A bill to amend title 10, United States Code, to authorize the use of health maintenance organizations in providing health care.

Stipulates that when providing health benefits for members, former members, and dependents of the Armed Services, and when providing medical care for spouses and children of such members, the Secretary of Defense, upon consultation with the Secretary of Health, Education, and Welfare, may contract with health maintenance organizations for such benefits and care.

Defines the term health maintenance organizations for purposes of this Act. (Adds 10 U.S.C. 1089)