[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Rules and Regulations]
[Page 28511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13316]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 105 / Thursday, June 1, 1995 / Rules 
and Regulations  

[[Page 28511]]

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 890

RIN 3206-AG33


Federal Employees Health Benefits Program: Procedures for Direct 
Payment of Premiums

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing final 
regulations to eliminate the requirement for the use of certified mail, 
return receipt requested, when notifying certain enrollees that their 
enrollment in the Federal Employees Health Benefits (FEHB) Program will 
be terminated due to nonpayment of premiums unless the payment is 
received within 15 calendar days. The purpose of these regulations is 
to reduce the cost of administering the FEHB enrollments of enrollees 
who make payments directly rather than through payroll or annuity 
deductions.

EFFECTIVE DATE: July 3, 1995.

FOR FURTHER INFORMATION CONTACT: Margaret Sears (202) 606-0004.

SUPPLEMENTARY INFORMATION: On December 30, 1994, OPM published interim 
regulations in the Federal Register (59 FR 67605) eliminating the 
requirement for using certified mail, return receipt requested, when 
notifying FEHB enrollees that their coverage is about to be terminated 
due to nonpayment of premiums. Most individuals enrolled under the FEHB 
Program pay their share of the premiums through withholding from pay or 
annuity. However, in some cases enrollees may make direct payments. 
These include: (1) Certain annuitants and compensationers (individuals 
who are entitled to compensation from the Office of Workers' 
Compensation Programs based on a job-related injury or disease) whose 
annuity or compensation has been waived or suspended; (2) former 
spouses whose enrollment is based on a qualifying court order under 
subpart H of 5 CFR part 890 governing FEHB; and (3) former employees, 
former spouses, and children enrolled under the Temporary Continuation 
of Coverage (TCC) provisions.
    Under regulations in effect before we issued the interim 
regulations, if an employing office did not receive the payment by the 
due date, it was required to notify the enrollee by certified mail, 
return receipt requested, that continuation of coverage rests upon 
payment being made within 15 days (or 45 days for some enrollees living 
overseas) after receipt of the notice.
    The interim regulations eliminated the requirement for sending the 
nonpayment notice by certified mail, return receipt requested. Further, 
they clarified that there must be a delay of 60 days (90 days for 
overseas enrollees) before employing offices take action to terminate 
enrollments for nonpayment of premiums. We believe that the interim 
regulations are much more convenient for the enrollee because the 
enrollees no longer need to sign for the notice. If no one is at home 
when a letter carrier delivers a return-receipt-requested letter, the 
addressee must go to the post office to sign for it. Under the interim 
regulations, the letter is left in the enrollee's mailbox and the 
enrollee has the information without making an unnecessary trip to the 
post office.
    OPM received no comments on the interim regulations.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
primarily affect individuals enrolled under the Federal Employees 
Health Benefits Program.

List of Subjects in 5 CFR Part 890

    Administrative practice and procedure, Government employees, Health 
facilities, Health insurance, Health professions, Hostages, Iraq, 
Kuwait, Lebanon, Reporting and recordkeeping requirements, Retirement.

Office of Personnel Management.
James B. King,
Director.

    Accordingly, under authority of 5 U.S.C. 8913, the interim rule 
amending 5 CFR Part 890 published on December 30, 1994, (59 FR 67605) 
is adopted as final without any change.

[FR Doc. 95-13316 Filed 5-31-95; 8:45 am]
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