Uniformed Services Medicare Subvention Demonstration Project Act

Uniformed Services Medicare Subvention Demonstration Project Act - Directs the Secretaries of Defense and Health and Human Services (HHS) to jointly establish a demonstration project to provide the Department of Defense (DOD) with reimbursement, under provisions of title XVIII (Medicare) of the Social Security Act, for health services provided to Medicare-eligible covered military beneficiaries who participate in the project and receive such services through the managed care option of the TRICARE program (a DOD managed health care program). Requires the project to be conducted during the three-year period beginning on January 1, 1998, in no more than five geographic regions designated by the Secretaries. Makes project enrollment voluntary. Requires the Secretary of Defense to waive the TRICARE enrollment fee for project participants for whom Medicare reimbursement may be made. Requires inclusion in the project of a provision for expansion to incorporate health care services provided to such beneficiaries under the fee-for-services options of the TRICARE program if the Secretaries determine that such expansion is feasible and advisable.

Directs the HHS Secretary to make monthly payments to DOD from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund representing appropriate reimbursement amounts. Provides for the determination of such amounts.

Directs the Secretary of Defense to: (1) maintain the DOD health care efforts for Medicare-eligible covered military beneficiaries; (2) estimate the amount expended by DOD for FY 1997 for providing health care items and services to such beneficiaries; and (3) establish monthly targets for the number of such beneficiaries enrolled in the project necessary to meet DOD maintenance of health care efforts for such individuals. Limits to $65 million the annual payments to DOD for the project.

Requires the Comptroller General, for each project year, to submit to the Secretaries and the Congress a report on the extent to which costs under the TRICARE program and the Medicare program have increased as a result of the project. Directs the Secretaries to modify the project at the end of each year to correct for any discrepancy between cost targets and actual spending under the project.

Directs the Secretaries to submit to the Congress an interim and final report on various project aspects.