[Federal Register Volume 72, Number 31 (Thursday, February 15, 2007)]
[Rules and Regulations]
[Pages 7345-7346]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-2619]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 72, No. 31 / Thursday, February 15, 2007 /
Rules and Regulations
[[Page 7345]]
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management is issuing a final
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 final
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 final 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.
EFFECTIVE DATE: The effective date of this final regulation is April
16, 2007.
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: mwkaszy@opm.gov.
SUPPLEMENTARY INFORMATION: The National Defense Authorization Act for
2005 (Pub. L. 108-375 section 1101) 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. Section 201 of Public Law 108-454
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. This final regulation's purpose is to place into rulemaking the
requirements of Public Law 108-375 and Public Law 108-454.
On June 20, 2006, the Office of Personnel Management (OPM)
published a proposed regulation in the Federal Register at 71 FR 35397.
OPM received comments from a Federal agency and an employee union in
response to the proposed regulation. The Federal agency pointed out
that 5 U.S.C. 8905a now allows the 24 months of continued coverage to
begin on the date that the employee is placed on leave without pay or
separated from service to perform active duty in the uniformed
services. We agree that the law now further defines when the 24 months
of continued coverage begins so we have made an appropriate revision to
the regulation. The agency also asked that we clarify section
890.502(f)(2) of the regulation to show that agency payment of the
Government and employee contributions and any additional administrative
expenses is only authorized while the employee is on orders to serve in
a contingency operation and that these contributions will cease when
the employee is no longer serving in support of a contingency
operation. We have revised the regulation to make this clarification. A
comment made by an employee union states that the regulation should
authorize eligibility for continued, fully subsidized FEHB coverage for
the entire length of a Federal employee's deployment in the unformed
services. While we would like to offer as much support as possible to
those in the uniformed services, the laws upon which our regulation is
based only authorize us to offer employees up to 24 months of
subsidized coverage, at the agency's discretion, while serving in
support of a contingency operation in the uniformed services. As a
matter of law, the benefits provided for in our regulation cannot
exceed those authorized by legislation (Pub. L. 108-375 and 108-454).
Regulatory Flexibility Act
I certify that this final 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.
[[Page 7346]]
Office of Personnel Management.
Linda M. Springer,
Director.
0
For the reasons set forth in the preamble, OPM is amending 5 CFR part
890 as follows:
PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM
0
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.
0
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 employee is placed on leave without pay or separated
from service to perform active duty in the uniformed services, 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 employee is placed on leave without pay
or separated from service to perform active duty in the uniformed
services, provided that the employee continues to be entitled to
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 employee is placed on
leave without pay or separated from service to perform active duty in
the uniformed services, provided that the employee continues to be
entitled to continued coverage under part 353 of this chapter, or
similar authority.
0
3. Section 890.304 paragraphs (a)(1)(vii) and (a)(1)(viii) are revised
to read as follows:
Sec. 890.304 Termination of enrollment.
(a) * * *
(1) * * *
(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 employee is placed on leave without pay
or separated from service to perform active duty in the uniformed
services, 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 employee is placed on leave without pay or
separated from service to perform active duty to serve in the uniformed
services, 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.
* * * * *
0
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. The payment of Government and employee
contributions and any additional administrative expenses authorized by
this section only applies to employees while they are serving in
support of a contingency operation, and eligibility for these payments
terminates when the employee ceases to be on orders for a contingency
operation. Payment of these contributions and expenses is solely at the
discretion of the employing agency.
[FR Doc. E7-2619 Filed 2-14-07; 8:45 am]
BILLING CODE 6325-39-P