[Federal Register Volume 71, Number 118 (Tuesday, June 20, 2006)]
[Proposed Rules]
[Pages 35397-35398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9666]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 71, No. 118 / Tuesday, June 20, 2006 / 
Proposed Rules  

[[Page 35397]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 890

RIN: 3206-AK98


FEHB Coverage and Premiums for Active Duty Members of the 
Military

AGENCY: Office of Personnel Management.

ACTION: Proposed rule with request for comment.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management is issuing a proposed 
regulation to change the Federal Employee Health Benefits (FEHB) 
Program regulations that govern continued coverage for employees who 
are called or ordered to serve in the uniformed services. These 
regulations provide extended FEHB coverage for up to 24 months to 
Federal employees called or ordered to active duty and who meet certain 
requirements, including serving in support of a contingency operation. 
Those employees who are called or ordered to active duty in support of 
a contingency operation are also eligible for premium payments by their 
employing agency. The purpose of these regulations is to authorize 
Federal agencies to continue health benefits coverage for up to 24 
months for those employees called or ordered to active duty, with 
certain employees qualifying for agency premium contributions.

DATES: Comments must be received on or before August 21, 2006.

FOR FURTHER INFORMATION CONTACT: Michael W. Kaszynski, Policy Analyst, 
Insurance Policy, OPM, Room 3425, 1900 E Street, NW., Washington, DC 
20415-0001. Phone number: 202-606-0004. E-mail: [email protected].

SUPPLEMENTARY INFORMATION: The National Defense Authorization Act for 
2005 (Pub. L. 108-375) amended FEHB law to provide up to 24 months of 
continued FEHB coverage for Federal employees who are called or ordered 
to active duty in support of a contingency operation (5 U.S.C. 8905a), 
and to authorize agencies to pay the employee's share and the 
Government's share of premiums for up to 24 months (5 U.S.C. 8906 
(e)(3)). The Act provides that this enhanced benefit is available for 
any employee who:
    (1) Is enrolled in the FEHB Program;
    (2) Is a member of a reserve component of the armed forces;
    (3) Is called or ordered to active duty in support of a contingency 
operation (as defined in section 101(a)(13) of title 10 U.S.C.);
    (4) Is placed on leave without pay or separated from service to 
perform active duty; and
    (5) Serves on active duty for more than 30 consecutive days.

The expanded authority for agency premium payments authorized by Public 
Law 108-375 is a valuable benefit that helps reservists and their 
families shoulder the cost of health care during a time when they need 
it most. Public Law 108-454, the Veterans' Benefits Improvement Act of 
2004, was enacted December 10, 2004. It amended 38 U.S.C. 4317(a)(1)(A) 
to extend from 18 to 24 months the length of an employee's health 
insurance coverage when the employee is absent because of service in 
the uniformed services. For FEHB purposes, this law applies to 
employees who are called to active duty but do not meet all the 
requirements of Public Law 108-375. Generally, these employees have 
orders that do not show that they are called to active duty in support 
of a contingency operation. As before, they do not meet the 
requirements of FEHB law for agency premium payment during active duty. 
These regulations propose to place into rulemaking the requirements of 
Public Law 108-375 and Public Law 108-454.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because the regulation 
affects only health insurance carriers under the Federal Employees 
Health Benefits Program.

Executive Order 12866, Regulatory Review

    This regulation has been reviewed by the Office of Management and 
Budget in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 890

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

Office of Personnel Management.
Linda M. Springer,
Director.
    For the reasons set forth in the preamble, OPM is amending 5 CFR 
part 890 as follows:

PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM

    1. The authority citation for part 890 continues to read as 
follows:

    Authority: 5 U.S.C. 8913; Sec.  890.803 also issued under 50 
U.S.C. 403p, 22 U.S.C. 4069c and 4069c-1; subpart L also issued 
under section 599C of Pub. L. 101-513, 104 Stat. 2064, as amended; 
Sec.  890.102 also issued under sections 11202(f), 11232(e), 11246 
(b) and (c) of Pub. L. 105-33, 111 Stat. 251; and section 721 of 
Pub. L. 105-261, 112 Stat. 2061, unless otherwise noted.

    2. Section 890.303 paragraph (i) is revised to read as follows:


Sec.  890.303  Continuation of enrollment.

* * * * *
    (i) Service in the uniformed services. (1) The enrollment of an 
individual who separates, enters military furlough, or is placed in 
nonpay status to serve in the uniformed services under conditions that 
entitle him or her to benefits under part 353 of this chapter, or 
similar authority, may continue for the 24-month period beginning on 
the date that the absence to serve in the uniformed services begins, 
provided that the individual continues to be entitled to benefits under 
part 353 of this chapter, or similar authority. As provided for by 5 
U.S.C. 8905(a), the continuation of enrollment for up to 24 months 
applies to employees called or ordered to active duty in support of a 
contingency operation on or after September 14, 2001. The enrollment of 
an employee who met the requirements of chapter 43 of title 38, United 
States Code, on or after December 10, 2004, may continue for the 24-
month period beginning on the date that the absence to serve in the 
uniformed services began, provided that the employee continues to be 
entitled to

[[Page 35398]]

continued coverage under part 353 of this chapter, or similar 
authority.
    (2) An employee in nonpay status is entitled to continued coverage 
under paragraph (e) of this section if the employee's entitlement to 
benefits under part 353 of this chapter, or similar authority, ends 
before the expiration of 365 days in nonpay status.
    (3) If the enrollment of an employee had terminated due to the 
expiration of 365 days in nonpay status or because of the employee's 
separation from service, it may be reinstated for the remainder of the 
24-month period beginning on the date that the absence to serve in the 
uniformed service began, provided that the employee continues to be 
entitled to continued coverage under part 353 of this chapter, or 
similar authority.
    3. Section 890.304 paragraphs (a)(1)(vi), (a)(1)(vii), and 
(a)(1)(viii) are revised to read as follows:


Sec.  890.304  Termination of enrollment.

    (a) * * *
    (1) * * *
    (vi) The day he or she is separated, furloughed, or placed on leave 
of absence to serve in the uniformed services under conditions 
entitling him or her to benefits under part 353 of this chapter, or 
similar authority, for the purpose of performing duty not limited to 30 
days or less, provided the employee elects in writing to have the 
enrollment so terminated.
    (vii) For an employee who separates to serve in the uniformed 
services under conditions entitling him or her to benefits under part 
353 of this chapter, or similar authority, for the purpose of 
performing duty not limited to 30 days or less, the date that is 24 
months after the date that the absence to serve in the uniformed 
services began or the date entitlement to benefits under part 353 of 
this chapter, or similar authority, ends, whichever is earlier, unless 
the enrollment is terminated under paragraph (a)(1)(vi) of this 
section.
    (viii) For an employee who is furloughed or placed on leave of 
absence under conditions entitling him or her to benefits under part 
353 of this chapter, or similar authority, the date that is 24 months 
after the date that the absence to serve in the uniformed services 
began or the date entitlement to benefits under part 353 of this 
chapter, or similar authority, ends, whichever is earlier, but not 
earlier than the date the enrollment would otherwise terminate under 
paragraph (a)(1)(v) of this section.
* * * * *
    4. Section 890.502 paragraph (f) is revised to read as follows:


Sec.  890.502  Employee withholdings and contributions.

* * * * *
    (f) Uniformed services. (1) Except as provided in paragraph (f)(2) 
of this section, an employee whose coverage continues under Sec.  
890.303(i) is responsible for payment of the employee share of the cost 
of enrollment for every pay period for which the enrollment continues 
for the first 365 days of continued coverage as set forth under 
paragraph (b) of this section. For coverage that continues after 365 
days in nonpay status, the employee must pay, on a current basis, the 
full subscription charge, including both the employee and Government 
shares, plus an additional 2 percent of the full subscription charge.
    (2) As provided by 5 U.S.C. 8906(e)(3), an employing agency may pay 
both the Government and employee contributions and any additional 
administrative expenses for the cost of coverage for the employee and 
the employee's family for a period of 24 months for employees called or 
ordered to active duty in support of a contingency operation on or 
after September 14, 2001. Payment of these contributions and expenses 
is solely at the discretion of the employing agency.

[FR Doc. E6-9666 Filed 6-19-06; 8:45 am]
BILLING CODE 6325-39-P