10 U.S.C. § 1086a: Certain former spouses: extension of period of eligibility for health benefits

The Secretary of Defense shall inform each person who has been a dependent for a period of one year or more under section 1072(2)(H) of this title of the availability of a conversion health policy for purchase by the person. A conversion health policy offered under this subsection shall provide coverage for not less than a 24-month period. the date the person is no longer a dependent under section 1072(2)(H) of this title ; and the date of the purchase of the policy. exists on the date on which coverage under the conversion health policy begins; and for which care is not provided under the policy solely on the grounds that the condition is a preexisting condition. the individual and Government contributions which would be required in the case of a person enrolled in a health benefits plan contracted for under section 1079 of this title ; and an amount necessary for administrative expenses, but not to exceed two percent of the amount under subparagraph (A). The amount paid by a person who purchases a conversion health policy from the Secretary of Defense under paragraph (1) may not exceed the payment required under section 8905a(d)(1)(A) of title 5 for comparable coverage. In order to reduce premiums required under paragraph (1), the Secretary of Defense may offer a program of coverage that, with respect to mental health services, offers reduced coverage and increased cost-sharing by the purchaser. In this section, the term “conversion health policy” means a health insurance policy with a private insurer, developed through negotiations between the Secretary of Defense and the private insurer, that is available for purchase by or for the use of a person who is a dependent for a one-year period under section 1072(2)(H) of this title . arrange with the private insurer providing these policies to extend the term of the policies (and coverage of preexisting conditions) as provided by the amendments made by this section [amending this section and section 1145 of this title ]; or make other arrangements to implement the amendments made by this section with respect to these policies.” No person may purchase a conversion health policy under section 1145(b) or 1086a of title 10, United States Code, on or after October 1, 1994 . A person covered by such a conversion health policy on that date may cancel that policy and enroll in a health benefits plan under section 1078a of such title. No person may be covered concurrently by a conversion health policy under section 1145(b) or 1086a of such title and a health benefits plan under section 1078a of such title.”