[Federal Register Volume 84, Number 63 (Tuesday, April 2, 2019)]
[Proposed Rules]
[Pages 12569-12573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06223]


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OFFICE OF PERSONNEL MANAGEMENT

48 CFR Parts 1603 and 1652

RIN 3206-AN56


Federal Employees Health Benefits Acquisition Regulations: Self 
Plus One and Contract Matrix Update

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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SUMMARY: The Office of Personnel Management (OPM) is issuing this

[[Page 12570]]

proposed rule to update its regulations concerning ``self plus one'' 
and the contract matrix. OPM is updating the Federal Employees Health 
Benefits Acquisition Regulations (FEHBAR) to include a recently added 
enrollment type called ``self plus one'' to the carrier advertising 
instructions and also provides notice to interested stakeholders that 
we are updating and clarifying the contract clause matrix.

DATES: OPM must receive comments by May 2, 2019.

ADDRESSES: You may submit comments identified by docket number and/or 
Regulatory Information Number (RIN) and title, by the following method:
     Federal Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
All submissions received must include the agency name and docket number 
or RIN for this document. The general policy for comments and other 
submissions from members of the public is to make these submissions 
available for public viewing at http://www.regulations.gov as they are 
received without change, including any personal identifiers or contact 
information.

FOR FURTHER INFORMATION CONTACT: Michael W. Kaszynski, Senior Policy 
Analyst, at [email protected] or 202-606-1994.

SUPPLEMENTARY INFORMATION: This proposed regulation amends the FEHBAR 
to list a ``self plus one'' enrollment type in the carrier advertising 
instructions so that carriers will be required to list all current 
enrollment types when advertising their health plans enrollment codes 
and premium rates to enrollees. This change is a technical correction 
and does not alter current FEHB family member eligibility guidelines.
    This proposed regulation also provides notice to interested 
stakeholders that we are updating and clarifying the contract clause 
matrix. Annually, OPM determines which FAR and FEHBAR contract clauses 
are applicable to FEHB carrier contracts and we include the appropriate 
clauses in the carrier contracts. We also publish clauses and clause 
headings in the FEHBAR in order to give the clauses legal regulatory 
authority. This gives new carriers joining the FEHB Program the benefit 
of seeing OPM's required clauses in regulation for consideration prior 
to submitting an application for participation in the FEHB Program. 
This proposed regulation brings the contract clause matrix in line with 
the current Federal Acquisition Regulations (FAR) and FEHBAR contract 
clauses used in all Federal Employees Health Benefits (FEHB) Program 
carrier contracts.
    Section 706 of the Bipartisan Budget Act of 2013 amended chapter 89 
of title 5 United States Code (U.S.C) by adding a self plus one 
enrollment type for Federal employees and annuitants under the FEHB 
Program. The self plus one enrollment type became available during the 
2015 Open Season for the 2016 plan year and was codified in a final 
rule at https://www.federalregister.gov/documents/2015/09/17/2015-23348/federal-employees-health-benefits-program-self-plus-one-enrollment-type. A self plus one enrollment covers the enrollee and one 
eligible family member, designated by the enrollee. Eligible family 
members under a self plus one enrollment include a spouse or eligible 
child as set forth in Sec.  890.302 of title 5 CFR.
    OPM manages the FEHB program which is executed with contractors 
managing and providing the FEHB benefits to government employees. This 
rule proposes to update the Federal Employee Health Benefits 
Acquisition Regulations (FEHBAR) to implement the ``self plus one'' 
program via FEHB contracts, and make the FEHB contract clauses 
consistent with current FAR and FEHBAR clause requirements. 
Specifically, the regulation amends the FEHBAR at 48 CFR part 1603 to 
list a self plus one enrollment type in the advertising instructions. 
OPM considers this change a technical correction as it does not change 
the operational requirements of the FEHB program and does not alter 
current FEHB family member eligibility guidelines.
    This regulation also provides notice to interested stakeholders 
that we are updating the contract clause matrix at 48 CFR 1652.370. 
This will bring the matrix in line with current FAR and FEHBAR contract 
clauses used in all FEHB Program carrier contracts. The matrix at 
FEHBAR section 1652.370 lists the FAR and FEHBAR clauses to be used in 
contracts based on cost analysis and contracts based on a combination 
of cost and price analysis. Carriers must comply with all matrix 
clauses during their participation in the FEHB Program. Certain 
contract clauses are mandatory for FEHB contracts and others are used 
only when made applicable by pertinent sections of the FAR or FEHBAR. 
This regulation updates the matrix to include all current contract 
clauses.

Regulatory Impact Analysis

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity). Executive 
Order 13563 also emphasizes the importance of quantifying both costs 
and benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule is not a significant regulatory action under 
E.O. 12866.

Reducing Regulation and Controlling Regulatory Costs

    This proposed rule is not expected to be an E.O. 13771 regulatory 
action because this proposed rule is not significant under E.O. 12866.

Regulatory Flexibility Act

    The Office of Personnel Management certifies that this rule will 
not have a significant economic impact on a substantial number of small 
entities.

Federalism

    We have examined this rule in accordance with Executive Order 
13132, Federalism, and have determined that this rule will not have any 
negative impact on the rights, roles and responsibilities of state, 
local, or tribal governments.

Civil Justice Reform

    This regulation meets the applicable standard set forth in 
Executive Order 12988.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the provisions of the Unfunded Mandates Reform Act of 1995.

Congressional Review Act

    This action pertains to agency management, personnel, and 
organization and does not substantially affect the rights or 
obligations of no agency parties and, accordingly, is not a ``rule'' as 
that term is used by the Congressional Review Act (Subtitle E of the 
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). 
Therefore, the reporting requirement of 5 U.S.C. 801 does not apply.

Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a

[[Page 12571]]

penalty for failure to comply with a collection of information subject 
to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.) (PRA), unless that collection of information displays a 
currently valid Office of Management and Budget (OMB) Control Number.
    This rule involves an OMB approved collection of information 
subject to the PRA Health Benefits Election, SF 2809, OMB no. 3206-
0160. The public reporting burden for this collection is estimated to 
average 30 minutes per response, including time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. The total burden hour estimate for this form 
is 9,000 hours. The systems of record notice for this collection is: 
OPM SORN GOVT-1 General Personnel Records and OPM SORN CENTRAL-18-
Federal Employees Health Benefits Program Claims Data Warehouse.

List of Subjects in 48 CFR Parts 1603 and 1652

    Government employees, Government procurement, Health insurance, 
Reporting and recordkeeping requirements.

    Office of Personnel Management.
Alexys Stanley,
Regulatory Affairs Analyst.

    Accordingly, OPM is proposing to amend title 48, Code of Federal 
Regulations, parts 1603 and 1652 as follows:

PART 1603--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

0
1. The authority citation for part 1603 continues to read as follows:

    Authority:  5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

0
2. Section 1603.7002 paragraph (e) is revised to read as follows:


1603.7002  Additional guidelines.

* * * * *
    (e) Not give instructions on enrollment. Statements on enrollment 
procedures, requirements, or eligibility shall be limited to those such 
as: To sign up, fill out a Health Benefits Election Form (Standard Form 
2809) from your personnel office indicating the enrollment you want or 
use your agency's electronic enrollment system:
    The enrollment codes for (plan's name) are:

Self Only _Enrollment Code _
Self Plus One _Enrollment Code _
Self and Family _Enrollment Code _

    The form must then be returned to your personnel office before the 
(date) deadline. Your (plan's name) coverage will begin the first pay 
period in January, (year). If you are a retired Federal employee and 
need forms, contact the Office of Personnel Management, 1900 E Street 
NW, Attn: Retirement Benefits Branch, Washington, DC 20415 or visit 
www.opm.gov/forms.

PART 1652--CONTRACT CLAUSES

0
3. The authority citation for part 1652 continues to read as follows:

    Authority:  5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.

0
4. Section 1652.370 is revised as follows


1652.370  Use of the matrix.

    (a) The matrix in this section lists the FAR and FEHBAR clauses to 
be used with contracts based on cost analysis and contracts based on a 
combination of cost and price analysis. Carriers shall submit initial 
applications and requests for renewals on the basis that the new 
contract or contract renewal will include the clauses indicated.
    (b) Certain contract clauses are mandatory for FEHBP contracts. 
Other clauses are to be used only when made applicable by pertinent 
sections of the FAR or FEHBAR. An ``M'' in the ``Use Status'' column 
indicates that the clause is mandatory. An ``A'' indicates that the 
clause is to be used only when the applicable conditions are met.
    (c) Clauses are incorporated in the contract either in full text or 
by reference. If the full text is to be used, the matrix indicates a 
``T''. If the clause is incorporated by reference, the matrix indicates 
an ``R''.

                                               FEHBP Clause Matrix
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                                                                                    Use with         Use with
            Clause                          Title                 Use status       experience     community rate
                                                                                rated contracts     contracts
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FAR 52.202-1.................  Definitions...................               M                T                T
FAR 52.203-3.................  Gratuities....................               M                T                T
FAR 52.203-5.................  Covenant Against Contingent                  M                T                T
                                Fees.
FAR 52.203-7.................  Anti-Kickback Procedures......               M                T                T
FAR 52.203-12................  Limitation on Payments to                    M                T                T
                                Influence Certain Federal
                                Transactions.
FAR 52.203-13................  Contractor Code of Business                  M                T                T
                                Ethics and Conduct.
FAR 52.203-17................  Contractor Employee                          M                T                T
                                Whistleblower Rights and
                                Requirement to Inform
                                Employees of Whistleblower
                                Rights.
FAR 52.203-19................  Prohibition Requiring Internal               M                T                T
                                Confidentiality Agreements or
                                Statements.
FAR 52.204-7.................  System For Rewards Management.               M                T                T
FAR 52.204-9.................  Personnel Identity                           M                T                T
                                Verification of Contractor
                                Personnel.
FAR 52.204-21................  Basic Safeguarding of                        M                T                T
                                Contractor Information
                                Systems.
FAR 52.209-9.................  Updates of Publically                        M                T                T
                                Available Information
                                Regarding Responsibility
                                Matters.
1652.203-70..................  Misleading, Deceptive, or                    M                T                T
                                Unfair Advertising.
1652.204-70..................  Contractor Records Retention..               M                T                T
1652.204-71..................  Coordination of Benefits......               M                T                T
1652.204-72..................  Filing Health Benefit Claims/                M                T                T
                                Court Review of Disputed
                                Claims.
1652.204-73..................  Taxpayer Identification Number               M                T                T
1652.204-74..................  Large Provider Agreements.....               M                T

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FAR 52.209-6.................  Protecting the Government's                  M                T                T
                                Interest When Subcontracting
                                With Contractors Debarred,
                                Suspended, or Proposed for
                                Debarment.
FAR 52.215-2.................  Audit & Records--Negotiation..               M                T                T
FAR 52.215-10................  Price Reduction for Defective                M                T
                                Cost or Pricing Data.
FAR 52.215-12................  Subcontractor Certified Cost                 M                T
                                or Pricing Data.
FAR 52.215-15................  Pension Adjustments and Asset                M                T
                                Reversions.
FAR 52.215-18................  Reversion or Adjustment of                   M                T
                                Plans for Postretirement
                                Benefits (PRB) Other Than
                                Pensions.
1652.215-70..................  Rate Reduction for Defective                 M                T                T
                                Pricing or Defective Cost or
                                Pricing Data.
1652.215-71..................  Investment Income.............               M                T
1652.216-70..................  Accounting and Price                         M   ...............               T
                                Adjustment.
1652.216-71..................  Accounting and Allowable Cost.               M                T
FAR 52.219-8.................  Utilization of Small Business                M                T                T
                                Concerns.
FAR 52.222-1.................  Notice to the Government of                  M                T                T
                                Labor Disputes.
FAR 52.222-3.................  Convict Labor.................               M                T                T
FAR 52.222-4.................  Contract Work Hours and Safety               M                T                T
                                Standards Act--Overtime
                                Compensation.
FAR 52.222-21................  Prohibition of Segregated                    M                T                T
                                Facilities.
FAR 52.222-26................  Equal Opportunity.............               M                T                T
FAR 52.222-29................  Notification of Visa Denial...               A                T                T
FAR 52.222-35................  Equal Opportunity for Veterans               M                T                T
FAR 52.222-36................  Equal Opportunity for Workers                M                T                T
                                With Disabilities.
FAR 52.222-37................  Employment Reports on Veterans               M                T                T
FAR 52.222-50................  Combating Trafficking in                     M                T                T
                                Persons.
FAR 52.222.54................  Employment Eligibility                       M                T                T
                                Verification.
1652.222-70..................  Notice of Significant Events..               M                T                T
FAR 52.223-6.................  Drug-Free Workplace...........               A                T                T
FAR 52.223-18................  Encouraging Contractor                       M                T                T
                                Policies to Ban Text
                                Messaging While Driving.
1652.224-70..................  Confidentiality of Records....               M                T                T
FAR 52.227-1.................  Authorization and Consent.....               M                T                T
FAR 52.227-2.................  Notice and Assistance                        M                T                T
                                Regarding Patent and
                                Copyright Infringement.
FAR 52.229-4.................  Federal, State and Local Taxes               M                T                T
                                (State and local Adjustments.
1652.229-70..................  Taxes--Foreign Negotiated                    A                T                T
                                Benefits Contracts.
FAR 52.232-8.................  Discounts for Prompt Payment..               M                T                T
FAR 52.232-17................  Interest......................               M                T                T
FAR 52.232-23................  Assignment of Claims..........               A                T                T
FAR 52.232-33................  Payment by Electronic Funds                  M                T                T
                                Transfer--System for Awards
                                Management.
1652.232-70..................  Payments--Community-Rated                    A   ...............               T
                                Contracts.
1652.232-71..................  Payments--Experience-Rated                   A                T
                                Contracts.
1652.232-72..................  Non-Commingling of FEHBP Funds               M                T
1652.232-73..................  Approval for Assignment of                   M                T                T
                                Claims.
FAR 52.233-1.................  Disputes......................               M                T                T
FAR 52.233-4.................  Applicable Law for Breach of                 M                T                T
                                Contract Claim.
FAR 52.239-1.................  Privacy or Security Safeguards               M                T                T
FAR 52.242-1.................  Notice of Intent to Disallow                 M                T
                                Costs.
FAR 52.242-3.................  Penalties for Unallowable                    M                T
                                Costs.
FAR 52.242-13................  Bankruptcy....................               M                T                T
1652.243-70..................  Changes--Negotiated Benefits                 M                T                T
                                Contracts.
FAR 52.244-5.................  Competition in Subcontracting.               M                T
FAR 52.244-6.................  Subcontracts for Commercial                  M                T
                                Items.
1652.244-70..................  Subcontracts..................               M                T
1652.245-70..................  Government Property                          M                T                T
                                (Negotiated Benefits
                                Contracts).
FAR 52.246-25................  Limitation of Liability--                    M                T
                                Services.
1652.246-70..................  FEHB Inspection...............               M                T                T
FAR 52.247-63................  Preference for U.S.-Flag Air                 M                T                T
                                Carriers.
1652.249-70..................  Renewal and Withdrawal of                    M                T                T
                                Approval.
1652.249-71..................  FEHBP Termination for                        M                T                T
                                Convenience of the
                                Government--Negotiated
                                Benefits Contracts.
1652.249-72..................  FEHBP Termination for Default--              M                T                T
                                Negotiated Benefits Contracts.
FAR 52.251-1.................  Government Supply Sources.....               A                T
FAR 52.252-4.................  Alterations in Contract.......               A                T                T
FAR 52.252-6.................  Authorized Deviations in                     M                T                T
                                Clauses.
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[FR Doc. 2019-06223 Filed 4-1-19; 8:45 am]
 BILLING CODE 6325-38-P