[Federal Register Volume 59, Number 129 (Thursday, July 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16407]


[[Page Unknown]]

[Federal Register: July 7, 1994]


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UNITED STATES INFORMATION AGENCY
22 CFR Part 514
[Rulemaking No. 103]
RIN 3116-AA05
 

Insurance Requirements, the Exchange Visitor Program

AGENCY: United States Information Agency.

ACTION: Interim final rule with request for comments.

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SUMMARY: The Agency issued a final rule on March 19, 1993 which 
included a requirement that all exchange visitors and their spouses and 
dependents on J visas have insurance to cover themselves for sickness 
and accidents, effective September 1, 1994. In response to concerns 
raised by the public, the Agency is amending the types of insurance 
allowed under the Exchange Visitor Program regulations.

DATES: This interim final rule is effective July 7, 1994. Written 
comments will be accepted until August 8, 1994. All written 
communications received by the Agency on or before the closing date 
will be considered by the Agency before action on a final rule is 
undertaken.

ADDRESSES: Comments regarding this rule should be addressed as follows: 
United States Information Agency, Office of the General Counsel, 
Rulemaking 103, 301 Fourth Street SW., room 700, Washington, DC 20547.

FOR FURTHER INFORMATION CONTACT: William G. Ohlhausen, Assistant 
General Counsel, United States Information Agency, 301 Fourth Street 
SW., Washington, DC 20547; telephone (202) 619-4979.

SUPPLEMENTARY INFORMATION: Since implementing the final rule on March 
19, 1993 (58 FR 15180), USIA has been requested to amend the insurance 
requirement set forth in 22 CFR 514.14(c). The main concern has been 
with the requirement that policies be underwritten by an insurance 
corporation having an A.M. Best rating of ``A-'' or above, an Insurance 
Solvency International, Ltd. (ISI) rating of ``A-i'' or above, a 
Standard & Poor's Claims-paying Ability rating of ``A-'' or above, a 
Weiss Research, Inc. rating of B+ or above, or such other rating as the 
Agency may from time to time specify. A rating is not presently 
required when the insurance coverage is backed by the full faith and 
credit of the government of the exchange visitor's home country or when 
the sponsor is allowed to self-insure or to accept full financial 
responsibility.
    A number of the Agency's constituents have expressed the view that 
Sec. 514.14(c) is too restrictive and that compliance could end 
longstanding and reliable insurance relationships. A number of major 
insurance plans and almost all health maintenance organizations 
reportedly do not meet the current regulations. The Agency has been 
informed that the net effect on exchange visitors and family members 
could be to actually reduce in some cases the quality of the health 
care they have been receiving.
    Approximately 800 of the 1,200 designated sponsors are colleges and 
universities, many of which provide health insurance for their students 
and faculty. Other sponsors include major corporations, government 
agencies, non-profit organizations, and research institutions, many of 
which also offer insurance for their employees who are exchange 
visitors. A number of sponsors expressed concern that the current 
regulations disqualify reliable insurance policies, plans, and 
contracts that they provide to their exchange visitors. In response to 
sponsors' comments, the Agency is amending the regulations to broaden 
the types of insurance permitted under Sec. 514.14(c). The Agency is 
proposing two additional ways to satisfy Sec. 514.14(c).
    The first is to qualify a policy, plan, or contract which is part 
of a health benefits program offered on a group basis to employees or 
enrolled students by a designated sponsor. Here, the sponsor is in a 
position to consult with insurance professionals, rating services, 
insurance commissioners, legal counsel, and other experts before 
determining which coverage to offer to its employees and enrolled 
students.
    The second is to qualify a policy, plan, or contract which is 
underwritten by a federally qualified health maintenance organization 
(HMO) or an eligible competitive medical plan (CMP) as determined by 
the Health Care Financing Administration. While these HMO's and CMP's 
often are not rated by insurance rating services, they are monitored 
for fiscal soundness on a regular basis by the federal government, in 
addition to being regulated by one or more states.
    22 CFR 514.14 sets forth only minimum insurance requirements, so 
exchange visitors and their families are encouraged to be educated 
consumers and consult with insurance professionals, rating services, 
and insurance regulators before determining their insurance coverage.

Comment

    The Agency invites comments from the public on this interim final 
rule. The Agency is under no legal requirement to invite comments. The 
designation of exchange visitor sponsors and the administration of the 
Exchange Visitor Program are deemed to be foreign affairs functions of 
the United States Government. The Administrative Procedure Act, 5 
U.S.C. 553(a)(1)(1989) specifically exempts such functions from the 
rulemaking requirements of the Act.
    The Agency will accept comments for 30 days after publication of 
this interim final rule. A final rule will be published thereafter to 
respond to comments received and to promulgate changes, if any, as part 
of the Exchange Visitor Program regulations, 22 CFR Part 514. In 
accordance with 5 U.S.C. 605(b), the Agency certifies that this rule 
does not have a significant adverse economic impact on a substantial 
number of small entities. This rule is not considered to be a major 
rule within the meaning of section 1(b) of E.O. 12291, nor does it have 
federalism implications warranting the preparation of a Federalism 
Assessment in accordance with Executive Order 12612.

List of Subjects in 22 CFR Part 514

    Cultural Exchange Programs.

    Dated: June 30, 1994.
Les Jin,
General Counsel.

    Accordingly, 22 CFR Part 514 is amended as follows:

PART 514--EXCHANGE VISITOR PROGRAM

    1. The authority citation for Part 514 continues to read as 
follows:

    Authority: 8 U.S.C. 1101(a)(15)(J), 1182, 1258; 22 U.S.C. 1431-
1442, 2451-2460; Reorganization Plan No. 2 of 1977; E.O. 12048 of 
March 27, 1978; USIA Delegation Order No. 85-5 (50 FR 27393).

    2. In Sec. 514.14, paragraph (c) is revised to read as follows:


Sec. 514.14  Insurance.

* * * * *
    (c) Any policy, plan, or contract secured to fill the above 
requirements must, at a minimum, be:
    (1) Underwritten by an insurance corporation having an A.M. Best 
rating of ``A-'' or above, an Insurance Solvency International, Ltd. 
(ISI) rating of ``A-i'' or above, a Standard & Poor's Claims-paying 
Ability rating of ``A-'' or above, a Weiss Research, Inc. rating of B+ 
or above, or such other rating as the Agency may from time to time 
specify; or
    (2) Backed by the full faith and credit of the government of the 
exchange visitor's home country; or
    (3) Part of a health benefits program offered on a group basis to 
employees or enrolled students by a designated sponsor; or
    (4) Offered through or underwritten by a federally qualified Health 
Maintenance Organization (HMO) or eligible Competitive Medical Plan 
(CMP) as determined by the Health Care Financing Administration of the 
U.S. Department of Health and Human Services.
* * * * *
[FR Doc. 94-16407 Filed 7-6-94; 8:45 am]
BILLING CODE 8230-01-M