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Accounts for medical and health care programs of the Department of Defense

Division A · Title VII: Health Care Provisions · Subtitle B: Health Care Administration

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The Department of Defense will have two separate Treasury accounts for its medical and health care programs: one for military medical care and another for private sector care. Each account will keep three percent of its annual funds available for use into the next fiscal year. Existing laws and references to the Defense Health Program will be updated to reflect these new accounts starting October 1, 2026.

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Section Text · Sec. 724.
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(a) In general

Section 1100 of title 10, United States Code, is amended to read as follows:

1100. Accounts for medical and health care programs of the Department of Defense

(a) Combat And Operational Medicine Program Account

(1)

There is hereby established in the Treasury of the United States an account to be known as the Combat and Operational Medicine Program Account . All sums appropriated to carry out the functions of the Secretary of Defense with respect to the military medical and health care programs of the Department of Defense shall be appropriated to this account.

(2)

Of the total amount appropriated for a fiscal year for the military medical and health care programs of the Department of Defense, the amount equal to three percent of such total amount shall remain available for obligation until the end of the following fiscal year.

(b) Private Sector Care Program Account

(1)

There is hereby established in the Treasury of the United States an account to be known as the Private Sector Care Program Account . All sums appropriated to carry out the functions of the Secretary of Defense with respect to private sector medical and health care programs of the Department of Defense shall be appropriated to this account.

(2)

Of the total amount appropriated for a fiscal year for the private sector health care programs of the Department of Defense, the amount equal to three percent of such total amount shall remain available for obligation until the end of the following fiscal year.

(c) Obligation of amounts from accounts by Secretary of Defense

The Secretary of Defense may obligate or expend funds from the accounts under subsection (a) and (b) for purposes of the military medical and health care programs of the Department of Defense and the private sector health care programs of the Department of Defense, respectively, to the extent amounts are available in the accounts.

(d) Regulations

The Secretary of Defense shall prescribe regulations to carry out this section.

(e) Definitions

In this section:

(1)

The term military medical and health care programs of the Department of Defense means the medical and health care programs of the Department of Defense that are not private sector health care programs of the Department of Defense.

(2)

The term private sector health care programs of the Department of Defense means the programs and activities carried out by the Secretary of Defense under this chapter and any other provision of law providing for the furnishing of medical and dental care and health benefits by the private sector, including pursuant to contracts entered into under section 1079, 1086, 1092, or 1097 of this title.

(b) Conforming amendments

(1) Title 10

Title 10, United States Code, is amended as follows:

(A)

Section 1076d(d)(5) is amended by striking the Defense Health Program Account and inserting the Private Sector Care Program Account .

(B)

Section 1076e(d)(5) is amended by striking the Defense Health Program Account and inserting the Private Sector Care Program Account .

(C)

Section 1076f(b)(2) is amended by striking the Defense Health Program Account and inserting the Private Sector Care Program Account .

(D)

Section 1110b(c)(4) is amended by striking the Defense Health Program Account and inserting the Private Sector Care Program Account .

(2) National Defense Authorization Act for Fiscal Year 2024

Section 1004(b)(2) of the National Defense Authorization Act for Fiscal Year 2024 ( Public Law 118–81 ; 10 U.S.C. 240d note) is amended by striking Defense Health Program account and inserting Combat and Operational Medicine Program and Private Sector Care Program Accounts .

(3) National Defense Authorization Act for Fiscal Year 1997

Section 742(c)(3) of the National Defense Authorization Act for Fiscal Year 1997 ( Public Law 104–201 ; 10 U.S.C. 1071 note) is amended by striking the Defense Health Program account and inserting the Combat and Operational Medicine Program account .

(c) References

Any reference in law, regulation, document, paper, or other record of the United States to the Defense Health Program shall be deemed to be a reference to the Combat and Operational Medicine Program or the Private Sector Care Program , as the case may be based on the nature of the obligation.

(d) Effective date

The amendments made by this section shall take effect on October 1, 2026, and shall apply with respect to fiscal years beginning on or after that date.