(a) Agreement
Subsection (b) of section 734 of the National Defense Authorization Act for Fiscal Year 2026 ( Public Law 119–60 ; 10 U.S.C. 1071 note) is amended—
in paragraph (1)—
in subparagraph (B), by striking ; and and inserting a semicolon;
by redesignating subparagraph (C) as subparagraph (D); and
by inserting after subparagraph (B) the following new subparagraph:
provide no coordination with any other health benefit plan; and
in paragraph (2), by striking a period of not more than three years, and may not be renewed and inserting a period of not less than three years ; and
by adding at the end the following new paragraph:
(3) Requirements
In entering into an agreement under paragraph (1) with a company, the Secretary—
may not select such company to provide coverage in a State, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States in which such company—
is not licensed; and
does not meet solvency requirements applicable to such State;
shall award the agreement based on the expertise of such company;
shall negotiate the terms and conditions of the fixed indemnity supplemental benefit plan provided under the agreement;
shall negotiate the cost of coverage with the company that will cover the participants who elect to enroll in such plan;
shall provide a method for verification of the eligibility of applicants and procedures for determination of eligibility; and
shall provide a method for payroll deduction of premiums.
(b) Provision of information
Subsection (c) of such section is amended by striking website and inserting website, as determined by the Secretary, .
(c) Preemption
Such section is further amended—
by redesignating subsection (f) as subsection (g); and
by inserting after subsection (e) the following new subsection:
(f) Preemption
An agreement entered into under this section shall be deemed to be a contract for which the Secretary of Defense has determined to preempt State or local laws pursuant to section 1103 of title 10, United States Code, as administered under section 199.17(a)(7)(i) of title 32, Code of Federal Regulations, as in effect on the date of the enactment of this Act.