[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] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Office of the Secretary Continued Health Care Benefit Program (CHCBP) Premium Rate Change AGENCY: Office of the Secretary, DOD. ACTION: Notice. ----------------------------------------------------------------------- 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