A bill to amend title XVIII of the Social Security Act to expand and make permanent the medicare subvention demonstration project for military retirees and dependents

Increases the number of authorized sites for the Medicare subvention demonstration project for certain Medicare-eligible military retirees and their dependents (a project established by the Balanced Budget Act of 1997 under title XVIII (Medicare) of the Social Security Act). Provides for the future repeal of the limitation on the number of such sites (thus allowing the project to be conducted at any site designed by the Secretary of Health and Human Services and the Secretary of Defense acting jointly). Makes the project permanent.

Makes further changes regarding the project, permitting payment under it to be made on a fee-for-service basis for certain Medicare-eligible eligible military retirees and their dependents not enrolled in the project, and eliminating certain restrictive project participation policy. Applies to certain Medigap (Medicare supplemental health insurance policy) enrollees the same protections (prohibitions against issuer discrimination) as apply to enrollment (and termination of enrollment) with a Medicare+Choice organization in a Medicare+Choice plan under Medicare part C (Medicare+Choice).