Revises provisions concerning health care for members and certain former members of the armed forces to entitle members or former members who are eligible for retired or retainer pay and for Medicare to medical and dental care in any uniformed service medical facility. Provides that such facilities will recover the costs of such care from Medicare Subvention funding. Provides that the costs of care for members or former members who are not eligible for Medicare will be recovered from the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) Subvention funding.

Revises provisions concerning health care for military dependents to provide that the uniformed services facilities providing such care will recover costs from Medicare or CHAMPUS, as appropriate. Authorizes the commanding officer of a military installation operating a treatment facility to make determinations of whether the facility can provide treatment to a dependent. Provides that the administering Secretary will be advised when a determination to deny treatment is made, with a verifiable date as to when the restriction will be removed.

Amends title XVIII (Medicare) of the Social Security Act to make Department of Defense and Department of Veterans Affairs treatment facilities eligible for Medicare payments as long as they meet requirements applicable to hospitals and skilled nursing facilities under such title.