HOUSE VETERANS' AFFAIRS SUBCOMMITTEE ON ECONOMIC OPPORTUNITY HELD MARK UP 

Washington, D.C. – Today, the Subcommittee on Economic Opportunity, chaired by Representative John Boozman (R-AR) marked up H.R. 2046, The Servicemembers Health Insurance Protection (SHIP) Act of 2005.  This 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; and preserve employer-sponsored health plan coverage for certain Reserve-component members who acquire TRICARE eligibility prior to activation.  This bill should be taken up by the full committee for mark up next week. 

“Since members of the Reserve Components play such an important role in today’s military, these important changes to the law will protect the members and their families from loss of coverage and unwarranted cost increases,” said Subcommittee Chairman John Boozman.   

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 upon their mobilization, because they and their families have become eligible for the Department of Defense TRICARE health care system.  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.  Again, 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 with the USERRA health care insurance reinstatement right to the recent change in TRICARE eligibility and ensure no loss of coverage.