(Reported to Senate from the Committee on Governmental Affairs with amendment, S. Rept. 96-154) Amends the Retired Federal Employees Health Benefits Act to change the amount of the Government's contribution toward the subscription charge for the health benefits plan of a retired Federal employee to a monthly contribution equal to: (1) the current monthly premium for supplementary medical insurance under part B of Title XVIII (Medicare) of the Social Security Act, for an employee enrolled as an individual; and (2) twice such amount for an employee enrolled for self and family coverage. Prohibits a retired employee from receiving a Government contribution for more than one health plan or from receiving a contribution if such employee is covered under a plan of another individual. Provides that the amendments made by this Act shall apply to Government contributions on or after the later of the first day of the first month beginning after the enactment of this Act, or October 1, 1979.