TRICARE Benefits Modernization Act of 2001

TRICARE Benefits Modernization Act of 2001 - Directs the Secretary of Defense to: (1) terminate the individual case management program under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS); and (2) integrate its beneficiaries and services into the TRICARE program (a Department of Defense managed care program).

Makes limits on custodial care under the case management program inapplicable to domiciliary or custodial care incident to other authorized health care.

Requires the Secretary to provide long-term health care benefits under TRICARE so as to integrate such benefits with those provided under TRICARE on a less than long-term basis. Allows post-hospital extended care services in a skilled nursing facility to continue for as long as is medically necessary and appropriate.

Provides extended health care benefits for military dependents who have a serious physical disability or any extraordinary physical or psychological condition (currently limited to moderately or severely mentally retarded dependents). Outlines benefits provided and copayment requirements.

Allows a dependent, in order to receive outpatient mental health services under a TRICARE contract in excess of the amount available in that year, to convert any unused period of inpatient mental health benefit still available.

Makes a physician's determination that a service or supply is medically or psychologically necessary for a TRICARE patient conclusive, unless clearly erroneous. Prohibits such determinations from being subject to peer review.

Includes orthotic devices, hearing aids, and rehabilitative therapy among the TRICARE services authorized for military dependents. Outlines types of durable medical equipment authorized to be provided.