PUBLIC LAW 104-201—SEPT. 23, 1996 110 STAT. 2593 (1) The term "administering Secretaries" means the Secretary of Defense, the Secretary of Transportation, and the Secretary of Health and Human Services. (2) The term "agreement" means the agreement required under section 722(b) between the Secretary of Defense and a designated provider. (3) The term "capitation payment" means an actuarially sound payment for a defined set of health care services that is established on a per enrollee per month basis. (4) The term "covered beneficiary" means a beneficiary under chapter 55 of title 10, United States Code, other than a beneficiary under section 1074(a) of such title. (5) The term "designated provider" means a public or nonprofit private entity that was a transferee of a Public Health Service hospital or other station under section 987 of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35; 42 U.S.C. 248b) and that, before the date of the enactment of this Act, was deemed to be a facility of the uniformed services for the purposes of chapter 55 of title 10, United States Code. The term includes any legal successor in interest of the transferee. (6) The term "enrollee" means a covered beneficiary who enrolls with a designated provider. (7) The term "health care services" means the health care services provided under the health plan known as the "TRICARE PRIME" option under the TRICARE program. (8) The term "Secretary" means the Secretary of Defense. (9) The term "TRICARE program" means the managed health care program that is established by the Secretary of Defense under the authority of chapter 55 of title 10, United States Code, principally section 1097 of such title, and includes the competitive selection of contractors to financially underwrite the delivery of health care services under the Civilian Health and Medical Program of the Uniformed Services. SEC. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED SERVICES HEALTH CARE DELIVERY SYSTEM. (a) INCLUSION IN SYSTEM. —The health care delivery system of the uniformed services shall include the designated providers. (b) AGREEMENTS TO PROVIDE MANAGED HEALTH CARE SERVICES. —(1) After consultation with the other administering Secretaries, the Secretary of Defense shall negotiate and enter into an agreement with each designated provider under which the designated provider will provide health care services in or through managed care plans to covered beneficiaries who enroll with the designated provider. (2) The agreement shall be entered into on a sole source basis. The Federal Acquisition Regulation, except for those requirements regarding competition, issued pursuant to section 25(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 421(c)) shall apply to the agreements as acquisitions of commercial items. (3) The implementation of an agreement is subject to availability of funds for such purpose. (c) EFFECTIVE DATE OF AGREEMENTS.—(1) Unless an earlier effective date is agreed upon by the Secretary and the designated provider, the agreement shall take effect upon the later of the following:
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