Sec. 702. PROGRAMS RELATING TO THE SALE OF PHARMACEUTICALS
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## SEC. 702 PROGRAMS RELATING TO THE SALE OF PHARMACEUTICALS **[**[10 U.S.C. 1079 note](/us/usc/t10/s1079)**]** ###
(a)Demonstration Project for Pharmaceuticals by Mail Not later than 18 months after the date of the enactment of this Act, the Secretary of Defense, in consultation with the administering Secretaries, shall— ####
(1)establish a demonstration project that permits eligible persons described in subsection
(c)to obtain prescription pharmaceuticals by mail in connection with medical care furnished to such persons under chapter 55 of title 10, United States Code; and ####
(2)conduct the demonstration project in two or more regions selected by the Secretary, each of which consists of two or more States. ###
(b)Retail Pharmacy Network To the maximum extent practicable, the Secretary of Defense shall include in each managed health care program initiated, awarded, or renewed by the Secretary after January 1, 1993, a program to supply prescription pharmaceuticals to eligible persons described in subsection
(c)through a managed care network of community retail pharmacies in the area covered by the managed health care program. ###
(c)Eligible Persons A person eligible to obtain pharmaceuticals under the demonstration project established under subsection
(a)or the retail pharmacy network included in a managed health care program under subsection
(b)is any person living in the area covered by the demonstration project or managed health care program— ####
(1)who is eligible for medical care under a contract for medical care entered into by the Secretary of Defense under section 1079 or 1086 of title 10, United States Code; or ####
(2)who— #####
(A)would be eligible for medical care under a contract for medical care entered into under section 1086 of such title except for operation of subsection (d)(1) of such section; and #####
(B)either— ######
(i)resides in an area that is adversely affected (as determined by the Secretary) by the closure of a health care facility of the uniformed services as a result of the closure or realignment of the military installation at which such facility is located; or ######
(ii)can demonstrate to the satisfaction of the Secretary that the person relied upon a health care facility referred to in clause
(i)before the closure of the facility to obtain the person's pharmaceuticals. ###
(d)Pharmaceuticals Offered; Purchase Fees ####
(1)The Secretary of Defense, in consultation with the administering Secretaries, shall— #####
(A)determine the pharmaceuticals that may be obtained by eligible persons under the demonstration project established under subsection
(a)or the retail pharmacy network included in a managed health care program under subsection (b); and #####
(B)establish an appropriate fee, charge, or copayment to be paid by such persons for pharmaceuticals obtained under the demonstration project or managed health care program. ####
(2)In the case of persons eligible to participate in the demonstration project for pharmaceuticals or the retail pharmacy network by reason of clause
(ii)of subsection (c)(2)(B), the Secretary of Defense may increase the fees, charges, and copayments established under paragraph (1)(B) and otherwise applicable to such persons by an amount necessary to cover any additional costs incurred by the administering Secretaries as a result of making pharmaceuticals available to such persons under this section. ###
(e)Report Regarding Demonstration Project Not later than two years after the establishment of the demonstration project under subsection (a), the Secretary of Defense shall submit to Congress a report— ####
(1)describing the results of the demonstration project required by subsection (a); ####
(2)containing such recommendations for revision of the demonstration project as the Secretary considers to be necessary; and ####
(3)containing a plan (including a schedule) for implementing the demonstration project throughout the United States. ###
(f)Additional Report Regarding Programs Not later than January 1, 1994, the Secretary of Defense shall submit to Congress a report containing— ####
(1)an evaluation of the feasibility and advisability of increasing the size of those areas determined by the Secretary under subsection (c)(2) to be adversely affected by the closure of a health care facility of the uniformed services in order to increase the number of persons described in such subsection who will be eligible to participate in the demonstration project for pharmaceuticals by mail or in the retail pharmacy network under this section; ####
(2)an evaluation of the feasibility and advisability of expanding the demonstration project and the retail pharmacy network under this section to include all covered beneficiaries under chapter 55 of title 10, United States Code, including those persons currently excluded from participation in the Civilian Health and Medical Program of the Uniformed Services by operation of section 1086(d)(1) of such title; ####
(3)an estimation of the costs that would be incurred, and any savings that would be achieved by improving efficiencies of operation, as a result of undertaking the increase or expansion described in paragraph
(1)or (2); and ####
(4)such recommendations as the Secretary considers to be appropriate. ###
(g)Definitions In this section, the terms “**uniformed services**” and “administering Secretaries” have the meanings given those terms in section 1072 of title 10, United States Code. ###
(h)Termination This section shall cease to apply to the Secretary of Defense on the date after the implementation of section 711 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 that the Secretary determines appropriate, with a view to minimizing instability with respect to the provision of pharmacy benefits, but in no case later than the date that is one year after the date of the enactment of such Act. * * * * * * * ## subtitle B Health Care Management
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Sec. 702
PROGRAMS RELATING TO THE SALE OF PHARMACEUTICALS
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