[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1574 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1574

 To amend chapter 89 of title 5, United States Code, to permit Federal 
employees and annuitants to elect to receive contributions into medical 
 savings accounts under the Federal Employees Health Benefits Program 
                                (FEHBP).


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 1997

   Mr. Salmon (for himself, Mr. Mica, Mr. Ballenger, Mr. Bartlett of 
   Maryland, Mr. Campbell, Mr. Cannon, Mr. Cooksey, Mrs. Cubin, Mr. 
Cunningham, Mr. Duncan, Mr. Ensign, Mr. Foley, Mr. Goss, Mr. Hayworth, 
 Mr. Hilleary, Mrs. Kelly, Mr. Kolbe, Mr. McCrery, Mr. Nethercutt, Mr. 
 Norwood, Mr. Packard, Mr. Paul, Mr. Scarborough, Mr. Bob Schaffer of 
 Colorado, Mr. Sensenbrenner, Mr. Shadegg, Mr. Skeen, Mr. Souder, Mr. 
Stump, and Mr. Walsh) introduced the following bill; which was referred 
          to the Committee on Government Reform and Oversight

_______________________________________________________________________

                                 A BILL


 
 To amend chapter 89 of title 5, United States Code, to permit Federal 
employees and annuitants to elect to receive contributions into medical 
 savings accounts under the Federal Employees Health Benefits Program 
                                (FEHBP).

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FEHBP-Medical Savings Account 
Promotion Act of 1997''.

SEC. 2. PERMITTING CONTRIBUTION TOWARDS MEDICAL SAVINGS ACCOUNT THROUGH 
              FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM (FEHBP).

    (a) Government Contribution to Medical Savings Account.--
            (1) In general.--Section 8906 of title 5, United States 
        Code, is amended by adding at the end the following new 
        subsection:
    ``(j)(1) In the case of an employee or annuitant who is enrolled in 
a catastrophic plan described by section 8903(5), there shall be a 
Government contribution under this subsection to a medical savings 
account established or maintained for the benefit of the individual. 
The contribution under this subsection shall be in addition to the 
Government contribution under subsection (b).
    ``(2) The amount of the Government contribution under this 
subsection with respect to an individual is equal to the amount by 
which--
            ``(A) the maximum contribution allowed under subsection 
        (b)(1) with respect to any employee or annuitant, exceeds
            ``(B) the amount of the Government contribution actually 
        made with respect to the individual under subsection (b) for 
        coverage under the catastrophic plan.
    ``(3) The Government contributions under this subsection shall be 
paid into a medical savings account (designated by the individual 
involved) in a manner that is specified by the Office and consistent 
with the timing of contributions under subsection (b).
    ``(4) Subsections (f) and (g) shall apply to contributions under 
this section in the same manner as they apply to contributions under 
subsection (b).
    ``(5) For the purpose of this subsection, the term `medical savings 
account' has the meaning given such term by section 220(d) of the 
Internal Revenue Code of 1986 (as inserted by section 301(a) of Health 
Insurance Portability and Accountability Act of 1996).''.
            (2) Allowing payment of full amount of charge for 
        catastrophic plan.--Section 8906(b)(2) of such title is amended 
        by inserting ``(or 100 percent of the subscription charge in 
        the case of a catastrophic plan)'' after ``75 percent of the 
        subscription charge''.
    (b) Offering of Catastrophic Plans.--
            (1) In general.--Section 8903 of such title is amended by 
        adding at the end the following new paragraph:
            ``(5) Catastrophic plans.--One or more plans described in 
        paragraph (1), (2), or (3), but which provide benefits of the 
types referred to by paragraph (5) of section 8904(a), instead of the 
types referred to in paragraphs (1), (2), and (3) of such section.''.
            (2) Types of benefits.--Section 8904(a) of such title is 
        amended by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Catastrophic plans.--Benefits of the types named 
        under paragraph (1) or (2) of this subsection or both, to the 
        extent expenses covered by the plan exceed $3,000.''.
            (3) Disregarding catastrophic plans in determining level of 
        government contributions.--Section 8906(a)(3) of such title is 
        amended by inserting ``described by section 8903(3)'' after 
        ``plans''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contract terms beginning on or after January 1, 1998.
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