[Congressional Record Volume 140, Number 145 (Friday, October 7, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 7, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]


                              {time}  2400
 
 PROVIDING FOR GROUP LIFE INSURANCE BENEFITS TO BE PAID TO TERMINALLY 
                            ILL INDIVIDUALS

  Mr. McCLOSKEY. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the bill (H.R. 512) to amend chapter 87 of title 5, 
United States Code, to provide that group life insurance benefits under 
such chapter may, upon application, be paid out to an insured 
individual who is terminally ill, and for other purposes with Senate 
amendments thereto, and concur in the Senate amendments.
  The Clerk read the title of the bill.
  The Clerk read the Senate amendments, as follows:

       Senate amendments: Page 7, after line 12, insert:

     SEC. 5. CONTINUATION OF HEALTH BENEFITS COVERAGE FOR 
                   INDIVIDUALS ENROLLED IN A PLAN ADMINISTERED BY 
                   THE OFFICE OF THE COMPTROLLER OF THE CURRENCY 
                   OR THE OFFICE OF THRIFT SUPERVISION.

       (a) Enrollment in Chapter 89 Plan.--For purposes of the 
     administration of chapter 89 of title 5, United States Code, 
     any period of enrollment under a health benefits plan 
     administered by the Office of the Comptroller of the Currency 
     or the Office of Thrift Supervision before the termination of 
     such plans on January 7, 1995, shall be deemed to be a period 
     of enrollment in a health benefits plan under chapter 89 of 
     such title.
       (b) Continued Coverage.--(1) Any individual who, on January 
     7, 1995, is covered by a health benefits plan administered by 
     the Office of the Comptroller of the Currency or the Office 
     of Thrift Supervision may enroll in an approved health 
     benefits plan described under section 8903 or 8903a of title 
     5, United States Code--
       (A) either as an individual or for self and family, if such 
     individual is an employee, annuitant, or former spouse as 
     defined under section 8901 of such title; and
       (B) for coverage effective on and after January 8, 1995.
       (2) An individual who, on January 7, 1995, is entitled to 
     continued coverage under a health benefits plan administered 
     by the Office of the Comptroller of the Currency or the 
     Office of Thrift Supervision--
       (A) shall be deemed to be entitled to continued coverage 
     under section 8905a of title 5, United States Code, for the 
     same period that would have been permitted under the plan 
     administered by the Office of the Comptroller of the Currency 
     or the Office of Thrift Supervision; and
       (B) may enroll in an approved health benefits plan 
     described under section 8903 or 8903a of such title in 
     accordance with section 8905a of such title for coverage 
     effective on and after January 8, 1995.
       (3) An individual who, on January 7, 1995, is covered as an 
     unmarried dependent child under a health benefits plan 
     administered by the Office of the Comptroller of the Currency 
     or the Office of Thrift Supervision and who is not a member 
     of family as defined under section 8901(5) of title 5, United 
     States Code--
       (A) shall be deemed to be entitled to continued coverage 
     under section 8905a of such title as though the individual 
     had, on January 7, 1995, ceased to meet the requirements for 
     being considered an unmarried dependent child under chapter 
     89 of such title; and
       (B) may enroll in an approved health benefits plan 
     described under section 8903 or 8903a of such title in 
     accordance with section 8905a for continued coverage 
     effective on and after January 8, 1995.
       (c) Transfers to the Employees Health Benefits Fund.--The 
     Office of the Comptroller of the Currency and the Office of 
     Thrift Supervision shall transfer to the Employees Health 
     Benefits Fund established under section 8909 of title 5, 
     United States Code, amounts determined by the Director of the 
     Office of Personnel Management, after consultation with the 
     Office of the Comptroller of the Currency and the Office of 
     Thrift Supervision, 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 in addition to amounts available under 
     section 8906(g)(1) of such title.
       (d) 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 chapter 87 
     of title 5, United States Code, to provide that group life 
     insurance benefits under such chapter may, upon application, 
     be paid out to an insured individual who is terminally ill; 
     to provide for continuation of health benefits coverage for 
     certain individuals enrolled in health benefits plans 
     administered by the Office of the Comptroller of the Currency 
     or the Office of Thrift Supervision; and for other 
     purposes.''.

  Mr. McCLOSKEY (during the reading). Mr. Speaker, I ask unanimous 
consent that the Senate amendments be considered as read and printed in 
the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Indiana?
  There was no objection.
  The SPEAKER pro tempore. Is there objection to the initial request of 
the gentleman from Indiana?
  Mr. MYERS of Indiana. Mr. Speaker, reserving the right to object, I 
would yield to the gentleman from Indiana [Mr. McCloskey] so he may 
explain what is in the compromise here.
  Mr. McCLOSKEY. Mr. Speaker, will the gentleman yield?
  Mr. MYERS of Indiana. I yield to the gentleman from Indiana.
  Mr. McCLOSKEY. Mr. Speaker, H.R. 512, provides that Federal employees 
who are diagnosed as terminally ill with a life expectancy of 9 months 
or less could elect to receive all or a portion of their basic life 
insurance benefit in advance of their death as a living benefit.
  The Subcommittee on Compensation and Employee Benefits held a hearing 
on April 20, 1994, where Congressman Gilman, the Office of Personnel 
Management, and the National Association of Retired Federal Employees 
testified in favor of the legislation. On June 22, 1994, the Post 
Office and Civil Service Committee approved this legislation by a 
record vote of 22 to 0. The House approved this bill by a voice vote 
under suspension of the rules on July 19, 1994.
  The Senate amended H.R. 512 by adding a provision to allow employees 
of the Office of the Comptroller of the Currency [OCC] and the Office 
of Thrift Supervision [OTS] to enroll in the Federal Employees Health 
Benefits Program [FEHBP]. The Senate amendment is almost identical to a 
bill I introduced this week, H.R. 5164, the OCC and OTS Health Benefits 
Continuation Act.
  The Senate amendment permits employees to have their OCC or OTS 
health plan treated like FEHBP health coverage. This is necessary 
because unless Federal employees are covered under FEHBP for at least 5 
years immediately preceding retirement, they cannot continue their 
FEHBP coverage into retirement. Therefore this bill eliminates the 
potential that employees within 5 years of retirement will be forced to 
work longer so as not to lose their health insurance. With respect to 
current retirees, if no action is taken on this bill, OCC and OTS will 
be forced to purchase expensive private health coverage once their 
current health plan expires so that the retirees will not be left 
without any coverage whatsoever.
  The amendment provides that OCC and OTS will pay the Employees Health 
Benefit Fund an amount determined by the Office of Personnel Management 
to cover the FEHBP benefits not otherwise paid for by the enrollees. 
The Congressional Budget Office has estimated that as the result of 
this payment this bill has no cost and that Federal outlays would not 
change.
  The Post Office and Civil Service Committee has no objection to this 
amendment.
  Mr. MYERS of Indiana. Further reserving the right to object, I 
understand there is no substantive changes in the attempt of the House 
here to take care of those who are terminally ill.
  Mr. McCLOSKEY. The gentleman is correct.
  Mr. MYERS of Indiana. Further reserving the right to object, Mr. 
Speaker, I would point out that the gentlewoman from Maryland [Mrs. 
Morella] has worked very hard on this legislation and should be 
commended for her efforts.
  Mrs. MORELLA. Mr. Speaker, I rise in support of H.R. 512, a bill 
introduced by our distinguished colleague from New York, Mr. Gilman, 
ranking Republican on the Committee on Foreign Affairs, and a very 
active member of the Committee on Post Office and Civil Service.
  H.R. 512 is a compassionate bill which will help terminally ill 
federal employees and retirees who participate in the Federal Employees 
Group Life Insurance [FEGLI] Program. This bill is budget neutral and 
bring to the Federal sector what has been provided for by many private 
sector employees. Employees and retirees who have been certified by 
their physician as having just 9 months or less to live, may receive 
the benefits of their FEGLI policy minus the interest which may have 
accrued at maturity--about 97 percent of the value. As we know, Mr. 
Speaker, in most cases, people who are dying because of terminal 
illnesses have often spent their savings to pay medical expenses. H.R. 
512 is indeed a thoughtful, sensible and cost-effective bill.
  This legislation was amended in the Senate to include health benefits 
of retirees of two Federal agencies, the Office of Thrift Supervision 
[OTS] and the Office of the Comptroller of the Currency [OCC], our bank 
and thrift regulators.
  These agencies carried health plans for their employees which were 
administered separately from the Federal Employee Health Benefits 
Program [FEHBP]. These plans have been in place since the 1980's as a 
means of attracting and retaining valuable specialized banking talent. 
The two agencies and their employees financed health care coverage. 
However, increased costs for separate health plans have adversely 
impacted these Federal offices.
  Both agencies are primarily funded by assessments on the financial 
institutions they regulate. The cost of Federal supervision has been a 
complaint by the entities that are supervised. The Office of the 
Comptroller of the Currency is launching a major effort to cut costs, 
thereby hoping to have a positive impact on assessments. The Office of 
Thrift Supervision is confronted with a shrinking industry, decreasing 
revenues and has been operating at a deficit for many years.
  For these reason, Mr. Speaker, the agencies have had to make the 
difficult decision to eliminate their separate health plans. Current 
employees will now be offered quality health care under the Federal 
Employees Health Benefits Program. What this legislation does is afford 
the same options to retirees currently enrolled in the plans being 
terminated. This legislation also ensures that employees within 5 years 
of retirement will be able to carry FEHBP into retirement.
  This bill has been crafted in a joint effort by the Office of Thrift 
Supervision, the Office of the Comptroller of the Currency, and the 
Office of Personnel Management. The OTS and the OCC have agreed to pay 
the Employee Health Benefit Fund the amount needed for the benefits 
provided by this legislation not otherwise paid for by the individuals 
to be covered. The Congressional Budget Office and the Office of 
Management and Budget have determined that this legislation is budget-
neutral for pay-as-you-go purposes.
  This is a cooperative effort by three Federal offices looking to 
continue quality health care for employees. I urge my colleagues to 
support this interagency cooperative effort and the measure proposed by 
our colleague from New York.
  Mr. MYERS of Indiana. Further reserving the right to object, Mr. 
Speaker, we made midnight, maybe a minute or so after, and, with that 
understanding, I have no objection.
  Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Indiana?
  There was no objection.
  A motion to reconsider was laid on the table.

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