Pilot program to assist certain members of the Armed Forces and dependents with additional supplemental coverage relating to cancer

(a) Establishment Not later than September 30, 2026, the Secretary of Defense shall establish a pilot program under which a covered individual may obtain supplemental insurance for noncovered expenses under a fixed indemnity supplemental benefit plan described in subsection (b)(1). (b)(1) (in this section referred to as the pilot program). (b) Agreement (1) In general In carrying out the pilot program under subsection (a), program, the Secretary shall enter into an agreement with not more fewer than two companies to each offer one or more fixed indemnity supplemental benefit plans that— (A) meet the requirements for a supplemental insurance plan under section 199.2 of title 32, Code of Federal Regulations, and the exception in exceptions under section 199.8(b)(4) of such title, as in effect on the date of the enactment of this Act; (B) are provided under a separate policy, certificate, or contract; (C) provide no coordination with any other health benefit plan; and (D) are designed to help participants pay noncovered expenses. (2) Duration An agreement entered into under paragraph (1) shall be for a period of at least not less than three years. (3) Requirements In entering into an agreement under paragraph (1) with a company, the Secretary— (A) may not select the such company unless the company to provide coverage in a State in which such company— (i) is licensed in each not licensed; and (ii) does not meet solvency requirements applicable to such State; (B) shall award the contract agreement based on the expertise of the such company; (C) shall negotiate the terms and conditions of the fixed indemnity supplemental benefit plan provided under the contract, agreement, including with respect to the ability of the company to communicate with individuals not enrolled in the plan and whether such communication may include information on other insurance products; (D) shall negotiate the cost of coverage with the company that will cover the participants who elect to enroll in such plan; (E) shall provide a method for verification of the eligibility of applicants and procedures for determination of eligibility; and (F) shall provide a method for payroll deduction of premiums. (4) Provision of information The Secretary shall provide information to covered individuals regarding the pilot program under subsection (a) by making available on the online portal of the TRICARE program the following information: (A) A notice of availability of a fixed indemnity supplemental benefit plan provided under the pilot program. (B) A description of how to enroll in such plan. (C) A description and explanation of the benefits provided under such plan. (D) A description of the costs to the individual through premiums and remittances to a company providing such plan. (c) Election To to enroll A covered individual may elect to enroll in a fixed indemnity supplemental benefit plan provided under the pilot program under subsection (a). program. (d) Limitations on authorization of appropriations None of the amounts authorized to be appropriated by this Act or otherwise made available for fiscal year 2026 or any fiscal year thereafter to carry out the pilot program may be used to subsidize the cost of a fixed indemnity supplemental benefit plan provided under the pilot program under subsection (a). program. (e) Treatment Preemption Section 199.17(a)(7)(i) of companies For purposes title 32, Code of Federal Regulations, as in effect on the date of the pilot program under subsection (a), companies selected to carry out the activities in subsection (b) shall not be considered contractors of the Federal Government. (f) Preemption The provisions enactment of this section Act, shall supersede apply to the laws of any State except with respect to State laws relating to licensing of an insurance company or plan solvency of such a company. (g) pilot program. (f) Report Not later than three two years after the date on which the pilot program under subsection (a) commences, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report regarding such the pilot program, including the following: (1) A description of the insurance products provided through a fixed indemnity supplemental benefit plan provided under the pilot program under subsection (a). program. (2) The number of covered individuals who enrolled in such a plan. (3) Feedback and examples of use cases by such individuals. (4) A determination by the Secretary with respect to whether such the pilot program should be made permanent. (h) (g) Sunset Unless the Secretary makes a determination under subsection (g)(4) (f)(4) to make the pilot program under subsection (a) permanent, the pilot program under subsection (a) shall terminate on the day that is five years after the date of the enactment of this Act. (i) (h) Definitions In this section: (1) The term covered individual means the following: (A) A member of the Army, Navy, Marine Corps, Air Force, or Space Force. (B) A dependent (as defined in section 1072 of title 10, United States Code) of such a member who is enrolled in the TRICARE program. (2) The term noncovered expense means, with respect to a covered individual, any expenses relating to the screening for and diagnosis and treatment of cancer that are not otherwise covered by the health care benefits the individuals individual receives under chapter 55 of title 10, United States Code. (3) The term State has the meaning given such that term in section 901 of title 32, United States Code. (4) The term TRICARE program has the meaning given that term in section 1072 of title 10, United States Code.