(1) If the Secretary of Defense is unable, within a reasonable time, to enter into a contract with a private insurer to offer conversion health policies under subsection (a) at a rate not to exceed the payment required under section
8905a (d)(1)(A) of title
5 for comparable coverage, the Secretary shall provide the coverage required under such a policy through the Civilian Health and Medical Program of the Uniformed Services. Subject to paragraph (2), a person receiving coverage under this subsection shall be required to pay into the Military Health Care Account or other appropriate account an amount equal to the sum of
(A) the individual and Government contributions which would be required in the case of a person enrolled in a health benefits plan contracted for under section
1079 of this title; and
(B) an amount necessary for administrative expenses, but not to exceed two percent of the amount under subparagraph (A).