Servicemembers Health Insurance Protection Act of 2005

SERVICEMEMBERS HEALTH INSURANCE PROTECTION ACT OF 2005 -- (House of Representatives - May 23, 2005)

Mr. BOOZMAN. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2046) 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, as amended.

The Clerk read as follows:
H.R. 2046

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

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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).''.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Arkansas (Mr. Boozman) and the gentlewoman from South Dakota (Ms. Herseth) each will control 20 minutes.

The Chair recognizes the gentleman from Arkansas (Mr. Boozman).

Mr. BOOZMAN. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, H.R. 2046, as amended, the Servicemembers' Health Insurance Protection Act of 2005, provides several improvements to the Servicemembers' Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act.

Mr. Speaker, this is a bipartisan bill and was passed by unanimous consent in both the Subcommittee on Economic Opportunity and the full Committee on Veterans Affairs. I am delighted to bring this important piece of legislation before the House.

The bill has several components. Section 2 of the bill would amend section 704 of the Servicemembers Civil Relief Act, otherwise known as the SCRA, to limit premium increases on reinstated health insurance coverage of servicemembers who are released from active duty. Section 704 provides that a servicemember who is ordered to active duty is entitled, upon release, to reinstatement of any health insurance in effect on the day before actually beginning active duty.

This amendment would prohibit any increase in individual health insurance premiums from the period of time for which coverage would have been continued, had the coverage not been terminated due to military service. However, a health care insurance carrier would be allowed to increase the servicemember's premium if the general premium increase was implemented for all persons similarly covered during the period between the termination and the reinstatement.

Section 704 of the SCRA currently contains no express provision regarding premium increases. This amendment to the SCRA would ensure that servicemembers are treated fairly upon reinstatement of their health insurance and are not discouraged by premium increases from exercising their reinstatement entitlement rights.

Section 3 of the bill would amend section 4317 of the Uniformed Services Employment and Reemployment Rights Act, better known as USERRA, to preserve employer-sponsored health plan reinstatement rights for certain Reservists who, prior to entering active duty, acquire TRICARE coverage under Title X. This TRICARE option only became available by an amendment to the TRICARE authority enacted in the National Defense Authorization Act for fiscal year 2004 on November 24, 2003.

Under existing law, an employer is only required to provide employees returning from active duty with the same employer-sponsored health benefits they had when they reported for active duty. Unless the employer voluntarily chooses to allow immediate reinstatement of coverage, an employee would be required to wait for the next open enrollment opportunity provided by the employer.

Section 3 would confirm the health insurance reinstatement rights under USERRA to the change in TRICARE. This amendment to section 4317 of USERRA would protect both employees who did not actually report because

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of cancellation of active duty orders and employees who served a period of active duty.

Section 4 of the bill would make a technical correction to the Public Law 108-454 regarding the VA's adaptive housing grant program.

Finally, section 5 of the bill would make a correction to the servicemembers' group life insurance provisions of H.R. 1268 regarding spousal notification for servicemembers' elections of coverage and designation of beneficiaries.

Mr. Speaker, I reserve the balance of my time.

Ms. HERSETH. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in strong support of H.R. 2046, as amended, the Servicemembers' Health Insurance Protection Act of 2005.

I would like to thank the gentleman from Indiana (Chairman Buyer) and the gentleman from Illinois (Ranking Member Evans) for their leadership on the full committee and for their good work in shepherding this bill to the floor today. I would also like to personally thank the gentleman from Arkansas (Chairman BOOZMAN) of the Subcommittee on Economic Opportunity for his steady bipartisan leadership on the subcommittee.

Mr. Speaker, I support this legislation and am an original cosponsor of the bill. This legislation is aimed at improving the quality of life of our servicemembers, veterans, and military families. It is very important for the increasingly activated National Guard and Reserve components, our citizen-soldiers who leave behind their families, employment, and comforts of home to defend this Nation.

The State of South Dakota has had and continues to have National Guard units activated and serving in the Middle East. This legislation will protect them and their families as they return home to civilian life and seek to reinstate their private or employer-sponsored health insurance coverage.

Mr. Speaker, this legislation also includes two corrective provisions, as the gentleman from Arkansas (Chairman BOOZMAN) described, which amend and improve the administration of the disabled veteran adaptive housing grant program and the servicemembers' group life insurance program respectively. I am pleased we were able to include these important corrective measures.

Mr. Speaker, the servicemembers, military families and veterans of this Nation have earned and deserve our best efforts here in Congress. Indeed, they deserve so much more. I am proud to support this legislation, and I am confident it will benefit the veterans of my home State of South Dakota, as well as the other veterans across the country.

I fully support H.R. 2046, as amended, and urge my colleagues to do the same.

Mr. Speaker, I reserve the balance of my time.

Mr. BOOZMAN. Mr. Speaker, I yield 3 minutes to the gentlewoman from Florida (Ms. Ginny Brown-Waite).

Ms. GINNY BROWN-WAITE of Florida. Mr. Speaker, I rise today to thank our Committee on Veterans' Affairs Chairman, the gentleman from Indiana (Chairman Buyer), as well as the gentleman from California (Mr. Filner), the Ranking Member, the gentleman from Illinois (Mr. Evans), and the subcommittee chairman, the gentleman from Arkansas (Mr. Boozman) for giving Congress the opportunity to vote on the Servicemembers' Health Insurance Protection Act.

Today, when a man or a woman makes a decision to serve their country through the Armed Forces, most have to give up their employer-sponsored health care. Although TRICARE insures these enlistees, in the eyes of their health care providers, they are technically without coverage until they return, and then they are subject to unfair premium increases as a ``new employee.'' America asks these young men and women to fight for our country, then we allow their insurance costs to increase when they return. How, many would ask, is this at all fair?

The bill that we have before us, H.R. 2046, specifies that when a person enlists in the military, they will return to the same low-cost, employer-sponsored health insurance that they had before their absence. This common-sense legislation enjoyed unanimous support from Committee on Veterans' Affairs members, is supported by the Department of Defense, Department of Labor, and veterans' groups around the country.

I look forward to voting in favor of H.R. 2046 and I encourage my colleagues to do the same. Certainly those members of the military, whether it is active or the Reserve, when we have so many people serving today in the war on terrorism, they deserve to have this kind of legislation passed so that they can come back home and again provide the kind of health care insurance that their family needs.

Ms. HERSETH. Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Evans), the ranking member of the Committee on Veterans' Affairs.

Mr. EVANS. Mr. Speaker, I rise in strong support of H.R. 2046, as amended. I would like to thank the gentleman from Indiana (Chairman Buyer) and the chairman and ranking member of the Subcommittee on Economic Opportunities, the gentleman from Arkansas (Mr. Boozman) and the gentlewoman from South Dakota (Ms. Herseth) for their hard work in bringing this legislation to the floor today.

Mr. Speaker, this has been a bipartisan effort. Let us keep it that way and get the job done for the veterans who deserve our help through the difficult times that they are facing. They face danger every day, and I am proud to represent them here in the United States House of Representatives. It is our responsibility to provide them the necessary benefits and protections as they serve this Nation.

Mr. Speaker, I urge my colleagues to support this legislation.

Mr. BOOZMAN. Mr. Speaker, I reserve the balance of my time.

Ms. HERSETH. Mr. Speaker, I yield 3 minutes to the gentleman from California (Mr. Filner).

Mr. FILNER. Mr. Speaker, I thank the gentlewoman for yielding me this time, and I thank the gentleman from Arkansas (Chairman BOOZMAN) for his great work on this very necessary item.

I too rise today in support of the Servicemembers' Health Insurance Protection Act of 2005, a bill that we have heard will assure the men and women in active service that their private health insurance premiums will not be increased, nor will reinstatement be delayed when they return from Iraq or Afghanistan. The last thing these servicemembers need while they are at war is to worry about the details of their life after service, and health insurance, of course, being one of the most important.

H.R. 2046 will ensure a smooth transition from health care under the military to health care in civilian life.

This bill has support from the veterans service organizations around the country, as well as our Department of Defense.

I think, as we have heard, in addition to the primary purpose of the bill, a technical change is included which will help many disabled veterans to use what is called their adaptive housing grant prior to their discharge from the military. This will expedite their release from hospitalization because they will not have to wait for changes to be made to their homes to accommodate their disability. This provision was inadvertently omitted when changes were made in 2004 in the Veterans Benefit Act, and I am glad that we are fixing this problem today.

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