[Congressional Record Volume 147, Number 36 (Monday, March 19, 2001)]
[Senate]
[Page S2474]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS:
  S. 561. A bill to provide that the same health insurance premium 
conversion arrangements afforded to Federal employees be made available 
to Federal annuitants and members and retired members of the uniformed 
services; to the Committee on Governmental Affairs.
  Ms. COLLINS. Mr. President, today I am introducing legislation to 
extend to Federal retirees and both active and retired military 
personnel the same health insurance premium conversion benefits allowed 
to current civilian Federal employees. This legislation directs the 
Office of Personnel Management to establish a system allowing those who 
participate in the Federal Employees Health Benefits Program, FEHBP, to 
pay their health insurance premiums from pre-tax income.
  The practice of allowing health care participants to use pre-tax 
income to pay their health insurance premiums is often used in the 
private sector as a way of recognizing the importance of adequate, 
affordable health insurance. This system is called premium conversion. 
Last year, the Office of Personnel Management recognized this concept 
by establishing a plan to allow most employees of the executive, 
legislative and judicial branches to participate in premium conversion.
  Many Federal retirees also participate in the FEHBP program and as a 
matter of fairness should be extended the opportunity to participate in 
premium conversion. In addition, the military currently has a separate 
health care system, but it is exploring offering health benefits under 
FEHBP, and therefore military employees or retirees who do participate 
in FEHBP should also be allowed premium conversion.
  I have heard from Federal retirees in Maine who have pointed out the 
unfairness of not including retired Federal employees in the premium 
conversion system. This legislation will address this inequity.
  I urge my colleagues to review and support this important 
legislation.
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