A bill to amend section 1086 of title 10, United States Code, to provide for payment under CHAMPUS of certain health care expenses incurred by certain members and former members of the uniformed services and their dependents to the extent that such expenses are not payments under medicare, and for other purposes.

Authorizes payment through the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) for items and services for which payment is also made through Medicare (title XVIII of the Social Security Act), with a reduction for the amount already covered by Medicare. Continues CHAMPUS eligibility for veterans eligible for care or treatment for a service-connected disability in facilities of the Department of Veterans Affairs.