Federal Employees Health Benefits Program: Removal of Minimum Salary Requirement

Proposed Rules

Federal Register

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Proposed Rules

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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 890

RIN 3206-AI05

Federal Employees Health Benefits Program: Removal of Minimum

Salary Requirement

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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

rule. This rule removes an obsolete provision that prohibits an

employee whose annual salary is $350 or less from enrolling in the

Federal Employees Health Benefits (FEHB) Program.

DATES: Comments must be received on or before February 5, 1998.

ADDRESSES: Send comments to Abby L. Block, Chief, Insurance Policy and

Information Division, Office of Insurance Programs, Retirement and

Insurance Service, Office of Personnel Management, P.O. Box 707,

Washington, DC 20044; or deliver to OPM, Room 3425, 1900 E Street, NW,

Washington, DC 20415; or FAX to 202-606-0633.

FOR FURTHER INFORMATION CONTACT: Kenneth A. Lease, 202-606-0004.

SUPPLEMENTARY INFORMATION: Since the FEHB Program began in 1960, FEHB

regulations have prohibited an employee earning $350 or less per year

from enrolling in the Program. This provision was based on the fact

that employee contributions to premiums could only be made by salary

withholding while an employee was in a pay status. ($350 is the amount

which in 1960 was sufficient to cover the appropriate employee

contributions for the least costly FEHB plan.) As amended in August

1982, however, the regulations now require enrollee contributions, by

direct payment if necessary, for all periods during which coverage

continues, even periods during which an employee does not receive pay

(such as a leave without pay situation). Since the previous rationale

for the minimum earnings level for FEHB enrollment no longer exists,

OPM is proposing to remove this obsolete requirement.

We also propose to amend the reference in the definition of letter

of credit under Sec. 890.101 to conform to a recent reference change in

Chapter 16 of title 48, Code of Federal Regulations (FEHBAR).

Regulatory Flexibility Act

I certify that this regulation will not have a significant economic

impact on a substantial number of small entities because it primarily

affects Federal employees.

List of Subjects in 5 CFR Part 890

Administrative practice and procedure, Government employees, Health

facilities, Health insurance, Health professions, Hostages, Iraq,

Kuwait, Lebanon, Reporting and recordkeeping requirements, Retirement.

U.S. Office of Personnel Management.

Janice R. Lachance,

Director.

Accordingly, OPM proposes to amend 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 sec. 599C of Pub. L. 101-513, 104 Stat. 2064, as amended,

Sec. 890.102 also issued under sections 11202(f), 11232(e), and

11246(b) and (c) of Pub. L. 105-33, 111 Stat. 251.

2. In Sec. 890.101, paragraph (a), the definition of Letter of

Credit is revised to read as follows:

Sec. 890.101 Definitions; time computations.

(a) * * *

Letter of credit is defined in 48 CFR subpart 1602.1.

* * * * *

Sec. 890.102 [Amended]

3. In Sec. 890.102, paragraph (c)(4) is removed and paragraphs

(c)(5), (c)(6), (c)(7), and (c)(8) are redesignated as paragraphs

(c)(4), (c)(5), (c)(6), and (c)(7) respectively.

4. In Sec. 890.303, paragraph (b) is revised to read as follows:

Sec. 890.303 Continuation of enrollment.

* * * * *

(b) Change of enrolled employees to certain excluded positions.

Employees and annuitants enrolled under this part who move, without a

break in service or after a separation of 3 days or less, to an

employment in which they are excluded by Sec. 890.102(c), continue to

be enrolled unless excluded by paragraphs (c) (4), (5), (6), or (7) of

Sec. 890.102.

* * * * *

[FR Doc. 98-102 Filed 1-5-98; 8:45 am]

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