[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 497 Reported in Senate (RS)]





                                                       Calendar No. 261

105th CONGRESS

  1st Session

                               H. R. 497

_______________________________________________________________________

                                 AN ACT

  To repeal the Federal charter of Group Hospitalization and Medical 
                Services, Inc., and for other purposes.

_______________________________________________________________________

                            November 6, 1997

        Reported with an amendment and an amendment to the title
                                                       Calendar No. 261
105th CONGRESS
  1st Session
                                H. R. 497


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 27, 1997

                                Received

                             March 12, 1997

    Read twice and referred to the Committee on Governmental Affairs

                            November 6, 1997

  Reported by Mr. Thompson, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 AN ACT


 
  To repeal the Federal charter of Group Hospitalization and Medical 
                Services, Inc., and for other purposes.

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

<DELETED>SECTION 1. REPEAL OF FEDERAL CHARTER OF GROUP HOSPITALIZATION 
              AND MEDICAL SERVICES, INC.</DELETED>

<DELETED>    (a) Repeal of Federal Charter.--</DELETED>
        <DELETED>    (1) In general.--The Act entitled ``An Act 
        providing for the incorporation of certain persons as Group 
        Hospitalization, Inc.'', approved August 11, 1939 (53 Stat. 
        1412), is repealed.</DELETED>
        <DELETED>    (2) Authorization to file articles of 
        incorporation.--Group Hospitalization and Medical Services, 
        Inc. is hereby authorized to file articles of incorporation 
        under the District of Columbia Nonprofit Corporation 
        Act.</DELETED>
        <DELETED>    (3) Effective date.--The amendment made by 
        paragraph (1) shall take effect upon the filing and 
        effectiveness of articles of incorporation of Group 
        Hospitalization and Medical Services, Inc. under the District 
        of Columbia Nonprofit Corporation Act.</DELETED>
<DELETED>    (b) Effects of Becoming a District of Columbia Nonprofit 
Corporation.--Effective upon the filing and effectiveness of articles 
of incorporation of Group Hospitalization and Medical Services, Inc. as 
authorized in paragraph (2) of subsection (a), Group Hospitalization 
and Medical Services, Inc.--</DELETED>
        <DELETED>    (1) shall be a District of Columbia nonprofit 
        corporation subject to the articles of incorporation;</DELETED>
        <DELETED>    (2) shall be deemed organized and existing under 
        the District of Columbia Nonprofit Corporation Act, 
        notwithstanding any of the provisions of section 4 of the 
        District of Columbia Nonprofit Corporation Act regarding 
        organizations subject to any of the provisions of the insurance 
        laws of the District of Columbia;</DELETED>
        <DELETED>    (3) shall be legally domiciled in the District of 
        Columbia;</DELETED>
        <DELETED>    (4) shall be regulated by the Superintendent of 
        Insurance of the District of Columbia in accordance with the 
        laws and regulations of the District of Columbia;</DELETED>
        <DELETED>    (5) shall continue to exist; and</DELETED>
        <DELETED>    (6) shall continue to be authorized to transact 
        business--</DELETED>
                <DELETED>    (A) under existing certificates of 
                authority and licenses issued to Group Hospitalization 
                and Medical Services, Inc. before such filing and 
                effectiveness,</DELETED>
                <DELETED>    (B) under the name ``Group Hospitalization 
                and Medical Services, Inc.'', and</DELETED>
                <DELETED>    (C) under applicable laws and 
                regulations.</DELETED>

<DELETED>SEC. 2. WAIVER OF CONGRESSIONAL REVIEW PERIOD.</DELETED>

<DELETED>    Notwithstanding section 602(c)(1) of the District of 
Columbia Self-Government and Governmental Reorganization Act (sec. 1-
233(c)(1), D.C. Code), the Hospital and Medical Services Corporation 
Regulatory Act of 1996 (D.C. Act 11-505) shall take effect on the date 
of the enactment of such Act or the date of the enactment of this Act, 
whichever is later.</DELETED>

SECTION 1. CHARTER FOR GROUP HOSPITALIZATION AND MEDICAL SERVICES, INC.

    The Act entitled ``An Act providing for the incorporation of 
certain persons as Group Hospitalization and Medical Services, Inc.'', 
approved August 11, 1939, is amended--
            (1) by inserting after section 9 the following new section:
    ``Sec. 10. The corporation may have 1 class of members, consisting 
of at least 1 member and not more than 30 members, as determined 
appropriate by the board of trustees. The bylaws for the corporation 
shall prescribe the designation of such class as well as the rights, 
privileges and qualifications of such class, which may include, but 
shall not be limited to--
            ``(1) the manner of election, appointment or removal of a 
        member of the corporation;
            ``(2) matters on which a member of the corporation has the 
        right to vote; and
            ``(3) meeting, notice, quorum, voting and proxy 
        requirements and procedures.
If a member of the corporation is a corporation, such member shall be a 
nonprofit corporation.'';
            (2) by redesignating section 10 as section 11; and
            (3) by adding at the end of section 11 (as so redesignated) 
        the following: ``The corporation may not be dissolved without 
        approval by Congress.''.

SEC. 2. CONSISTENT COVERAGE FOR INDIVIDUALS ENROLLED IN A HEALTH PLAN 
              ADMINISTERED BY THE FEDERAL BANKING AGENCIES.

    (a) Enrollment in Chapter 89 Plan.--For purposes of chapter 89 of 
title 5, United States Code, any period of enrollment shall be deemed 
to be a period of enrollment in a health benefits plan under chapter 89 
of such title, if such enrollment is--
            (1) in a health benefits plan administered by the Federal 
        Deposit Insurance Corporation before the termination of such 
        plan on January 3, 1998; or
            (2) subject to subsection (c), in a health benefits plan 
        (not under chapter 89 of such title) with respect to which the 
        eligibility of any employees or retired employees of the Board 
        of Governors of the Federal Reserve System terminates on 
        January 3, 1998.
    (b) Enrollment; Continued Coverage.--
            (1) Enrollment.--Subject to subsection (c), any individual 
        who, on January 3, 1998, is enrolled in a health benefits plan 
        described in paragraph (1) or (2) of subsection (a) may enroll 
        in an approved health benefits plan under chapter 89 of title 
        5, United States Code, either as an individual or for self and 
        family, if, after taking into account the provisions of 
        subsection (a), such individual--
                    (A) meets the requirements of that chapter 89 for 
                eligibility to become so enrolled as an employee, 
                annuitant, or former spouse (within the meaning of that 
                chapter); or
                    (B) would meet the requirements of that chapter 89 
                if, to the extent such requirements involve either 
                retirement system under such title 5, such individual 
                satisfies similar requirements or provisions of the 
                Retirement Plan for Employees of the Federal Reserve 
                System.
            (2) Determinations.--Any determination under paragraph 
        (1)(B) shall be made under guidelines established by the Office 
        of Personnel Management in consultation with the Board of 
        Governors of the Federal Reserve System.
            (3) Continued coverage.--Subject to subsection (c), any 
        individual who, on January 3, 1998, is entitled to continued 
        coverage under a health benefits plan described in paragraph 
        (1) or (2) of subsection (a) shall be deemed to be entitled to 
        continued coverage under section 8905a of title 5, United 
        States Code, but only for the same remaining period as would 
        have been allowable under the health benefits plan in which 
        such individual was enrolled on January 3, 1998, if--
                    (A) the individual had remained enrolled in that 
                plan; and
                    (B) that plan did not terminate, or the eligibility 
                of such individual with respect to that plan did not 
                terminate, as described in subsection (a).
            (4) Comparable treatment.--Subject to subsection (c), any 
        individual (other than an individual under paragraph (3)) who, 
        on January 3, 1998, is covered under a health benefits plan 
        described in paragraph (1) or (2) of subsection (a) as an 
        unmarried dependent child, but who does not then qualify for 
        coverage under chapter 89 of title 5, United States Code, as a 
family member (within the meaning of that chapter) shall be deemed to 
be entitled to continued coverage under section 8905a of that title, to 
the same extent and in the same manner as if such individual had, on 
January 3, 1998, ceased to meet the requirements for being considered 
an unmarried dependent child of an enrollee under such chapter.
            (5) Effective date.--Coverage under chapter 89 of title 5, 
        United States Code, pursuant to an enrollment under this 
        section shall become effective on January 4, 1998.
    (c) Eligibility for FEHBP Limited to Individuals Losing Eligibility 
Under Former Health Plan.--Nothing in subsection (a)(2) or any 
paragraph of subsection (b) (to the extent that paragraph (2) relates 
to the plan described in subsection (a)(2)) shall be considered to 
apply with respect to any individual whose eligibility for coverage 
under the plan does not involuntarily terminate on January 3, 1998.
    (d) Transfers to the Employees Health Benefits Fund.--The Federal 
Deposit Insurance Corporation and the Board of Governors of the Federal 
Reserve System shall transfer to the Employees Health Benefits Fund, 
under section 8909 of title 5, United States Code, amounts determined 
by the Director of the Office of Personnel Management, after 
consultation with the Federal Deposit Insurance Corporation and the 
Board of Governors of the Federal Reserve System, to be necessary to 
reimburse the Fund for the cost of providing benefits under this 
section not otherwise paid for by the individuals covered by this 
section. The amounts so transferred shall be held in the Fund and used 
by the Office of Personnel Management in addition to amounts available 
under section 8906(g)(1) of title 5, United States Code.
    (e) Administration and Regulations.--The Office of Personnel 
Management--
            (1) shall administer the provisions of this section to 
        provide for--
                    (A) a period of notice and open enrollment for 
                individuals affected by this section; and
                    (B) no lapse of health coverage for individuals who 
                enroll in a health benefits plan under chapter 89 of 
                title 5, United States Code, in accordance with this 
                section; and
            (2) may prescribe regulations to implement this section.
            Amend the title so as to read: ``An Act to amend the 
        Federal charter for Group Hospitalization and Medical Services, 
        Inc., and for other purposes.''.

            Passed the House of Representatives February 26, 1997.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.