To amend the Internal Revenue Code of 1986 to allow Federal civilian and military retirees to pay health insurance premiums on a pretax basis and to allow a deduction for TRICARE supplemental premiums.

This bill would allow retired federal civilian employees and military veterans to pay their health insurance premiums using pre-tax dollars, reducing their overall taxable income. Additionally, it creates a tax deduction for premiums paid toward TRICARE supplemental insurance, which covers costs not met by standard military health benefits. By allowing these payments to be excluded from gross income, the legislation aims to lower the annual tax burden for federal and military retirees.