Page:United States Statutes at Large Volume 100 Part 5.djvu/425

 PUBLIC LAW 99-661—NOV. 14, 1986

100 STAT. 3899

(A) in the case of inpatient treatments, after September 30, 1987; and (B) in the case of outpatient treatments, after September 30, 1988. SEC. 702. CHAMPUS REFORM INITIATIVE (a) DEMONSTRATION PROJECT.—(1) The Secretary of Defense shall conduct a project designed to demonstrate the feasibility of improving the effectiveness of the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) through the competitive selection of contractors to financially underwrite the delivery of health care services under the program. (2) The demonstration project required by paragraph (1)— (A) shall begin not later than September 30, 1988, and continue for not less than one year; (B) shall include not more than one-third of covered beneficiaries; and (C) shall include a health care enrollment system that meets the requirements specified in section 1099 of title 10, United States Code (as added by section 701(a)(1)). (3)(A) The Secretary shall submit to the Committees on Armed Services of the Senate and House of Representatives a report on the development of the demonstration project required by paragraph (1). Such report shall include— (i) a description of the scope and structure of the project; (ii) an estimate of the costs of the care to be provided under the project; and (iii) a description of the health care enrollment system included in the project. (B) The report required by subparagraph (A) shall be submitted— (i) not later than 60 days before the initiation of the project, if the project is to be restricted to a contiguous area of the United States; or (ii) not later than 60 days before a solicitation for bids or proposals with respect to such project is issued, if the project will not be restricted to a contiguous area of the United States.

10 USC 1073 note. Contracts.

Reports

(b) STUDY OF HEALTH CARE ALTERNATIVES.—(1) The demonstration

project required by subsection (a)(1) shall include a study of— (A) methods to guarantee the maintenance of competition among providers of health care to persons under the jurisdiction of the Secretary; (B) the merits of the use of a voucher system or a fee schedule for provision of health care to such persons; and (C) methods to guarantee that community hospitals are given Hospitals. equal consideration with other health care providers for provi- Contracts. sion of health care services under contracts with the Department of Defense. (2) The Secretary shall submit to Congress a report discussing the Reports. matters evaluated in the study required by paragraph (1) before the end of the 90-day period beginning on the date of the enactment of this Act. (c) PHASED IMPLEMENTATION OF CHAMPUS REFORM INITIATIVE.—

(1) The Secretary of Defense may proceed with implementation of the CHAMPUS reform initiative, to be carried out in two phases during a period of not less than two years, if—

�