report, are enrolled in the TRICARE 
          program pursuant to a change of election under subsection (b).
      ``(g) Definitions.--In this section:
              ``(1) The term `TRICARE-eligible individual' means an 
          individual who is eligible to be a covered beneficiary entitled 
          to health care benefits under the TRICARE program (determined 
          without regard to this section).
              ``(2) The term `special enrollment period' means the period 
          in which a beneficiary under the Federal Employees Health 
          Benefits program under chapter 89 of title 5 may enroll in or 
          change a plan under such program by reason of a qualifying 
          event or during an open enrollment season. For purposes of this 
          section, such qualifying events shall also include events 
          determined appropriate by the Secretary of Defense, including 
          events relating to a member of the armed forces being ordered 
          to active duty.''.
              (2) Conforming amendment.--The table of sections at the 
          beginning of chapter 55 of such title is amended by inserting 
          after the item relating to section 1097c the following new 
          item:
  
  ``1097d. TRICARE program: Election of eligibility.''.
target: Veterans TRICARE Choice Act  Allows an individual who is eligible to participate in the TRICARE program (a Department of Defense [DOD] managed health care program) to: (1) elect to be ineligible to enroll in such program, (2) make tax deductible contributions to a health savings account during the period such individual elects to be ineligible for TRICARE coverage, and (3) enroll in the TRICARE program at a later date during a special enrollment period. Requires DOD to: (1) submit to the Internal Revenue Service information on each TRICARE-eligible individual who makes such election for purposes of determining such individual's eligibility for a health savings account; and (2) report to Congress, annually, on elections by TRICARE-eligible individuals under this Act.
feat_title: Veterans TRICARE Choice Act