§1113 Payments from the Fund

Summary

The Fund must pay the costs of retiree health care programs for members or former members of participating uniformed services who get retired or retainer pay and are eligible for Medicare, and for their dependents who are Medicare-eligible. The money in the Fund can be used for those payments. The Secretary of Defense can move money from the Fund into the proper DoD or other agency budget accounts as needed to pay those costs, including program administration. Money moved becomes part of the receiving account and follows its rules and time limits. If the money is not needed, it can be moved back. A move into or back from an account must happen no later than the end of the second fiscal year after the fiscal year when that account first became available to spend. The Secretary must create rules for how to calculate transfer amounts, which can use the share of Medicare-eligible care compared to total DoD care. The rules must be sent to the Comptroller General at least 60 days before they take effect, and the Comptroller General must report within 30 days to the Secretary and Congress about whether the rules are adequate. If the Secretary makes an agreement under section 1111(c), the Secretary may do these actions for the other service’s programs too.