[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2657 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2657
To amend part III of title 5, United States Code, to provide for the
establishment of programs under which supplemental dental and vision
benefits are made available to Federal employees, retirees, and their
dependents, to expand the contracting authority of the Office of
Personnel Management, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 14, 2004
Ms. Collins (for herself and Mr. Akaka) introduced the following bill;
which was read twice and referred to the Committee on Governmental
Affairs
_______________________________________________________________________
A BILL
To amend part III of title 5, United States Code, to provide for the
establishment of programs under which supplemental dental and vision
benefits are made available to Federal employees, retirees, and their
dependents, to expand the contracting authority of the Office of
Personnel Management, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Employee Dental and Vision
Benefits Enhancement Act of 2004''.
SEC. 2. ENHANCED DENTAL BENEFITS FOR FEDERAL EMPLOYEES.
(a) In General.--Subpart G of part III of title 5, United States
Code, is amended by inserting after chapter 89 the following:
``CHAPTER 89A--ENHANCED DENTAL BENEFITS
``Sec.
``8951. Definitions.
``8952. Availability of dental benefits.
``8953. Contracting authority.
``8954. Benefits.
``8955. Information to individuals eligible to enroll.
``8956. Election of coverage.
``8957. Coverage of restored survivor or disability annuitants.
``8958. Premiums.
``8959. Preemption.
``8960. Studies, reports, and audits.
``8961. Jurisdiction of courts.
``8962. Administrative functions.
``Sec. 8951. Definitions
``In this chapter:
``(1) The term `employee' means an employee defined under
section 8901(1).
``(2) The terms `annuitant', `member of family', and
`dependent' have the meanings as such terms are defined under
paragraphs (3), (5), and (9), respectively, of section 8901.
``(3) The term `eligible individual' refers to an
individual described in paragraph (1) or (2), without regard to
whether the individual is enrolled in a health benefits plan
under chapter 89.
``(4) The term `Office' means the Office of Personnel
Management.
``(5) The term `qualified company' means a company (or
consortium of companies) that offers indemnity, preferred
provider organization, health maintenance organization, or
discount dental programs and if required is licensed to issue
applicable coverage in any number of States, taking any
subsidiaries of such a company into account (and, in the case
of a consortium, considering the member companies and any
subsidiaries thereof, collectively).
``(6) The term `employee organization' means an association
or other organization of employees which is national in scope,
or in which membership is open to all employees of a Government
agency who are eligible to enroll in a health benefits plan
under chapter 89.
``(7) The term `State' includes the District of Columbia.
``Sec. 8952. Availability of dental benefits
``(a) The Office shall establish and administer a program through
which an eligible individual may obtain dental coverage to supplement
coverage available through chapter 89.
``(b) The Office shall determine, in the exercise of its reasonable
discretion, the financial requirements for qualified companies to
participate in the program.
``(c) Nothing in this chapter shall be construed to prohibit the
availability of dental benefits provided by health benefits plans under
chapter 89.
``Sec. 8953. Contracting authority
``(a)(1) The Office shall contract with a reasonable number of
qualified companies for a policy or policies of benefits described
under section 8954 without regard to section 5 of title 41 or any other
statute requiring competitive bidding. An employee organization may
contract with a qualified company for the purpose of participating with
that qualified company in any contract between the Office and that
qualified company.
``(2) The Office shall ensure that each resulting contract is
awarded on the basis of contractor qualifications, price, and
reasonable competition.
``(b) Each contract under this section shall contain--
``(1) the requirements under section 8902 (d), (f), and (i)
made applicable to contracts under this section by regulations
prescribed by the Office;
``(2) the terms of the enrollment period; and
``(3) such other terms and conditions as may be mutually
agreed to by the Office and the qualified company involved,
consistent with the requirements of this chapter and
regulations prescribed by the Office.
``(c) Nothing in this chapter shall, in the case of an individual
electing dental supplemental benefit coverage under this chapter after
the expiration of such individual's first opportunity to enroll,
preclude the application of waiting periods more stringent than those
that would have applied if that opportunity had not yet expired.
``(d)(1) Each contract under this chapter shall require the
qualified company to agree--
``(A) to provide payments or benefits to an eligible
individual if such individual is entitled thereto under the
terms of the contract; and
``(B) with respect to disputes regarding claims for
payments or benefits under the terms of the contract--
``(i) to establish internal procedures designed to
expeditiously resolve such disputes; and
``(ii) to establish, for disputes not resolved
through procedures under clause (i), procedures for 1
or more alternative means of dispute resolution
involving independent third-party review under
appropriate circumstances by entities mutually
acceptable to the Office and the qualified company.
``(2) A determination by a qualified company as to whether or not a
particular individual is eligible to obtain coverage under this chapter
shall be subject to review only to the extent and in the manner
provided in the applicable contract.
``(3) For purposes of applying the Contract Disputes Act of 1978 to
disputes arising under this chapter between a qualified company and the
Office--
``(A) the agency board having jurisdiction to decide an
appeal relative to such a dispute shall be such board of
contract appeals as the Director of the Office of Personnel
Management shall specify in writing (after appropriate
arrangements, as described in section 8(c) of such Act); and
``(B) the district courts of the United States shall have
original jurisdiction, concurrent with the United States Court
of Federal Claims, of any action described in section 10(a)(1)
of such Act relative to such a dispute.
``(e) Nothing in this section shall be considered to grant
authority for the Office or third-party reviewer to change the terms of
any contract under this chapter.
``(f) Contracts under this chapter shall be for a uniform term of 7
years and may not be renewed automatically.
``Sec. 8954. Benefits
``(a) The Office may prescribe reasonable minimum standards for
enhanced dental benefits plans offered under this chapter and for
qualified companies offering the plans.
``(b) Each contract may include more than 1 level of benefits that
shall be made available to all eligible individuals.
``(c) The benefits to be provided under enhanced dental benefits
plans under this chapter may be of the following types:
``(1) Diagnostic.
``(2) Preventive.
``(3) Emergency care.
``(4) Restorative.
``(5) Oral and maxillofacial surgery.
``(6) Endodontics.
``(7) Periodontics.
``(8) Prosthodontics.
``(9) Orthodontics.
``(d) A contract approved under this chapter shall require the
qualified company to cover the geographic service delivery specified by
the Office. The Office shall require qualified companies to include
dentally underserved areas in their service delivery areas.
``(e) If an individual has dental coverage under a health benefits
plan under chapter 89 and also has coverage under a plan under this
chapter, the health benefits plan under chapter 89 shall be the first
payor of any benefit payments.
``Sec. 8955. Information to individuals eligible to enroll
``(a) The qualified companies at the direction and with the
approval of the Office, shall make available to each individual
eligible to enroll in a dental benefits plan information on services
and benefits (including maximums, limitations, and exclusions), that
the Office considers necessary to enable the individual to make an
informed decision about electing coverage.
``(b) The Office shall make available to each individual eligible
to enroll in a dental benefits plan, information on services and
benefits provided by qualified companies participating under chapter
89.
``Sec. 8956. Election of coverage
``(a) An eligible individual may enroll in a dental benefits plan
for self-only, self plus one, or for self and family. If an eligible
individual has a spouse who is also eligible to enroll, either spouse,
but not both, may enroll for self plus one or self and family. An
individual may not be enrolled both as an employee, annuitant, or other
individual eligible to enroll and as a member of the family.
``(b) The Office shall prescribe regulations under which--
``(1) an eligible individual may enroll in a dental
benefits plan; and
``(2) an enrolled individual may change the self-only, self
plus one, or self and family coverage of that individual.
``(c)(1) Regulations under subsection (b) shall permit an eligible
individual to cancel or transfer the enrollment of that individual to
another dental benefits plan--
``(A) before the start of any contract term in which there
is a change in rates charged or benefits provided, in which a
new plan is offered, or in which an existing plan is
terminated; or
``(B) during other times and under other circumstances
specified by the Office.
``(2) A transfer under paragraph (1) shall be subject to waiting
periods provided under a new plan.
``Sec. 8957. Coverage of restored survivor or disability annuitants
``A surviving spouse, disability annuitant, or surviving child
whose annuity is terminated and is later restored, may continue
enrollment in a dental benefits plan subject to the terms and
conditions prescribed in regulations issued by the Office.
``Sec. 8958. Premiums
``(a) Each eligible individual obtaining supplemental dental
coverage under this chapter shall be responsible for 100 percent of the
premiums for such coverage.
``(b) The Office shall prescribe regulations specifying the terms
and conditions under which individuals are required to pay the premiums
for enrollment.
``(c) The amount necessary to pay the premiums for enrollment may--
``(1) in the case of an employee, be withheld from the pay
of such an employee; or
``(2) in the case of an annuitant, be withheld from the
annuity of such an annuitant.
``(d) All amounts withheld under this section shall be paid
directly to the qualified company.
``(e) Each participating qualified company shall maintain
accounting records that contain such information and reports as the
Office may require.
``(f)(1) The Employee Health Benefits Fund is available, without
fiscal year limitation, for reasonable expenses incurred by the Office
in administering this chapter before the first day of the first
contract period, including reasonable implementation costs.
``(2)(A) There is established in the Employees Health Benefits Fund
a Dental Benefits Administrative Account, which shall be available to
the Office, without fiscal year limitation, to defray reasonable
expenses incurred by the Office in administering this chapter after the
start of the first contract year.
``(B) A contract under this chapter shall include appropriate
provisions under which the qualified company involved shall, during
each year, make such periodic contributions to the Dental Benefits
Administrative Account as necessary to ensure that the reasonable
anticipated expenses of the Office in administering this chapter during
such year are defrayed.
``Sec. 8959. Preemption
``The terms of any contract that relate to the nature, provision,
or extent of coverage or benefits (including payments with respect to
benefits) shall supersede and preempt any State or local law, or any
regulation issued thereunder, which relates to dental benefits,
insurance, plans, or contracts.
``Sec. 8960. Studies, reports, and audits
``(a) Each contract shall contain provisions requiring the
qualified company to--
``(1) furnish such reasonable reports as the Office
determines to be necessary to enable it to carry out its
functions under this chapter; and
``(2) permit the Office and representatives of the General
Accounting Office to examine such records of the qualified
company as may be necessary to carry out the purposes of this
chapter.
``(b) Each Federal agency shall keep such records, make such
certifications, and furnish the Office, the qualified company, or both,
with such information and reports as the Office may require.
``(c) The Office shall conduct periodic reviews of plans under this
chapter, including a comparison of the dental benefits available under
chapter 89, to ensure the competitiveness of plans under this chapter.
The Office shall cooperate with the General Accounting Office to
provide periodic evaluations of the program.
``Sec. 8961. Jurisdiction of courts-
``The district courts of the United States have original
jurisdiction, concurrent with the United States Court of Federal
Claims, of a civil action or claim against the United States under this
chapter after such administrative remedies as required under section
8953(d) have been exhausted, but only to the extent judicial review is
not precluded by any dispute resolution or other remedy under this
chapter.
``Sec. 8962. Administrative functions
``(a) The Office shall prescribe regulations to carry out this
chapter. The regulations may exclude an employee on the basis of the
nature and type of employment or conditions pertaining to it.
``(b) The Office shall, as appropriate, provide for coordinated
enrollment, promotion, and education efforts as appropriate in
consultation with each qualified company. The information under this
subsection shall include information relating to the dental benefits
available under chapter 89, including the advantages and disadvantages
of obtaining additional coverage under this chapter.''.
SEC. 3. ENHANCED VISION BENEFITS FOR FEDERAL EMPLOYEES.
Subpart G of part III of title 5, United States Code, is amended by
inserting after chapter 89A (as added by section 2 of this Act) the
following:
``CHAPTER 89B--ENHANCED VISION BENEFITS
``Sec.
``8981. Definitions.
``8982. Availability of vision benefits.
``8983. Contracting authority.
``8984. Benefits.
``8985. Information to individuals eligible to enroll.
``8986. Election of coverage.
``8987. Coverage of restored survivor or disability annuitants.
``8988. Premiums.
``8989. Preemption.
``8990. Studies, reports, and audits.
``8991. Jurisdiction of courts.
``8992. Administrative functions.
``Sec. 8981. Definitions
``In this chapter:
``(1) The term `employee' means an employee defined under
section 8901(1).
``(2) The terms `annuitant', `member of family', and
`dependent' have the meanings as such terms are defined under
paragraphs (3), (5), and (9), respectively, of section 8901.
``(3) The term `eligible individual' refers to an
individual described in paragraph (1) or (2), without regard to
whether the individual is enrolled in a health benefits plan
under chapter 89.
``(4) The term `Office' means the Office of Personnel
Management.
``(5) The term `qualified company' means a company (or
consortium of companies) that offers indemnity, preferred
provider organization, health maintenance organization, or
discount vision programs and if required is licensed to issue
applicable coverage in any number of States, taking any
subsidiaries of such a company into account (and, in the case
of a consortium, considering the member companies and any
subsidiaries thereof, collectively).
``(6) The term `employee organization' means an association
or other organization of employees which is national in scope,
or in which membership is open to all employees of a Government
agency who are eligible to enroll in a health benefits plan
under chapter 89.
``(7) The term `State' includes the District of Columbia.
``Sec. 8982. Availability of vision benefits
``(a) The Office shall establish and administer a program through
which an eligible individual may obtain vision coverage to supplement
coverage available through chapter 89.
``(b) The Office shall determine, in the exercise of its reasonable
discretion, the financial requirements for qualified companies to
participate in the program.
``(c) Nothing in this chapter shall be construed to prohibit the
availability of vision benefits provided by health benefits plans under
chapter 89.
``Sec. 8983. Contracting authority
``(a)(1) The Office shall contract with a reasonable number of
qualified companies for a policy or policies of benefits described
under section 8984 without regard to section 5 of title 41 or any other
statute requiring competitive bidding. An employee organization may
contract with a qualified company for the purpose of participating with
that qualified company in any contract between the Office and that
qualified company.
``(2) The Office shall ensure that each resulting contract is
awarded on the basis of contractor qualifications, price, and
reasonable competition.
``(b) Each contract under this section shall contain--
``(1) the requirements under section 8902 (d), (f), and (i)
made applicable to contracts under this section by regulations
prescribed by the Office;
``(2) the terms of the enrollment period; and
``(3) such other terms and conditions as may be mutually
agreed to by the Office and the qualified company involved,
consistent with the requirements of this chapter and
regulations prescribed by the Office.
``(c) Nothing in this chapter shall, in the case of an individual
electing vision supplemental benefit coverage under this chapter after
the expiration of such individual's first opportunity to enroll,
preclude the application of waiting periods more stringent than those
that would have applied if that opportunity had not yet expired.
``(d)(1) Each contract under this chapter shall require the
qualified company to agree--
``(A) to provide payments or benefits to an eligible
individual if such individual is entitled thereto under the
terms of the contract; and
``(B) with respect to disputes regarding claims for
payments or benefits under the terms of the contract--
``(i) to establish internal procedures designed to
expeditiously resolve such disputes; and
``(ii) to establish, for disputes not resolved
through procedures under clause (i), procedures for 1
or more alternative means of dispute resolution
involving independent third-party review under
appropriate circumstances by entities mutually
acceptable to the Office and the qualified company.
``(2) A determination by a qualified company as to whether or not a
particular individual is eligible to obtain coverage under this chapter
shall be subject to review only to the extent and in the manner
provided in the applicable contract.
``(3) For purposes of applying the Contract Disputes Act of 1978 to
disputes arising under this chapter between a qualified company and the
Office--
``(A) the agency board having jurisdiction to decide an
appeal relative to such a dispute shall be such board of
contract appeals as the Director of the Office of Personnel
Management shall specify in writing (after appropriate
arrangements, as described in section 8(c) of such Act); and
``(B) the district courts of the United States shall have
original jurisdiction, concurrent with the United States Court
of Federal Claims, of any action described in section 10(a)(1)
of such Act relative to such a dispute.
``(e) Nothing in this section shall be considered to grant
authority for the Office or third-party reviewer to change the terms of
any contract under this chapter.
``(f) Contracts under this chapter shall be for a uniform term of 7
years and may not be renewed automatically.
``Sec. 8984. Benefits
``(a) The Office may prescribe reasonable minimum standards for
enhanced vision benefits plans offered under this chapter and for
qualified companies offering the plans.
``(b) Each contract may include more than 1 level of benefits that
shall be made available to all eligible individuals.
``(c) The benefits to be provided under enhanced vision benefits
plans under this chapter may be of the following types:
``(1) Diagnostic (to include refractive services).
``(2) Preventive.
``(3) Eyewear.
``(d) A contract approved under this chapter shall require the
qualified company to cover the geographic service delivery specified by
the Office. The Office shall require qualified companies to include
visually underserved areas in their service delivery areas.
``(e) If an individual has vision coverage under a health benefits
plan under chapter 89 and also has coverage under a plan under this
chapter, the health benefits plan under chapter 89 shall be the first
payor of any benefit payments.
``Sec. 8985. Information to individuals eligible to enroll
``(a) The qualified companies at the direction and with the
approval of the Office, shall make available to each individual
eligible to enroll in a vision benefits plan information on services
and benefits (including maximums, limitations, and exclusions), that
the Office considers necessary to enable the individual to make an
informed decision about electing coverage.
``(b) The Office shall make available to each individual eligible
to enroll in a vision benefits plan, information on services and
benefits provided by qualified companies participating under chapter
89.
``Sec. 8986. Election of coverage
``(a) An eligible individual may enroll in a vision benefits plan
for self-only, self plus one, or for self and family. If an eligible
individual has a spouse who is also eligible to enroll, either spouse,
but not both, may enroll for self plus one or self and family. An
individual may not be enrolled both as an employee, annuitant, or other
individual eligible to enroll and as a member of the family.
``(b) The Office shall prescribe regulations under which--
``(1) an eligible individual may enroll in a vision
benefits plan; and
``(2) an enrolled individual may change the self-only, self
plus one, or self and family coverage of that individual.
``(c)(1) Regulations under subsection (b) shall permit an eligible
individual to cancel or transfer the enrollment of that individual to
another vision benefits plan--
``(A) before the start of any contract term in which there
is a change in rates charged or benefits provided, in which a
new plan is offered, or in which an existing plan is terminated; or
``(B) during other times and under other circumstances
specified by the Office.
``(2) A transfer under paragraph (1) shall be subject to waiting
periods provided under a new plan.
``Sec. 8987. Coverage of restored survivor or disability annuitants
``A surviving spouse, disability annuitant, or surviving child
whose annuity is terminated and is later restored, may continue
enrollment in a vision benefits plan subject to the terms and
conditions prescribed in regulations issued by the Office.
``Sec. 8988. Premiums
``(a) Each eligible individual obtaining supplemental vision
coverage under this chapter shall be responsible for 100 percent of the
premiums for such coverage.
``(b) The Office shall prescribe regulations specifying the terms
and conditions under which individuals are required to pay the premiums
for enrollment.
``(c) The amount necessary to pay the premiums for enrollment may--
``(1) in the case of an employee, be withheld from the pay
of such an employee; or
``(2) in the case of an annuitant, be withheld from the
annuity of such an annuitant.
``(d) All amounts withheld under this section shall be paid
directly to the qualified company.
``(e) Each participating qualified company shall maintain
accounting records that contain such information and reports as the
Office may require.
``(f)(1) The Employee Health Benefits Fund is available, without
fiscal year limitation, for reasonable expenses incurred by the Office
in administering this chapter before the first day of the first
contract period, including reasonable implementation costs.
``(2)(A) There is established in the Employees Health Benefits Fund
a Vision Benefits Administrative Account, which shall be available to
the Office, without fiscal year limitation, to defray reasonable
expenses incurred by the Office in administering this chapter after the
start of the first contract year.
``(B) A contract under this chapter shall include appropriate
provisions under which the qualified company involved shall, during
each year, make such periodic contributions to the Vision Benefits
Administrative Account as necessary to ensure that the reasonable
anticipated expenses of the Office in administering this chapter during
such year are defrayed.
``Sec. 8989. Preemption
``The terms of any contract that relate to the nature, provision,
or extent of coverage or benefits (including payments with respect to
benefits) shall supersede and preempt any State or local law, or any
regulation issued thereunder, which relates to vision benefits,
insurance, plans, or contracts.
``Sec. 8990. Studies, reports, and audits
``(a) Each contract shall contain provisions requiring the
qualified company to--
``(1) furnish such reasonable reports as the Office
determines to be necessary to enable it to carry out its
functions under this chapter; and
``(2) permit the Office and representatives of the General
Accounting Office to examine such records of the qualified
company as may be necessary to carry out the purposes of this
chapter.
``(b) Each Federal agency shall keep such records, make such
certifications, and furnish the Office, the qualified company, or both,
with such information and reports as the Office may require.
``(c) The Office shall conduct periodic reviews of plans under this
chapter, including a comparison of the vision benefits available under
chapter 89, to ensure the competitiveness of plans under this chapter.
The Office shall cooperate with the General Accounting Office to
provide periodic evaluations of the program.
``Sec. 8991. Jurisdiction of courts-
``The district courts of the United States have original
jurisdiction, concurrent with the United States Court of Federal
Claims, of a civil action or claim against the United States under this
chapter after such administrative remedies as required under section
8983(d) have been exhausted, but only to the extent judicial review is
not precluded by any dispute resolution or other remedy under this
chapter.
``Sec. 8992. Administrative functions
``(a) The Office shall prescribe regulations to carry out this
chapter. The regulations may exclude an employee on the basis of the
nature and type of employment or conditions pertaining to it.
``(b) The Office shall, as appropriate, provide for coordinated
enrollment, promotion, and education efforts as appropriate in
consultation with each qualified company. The information under this
subsection shall include information relating to the vision benefits
available under chapter 89, including the advantages and disadvantages
of obtaining additional coverage under this chapter.''.
SEC. 4. TECHNICAL AND CONFORMING AMENDMENT.
The table of chapters for part III of title 5, United States Code,
is amended by inserting after the item relating to chapter 89 the
following:
``89A. Enhanced Dental Benefits............................. 8951
``89B. Enhanced Vision Benefits............................. 8981''.
SEC. 5. APPLICATION TO POSTAL SERVICE EMPLOYEES.
Section 1005(f) of title 39, United States Code, is amended in the
second sentence by striking ``chapters 87 and 89'' and inserting
``chapters 87, 89, 89A, and 89B''.
SEC. 6. SENSE OF CONGRESS.
(a) Findings.--Congress finds that--
(1) oral and vision health and general health and well-
being are inseparable and access to dental and vision services
is an essential factor in maintaining good health;
(2) Federal employees and their families deserve and desire
additional coverage options and place value on maintaining good
oral and vision health; and
(3) it is in the interest of the Federal Government to
remain competitive in attracting and retaining highly skilled
employees and taking reasonable steps to ensure the health and
well-being of its employees.
(b) Sense of Congress.--It is the sense of Congress that health
insurance benefits available to Federal employees should be sufficient
to promote the health and productivity of all Federal workers and to
support the recruitment and retention of a highly qualified workforce.
To help achieve these goals, Congress should evaluate the supplemental
plans established under the Federal Employee Dental and Vision Benefits
Enhancement Act of 2004 to determine the options for and feasibility of
providing an employer contribution.
SEC. 7. REQUIREMENT TO STUDY HEALTH BENEFITS COVERAGE FOR DEPENDENT
CHILDREN WHO ARE FULL-TIME STUDENTS.
Not later than 6 months after the date of enactment of this Act,
the Office of Personnel Management shall submit to Congress a report
describing and evaluating options whereby benefits under chapter 89 of
title 5, United States Code, could be made available to an unmarried
dependent child under 25 years of age who is enrolled as a full-time
student at an institution of higher education as defined under section
101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
SEC. 8. EFFECTIVE DATE.
The amendments made by this Act shall take effect on the date of
enactment of this Act and shall apply to contracts that take effect
with respect to the calendar year 2006.
<all>