To amend title 10, United States Code, to require the amounts reimbursed to institutional providers of health care services under the TRICARE program to be the same as amounts reimbursed under Medicare, and to require the Secretary of Defense to contract for health care services with at least one teaching hospital in urban areas.

Amends the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) to require the TRICARE Program (a Department of Defense managed health care program): (1) reimbursement of institutional providers of health care services to be identical (currently, the same to the extent practicable) to reimbursement provided under Medicare (title XVIII of the Social Security Act); and (2) in contracting for the delivery of health care, to contract with at least one teaching hospital in each large urban area.