[Federal Register: January 6, 1998 (Volume 63, Number 3)]
[Proposed Rules]
[Page 446]

[[Page 446]]

-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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]
BILLING CODE 6325-01-P