To amend title 10, United States Code, to make certain improvements with respect to the TRICARE program.

Amends the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) to direct the Secretary of Defense to ensure that health care coverage available through the TRICARE program (a Department of Defense managed health care program) is substantially similar to the health care coverage available under similar health benefits plans offered under the Federal Employees Health Benefits program. Directs the Secretary to: (1) provide for the portability of benefits under the TRICARE program; (2) minimize the certification requirements imposed upon TRICARE beneficiaries; and (3) implement, with respect to the first two contracts awarded after this Act for the provision of managed care support under the TRICARE program, redesigned procedures for the payment and processing of claims.

Authorizes a military medical treatment facility under the TRICARE program to collect from third party insurers reasonable charges for health care services incurred by the facility on behalf of covered beneficiaries under the program.

Requires a report from the Secretary to Congress assessing the effects of the requirements and authorities of this Act.