lesser payments for the beneficiary) would extend for 1 year following the member's death. In the case of special benefits under the so-called handicapped program, benefits would continue until a dependent otherwise loses his eligibility under the program. The bill's provisions would cover benefits for the surviving dependents of members whose death occurred on or after January 1, 1967.

Under the Military Medical Benefits Amendments of 1966 (Public Law 89-614), a special program was established, effective January 1, 1967, under which the mentally retarded or physically handicapped spouses and children of active duty members of the uniformed services may receive training, rehabilitation, special education, and institutional care, with the Government paying the major share of the costs involved. All benefits under the program, however, terminate when the member's status ceases to be that of an active duty member. (No benefits under this special program are authorized for the dependents of retired and deceased members.)

The statute cited above greatly expanded the health care program originally authorized in 1956 under the Dependents' Medical Care Act. Among other things, it added retired members and their dependents (and the dependents of deceased members) to the categories eligible under the CHAMPUS, but with a different cost-sharing arrangement than the one applicable to the dependents of active duty members. When an active duty member dies, his surviving dependents continue to be eligible for benefits under the CHAMPUS (other than benefits under the special program referred to above for the retarded and handicapped), but under a different cost-sharing arrangement. For hospitalization, active duty dependents are required to pay the first $25 of all the costs in connection therewith or $1.75 per day, whichever is greater. For civilian outpatient care under the CHAMPUS, an active duty dependent must meet an annual deductible of $50, after which the Government will pay 80 percent of all charges for the remaining part of a fiscal year. On the day following the death of an active duty member and for any subsequent period of civilian hospitalization, his surviving dependents would be required to pay 25 percent of the costs of the care obtained. The outpatient costsharing arrangement remains the same as for active duty dependents, except that the Government's share is 75 percent rather than 80 per

cent.

With respect to the special program under the CHAMPUS for the mentally retarded and physically handicapped, all benefits under that program cease as of midnight of the date of the member's death, discharge, or retirement.

Under the provisions of the bill, when an active duty member is killed in Vietnam, for example, and his wife is pregnant she would typically be able to obtain complete civilian maternity care for the entire pregnancy at the same cost to her ($25) that would have applied had her husband not been killed. Under present law she would be required to pay 25 percent of all the charges involved which would typically result in costs to her of approximately $150.

The bill would also permit the mentally retarded or physically handicapped spouse or child of a member killed in Vietnam, for example, to continue to receive benefits under the special program for such persons, with the same cost-sharing arrangements that applied

before the member's death. Benefits would continue until the survivor lost eligibility for some reason other than the member's death.

The Department of Defense has considered the bill and the financial hardships to certain surviving dependents which it seeks to overcome. We have concluded that the unintended results of present law place additional burdens on the dependents of men who have given their lives in the service of their country at a time when they are least able to bear them. The Department of Defense recommends the enactment of H.R. 18673.

COST AND BUDGET DATA

Preliminary estimates indicate that the enactment of H.R. 18673 would result in additional cost to the Government for fiscal year 1969 of approximately $165,000.

The Bureau of the Budget advises that, from the standpoint of the administration's program, there is no objection to the presentation of this report for the consideration of the committee.

Sincerely,

L. NIEDERLEHNER, Acting General Counsel.

CHANGES IN EXISTING LAW

In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, there is herewith printed in parallel columns the text of provisions of existing law which would be repealed or amended by the various provisions of the bill as reported:

*

THE BILL AS REPORTED

§ 1079. Contracts for medical care for spouses and chil-
dren: plans

(a) To assure that medical care is available for spouses
and children of members of the uniformed services who
are on active duty for a period of more than thirty days,
the Secretary of Defense, after consulting with the Secre-
tary of Health, Education, and Welfare, shall contract,
under the authority of this section, for medical care for
those persons under such insurance, medical service, or
health plans as he considers appropriate. The types of
health care authorized under this section shall be the same
as those provided under section 1076 of this title, except
that:

(1) with respect to dental care, only that care re-
quired as a necessary adjunct to medical or surgical
treatment may be provided;

(2) routine physical examinations and immunizations may only be provided when required in the case of dependents who are traveling outside the United States as a result of a member's duty assignment and

Be it enacted by the Senate and House of Representa-
tires of the United States of America in Congress assem-
bled, That chapter 55 of title 10, United States Code, is
amended as follows:

(1) by adding the following new subsection at the
end of section 1079:

"(g) When a member dies while he is eligible for re-
ceipt of hostile-fire pay under section 310 of title 37,
United States Code, or from illness or injury incurred
while eligible for such pay, his dependents who are re-
ceiving benefits under a plan covered by subsection (d) of
this section shall continue to be eligible for such benefits
until their eligibility is otherwise terminated."

H. Rept. 1835

(b) Plans covered by subsection (a) shall include provisions for payment by the patient of the following

amounts:

EXISTING LAW

(1) Diagnosis.

THE BILL AS REPORTED