[Federal Register: February 9, 2004 (Volume 69, Number 26)]
[Proposed Rules]
[Page 5935-5936]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09fe04-16]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 5935]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 890
RIN 3206-AK04
Changes in Health Benefits Enrollment
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing proposed
regulations on changes in health benefits enrollment for annuitants or
survivor annuitants when a carrier terminates participation in the
Federal Employees Health Benefits (FEHB) Program. We are proposing to
amend the regulations to give OPM the authority to enroll annuitants in
whichever option of the BC/BS Service Benefit Plan it determines will
most closely approximate the terminated plan.
DATES: OPM must receive comments on or before April 9, 2004.
ADDRESSES: Send written comments to Abby L. Block, Deputy Associate
Director for Employee and Family Support Policy, Strategic Human
Resources Policy Division, Office of Personnel Management, 1900 E
Street, NW., Washington, DC 20415-3666; or deliver to OPM, Room 3400,
1900 E Street, NW., Washington, DC; or FAX to (202) 606-0633.
FOR FURTHER INFORMATION CONTACT: Nataya Battle, (202) 606-1874, or e-
mail to nbattle@opm.gov.
SUPPLEMENTARY INFORMATION:
Background
Effective August 18, 1997, OPM amended 5 CFR 890.306(l)(4) to
authorize OPM to enroll an annuitant in the standard option of the
Service Benefit Plan when the annuitants' health plan terminates
participation in whole or in part in the FEHB Program and the annuitant
fails to elect to change to another participating health plan. At that
time, the BC/BS Service Benefit Plan offered the high option and the
standard option. The standard option was the lower level of benefits
with a lower premium cost. Beginning with the January 1, 2002 contract
year, the BC/BS Service Benefit Plan merged the high option coverage
into the standard option coverage and added a basic option. The
standard option is now the highest level of coverage offered with the
more costly premium rate.
In the existing regulation, an annuitant who does not elect to
change health plans is deemed to have enrolled in the standard option,
or if the plan he or she was enrolled in had two options, he or she is
deemed to have enrolled in the same option previously enrolled in
(either high or low), if the annuity is sufficient to pay the high
option premium. The annuitant may not change to another health plan
until the next open season.
The more costly premium rate may not be affordable for many
annuitants. Amending this regulation will allow OPM the flexibility to
consider the premium rate and the benefits that the annuitant was
receiving under his or her terminated health plan, and enroll the
annuitant in the option of the BC/BS Service Benefit Plan that most
closely approximates the terminated plan. In addition, this amendment
will give the annuitant the opportunity to change the option or to
change to another health plan of his or her choice within 60 days of
the date OPM sent notification that he or she has been deemed enrolled
in a particular option of the BC/BS Service Benefit Plan.
Regulatory Flexibility Act
OPM has determined that this regulation will not have a significant
economic impact on a substantial number of small entities because the
regulation will only affect health benefits of certain Federal
retirees.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
Federalism
We have examined this rule in accordance with Executive Order
13132, Federalism, and have determined that this rule will not have any
negative impact on the rights, roles, and responsibilities of State,
local, or Tribal governments.
List of Subjects in 5 CFR Part 890
Administrative practice and procedure, Government employees, Health
facilities, Health insurance, Health professions, Hostages, Iraq,
Kuwait, Lebanon, Military personnel, Reporting and recordkeeping
requirements, Retirement.
Office of Personnel Management.
Kay Coles James,
Director.
Accordingly, OPM is proposing to amend 5 CFR part 890 as follows:
PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM
1. The authority citation for part 890 continues to read as
follows:
Authority: 5 U.S.C. 8913; Sec. 890.803 also issued under 50
U.S.C. 403p, 22 U.S.C. 4069c and 4069c-1; subpart L also issued
under sec. 599C of Pub. L. 101-513, 104 Stat. 2064, as amended; Sec.
890.102 also issued under sections 11202(f), 11232(e), 11246 (b) and
(c) of Pub. L. 105-33, 111 Stat. 251; and section 721 of Pub. L.
105-261, 112 Stat. 2061.
2. In Sec. 890.306 revise paragraphs (l)(4)(ii), (l)(4)(iv) and
(q)(1)(ii) to read as follows:
Sec. 890.306 When can annuitants or survivor annuitants change
enrollment or reenroll and what are the effective dates?
* * * * *
(l) * * *
(4) * * *
(ii) If a plan discontinues all of its existing options, an
annuitant who does not change the enrollment is deemed to have enrolled
in the option of the Blue Cross and Blue Shield Service Benefit Plan
that OPM determines most closely approximates the terminated plan.
* * * * *
(iv) After an involuntary enrollment under paragraph (l)(4)(ii) or
(iii) of this section becomes effective, the annuitant may change the
enrollment to the other option of the Blue Cross and Blue Shield
Service Benefit Plan or to another health plan of his or her choice
retroactively within 60 days after OPM advises the annuitant of the new
enrollment;
* * * * *
(q) * * *
(1) * * *
(ii) Enroll in any plan in which the annuitant's share of the
premium is less
[[Page 5936]]
than the amount of annuity. If the annuitant elects to change to a
lower cost enrollment, the change takes effect immediately upon loss of
coverage under the prior enrollment. The exemptions from debt
collection procedures that are provided under Sec. 831.1305(d)(2) and
Sec. 845.205(d)(2) of this chapter apply to elections under this
paragraph (q)(1)(ii).
* * * * *
[FR Doc. 04-2666 Filed 2-6-04; 8:45 am]
BILLING CODE 6325-50-P