[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Rules and Regulations]
[Page 28511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13316]
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Rules and Regulations
Federal Register
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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.
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Federal Register / Vol. 60, No. 105 / Thursday, June 1, 1995 / Rules
and Regulations
[[Page 28511]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 890
RIN 3206-AG33
Federal Employees Health Benefits Program: Procedures for Direct
Payment of Premiums
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing final
regulations to eliminate the requirement for the use of certified mail,
return receipt requested, when notifying certain enrollees that their
enrollment in the Federal Employees Health Benefits (FEHB) Program will
be terminated due to nonpayment of premiums unless the payment is
received within 15 calendar days. The purpose of these regulations is
to reduce the cost of administering the FEHB enrollments of enrollees
who make payments directly rather than through payroll or annuity
deductions.
EFFECTIVE DATE: July 3, 1995.
FOR FURTHER INFORMATION CONTACT: Margaret Sears (202) 606-0004.
SUPPLEMENTARY INFORMATION: On December 30, 1994, OPM published interim
regulations in the Federal Register (59 FR 67605) eliminating the
requirement for using certified mail, return receipt requested, when
notifying FEHB enrollees that their coverage is about to be terminated
due to nonpayment of premiums. Most individuals enrolled under the FEHB
Program pay their share of the premiums through withholding from pay or
annuity. However, in some cases enrollees may make direct payments.
These include: (1) Certain annuitants and compensationers (individuals
who are entitled to compensation from the Office of Workers'
Compensation Programs based on a job-related injury or disease) whose
annuity or compensation has been waived or suspended; (2) former
spouses whose enrollment is based on a qualifying court order under
subpart H of 5 CFR part 890 governing FEHB; and (3) former employees,
former spouses, and children enrolled under the Temporary Continuation
of Coverage (TCC) provisions.
Under regulations in effect before we issued the interim
regulations, if an employing office did not receive the payment by the
due date, it was required to notify the enrollee by certified mail,
return receipt requested, that continuation of coverage rests upon
payment being made within 15 days (or 45 days for some enrollees living
overseas) after receipt of the notice.
The interim regulations eliminated the requirement for sending the
nonpayment notice by certified mail, return receipt requested. Further,
they clarified that there must be a delay of 60 days (90 days for
overseas enrollees) before employing offices take action to terminate
enrollments for nonpayment of premiums. We believe that the interim
regulations are much more convenient for the enrollee because the
enrollees no longer need to sign for the notice. If no one is at home
when a letter carrier delivers a return-receipt-requested letter, the
addressee must go to the post office to sign for it. Under the interim
regulations, the letter is left in the enrollee's mailbox and the
enrollee has the information without making an unnecessary trip to the
post office.
OPM received no comments on the interim regulations.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
primarily affect individuals enrolled under the Federal Employees
Health Benefits Program.
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.
Office of Personnel Management.
James B. King,
Director.
Accordingly, under authority of 5 U.S.C. 8913, the interim rule
amending 5 CFR Part 890 published on December 30, 1994, (59 FR 67605)
is adopted as final without any change.
[FR Doc. 95-13316 Filed 5-31-95; 8:45 am]
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