The SALUTE Act directs the Department of Defense to run a three-year pilot program (potentially extendable to a permanent program) that lets certain active-duty members of the armed forces and TRICARE-enrolled dependents obtain supplemental fixed indemnity insurance to cover noncovered cancer-related expenses. The plan would be offered through up to two private insurance companies under separate policies, with terms designed to avoid coordination with existing health benefits and to help pay costs not covered by TRICARE or other military health programs. Participation is voluntary for eligible individuals, and costs would be paid by enrollees (no government subsidy). The program would be reviewed after three years, with a sunset at five years unless a decision is made to make it permanent.
Key Points
- 1Establishment and scope
- 2- By September 30, 2026, DoD must establish a pilot program allowing eligible service members and TRICARE-enrolled dependents to obtain fixed indemnity supplemental coverage for noncovered cancer-related expenses.
- 3Insurance products and contracting
- 4- DoD may contract with up to two private insurers to offer one or more fixed indemnity supplemental benefit plans.
- 5- Plans must meet specified federal requirements for supplemental insurance, be separate policies, not coordinate with other health benefits, and specifically cover noncovered expenses related to cancer.
- 6- Each contract must last at least three years and be awarded to licensed insurers in all states, based on insurer expertise and terms negotiated by the Secretary (including marketing communications and premium costs).
- 7Enrollment and administration
- 8- Participation is optional for covered individuals; the program must include verification of eligibility and payroll deduction options for premiums.
- 9- DoD must provide information through the TRICARE online portal about existence, enrollment, benefits, and costs.
- 10Financial and regulatory framework
- 11- No federal subsidies are authorized to pay or reduce the cost of the supplemental plans; enrollees pay premiums.
- 12- Companies participating are not treated as federal contractors; the program preempts most state laws (except for state licensing and solvency requirements).
- 13Oversight, reporting, and sunset
- 14- A comprehensive report is due within three years describing products, enrollment, use cases, and whether to make the pilot permanent.
- 15- Absent a decision to make it permanent, the pilot ends five years after enactment.