[Congressional Record (Bound Edition), Volume 154 (2008), Part 1]
[Extensions of Remarks]
[Pages 4-5]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCTION OF A BILL TO IMPROVE THE FEDERAL EMPLOYEES HEALTH BENEFITS 
                                PROGRAM

                                 ______
                                 

                       HON. MADELEINE Z. BORDALLO

                                of guam

                    in the house of representatives

                       Thursday, January 3, 2008

  Ms. BORDALLO. Madam Speaker, today I introduced a bill to amend 
section 8903 of title 5 of the United States Code to authorize the 
Office of Personnel Management, OPM, to approve companies who offer 
non-Governmentwide service benefit health care plans to participate in 
the Federal Employees Health Benefits, FEHB, Program. Current U.S. law 
and its supporting regulations restrict companies that offer non-
Governmentwide service benefit health care plans from participating in 
the FEHB Program. Current law authorizes annual approval of only a 
ervice benefit health care plan for the FEHB Program that is not 
otherwise considered an employee organization plan and further requires 
that plan to be offered Governmentwide.
  Enactment of the bill I introduced today would allow for local or 
regional companies offering at least one level of service benefit 
coverage to participate in the FEHB Program. This additional 
participation would lead to a greater degree of choice for Federal 
employees regarding health care plans available to them and their 
families. Additional participation in and increased choices among the 
FEHB Program could lower costs for beneficiaries and result in greater 
quality of coverage. Enactment of the bill could also provide Federal 
employees residing in rural, underserved, or remote locations needed 
flexibility toward meeting their and their families' health care needs. 
I know that in my district greater choice and flexibility with respect 
to health care plans would improve the quality of life for Federal 
employees and their families, but it also would go far toward lowering 
costs of health care coverage for those individuals.
  Specifically, the bill I introduced today would amend section 8903 of 
title 5 of the United States Code to authorize OPM to contract for and 
approve applications for service benefit plan carriers that offer non-
Governmentwide service benefit health care plans. The bill would 
accomplish this objective by inserting a new paragraph five under 
section 8903 authorizing one or more fee-for-service plans other than a 
Governmentwide plan or an employee organization plan eligible for 
selection through the FEHB Program. The bill also proposes to codify a 
definition of the term ``State'' in the same provision of law, for the 
purpose of ensuring companies offering service benefit plans otherwise 
available to individuals residing in any of the several States, the 
District of Columbia, Guam, American Samoa, Puerto Rico, the U.S. 
Virgin Islands, or in the Commonwealth of the Northern Mariana Islands, 
CNMI, have equal access to participate in the FEHB Program, in so far 
as they satisfy other requirements for participation established by law 
and regulation. The bill would further make certain technical and 
conforming amendments to current law to support its overall and 
underlying intent.
  On June 1, 2007, the Director of OPM transmitted to Congress a 
legislative proposal entitled ``Federal Employees Health Benefits 
Improvements Act of 2007.'' Similar to the bill I introduced today, the 
administration's proposal would, in part, authorize OPM to contract 
with companies offering additional types of health benefit plans for 
participation in the FEHB Program.
  I support competition in the health insurance marketplace with the 
intent of lowering costs, increasing choice for consumers, and 
improving quality of care. I also support strengthening the FEHB 
Program and increasing the number and quality of plans made available 
to Federal employees residing in my district and across the country. I 
look forward to working with the leaders of the Committee on Oversight 
and Government Reform and its Subcommittee on Federal Workforce, Postal 
Service and the District of Columbia on the bill I introduced today and 
as they consider changes in law governing the administration of the 
FEHB Program.

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