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FULL COMMITTEE CONSIDERATION OF H.R. 14088, TO AMEND
CHAPTER 55 OF TITLE 10, UNITED STATES CODE, TO AUTHORIZE
AN IMPROVED HEALTH BENEFITS PROGRAM FOR RETIRED
MEMBERS AND MEMBERS OF THE UNIFORMED SERVICES AND
THEIR DEPENDENTS, AND FOR OTHER PURPOSES; AND H.R.
12617, TO AMEND THE ACT PROVIDING FOR THE ECONOMIC AND
SOCIAL DEVELOPMENT IN THE RYUKYU ISLANDS

HOUSE OF REPRESENTATIVES,
COMMITTEE ON ARMED SERVICES,
Washington, D.C., March 30, 1966.

The committee met, at 10:40 a.m., the Honorable Philip J. Philbin presiding.

Mr. PHILBIN. The committee will come to order.

Subcommittee No. 1 had to hold a very important hearing this morning and hence we weren't able to get started at our regular hour which we regret, but we will now proceed to consider the matters coming before the committee this morning.

Mr. Hébert, do you have a report to make to the committee?

Mr. HÉBERT. Yes. I have a report to make to the committee from Subcommittee No. 2 on H.R. 13582, H.R. 13583 introduced by Mr. Rivers, and H.R. 9271 introduced by myself. These involve extension of medicare to the active duty personnel dependents and retired dependents, and also recognizes the necessity for giving relief to the retarded children of service people.

The committee held very thorough hearings, and in depth, and I would ask that Mr. Slatinshek read our report, Mr. Chairman, read it as though I am reading it.

Mr. SLATINSHEK. This is Mr. Hébert's report of the activities of Subcommittee No. 2.

Members of the committee, Subcommittee No. 2 met on March 24, 25, 28, and 29, for the purpose of considering proposed changes to the medicare program of the uniformed services.

These legislative changes were reflected in three bills considered by the subcommittee. These bills and the manner in which they would affect the medicare programs of the uniformed services can be briefly described as follows:

H.R. 13582, would permit a general expansion of medical care benefits available to the dependents of active duty personnel in uniformed services facilities and would also permit, for the first time, outpatient care for dependents at civilian medical facilities.

H.R. 13583, would authorize a program of assured medical care for retired members of the uniformed services and their dependents. (6305)

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This program would, for practical purposes, parallel that provided the families of active duty members of the uniformed services.

H.R. 9271, would authorize a specific program for the mentally and physically handicapped children of active duty members of the uniformed services. This program for the care, training, and special education of handicapped children is, in my judgment, particularly important since there are more than 100,000 handicapped children in families of personnel presently on active duty.

HEARINGS

The hearings conducted by the subcommittee resulted in the receipt of testimony from representatives of the Department of Defense and all of the uniformed services. The subcommittee also received testimony from the Department of Health, Education, and Welfare, the Retired Officers Association, the Fleet Reserve Association, various other veterans' groups, representatives of the Retarded Children's Association, as well as representation from both the profit and nonprofit segments of the health insurance industry.

As a consequence, the subcommittee also gave appropriate congress, all of whom emphasized the urgent requirement for an expansion and liberalization of the health benefits program of the uniformed services.

As a consequence, the subcommittee also gave appropriate consideration to H.R. 279 and H.R. 1525, bills sponsored by Congressman Bennett and H.R. 1697, a bill sponsored by Congressman Gubser.

In other words, despite the relatively short period of hearings held by the subcommittee, the subject matter of this legislation was given intensive consideration and the end product gave full consideration to the views of every party affected by the proposed changes. Department of Defense recommendations:

The legislation before you today, H.R. 14088 is a consolidation of the three bills considered by the subcommittee. The subcommittee was of the opinion that since all of the changes proposed are in one way or another, interrelated, they should properly be consolidated into one legislative package.

The bill reported out by the subcommittee, for practical purposes, incorporates all the major recommendations made by the Department

of Defense.

Briefly, these recommendations were as follows:

1. That the uniformed services be authorized to provide the same level of health benefits to the dependents of active duty personnel and to retired members, and their dependents as are presently available to the families of Federal employees under the provisions of the Federal employees' health benefits program.

2. That the cost for these health benefits in the case of dependents of active duty personnel would be paid for by a flat 20-percent charge for outpatient care and the current existing charge for inpatient hospital care; that is, $25 per admission, or $1.75 per day, whichever is the greater.

3. That the charge to retired members and their dependents for the health benefit program be based upon a flat 25-percent charge for both inpatient and outpatient care.

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