President Clinton has signed into law the National Defense Authorization Act for Fiscal Year 2001 (H.R. 4205). One provision of this Act extends permanent health insurance benefits to military retirees.
Under the Act, TRICARE, the military’s HMO-like health insurance plan, would cover 20-year career military retirees for life. Current law requires TRICARE coverage to end when retirees become eligible for Medicare. Beneficiaries of the new plan will have no co-payments or deductibles.

Also, veterans over age 64 will have better access to prescription drugs through the plan, which should take effect in October 2001.