A bill to allow members of the Selected Reserve enrolled in the TRICARE program to pay premiums with pre-tax dollars.

Directs the Secretary of Defense to institute a health premium conversion plan under which members of the Selected Reserve who are participating in the TRICARE program (a Department of Defense (DOD) managed care program) may choose between cash and health benefits under such program.

Requires the premium conversion plan to be designed to meet Internal Revenue Code requirements allowing premium payments with pretax dollars.