Pentagon opens cancer insurance market to two private firms, preempts state oversight
H.R. 3148 — SALUTE Act · Filed by Brian Jack (R-GA) · 32 cosponsors · Introduced May 1, 2025 · Referred to committee
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What it does
This bill directs the Department of Defense to establish a three-to-five-year pilot program allowing active-duty service members and their TRICARE-enrolled dependents to purchase supplemental cancer insurance from up to two private companies. The supplemental plans would cover cancer-related expenses not covered by existing military health benefits, with premiums deducted from military pay. The government does not subsidize the premiums; companies are not treated as federal contractors; and state insurance laws are preempted except for licensing and solvency rules.
Why we flagged it
The bill's core function is to expand supplemental cancer coverage for military families, a genuine public-health benefit. However, the mechanism—a federally preempted, two-company monopoly with no government subsidy—creates a private-market carve-out within the military health system.
What the text implies
- Federal preemption of state insurance laws (except licensing/solvency) may shield the two selected companies from state consumer-protection rules, rate-review requirements, or claims-handling standards that would otherwise apply to supplemental insurers.
- The 'not considered contractors' language may exempt the selected companies from federal procurement oversight, audit requirements, or conflict-of-interest rules that would normally apply to entities receiving federal business.
The full analysis lists 5 implications of this text.
Who stands to gain
Private supplemental health insurers (up to two companies selected); Pharmaceutical and oncology-services companies (indirect benefit from expanded cancer-treatment cove