HOUSE VETERANS' AFFAIRS COMMITTEE HELD MARK UP

H.R. 2046, The Servicemembers Health Insurance Protection Act of 2005  

Washington, D.C. – Today, Chairman Buyer of the House Committee on Veterans’ Affairs marked up H.R. 2046, The Servicemembers Health Insurance Protection (SHIP) Act of 2005.  The approved bill should go to the house floor before Memorial Day.  The bill amends the Servicemembers Civil Relief Act (SCRA) and the Uniformed Services Employment and Reemployment Rights Act (USERRA) to limit premium increases on reinstated health insurance coverage of servicemembers who are released from active duty after mobilization.  It also preserves employer-sponsored health plan coverage for certain reserve-component members who acquire TRICARE coverage in replacement of their health insurance prior to activation.   

“We get to do good,” said Chairman Buyer of the Committee’s work for veterans.  “These improvements in our laws will further protect members of the National Guard and Reserve who so willingly make personal sacrifices in service to our nation.” 

The Chairman expressed appreciation for the bipartisan work done by the Committee on this legislation, which had strong support throughout its membership.  

"This measure is intended to improve the quality of life of our servicemembers, veterans and military families.  They deserve nothing less than our best efforts.  I am pleased the Committee is acting to ease the transition process for our returning servicemembers by requiring immediate reinstatement of employer-sponsored health insurance and prohibiting any undue premium increases,” said Ranking Member, Lane Evans.   

"This legislation will correct an inequity that many National Guardsmen and Reservists are facing upon return from overseas deployments.  As the military increasingly relies upon the Guard and Reserve to perform lengthy tours of duty, we should make certain that they are not penalized for their service when they return to civilian life,” said Carl Blake, Associate Legislative Director of The Paralyzed Veterans of America 

Original cosponsors to H.R. 2046 include Mr. Evans, Ranking Minority Member of House Veterans’ Affairs Committee; Mr. Boozman, Chairman of the Committee’s Economic Opportunity Subcommittee; and Ms. Herseth, the Subcommittee’s Ranking Minority Member.  

Background: Frequently, members of the National Guard and Reserve drop their health insurance coverage on their mobilization, as they and their families become eligible for the Department of Defense TRICARE health care coverage.  Under SCRA, a servicemember ordered to active duty who terminates health insurance coverage is entitled to reinstatement of coverage after returning to civilian life, but the SCRA does not currently protect the servicemember against a premium increase upon reinstatement.  This measure would prohibit a premium increase upon reinstatement if it affects only the individual servicemember, but it would allow general increases in premiums if they apply to other persons with similar coverage. 

Also, under a change to TRICARE eligibility in 2003, members of the National Guard and Reserve are allowed to begin their TRICARE coverage in advance of actually reporting for active duty.  However, under existing provisions of the USERRA, if reservists elect TRICARE coverage prior to departing for active duty, they may lose their right to reinstatement of employer sponsored health insurance coverage.  This measure would conform to the USERRA health care insurance reinstatement right to the recent change in TRICARE eligibility and ensure no loss of coverage.