[Congressional Record Volume 140, Number 145 (Friday, October 7, 1994)]
[Senate]
[Page S]
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]

 
                     THE FEGLI LIVING BENEFITS ACT

  Mr. BREAUX. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 708, H.R. 512, 
relating to group life insurance benefits.
  The PRESIDING OFFICER. Without objection, the clerk will report.
  The legislative clerk read as follows:

       A 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.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.


                           Amendment No. 2642

 (Purpose: 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)

  Mr. BREAUX. Mr. President, on behalf of Senator Pryor, I send an 
amendment to the desk and ask for its immediate consideration.
  The PRESIDING OFFICER. the clerk will report the amendment.
  The legislative clerk read as follows:

       The Senator from Louisiana [Mr. BREAUX] for Mr. PRYOR 
     proposes an amendment numbered 2642.

  Mr. BREAUX. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:
       At the end of the bill, add the following new sections:

     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.
                                  ____


                    FEHB Legislation for OCC and OTS


                               background

       In the 1980s, OCC and OTS (along with other federal banking 
     agencies) established separate health plans to help attract 
     and retain employees during a time when turnover was high and 
     valuable examiner talent was being lost to private industry.
       OCC plan was established in 1982; OTS in 1987. Both were 
     attractive enough that the vast majority of employees chose 
     the separate plans rather than a plan in FEHB.
       In the last several years, the rationale for maintaining 
     health plans outside the FEHB has eroded. Accounting rules 
     have substantially increased the costs of maintaining 
     separate health plans. And, as health care costs have 
     increased generally over recent years, the differences 
     between the agency plans and FEHB fee-for-service plans have 
     narrowed.
       The increased costs of accounting for separate health plans 
     have come at a critical time for both OTS and OCC.
       The OTS is confronted with a shrinking industry. Since OTS 
     is 95% funded by assessments on the thrift industry, revenue 
     has been decreasing at an alarming rate. In fact, even with 
     two previous downsizing initiatives, OTS expenses have not 
     declined as fast as revenues. OTS has been operating at a 
     deficit for several years.
       OCC is also primarily funded by assessments of the national 
     banks it regulates. National banks are increasingly 
     complaining about their costs of federal supervision. 
     Consequently, OCC is launching a major effort to cut costs, 
     with the hope that this will permit an assessment decrease 
     for 1995.
       Both agencies have decided to terminate their separate 
     health plans at the end of 1994.


          employees negatively affected by the change to fehb

       Active employees not close to retirement are not affected 
     by the decision to terminate OCC and OTS separate agency 
     plans, except that they will have to choose among FEHB plans 
     during the next open season.
       However, the statutory requirement that Federal employees 
     participate in an FEHB plan for five years just prior to 
     retirement is an impediment for employees close to 
     retirement. To obtain FEHB insurance, these employees would 
     have to work five additional years.
       Also barred by statute from participation in FEHB plans are 
     the OCC and OTS retirees currently covered by the agencies' 
     separate plans.
       OCC and OTS retirees and near-retirees have accumulated 
     many decades of federal service and, in fact, in most cases 
     participated in FEHB plans (and paid premiums) for as long as 
     20 years before selecting their agency health plan.


                          legislative solution

       The Administration supports this legislative proposal.
       OCC, OTS, and OPM staff have worked cooperatively to 
     develop legislative language that will allow their near-
     retirees and retirees to enroll in FEHB plans during this 
     coming open season. By treating participation in an FCC or 
     OTS plan as though it were an FEHB plan, the proposed 
     legislation makes the transition a seamless one.
       For OTS, this legislation resolves the problems affecting 
     189 employees within five years of retirement, 175 current 
     retirees, and a handful of non-employees (e.g., survivors of 
     OTS employees; separated employees with temporary continuing 
     coverage).
       For OCC, the numbers are 330 employees within five years of 
     retirement, 284 current retirees, and a small number of non-
     employees.
       The retirees and near-retirees affected by the proposed 
     legislation are located throughout the country, as are the 
     current workforces.


                              funding fehb

       OCC and OTS have agreed to pay the Employees Health Benefit 
     Fund an amount determined by the Director of OPM for the 
     benefits provided by this legislation not otherwise paid for 
     by the individuals to be covered. According to OMB, this 
     makes the proposal budget-neutral for pay-go purposes.


                                urgency

       Legislation must be passed this session. Without it, OCC 
     and OTS will be forced to purchase private health coverage at 
     substantially higher premiums for this relatively small 
     number of older individuals. This higher cost will exacerbate 
     the OTS deficit and will not allow the OCC to reduce costs to 
     the degree necessary to relieve pressure on national bank 
     assessments.
       Moreover, without this legislation, OCC and OTS retirees, 
     most of whom have many years of federal service, would not 
     have the range of choice and costs available to all other 
     federal retirees. And near-retirees may feel they must work 
     longer than they had planned to ensure themselves coverage 
     under FEHB.
       Last, OCC and OTS plans for rightsizing initiatives will be 
     frustrated by the uncertainties in health insurance 
     confronting those employees eligible for either optional or 
     early retirement.

  Mr. BREAUX. Mr. President, I ask unanimous consent that the amendment 
be agreed to and the motion to reconsider be laid upon the table; that 
the bill as thus amended be deemed read three times, passed, and the 
motion to reconsider be laid upon the table; that the title amendment 
be agreed to; that any statements relating to this measure be inserted 
in the Record at the appropriate place as if read.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2642) was agreed to.
  So the bill (H.R. 512), as amended, was deemed read three times and 
passed.
  The title was amended 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.

                          ____________________