[Federal Register Volume 62, Number 28 (Tuesday, February 11, 1997)]
[Notices]
[Pages 6225-6226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3243]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Continued Health Care Benefit Program (CHCBP) Premium Rate Change

AGENCY: Office of the Secretary, DOD.

ACTION: Notice.

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SUMMARY: Premium rates for the Department of Defense's temporary, 
transitional health care coverage offered via the Continued Health Care 
Benefit Program (CHCBP) were initially established in the Fall of 1994. 
Rates have not been adjusted since then. A revision to the rates is 
necessary in order for the rates to keep pace with the increase in 
expenses incurred in operating the program. Publication of the new 
rates will allow the Department to change the premium and will also 
provide interested beneficiaries with the cost information necessary to 
make informed enrollment decisions. Therefore, effective May 1, 1997, 
CHCBP quarterly premiums will be increased to the following levels: 
Individual--$993; Family--$1,996. CHCBP premiums will continue to be 
reviewed annually by the Office of the Assistant Secretary of Defense 
and announcement of any further revisions will be published 
accordingly.

FOR FURTHER INFORMATION CONTACT: Mr. Gunther J. Zimmerman, Office of 
the Assistant Secretary of Defense (Health Affairs), (703) 695-3331.

ADDRESSES: TRICARE Support Office (TSO)/Office of the Civilian Health 
and Medical Program of the Uniformed Services (OCHAMPUS), Program 
Development Branch; Aurora, Colorado 80045-6900.

SUPPLEMENTARY INFORMATION: On September 30, 1994, a final rule 
regarding benefits and operational issued associated with 
implementation of the Continued Health Care Benefit Program was 
published (59 FR 49817).
    The CHCBP was established by Congress in section 4408 of the 
National Defense Authorization Act for Fiscal Year 1993, Public Law 
102-484, which amended title 10, United States Code, by adding section 
1078a. The law directed the implementation of a program of temporary 
continued health benefits coverage for certain former beneficiaries of 
the Department of Defense, comparable to the health benefits provided 
for former civilian employees of the Federal government.
    The statute directed that the benefits offered by the CHCBP be 
comparable to those offered to ``similarly situated'' former civilian 
employees of the Federal

[[Page 6226]]

government. As is the case for those employees, the costs are borne by 
the beneficiary who pays the entire premium charge. Additionally, the 
Department of Defense is permitted to charge up to an additional ten 
percent of the premium to cover administrative expenses. The referenced 
final rule indicated that the Department would annually review the 
premium rates and adjust these rates as necessary.
    The CHCBP became effective October 1, 1994. Premiums for the CHCBP 
are determined by enrollment category. The CHCBP features two 
enrollment categories, which are individual and family. Initial 
quarterly premium rates were established at Individual--$410; and 
Family $891.
    Initial CHCBP rates were based on the 1994 Mail Handlers Standard 
rates. The Office of Personnel Management (OPM) quarterly premium rates 
for Mail Handlers Standard increased in 1996 and $622 and $1,390 for 
Family coverage. However, the Department elected not to increase 
initial CHCBP fiscal year 1995 premium rates for fiscal year 1996 to 
allow for a full year of operational data to be collected to enable a 
thorough utilization review to be conducted. Operational experience 
during fiscal years 1995 and 1996 revealed that the initial premiums 
have not been sufficient to cover expenses incurred in paying CHCBP 
claims. As such, the Department has had to supplement premium funds 
with Defense Health Program funding to cover CHCBP expenses in fiscal 
year 1995 and 1996. Therefore, the Department proposes to raise the 
premiums for the CHCBP in fiscal year 1997 to the Blue Cross/Blue 
Shield--High Option Level (maximum level allowable under enacting 
legislation) to keep pace with the costs incurred and to reflect the 
similar increase in FEHBP plans.

    Dated: February 5, 1997.
L.M. Bynum,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 97-3243 Filed 2-10-97; 8:45 am]
BILLING CODE 5000-04-M