Enhancement of Military Benefits Act

Enhancement of Military Benefits Act - Waives any FY 2001 military pay increases tied to increases in the General Schedule of Compensation for Government employees. Increases by 4.8 percent, effective January 1, 2001, the rates of basic pay for military personnel. Amends title XVIII (Medicare) of the Social Security Act to extend to up to 16 (currently six) the number of authorized sites for the Medicare subvention demonstration project (a project under which the Secretary of Health and Human Services reimburses the Secretary of Defense (Secretary) for certain services provided through the Department of Defense for Medicare-eligible military retirees and dependents). Makes such demonstration project permanent (currently terminates on January 1, 2001), designating it as a program. Authorizes such reimbursement on a fee-for-service basis in lieu of a current percentage rate. Eliminates a program eligibility restriction based on whether the retiree or dependent has a civilian primary care manager instead of a military primary care manager. Provides Medigap protection for program enrollees in the same manner as applied to enrollment with a Medicare+Choice plan. Increases from 35 to 55 percent of the base amount of military retired pay the military Survivor Benefit Plan annuity for beneficiaries age 62 or older. Directs the Secretary to terminate the Supplemental Survivor Benefit Plan program. Directs the Secretary to enter into an agreement with the Office of Personnel Management under which members and former members entitled to retired or retainer pay, and their dependents, may enroll in health benefits plans offered through the Federal Employees Health Benefits program (FEHBP). Prohibits such individuals from being required to satisfy any FEHBP eligibility criteria. Makes the Secretary responsible for required Government contributions for such enrollees.