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108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-283
_______________________________________________________________________

                                     

                                                       Calendar No. 590


    AMENDING CHAPTER 90 OF TITLE 5, UNITED STATES CODE, TO INCLUDE 
 EMPLOYEES OF THE DISTRICT OF COLUMBIA COURTS AS PARTICIPANTS IN LONG 
               TERM CARE INSURANCE FOR FEDERAL EMPLOYEES

                               __________

                              R E P O R T

                                 of the

         COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE

                              to accompany

                                S. 2322

    AMENDING CHAPTER 90 OF TITLE 5, UNITED STATES CODE, TO INCLUDE 
 EMPLOYEES OF THE DISTRICT OF COLUMBIA COURTS AS PARTICIPANTS IN LONG 
               TERM CARE INSURANCE FOR FEDERAL EMPLOYEES




                 June 21, 2004.--Ordered to be printed
                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                   SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska                  JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio            CARL LEVIN, Michigan
NORM COLEMAN, Minnesota              DANIEL K. AKAKA, Hawaii
ARLEN SPECTER, Pennsylvania          RICHARD J. DURBIN, Illinois
ROBERT F. BENNETT, Utah              THOMAS R. CARPER, Delaware
PETER G. FITZGERALD, Illinois        MARK DAYTON, Minnesota
JOHN E. SUNUNU, New Hampshire        FRANK LAUTENBERG, New Jersey
RICHARD C. SHELBY, Alabama           MARK PRYOR, Arkansas

           Michael D. Bopp, Staff Director and Chief Counsel
            Jennifer A. Hemingway, Professional Staff Member
      Joyce A. Rechtschaffen, Minority Staff Director and Counsel
                    Larry B. Novey, Minority Counsel
   Nanci E. Langley, Minority Deputy Staff Director, Subcommittee on
      Financial Management, the Budget, and International Security
          Jennifer L. Tyree, Minority Counsel, Subcommittee on
      Financial Management, the Budget, and International Security
                      Amy B. Newhouse, Chief Clerk



                                                       Calendar No. 590
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-283

======================================================================

 
    AMENDING CHAPTER 90 OF TITLE 5, UNITED STATES CODE, TO INCLUDE 
 EMPLOYEES OF THE DISTRICT OF COLUMBIA COURTS AS PARTICIPANTS IN LONG 
               TERM CARE INSURANCE FOR FEDERAL EMPLOYEES

                                _______
                                

                 June 21, 2004.--Ordered to be printed

                                _______
                                

Ms. Collins, from the Committee on Governmental Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 2322]

    The Committee on Governmental Affairs, to whom was referred 
the bill (S. 2322) to amend chapter 90 of title 5, United 
States Code, to include employees of the District of Columbia 
courts as participants in long term care insurance for Federal 
employees, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background.......................................................2
III. Legislative History..............................................3
 IV. Section-by-Section Analysis......................................4
  V. Estimated Cost of Legislation....................................4
 VI. Evaluation of Regulatory Impact..................................5
VII. Changes in Existing Law..........................................5

                         I. Purpose and Summary

    The Long-Term Care Security Act (LTCSA) \1\ was established 
to permit qualified Federal employees to purchase at their own 
expense private long-term care insurance at a group discount. 
While employees of the District of Columbia courts were 
permitted to participate in the Federal government's long-term 
care insurance program in 2003, they were inadvertently removed 
from the program with passage of the FY 2004 National Defense 
Authorization Act (NDAA). S. 2322 would restore eligibility for 
employees of the D.C. courts to participate in the Federal 
employee's long-term care insurance program.
---------------------------------------------------------------------------
    \1\ Public Law No. 106-265 (2000).
---------------------------------------------------------------------------

                             II. Background

    The Long-Term Care Security Act (LTCSA) was enacted to 
permit Federal civilian employees, members of the uniformed 
services, as well as civilian and military retireesto purchase 
private, long-term care insurance for themselves and qualified 
relatives at a group discount.
    ``Long-term care'' refers to a broad range of supportive, 
medical, personal, and social services designed for individuals 
who are limited in their ability to function independently on a 
daily basis. Long-term care needs may arise at any time due to 
an injury, chronic illness, or the effects of the natural aging 
process. Functional dependency is generally defined as the 
inability to function independently, perform essential 
activities of daily living such as dressing, bathing, eating, 
transferring (e.g., from a bed to a chair), walking, or the 
inability to perform instrumental activities of daily living 
such as shopping, preparing meals, taking medicine, and 
housekeeping.\2\ Assistance with these activities may require 
hands-on assistance or direction, instruction, or supervision 
from another individual. Long-term care services can be 
provided in a nursing home, an assisted living facility, the 
community, or in the home.\3\
---------------------------------------------------------------------------
    \2\ House Report No. 106-610, p. 5.
    \3\ Ibid.
---------------------------------------------------------------------------
    According to the Office of Personnel Management (OPM), as 
of April 30, 2004, there were 202,818 Federal and postal 
employees enrolled in the long-term care program.\4\ Before the 
program's enactment, OPM estimated that the program could 
reduce the cost of long-term care insurance premiums for 
covered employees by up to 20 percent.\5\
---------------------------------------------------------------------------
    \4\ Data from the FSA, Life and Long Term Care Insurances Group in 
the Office of the Assistant Director for Insurance Services Program in 
the Center for Retirement and Insurance Services Program in the 
Division for Human Resources Products and Services at the U.S. Office 
of Personnel Management (June 7, 2004).
    \5\ House Report No. 106-20, p. 61.
---------------------------------------------------------------------------

                     District of Columbia Employees

    The LTCSA initially precluded the participation of 
employees of the District of Columbia government from 
participating in the long-term care program. However, on 
February 20, 2003, the Consolidated Appropriations Resolution 
for FY 2003 was signed into law.\6\ The legislation included a 
provision that amended the definition of an eligible employee 
under the LTCSA to specifically extend eligibility to employees 
of District of Columbia courts. According to the Senate 
Appropriations Committee Report on the FY 2003 District of 
Columbia Appropriations bill, the Committee recommended the 
provision allowing employees of the District of Columbia courts 
to enroll in the Federal long-term care insurance program in 
order to be consistent with other Federal benefits provided to 
D.C. court employees.\7\ Long-term care insurance is available 
to other quasi-Federal agencies and to other District agencies 
under Federal oversight pursuant to the National Capital 
Revitalization and Self-Government Improvement Act of 1997 and 
the Court Services and Offender Supervision Agency.\8\ 
Employees of the D.C. courts are individuals employed by the 
District of Columbia Court of Appeals, the Superior Court of 
the District of Columbia, and the District of Columbia Court 
System.
---------------------------------------------------------------------------
    \6\ Public Law No. 108-007 (2003).
    \7\ Senate Report No. 107-225, p. 23.
    \8\ Ibid. See also H.R. Conf. Rep. No. 108-10, at 802-803 (2003).
---------------------------------------------------------------------------
    From May 1, 2003, to June 30, 2003, an open season was held 
for employees of the D.C. courts. According to OPM, 46 of the 
1462 court employees eligible to apply for the insurance are 
enrolled in the program.\9\ In addition all 70 annuitants of 
the D.C. courts are eligible to participate in the program.
---------------------------------------------------------------------------
    \9\ Office of Personnel Management, supra note 4.
---------------------------------------------------------------------------
    In 2003, Congress passed the FY 2004 National Defense 
Authorization Act. One provision in that Act amended the LTCSA 
by including employees of the D.C. government hired before 
October 1, 1987.\10\ However, in attempting to include these 
D.C. government employees, Congress inadvertently removed 
employees of the D.C. courts.
---------------------------------------------------------------------------
    \10\ Public Law No. 108-136 (2003).
---------------------------------------------------------------------------
    Both D.C. court employees and employees of the D.C. 
government hired before October 1, 1987, participate in the 
Federal Employees' Health Benefits Program,\11\ the Federal 
Employees' Group Life Insurance Program,\12\ and the Civil 
Service Retirement System or the Federal Employees' Retirement 
System,\13\ which are all administered by OPM. District of 
Columbia government employees hired on or after October 1, 
1987, participate in the health, retirement, and other benefit 
programs offered by the D.C. government rather than those 
offered by the Federal government.
---------------------------------------------------------------------------
    \11\ See Public Law No. 105-33 (1997) at Sec. 11246(b) (relating to 
employees of the D.C. courts) and 5 U.S.C. 8901(1)(E) (relating to D.C. 
government employees hired before October 1, 1987).
    \12\ See Public Law No. 105-33 (1997) at Sec. 11246(b) (relating to 
employees of the D.C. courts) and 5 U.S.C. 8701(a)(6) (relating to D.C. 
government employees hired before October 1, 1987).
    \13\ See Public Law No. 105-33 (1997) at Sec. 11246(b) (relating to 
employees of the D.C. courts) and 5 U.S.C. 8331(1)(G) (relating to D.C. 
government employees hired before October 1, 1987).
---------------------------------------------------------------------------
    In order to be consistent in the application of Federal 
benefits to D.C. court employees and as a matter of technical 
administration, the Committee believes that employees of the 
District of Columbia courts should again be allowed to 
participate in the Federal government's long-term care 
insurance program.

                        III. Legislative History

    S. 2322 was introduced on April 20, 2004, by Senator Akaka 
and Senator Voinovich, and was referred to the Committee on 
Governmental Affairs. On May 6, 2004, the bill was referred to 
the Subcommittee on Financial Management, the Budget, and 
International Security and polled out of the Subcommittee on 
May 27, 2004. On June 2, 2004, the Committee considered S. 2322 
and ordered the bill reported by voice vote. Senators present 
were as follows: Collins, Lieberman, Voinovich, Bennett, 
Fitzgerald, Levin, Akaka, Carper, and Lautenberg.

                    IV. Section-by-Section Analysis


Section 1. Long term care insurance coverage for employees of the 
        District of Columbia courts

    This section would amend 5 U.S.C. 9001(1) to include 
employees of the District of Columbia courts as participants in 
the long-term care insurance program for Federal employees.

                    V. Estimated Cost of Legislation


                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 18, 2004.
 Hon. Susan M. Collins
 Chairman, Committee on Governmental Affairs,
 U.S. Senate, Washington, DC.
     Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2322, a bill to 
amend chapter 90 of title 5, United States Code, to include 
employees of the District of Columbia courts as participants in 
long-term care insurance for federal employees.
     If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Julia 
Christensen.
             Sincerely,
                                         Elizabeth Robinson
                               (For Douglas Holtz-Eakin, Director).
     Enclosure.

 S. 2322--A bill to amend chapter 90 of title 5, United States Code, to 
        include employees of the District of Columbia courts as 
        participants in long term care insurance for federal employees

     S. 2322 would reinstate eligibility for employees of the 
District of Columbia courts in the long-term care insurance 
program sponsored by the federal government. The program allows 
certain federal employees (those eligible to enroll in the 
Federal Employees Health Benefits program) and qualified 
relatives access to private long-term care insurance at a group 
discount. Employees of the D.C. courts were originally allowed 
to participate in the program but the National Defense 
Authorization Act for Fiscal Year 2004 removed them from the 
eligibility rolls.
     CBO estimates that enacting S. 2322 would have no effect 
on the federal budget. The federal government does not 
contribute toward enrollees' premiums, and the contractors 
offering long-term care insurance reimburse the Office of 
Personnel Management for the costs it incurs in administering 
the program.
     This legislation contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act; 
any net costs to the D.C. government would be minimal.
     The CBO staff contact for this estimate is Julia 
Christensen. This estimate was approved by Robert A. Sunshine, 
Assistant Director for Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. CBO states that 
there are no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and no costs on 
state, local, or tribal governments. The Committee has 
determined that the enactment of this legislation will not have 
a significant regulatory impact.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic and existing law, in which no 
change is proposed, is shown in roman):

TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *


GOVERNMENT ORGANIZATION AND EMPLOYEES

           *       *       *       *       *       *       *


PART III--EMPLOYEES

           *       *       *       *       *       *       *


Subpart G--Insurance and Annuities

           *       *       *       *       *       *       *



CHAPTER 90--LONG-TERM CARE INSURANCE

           *       *       *       *       *       *       *



Sec. 9001. Definitions

           *       *       *       *       *       *       *


    For purposes of this chapter:
          (1) Employee.--The term ``employee'' means--
                  (A) an employee as defined by section 
                8901(1);
                  (B) an individual described in section 
                2105(e);
                  (C) an individual employed by the Tennessee 
                Valley Authority; [and]
                  (D) an employee of a nonappropriated fund 
                instrumentality of the Department of Defense 
                described in section 2105(c)[.] ; and
                  (E) an employee of the District of Columbia 
                courts.

           *       *       *       *       *       *       *