---
kind: "section"
citation: "10 U.S.C. § 1097"
title: "10"
title_heading: "Armed Forces"
number: "1097"
heading: "Contracts for medical care for retirees, dependents, and survivors: alternative delivery of health care"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/1097"
units:
  - "Subtitle A — General Military Law"
  - "Part II — Personnel"
  - "Chapter 55 — Medical and Dental Care"
---

# §1097. Contracts for medical care for retirees, dependents, and survivors: alternative delivery of health care

- (a) **In General.—** The [Secretary](/usc/10/4951.md?p=3) of Defense, after consulting with the other [administering Secretaries](/usc/10/1072.md?p=3), may contract for the delivery of [health care](/usc/10/1072.md?p=10) to which [covered beneficiaries](/usc/10/1072.md?p=5) are entitled under this chapter. The [Secretary](/usc/10/4951.md?p=3) may enter into a contract under this section with any of the following:
  - (1) Health maintenance organizations.
  - (2) Preferred provider organizations.
  - (3) Individual providers, individual medical [facilities](/usc/10/2700.md?p=2), or insurers.
  - (4) Consortiums of such providers, [facilities](/usc/10/2700.md?p=2), or insurers.
- (b) **Scope of Coverage Under Health Care Plans.—** A contract entered into under this section may provide for the delivery of—
  - (1) selected [health care](/usc/10/1072.md?p=10) services;
  - (2) total [health care](/usc/10/1072.md?p=10) services for selected [covered beneficiaries](/usc/10/1072.md?p=5); or
  - (3) total [health care](/usc/10/1072.md?p=10) services for all [covered beneficiaries](/usc/10/1072.md?p=5) who reside in a geographical area designated by the [Secretary](/usc/10/4951.md?p=3).
- (c) **Coordination With Facilities of the Uniformed Services.—** The [Secretary](/usc/10/4951.md?p=3) of Defense may provide for the coordination of [health care](/usc/10/1072.md?p=10) services provided pursuant to any contract or agreement under this section with those services provided in medical treatment [facilities](/usc/10/2700.md?p=2) of the [uniformed services](/usc/10/1072.md?p=1). Subject to the availability of space and [facilities](/usc/10/2700.md?p=2) and the capabilities of the medical or dental staff, the [Secretary](/usc/10/4951.md?p=3) may not deny access to [facilities](/usc/10/2700.md?p=2) of the [uniformed services](/usc/10/1072.md?p=1) to a [covered beneficiary](/usc/10/1072.md?p=5) on the basis of whether the beneficiary enrolled or declined enrollment in any [program](/usc/10/2101.md?p=1) established under, or operating in connection with, any contract under this section. Notwithstanding the preferences established by sections [1074(b)](/usc/10/1074.md?p=b) and [1076](/usc/10/1076.md) of this title, the [Secretary](/usc/10/4951.md?p=3) shall, as an incentive for enrollment, establish reasonable preferences for services in [facilities](/usc/10/2700.md?p=2) of the [uniformed services](/usc/10/1072.md?p=1) for [covered beneficiaries](/usc/10/1072.md?p=5) enrolled in any [program](/usc/10/2101.md?p=1) established under, or operating in connection with, any contract under this section.
- (d) **Coordination With Other Health Care Programs.—** In the case of a [covered beneficiary](/usc/10/1072.md?p=5) who is enrolled in a managed [health care](/usc/10/1072.md?p=10) [program](/usc/10/2101.md?p=1) not operated under the authority of this chapter, the [Secretary](/usc/10/4951.md?p=3) may contract under this section with such other managed [health care](/usc/10/1072.md?p=10) [program](/usc/10/2101.md?p=1) for the purpose of coordinating the beneficiary’s dual entitlements under such [program](/usc/10/2101.md?p=1) and this chapter. A managed [health care](/usc/10/1072.md?p=10) [program](/usc/10/2101.md?p=1) with which arrangements may be made under this subsection [includes](/usc/10/101.md?p=g-4) any health maintenance organization, competitive medical plan, [health care](/usc/10/1072.md?p=10) prepayment plan, or other managed care [program](/usc/10/2101.md?p=1) recognized pursuant to regulations issued by the [Secretary](/usc/10/4951.md?p=3).
- (e) **Charges for Health Care.—**
  - (1) The [Secretary](/usc/10/4951.md?p=3) of Defense may prescribe by regulation a premium, deductible, copayment, or other charge for [health care](/usc/10/1072.md?p=10) provided under this section. In the case of contracts for [health care](/usc/10/1072.md?p=10) services under this section or [health care](/usc/10/1072.md?p=10) plans offered under [section 1099 of this title](/usc/10/1099.md) for which the [Secretary](/usc/10/4951.md?p=3) permits [covered beneficiaries](/usc/10/1072.md?p=5) who are covered by [section 1086 of this title](/usc/10/1086.md) and who participate in such contracts or plans to [pay](/usc/10/101.md?p=a-15) an enrollment fee in lieu of meeting the applicable deductible amount specified in [section 1086(b) of this title](/usc/10/1086.md?p=b), the [Secretary](/usc/10/4951.md?p=3) may establish the same (or a lower) enrollment fee for [covered beneficiaries](/usc/10/1072.md?p=5) described in [section 1086(d)(1) of this title](/usc/10/1086.md?p=d-1) who also participate in such contracts or plans. Without imposing additional costs on [covered beneficiaries](/usc/10/1072.md?p=5) who participate in contracts for [health care](/usc/10/1072.md?p=10) services under this section or [health care](/usc/10/1072.md?p=10) plans offered under [section 1099 of this title](/usc/10/1099.md), the [Secretary](/usc/10/4951.md?p=3) shall permit such [covered beneficiaries](/usc/10/1072.md?p=5) to [pay](/usc/10/101.md?p=a-15), on a quarterly basis, any enrollment fee required for such participation. Except as provided by [paragraph (2)](#e-2), a premium, deductible, copayment, or other charge prescribed by the [Secretary](/usc/10/4951.md?p=3) under this subsection may not be increased during the period beginning on April 1, 2006, and ending on September 30, 2011.
  - (2) Beginning October 1, 2012, the [Secretary](/usc/10/4951.md?p=3) of Defense may only increase in any year the annual enrollment fees described in [paragraph (1)](#e-1) by an amount equal to the percentage by which retired [pay](/usc/10/101.md?p=a-15) is increased under [section 1401a of this title](/usc/10/1401a.md).

## Source credit

(Added Pub. L. 99–661, div. A, title VII, § 701(a)(1), Nov. 14, 1986, 100 Stat. 3895; amended Pub. L. 103–337, div. A, title VII, §§ 713, 714(a), Oct. 5, 1994, 108 Stat. 2802; Pub. L. 104–106, div. A, title VII, §§ 712, 713, Feb. 10, 1996, 110 Stat. 374; Pub. L. 109–364, div. A, title VII, § 704(a), Oct. 17, 2006, 120 Stat. 2280; Pub. L. 110–181, div. A, title VII, § 701(a), Jan. 28, 2008, 122 Stat. 187; Pub. L. 110–417, [div. A], title VII, § 701(a), Oct. 14, 2008, 122 Stat. 4498; Pub. L. 111–383, div. A, title VII, § 701(a), Jan. 7, 2011, 124 Stat. 4244; Pub. L. 112–81, div. A, title VII, § 701(a), Dec. 31, 2011, 125 Stat. 1469.)

## Notes

### Editorial Notes

### Amendments

2011—Subsec. (e). Pub. L. 112–81 designated existing provisions as par. (1), substituted “Except as provided by paragraph (2), a premium,” for “A premium,”, and added par. (2).

Subsec. (e). Pub. L. 111–383 substituted “September 30, 2011” for “September 30, 2009”.

2008—Subsec. (e). Pub. L. 110–417 substituted “September 30, 2009” for “September 30, 2008”.

Pub. L. 110–181 substituted “September 30, 2008” for “September 30, 2007”.

2006—Subsec. (e). Pub. L. 109–364 inserted at end “A premium, deductible, copayment, or other charge prescribed by the Secretary under this subsection may not be increased during the period beginning on April 1, 2006, and ending on September 30, 2007.”

1996—Subsec. (c). Pub. L. 104–106, § 712, substituted “Notwithstanding the preferences established by sections 1074(b) and 1076 of this title, the Secretary shall” for “However, the Secretary may”.

Subsec. (e). Pub. L. 104–106, § 713, inserted at end “Without imposing additional costs on covered beneficiaries who participate in contracts for health care services under this section or health care plans offered under section 1099 of this title, the Secretary shall permit such covered beneficiaries to pay, on a quarterly basis, any enrollment fee required for such participation.”

1994—Subsec. (c). Pub. L. 103–337, § 714(a)(2), added subsec. (c). Former subsec. (c) redesignated (e).

Pub. L. 103–337, § 713, inserted at end “In the case of contracts for health care services under this section or health care plans offered under section 1099 of this title for which the Secretary permits covered beneficiaries who are covered by section 1086 of this title and who participate in such contracts or plans to pay an enrollment fee in lieu of meeting the applicable deductible amount specified in section 1086(b) of this title, the Secretary may establish the same (or a lower) enrollment fee for covered beneficiaries described in section 1086(d)(1) of this title who also participate in such contracts or plans.”

Subsecs. (d), (e). Pub. L. 103–337, § 714(a), added subsec. (d) and redesignated former subsec. (c) as (e).

### Statutory Notes and Related Subsidiaries

### Clarification of Application for Fiscal Year 2013

Pub. L. 112–81, div. A, title VII, § 701(b), Dec. 31, 2011, 125 Stat. 1469, provided that: “The Secretary of Defense shall determine the maximum enrollment fees for TRICARE Prime under section 1097(e)(2) of title 10, United States Code, as added by subsection (a), for fiscal year 2013 and thereafter as if the enrollment fee for each enrollee during fiscal year 2012 was the amount charged to an enrollee who enrolled for the first time during such fiscal year.”