ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00357R000300030071-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 15, 2016
• Document Release Date: January 14, 2004
• Sequence Number: 71
• Publication Date: September 16, 1959
• Content Type: OPEN

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CONGRESSIONAL RECORD - SENATE September 16
fires the employees to whom his message is
addressed. It reads as follows:
ATCHISON, July 30, 1959.
All Section Foremen Effingham to Concordia:
Each of you wire your U.S. Senator with the
wire to read as follows: "Refer to Senate bill
1425: Missouri Pacific Railroad has pro-
gressively improved the safety and operation
of motorcars until they now have adequate
protection. Urge you to vote against this
bill." Wire your Senator the message above
in a.m. July 31, and send it Western Union.
Pay for your Western Union and I will refund
your money. Send Mr. C. L. Christy a copy
of the Western Union message.
E. L. MULLENNIX.
This message speaks for itself. There is
no request made here, nor no explanation
of the issues involved. It seems to be simply
an order to all the foremen under him to
send a specific wire to their Senator, to pay
for it out of their own pockets and then
get a refund.
As my next example, I have in my pos-
session a copy of a letter from an official of
one of the railway brotherhoods. This letter,
dated August 5, 1959, reads in part as fol-
lows :
"I am sorry to advise you of what hap-
pened yesterday. I went in my roadmaster's
office as usual. He had received a stack of
telegrams all filled out. He handed them to
me, asked me to read and sign one. After
reading one I gave them back and told him
I could not sign it.
"It was in regard to Senator MAGNUSON'S
bill, S, 1425, to amend the Interstate Com-
merce Act to provide protection for railroad
employees by regulating the use of track
motorcars and other self-propelled equip-
ment. -
My roadmaster went north. on motorcar,
his driver told me every man signed one of
the telegrams. They were told that if the
bill passed the company would have to put
a conductor on every motorcar.
"Another roadmaster went south out of
here. From what I can learn all of his fore-
mans signed one. The message stated that
we had sufficient motorcar protection."
This occurred on a railroad operating in
the State of the cosponsor of this measure
in the House. I am confident that Chairman
HARRIS is not going to be intimated or mis-
led by this, but since many other of the
Members of the Senate and House no doubt
have received telegrams produced in this
way, I want the Congress to be fully aware
of the nature of their origin so that they
may be appraised accordingly.
As my final exhibit at this time I include
here the text of a letter signed by two road-
masters and one B. & B. supervisor and ad-
dressed to all foremen under their super-
vision on the Union Pacific Railroad. This
letter, also couched in the form or an order,
reads as follows:
HINKLE, August 12, 1959.
To All Foreman:
Received the following mailgram from
Mr. R.E. Haacke:
"There is now pending in Congress, Sen-
ate bill S. 1425, which would require all
track motorcars to be operated by train
orders under the jurisdiction of and in ac-
cordance with rules established, by the in-
terstate Commerce Commission.
"All of us who are familiar with motor-
car operations can readily see the tremen-
dous complications involved in attempting
to operate motorcars under positive train
orders. In effect, this would make it very
impractical or almost impossible to get from
one point to the other on a motorcar as
all of our gangs would be spending more of
their time getting train orders and getting
to and from points of work under these
train orders than they would in actual per-
formance of their work.
"The practical effect would probably be
that we would have to discontinue the oper-
ation of all or most section gangs as they
now exist and perform our track mainte-
nance work with roving extra gangs, such
as some other railroads are already doing.
"If this Senate bill 1425 is passed, we
should bear in mind that none of our motor-
car operators are presently qualified to take
train orders, as would be necessary for them
to do at outlying points under the require-
ments of this legislation. It is doubtful
whether very many of our motorcar opera-
tors could pass the necessary examination on
operating rules to permit them to copy train
orders. As a result many of them would
no doubt be disqualified if they could not
pass this examination on the operating
rules."
I am sure that each of you realize just
what effect passage of this legislation would
have on your jobs. I feel, therefore, that tlVs
matter should he brought to the attention of
'the men under your supervision so they can
write to their Senators and Congressmen
expressing opposition to Senate bill S. 1426.
Want each of you to discuss this matter
with your men and urge them to write letters
opposing passage of this bill.
W. H. Cos&sovE.
O. E. RAYBURN.
C. M. WISEMILLER.
(The bill does not contemplate "train
orders" as such. It prescribes that the ICC
make reasonable rules. If it floes it can be
changed after hearings to emphasize only the
safety measures.)
The pocket list of railroad officials shows
that Mr. It. E. Haacke is resident engineer of
the Union Pacific Railroad at Portland, Oreg.
Remembering that all of these officials have
the power to hire and fire their subordinates,
the reference to loss of jobs if S. 1425 should
become law clearly has some overtones here
and, I am informed, has caused real concern
among railroad employees on this division.
The question may naturally arise in the
minds of many of you after getting telegrams
of this kind as to whether or not the rail-
road workers really want this legislation.
While on the surface it should be apparent
that they would favor any step to out down
the horrible and steadily increasing loss of
life and injuries which they are sustaining
because of the present lack of such pro-
tection, I want the record to be absolutely
clear on this point. Here is the text of a
statement I have been authorized to insert
on behalf of all of the 23 standard railway
labor organizations affiliated with the Rail-
way Labor Executives' Association:
"Railroad labor is strongly supporting
S. 1425 and H.R. 2487 to give the Interstate
Commerce Commission authority to estab-
lish rules and regulations for the safe opera-
tion of track motorcars and other self-
propelled equipment. This legislation is
needed promptly to check the alarming rise
in the death and injury rate to railroad
workers using this type of equipment. We
urge its immediate enactment.
"A. E. LYON,
"Executive Secretary,
"Railway Labor Executives' Association."
ADVISORY COMMISSION ON INTER-
GOVERNMENTAL RELATIONS
The Senate resumed the consideration
of the bill (S. 2026) to establish an Ad-
visory Commission on Intergovernment-
al Relations,
Mr. JOHNSON of Texas. Mr. Presi-
dent, what is the pending business?
The PRESIDING OFFICER. The bill
before the Senate is S. 2026, to establish
an Advisory Commission on Intergov-
ernmental Relations.
Mr. JOHNSON of Texas. Mr. Presi-
dent, I yield the floor, so that the Sen-
ator from Maine may make a statement.
The PRESIDING OIWZR . f'he
Senator from Maine is re-IM'
Mr. MUSKIE. Mr. P1 e5 dept .If
6904 is on the calendar, arC len e' No.
The bill is designed to estak j an
Advisory Commission on mental Relations. This pid4 esjesla-
tion is the culmination of a lortg,] istorY
of efforts to study, evav to Jtn-
prove the relationships yogi-
ous levels of governmentXig cyst em.
on three levels, and that tij interiela
tionships of these three lev U_are of such
importance to the effective functioning
of the system as to justify and to re-
quire continuing attention by an agency
representative of all three levels of gov-
ernment.
Mr. President, I will briefly describe
the purposes of the Commission and its
organization. The Commission would
have seven basic purposes:
First, To bring together representa-
tives of the Federal, State, and local gov-
ernments for the consideration of com-
mon problems.
Second. To provide a forum for dis-
cussing the administration and coordi-
nation of Federal grant and other pro-
grams requiring intergovernmental coop-
eration.
Third. To give critical attention to
the conditions and controls involved in
the administration of Federal grant pro-
grams. Fourth. To make available techi)ical
assistance to the executive and legisla
tive branches of the Federal Governme?'?,ely
ry
in the review of proposed legislation a
determine its overall effect on the. Fe
eral system. W'
Fifth. To encourage discussion ai ion,
study at an early stage of emerging put. >m'
lie problems that are likely to requi.- fed
intergovernmental cooperation. >ro-
Sixth. To recommend, within thi we
framework of the Constitution, the most per.
desirable allocation of governmental` Lis-
functions, responsibilities, and revenues
among the several levels of government.
Seventh. To recommend methods of
coordinating and simplifying tax laws
and administrative practices to achieve
a more orderly and less competitive fis-
cal relationship between the levels of
government and to reduce the burden of
compliance for taxpayers.
The Commission which would be cre-
ated by the proposed legislation Would be
intergovernmental in its makeup. - It
would consist of 27 members, to be ap-
pointed as follows:
Six to be appointed by the President of
the United States, three of whom shall
be officers of the executive branch of the
Government, and three private citizens,
all of whom shall have had experience
or familiarity with relations between the
levels of government,
Three to be appointed by the President
of the Senate, who shall be Members of
the Senate.
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7-to bring to the Senate a bill upon which
there was general agreement by all con-
cerned, with one exception.
The sole objector was the administra-
tion, which opposed the bill primarily on
Cho basis of its cost. Certain self-ap-
1 inted spokesmen for the administra-
,cn raised a great smokescreen of op-
po vition, but underneath it all was the
matter of cost.
This widespread and general agree-
ment on the Senate bill did not just hap-
pen. It was the result of long, hard, in-
telligent, and dedicated work.
The Subcommittee on Health Insur-
ance of the Senate Committee on Post
Office and Civil Service held many long
days of hearings. The committee staff
met day after day with representatives
of industry and employee groups. Prob-
lem after problem was worked out and
difference of views reconciled. Finally,
out of all this effort, there emerged a bill
which merited the support of all con-
cerned.
I think it fair to say that except for
this great effort in the Senate we would
not today stand on the verge of seeing
enacted a health benefits program for
Federal employees. The administration
tried and failed over a 5-year period to
reconcile the many differences that
existed. When the Senate took hold
of the matter this year, the prospects
of success did not seem bright. But to-
day we are only hours away from. seeing
enacted into law a progressive health
benefits bill for our Federal workers and
their families.
When the Senate bill was received in
the House, extensive hearings were held
by that body. A great amount of favor-
able testimony was heard. Again the
only opposition to the bill was that
voiced by the administration. Again the
opposition as based on cost.
The House bowed to the position of
the administration and reduced benefits
under the bill by some 30 to 35 percent.
In other words, the cost of benefits to
be provided by the bill was reduced from
slightly over $300 million a year to some
$214 million a year. Fortunately, how-
ever, the basic principles of the Senate
bill were retained, and with adoption of
the amendments I have offered, the bill
will be a good one.
Mr. President, there are some things
that have occurred in connection with
this measure that I regret. First of all,
there has been an unusual amount of
lobbying by some persons within the
administration. The unusual interest
and the unusual steps taken by them
have been of some concern 'to me.
For this reason I wish to make it
known that I propose to watch the
administration of this measure very, very
cerefully.
Secondly, I regret that when the bill
was under consideration in the House,
some Members of the House referred to
the Senate measure in derogatory and
slighting terms. It was referred to as
')eing misleading, false, and confusing.
f'or example, the ranking minority
member on the committee stated:
We have had ample evidence that Gov-
xment employees and the general public
re being completely misled as to the
scope and nature of benefits to be provided
under this bill. The proposed committee
amendment now before the House removes
any possibility of misinterpretation.
Frankly, I think this and similar
statements were ill advised. I think it
regrettable that measures of this kind be
discussed in such terms.
Mr. President, the amendments I have
offered are designed to clarify the bill
in several respects and restore to the
bill a previously approved Senate pro-
vision in a slightly different version in
still another respect. The first amend-
ment clarifies the bill to make clear that
the price figures established in the bill
by the house apply to the purchase of
health benefits and do not include aux-
iliary costs such as those for reserves
and administrative expenses.
The second amendment is designed to
make clear that both Government and
employees will share these auxiliary
costs in addition to sharing the cost of
the health benefits purchased.
The third amendment makes pro-
vision for a Director of Retirement and
Insurance. The committee expressed the
belief that there shall be consolidated
organizationally all of the Commission's
responsibilities in the related fields of
retirement and life insurance, as well as
health benefits, and we have been as-
sured that the Commission contemplates
taking such a step.
In order to insure that the Civil Serv-
ice Commission will be able to obtain
the necessary high caliber of person
to administer these programs, the legis-
lation makes provision for a grade 18
position which is earmarked for this
function.
The committee is also of the belief that
the salary of the Executive Director of
the Commission should be changed ade-
quately to reflect the nature of that posi-
tion. The amendment sets this salary
at $19,000 per annum.
Mr. President, the list of those who
have contributed greatly to this measure
is long, Iwould like to express my grati-
tude particularly to the distinguished
junior Senator from Oregon [Mr. NEU-
BERGERI, who served as Chairman of the
Insurance Subcommittee, and to the
other members of that committee, Sena-
tors YARBOROUGH, JORDAN, CARLSON, and
MORTON, all of whom devoted much time
and thought to working out a satisfac-
tory bill. In all my service in the Sen-
ate, I have never known a group to work
harder and with greater dedication to
duty than did this subcommittee. They
deserve the commendation of every Fed-
eral employee for their fine work in con-
nection with this bill.
The committee was fortunate indeed
to receive a great deal of expert tech-
nical advice and assistance from out-
standing leaders in the field of health
programs. Particularly helpful was Mr.
J. Douglas Colman, vice president of the
Blue Cross Association. I do not know
what the committee would have done
without his able advice and assistance.
I wish to express my personal apprecia-
tion to him and to all who contributed
to the preparation and enactment of this
fine measure. I am confident our over
17407
2 million Federal employees and their
families will always be grateful.
Mr. CARLSON. Mr. President, I wish
to say that following the passage of this
bill through the Senate, and the bill was
passed by the House and amended by
the House, I have been willing to accept
the House amendments to the bill in the
hope we would get early action, because
this is a piece of legislation which is im-
portant to the Federal civil workers of
this Nation.
Since that time our chairman has
worked out two amendments, which I un-
derstand are at the desk, and which I
hope we accept at the present time. I
shall not oppose those amendments be-
cause I think, as they have been written,
the Bureau of the Budget, the chairman
of the Civil Service Commission, and the
House will accept them and that this bill
will be enacted into law.
I had prepared a statement I expected
to use urging action without sending the
bill back for concurrence, because I real-
ize at this late stage in a legislative ses-
sion one objection can send the bill to
the Rules Committee and, following past
history, the Rules Committee may not
act as hastily as we would like them to.
I am willing to take a chance today,
and I support the amendments the Com-
mittee chairman has submitted, and urge
the House to accept them.
I ask to insert in the RECORD as part
of my remarks a statement I expected to
make in respect to the bill as it came
over of this body from the House.
There being no objection, the state-
ment was ordered to be printed in the
RECORD, as follows:
STATEMENT BY SENATOR CARLSON
On July 16, a little more than a month ago,
the Senate passed S. 2162 which would pro-
vide health insurance for Federal employees
with a landslide majority of 81 to 4. Since
then the appropriate committee, of the other
body has held extensive hearings, has modi-
fied the bill in certain respects, and on Aug-
ust 18 reported it unanimously to the House.
Just a few days ago the bill, as modified, was
passed by the other body with a majority
comparable to that it received in the Senate.
I know of no legislative measure in this
Congress of so much Importance to so many
people that has had the overwhelming ap-
proval this bill has received in both bodies.
The legislation as referred to us now has the
whole-hearted endorsement and enthusiastic
support of all of the employee organizations
and is acceptable to the Civil Service Com-
mission and the administration generally.
The organizations which would serve as car-
riers under the bill have expressed their be-
lief that it provides the basis for a workable
program and that they are in accord with it.
I have pointed out that the bill has been
modified in certain respects since it passed
the Senate. The most numerous changes
have been language changes of a technical
and clarifying nature; these have no effect
on the substance of the bill but will serve to
avoid inequities to employees and unneces-
sary complexity of administration.
A few changes have been made in the
substance of S. 2162 as it passed the Senate,
but with one exception these will merely
serve to fix responsibility more clearly on the
Civil Service Commission as the agency
which will have responsibility for admin-
istration of the health benefits program.
These changes will have no adverse effect on
the benefits to be provided in the bill as they
affect the vast body of Federal employees and
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-CONGRESSIONAL RECORD - SENATE Septem.bei.-
other refunds made by a plan shall be
credited to its contingency reserve. The con-
tingency reserves may be used to defray in-
creases in future rates, or may be applied to
reduce the contributions, of employees and
the Government to, or to increase the bene-
fits provided by, the plan from which such
reserves are derived, as the Commission shall
from time to time determine.
(c) The Secretary of the Treasury is
authorized to invest and reinvest any of the
moneys in the Fund in interest-bearing ob-
ligations of the United States and to sell
such obligations of the United States for
the purposes of the Fund. The interest on
and the proceeds from the sale of any such
obligations shall become a part of the Fund:
ADMINISTRATIVE EXPENSES
SEC. 9. (a) There are hereby authorized to
be expended from the Employees' Life In-
surance Fund, without regard to limitations
on expenditures from that Fund, for the
fiscal years 1960 and 1961, such sums as may
be necessary to pay administrative expenses
Incurred by the Commission in carrying out
the health benefits provisions of this Act.
Reimbursements to the Employees' Life In-
surance Fund for sums so expended, together
with interest at a rate to be determined by
the Secretary of the Treasury, shall be made
from the Employees Health Benefits Fund.
(b) The Employees Health Benefits Fund
Is hereby made available (1) to reimburse
the Employees' Life Insurance Fund for sums
expended by the Commission in administer-
ing the provisions of this Act for the fiscal
years 1960 and 1961 and (2), within such
limitations as may be specified annually by
the Congress, to pay such expenses for sub-
sequent fiscal years.
ADMINISTRATION
SEC. 10. (a) The Commission is authorized
to promulgate such regulations as may be
necessary to carry out the provisions of this
Act:
(b) Regulations of the Commission shall
include regulations with respect to the be-
ginning and ending dates of coverage of
employees and annuitants and members of
their families under health benefits plans,
and for such purpose may permit such
coverage to continue, exclusive of the tem-
porary extension of coverage described In
section 6(f), until the end of the pay period
in which an employee is separated from
service or until the end of the month In
which an annuitant ceases to be entitled to
annuity, and in case of the death of such
employee or annuitant may permit a tem-
porary extension of the coverage of the
members of his family for a period not to
exceed ninety days.
(c) Any employee enrolled in a plan un-
der this Act who is removed or suspended
without pay and later reinstated or restored
to duty on the ground that such removal
or suspension was unjustified or unwar-
ranted shall not be deprived of coverage or
benefits for the interim but shall have his
coverage restored to the same extent and
effect as though such removal or suspension
had not taken place, and appropriate ad-
justments shall be made in premiums, sub-
scription charges, contributions, and claims.
(d) The Commission shall make available
to each employee eligible to enroll in a
health benefits plan under this Act such
information, in a form acceptable to the
Commission after consultation with the
carrier, as may be necessary to enable such
employee to exercise an informed choice
among the types of plans referred to in sec-
tion 4. Each employee enrolled in such a
health benefits plan shall be issued an appro-
priate document setting forth or summariz.
ing the services or benefits (including maxi-
mums, limitations, and exclusions), to which
the employee, or the employee and members
of his family, are entitled thereunder, the
procedure for obtaining benefits, and the
principal provisions of the plan affecting
the employee or members of his family.
STUDIES, REPORTS, AND AUDITS
SEC. ii. (a) The Commission shall make a,
continuing study of the operation and ad-
ministration of this Act, including surveys
and reports on health benefits plans avail-
able to employees and on the experience of
such plans.
(b) The Commission shall include provi-
sions in contracts with carriers which would
require carriers to (1) furnish such reason.
able reports as the Commission determines
to be necessary to enable it to carry out its
functions under this Act, and (2) permit
the Commission and representatives of the
General Accounting Office to examine rec-
ords of the carriers as may be necessary to
carry out the purposes of this Act.
(c) Each Government department, agency,
and independent establishment shall keep
such records, make such certifications, and
furnish the Commission with such informa-
tion and reports as may be necessary to en-
able the Commission to carry out its func-
tions under this Act.
REPORTS TO CONGRESS
SEC. 12. The Commission shall transmit to
the Congress annually a report concerning
the operation of this Act.
ADVISORY COMMITTEE
SEC. 13. The Chairman of the Commission
shall appoint a committee composed of five
members who shall serve without compensa.
tion, to advise the Commission regarding
matters of concern to employees under this
Act. Each member of such committee shall
be an employee enrolled under this Act or
an elected officer of an employee organiza-
tion.
JURISDICTION Or COURTS
SEC. 14. The district courts of the United
States shall have original jurisdiction, con-
current with the Court of Claims, of any
civil action or claim against the United
States founded upon this Act.
EFFECTIVE DATE
SEC. 15. The provisions of this Act relat-
ing to the enrollment of employees and an-
nuitants in health benefits plans and the
withholding and payment of contributions
shall take effect on the first day of the first
pay period which begins on or after July 1,
1960.
Mr. JOHNSTON of South Carolina.
Mr. President, I send to the desk my mo-
tion that the Senate agree to the amend-
ment of the House with two amendments
of the Senate. These two amendments
are amendments which the Senate, prac-
tically word for word, agreed to when we
had the bill before us. I understand
there is a possibility that the House will
agree to them. If the House does agree
to them, that will save the necessity of
aving a conference on the health bill.
The PRESIDING OFFICER. The mo-
ion of the Senator from South Carolina
ill be stated.
The LEGISLATIVE CLERK. Mr. JOHN-
TON of South Carolina makes the fol-
owing motion:
I move that the Senate agree to the House
mendment to S. 2162, the Federal Employees
ealth Benefits Act of 1959 with the follow-
ig amendments:
(1) In lieu of subsection (a) of section 7
:[ the House amendment insert the follow
fig:
"(a) (1) Except as provided in paragraph
2) of this subsection, the Government con-
ribution for health benefits for employees
r annuitants enrolled in health benefits
triouclons requirea oy paragrapn (s), sna
be 50 per centum of the lowest rates chargi
by a carrier for a level of benefits offered by
plan under paragraph (1) or paragraph
of section 4, but (A) not less than $1.25
more than $1.75 biweekly for an employee
annuitant who is enrolled for self alone,
not less than $3 or more than $4.25 blwee
for an employee or annuitant who is
rolled for self and family (other than
provided in clause (C) of this paragrap
and (C) not less than $1.75 or more t1
$2.60 biweekly for a female employee or,
nuitant enrolled for self and family fuel
ing a nondependent husband..
"(2) For an employee or annuitant, i
rolled in a plan described under sectio 1
(3) or (4) for which the biweekly subsc
tion charge Is less than $2.50 for an
ployee or annuitant enrolled for self alori
$6 for an employee or annuitant enrolled
self and family, the contribution of the C f
erriment shall be 50 per centum of r
subscription charge, except that if a r,
dependent husband is a member of
family of a female employee or annui;
who is enrolled for herself and family
contribution of the Government shall b
per centum of such subscription charge
"(3) There shall be withheld from the,
ary of each enrolled employee and the
nuity of each enrolled annuitant, and
shall be contributed by the Governn
amounts (in the same ratio as the cm
butions of such employee or annuitant- t,
the Government under paragraphs (1)-
(2) ) which are necessary for the adminf-
tive costs and the reserves provided fC, fi
section 8(b).
"(4) There shall be withheld from the u
ary of each enrolled employee or annu" fl
each enrolled annuitant so much as is, u
essary, after deducting the contributid
the Government, to pay the total charge
his enrollment. The amount withheld f, the annuity of an annuitant shall be e
to the amount withheld from the salar a
an employee when both are enrolled in
same plan providing the same health bi
eats."
(2) After section 13 of the House ame v
ment insert a new section 14 as follows v
renumber sections 14 and 15 as 15 and r'
respectively: c
"SEC. 14. (a) The Chairman of the Cc. l
mission is authorized to appoint in grade c
f the General Schedule of the Classifleat I
ct of 1949, as amended, an officer who sl:
ave such functions and duties with resp' 8
o retirement, life insurance, and heal I
enefits programs as the Commission sh
rescribe. Such positions shall be in at I
ition to the number of positions otherwt I
uthorized by law to be placed in such grad
"(b) The rate of basic compensation of tI
xecutive Director of the United States Civ:
ervice Commission shall be $19,000 pe:
nnum."
Mr. JOHNSTON of South Carolina.
Mr. President, on July 16, 1959, the Sen-
ate, by a vote of 81 to 4, passed S. 2162,
the Federal Employees' Health Benefits
Act. The bill, which passed the Senate
on that date, was the product of over 10
years' legislative effort. The first bill to
provide a health benefits program for
Federal employees was introduced in
1947. Efforts to obtain legislation failed
time after time because of deep-rooted
disagreements between and among insur-
ance companies, Blue Cross-Blue Shield,
those providing medical services and
hospital facilities, and even employee
groups themselves.
In the light of this background, it gave
me a great deal of satisfaction to be able
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CONGRESSIONAL RECORD - SENATE
(B) ho 'RACTICE PREPAYMENT
PLANS.-I', l-practice prepayment
plans which b41' health services in whole or
substantial part on a prepaid basis, with
professional services thereunder provided by
individual phyiscians who agree, under cer-
tain conditions approved by the Commis-
sion, to accept the payments provided by the
plans as full payment for covered services
rendered by them including, in addition to
in-hospital services, general care rendered in
their offices and the patients' homes, out-of-
hospital diagnostic procedures, and preven-
tive care, and which plans are offered by
.rganizations which have successfully oper-
ated such plans prior to approval by the
7ommission of the plan in which employees
nay enroll.
TYPES OF BENEFITS
SEC. 5. The benefits to be provided under
glans described in section 4 may be of the
ollowing types:
(1) SERVICE BENEFIT PLAN.-
(A) Hospital benefits.
(B) Surgical benefits.
(C) In-hospital medical benefits.
(D) Ambulatory patient benefits.
(E) Supplemental benefits.
(F) Obstetrical benefits.
(2) INDEMNITY BENEFIT PLAN.-
(A) Hospital care.
(B) Surgical care and treatment.
(C) Medical care and treatment.
(D) Obstetrical benefits.
(E) Prescribed drugs, medicines, and pros-
'Ietic devices.
(F) Other medical supplies and services.
(3) EMPLOYEE ORGANIZATION PLANS.-Bene-
ts of the types specified in this section
uder paragraph (1) or (2) or both.
(4) COMPREHENSIVE MEDICAL PLANS.-Bene-
ls of the types specified in this section
uder paragraph (1) or (2) or both.
All plans contracted for under paragraphs
I ) and (2) shall include benefits both for
)St.% associated with care in a general hos-
ital and for other health service costs of
catastrophic nature.
CONTRACTING AUTHORITY
SEc. 6. (a) The Commission is authorized,
Fithout regard to section 3709 of the Re-
ised statutes or any other provision of law
Squiring competitive bidding, to enter into
ontracts with qualified carriers offering
tans described in section 4. Each such
ontract shall be for a uniform term of at
east one year, but may be made automati-
:ally renewable from term to term in the
Cbsence of notice of termination by either
)arty.
(h) (1) To be eligible as the carrier for the
Sian described in section 4(2), a company
must be licensed to issue group health in-
surance in all the States of the United States
and the District of Columbia.
(2) Each contract for a plan described in
paragraph (1) or (2) of section 4 shall
require the carrier-
(A) to reinsure with such other compa-
nies as may elect to participate, in accord-
ance with an equitable formula based on
the total amount of their group health in-
surance benefit payments in the United
States during the latest year for which such
information is available, to be determined
by the carrier and approved by the Com-
mission, or
(B) to allocate its rights and obligations
under the contract among such of its affili-
ates as may elect to participate, in accord-
ance with an equitable formula to be deter-
mined by the carrier and such affiliates and
approved by the Commission.
(c) Each contract under this Act shall
contain a detailed statement of benefits
offered and shall include such maximums,
limitations, exclusions, and other definitions
of benefits as the Commission may deem
necessary or desirable.
(d) The Commission is authorized to pre-
scribe regulations fixing reasonable mini-
mum standards for health benefits plans
described in section 4 and for carriers offer-
ing such plans. Approval of such a plain
shall not be withdrawn except after notice,
and opportunity for hearing without regard
to the Administrative Procedure Act, to the
carrier or carriers concerned.
(e) No contact shall be made or plan ap-
proved which excludes any person because of
race, sex, health status, or, at the time of
the first opportunity to enroll, because of
age.
(f) No contract shall be made or plan ap-
proved which does not offer to each employee
and annuitant whose enrollment in the plan
is terminated, other than by a cancellation
of enrollment, a temporary extension of cov-
erage during which he may exercise the
option to convert, without evidence of good
health, to a nongroup contract providing
health benefits. An employee or annuitant
who exercises this option shall pay the full
periodic charges of the nongroup contract,
on such terms or conditions as are prescribed
by the carrier and approved by the Com-
mission.
(g) The benefits and coverage made avail-
able pursuant to the provisions of subsec-
tion (1) shall, at the option of the employee
or annuitant, be noncancelable by the car-
rier except for fraud, overinsurance, or non-
payment of periodic charges.
(h) Rates charged under health benefits
plans described in section 4 shall reasonably
and equitably reflect the cost of the benefits
provided. Rates under health benefits plans
described in section 4(1) and (2) shall be
determined on a basis which, in the judg-
ment of the Commission, is consistent with
the lowest schedude of basic rates generally
charged for new group health benefit plans
issued to large employers; rates determined
for the first contract term shall be continued
for subsequent contract terms, except that
they may be readjusted for any subsequent
term, based on past experience and benefit
adjustments under the subsequent contract;
any readjustment in rates shall be made in
advance of the contract term in which they
will apply and on a basis which, in the judg-
ment of the Commission, is consistent with
the general practice of carriers which issue
group health benefit plans to large employers.
CONTRIBUTIONS
SEC. 7. (a) (1) Except as otherwise pro-
vided in this subsection, the contribution
of the Government to the subscription charge
of a plan for each enrolled employee or an-
nuitant shall be such amounts as the Com-
mission by regulation may from time to
time prescribe. The amounts so prescribed
(A) be less than $1.25 or more' than $1.75
biweekly for an employee or annuitant who
is enrolled for self alone, or
(B) be less than $3 or more than $4.25
biweekly for an employee or annuitant who
is enrolled for self and family, except that
if a nondependent husband is a member of
the family of a female employee or annuitant
who is enrolled for herself and family the
amount so presribed shall not be less than
$1.75 or more than $2.50 biweekly.
For an employee or annuitant enrolled in
a plan described under section 4 (3) or (4)
whose biweekly subscription charge is less
than $2.50 for an employee or annuitant en-
rolled for self alone or $6 for an employee or
annuitant enrolled for self and family, the
contribution of the Government shall be 50
per centum of such subscription charge, ex?-
cept that if a nondependent husband is a
member of the family of a female employee
or annuitant who is enrolled for herself and
family the contribution of the Government
shall be 30 per centum of such subscription
charge?
17403
(2) There shall be withheld from the
salary of each enrolled employee or annuity
of each enrolled annuitant so much as is
necessary, after deducting the contribution
of the Government, to pay the total charge
for his enrollment. The amount withheld
from the annuity of an annuitant shall be
equal to the amount withheld from the
salary of an employee when both are en-
rolled in the same plan providing the same
health benefits.
(3) The contributions of the Government
as initially determined by the Commission
and the contributions of the employees and
annuitants may from time to time be read-
justed, subject to the limitations on amounts
contained in paragraph (1), on the basis
of past experience and proposed benefit ad-
justments, such readjustment to be in the
same ratio as the contributions of the Gov-
ernment bear to the contributions of the
employees and annuitants at the time of the
initial determination by the Commission.
(b) An employee enrolled in a health
benefits plan under this Act who is placed
in a leave-without-pay status may have his
coverage and the coverage of members of his
family continued under such plan for a
period not to exceed one year in accordance
with regulations prescribed by the Commis-
sion. Such regulations may provide for the
waiving of contributions by the employee
and the Government.
(c) The sums authorized to be contributed
by the Government with respect to any em-
ployee shall be paid from-
(1) the appropriation or fund which is
used for payment of the salary, wage, or
other compensation of such employee,
(2) in the case of an elected official, from
such appropriation or fund as may be avail-
able for payment of other salaries of the
same office or establishment,
(3) in the case of an employee in the
legislative branch whose salary, wage, or
other compensation is disbursed by the
Clerk of the House of Representatives, from
the contingent funds of the House, and
(4) in the case of an employee in a leave-
without-pay status, from the appropriation
or fund which would be used for the pay-
ment of the salary of such employee if he
were in a pay status.
The sums authorized by subsection (a) (1)
to be contributed by the Government with
respect to any annuitant shall be paid from
annual appropriations which are hereby au-
thorized to be made for such purpose.
(d) The Commission shall provide for con-
version of rates of contribution specified in
this section in the cases of employees and
annuitants paid on other than a biweekly
basis, and for this purpose may provide for
adjustment of any such rate to the nearest
cent.
SEC. 8. (a) There is hereby created an
Employees Health Benefits Fund, herein-
after referred to as the "Fund", to be ad-
ministered by the Commission, which is
hereby made available without fiscal year
limitation for all payments to approved
health benefits plans. The contributions of
employees, annuitants, and the Government
described in section 7 shall be paid into the
Fund.
(b) Portions of the contributions made by
employees, annuitants, and the Government
shall be regularly set aside in the Fund as
follows: (1) a percentage, not to exceed- 1
per centum of all such contributions, de-
termined by the Commission as reasonably
adequate to pay the administrative expenses
made available by section 9; (2) for each
health benefits plan, a percentge, not to ex-
ceed 3 per centum of the contributions to-
ward such plan, determined by the Commis-
sion as reasonably adequate to provide a
contingency reserve. The income derived
from any dividends, rate adjustments, or
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.~ 959 CONGRESSIONAL RECORD - SENATE
in the RECORD a biographical sketch of redo. He cooperated with Senator JOSEPH Mr. JOHNSON of Texas. This meas-
Warwick Downing. G'MAHONEY, of Wyoming, in development of ure is Calendar No. 596, Senate bill
There being no objection, the state- Government program for experimental work 1697, to amend the Mutual Defense As-
in developing a liquid fuel industry, in par- sistance Control Act of 1951,
ment was ordered to be printed the titular that feature of this program which President, the
RECORD, as follows: included Colorado's oil shale as a source Mr. KENNEDY. Mr.
bill provides for a change the pro-
Warwick BIOGRAPHICAL SKETCH or WARWICK DowNiNG of synthetic or liquid fuel.
Warwick M. Downing was born in Ma- The late Mayor Robert Speer, of Denver, visions of the so-called Battle Act, so
comb, Ill., January 14, 1875, of Quaker an- called Mr. Downing "father of the moun- as to provide-if the President deter-
cestry. His first immigrant ancestor arrived tain parks and of the boulevards and play- mines it to be in the national interest-
in Plymouth,as far back as 1621. grounds of Denver." As chairman of the ? Some degree of assistance to countries
As a young man, Mr. Downing determined Mountain Parks Committee of the Civic now under Soviet control, but trying to
to do his best toward accomplishing some- Bodies, he had the leading part in putting maintain some degree of independence.
thing notable and well worthwhile for the across the mountain parks idea. It must I am thinking especially of Poland,
public, welfare, and to devote as large an be remembered that this was at a time when trying
amount of his personal time to public serv- autos were few, and many of the citizens which h has s been underndergogoining g a a very with the
ice as possible. He felt as a minimum he of Denver organized to kill what they termed per
should so devote 10 percent of his time. "a fool idea" of spending Denver money in Soviet Union, but also-as the recent
He was graduated from East Denver High , the mountains, and to stop a "bunch of trip of Mr. NIXON indicates-has a
School in 1891. Shortly after his gradu- speculators" who wanted to unload worth- strong and warm feeling toward the
ation from high school, he procured a job as less hillsides on Denver at a fancy price. United States.
a cub reporter on the Denver Times. He Mr. Downing drew the mountain parks This measure provides that if the
left this employment to attend the Uni- amendment to the Denver city charter, and President finds it to be in the national
versity of Michigan College of Law, and grad- pushed its adoption by the people. This also interest, a country which might be un-
uated from that institution in 1896. Dur- entailed the procuring of necessary legisla- der the domination of the Soviet Union
ing his years in law school he was Ann Arbor tion by the legislature of Colorado and pro-
correspondent for the Detroit Evening Jour- curing of an act of Congress, deeding some could receive assistance' from our coun-
nal, the Chicago Times, the Chicago Herald, 10,000 acres to the Denver park system, and try in the following way: If the Presi-
the Chicago Inter-Ocean, the New York Sun, of bbI?*, responsible for the expenditures of dent thought it to be in our interest, he
and the United Press. the pu c funds that made our Denver could provide funds which might be ob-
Often referred to as the dean of oil and mountain ark system what it is today. rained through Public Law 480 sales in
gas lawyers in the Rocky Mountain region, Mr. Down g's work for the Denver play- local currencies, which funds could be
Mr. Downing has made a life career of sere- ground syste was no less notable. All the loaned back to that country, as is done
ice to the public and particularly in the playgrounds n owned by Denver, with
in the case of other countries; and, sec-
consistently field of oil and gas conservation. He has one principal ex tion, were acquired by
consistently refused to accept public office him and were large constructed under his ond, the Export-Import Bank would be
with pay, but has held many offices of an administration as a ber of the Denver permitted to make loans to a country
honorary nature, all without compensation, Park Commission. Like so, Denver's mu- which falls into this particular "gray"
some of which are listed herein: nicipal parkway and boul and system was Status.
Park Commissioner . of Denver under largely his creation. Those are the particular provisions of
Mayor Speer and Arnold, 1904-13. The Denver Good Roads Bo d, of which the bill.
Chairman Mountain Parks Committee of Mr. Downing was a member, p aced and The PRESIDING OFFICER. The bill
the Civic Bodies and member of the Denver passed the 1920 Highway Law, un r which Is open to amendment.
Mountain Parks Commission, 1911-20. (and as amended) our State high sYs- h b f th r amendment to be
e
f t
ere . e n0 ' ?
Member Denver Playground Commission, tern has been built. He was also i tru- I
1910-13. mental in all of the highway projects. He proposed, the question is on the engross-
Member Denver Good Roads Board, t d ointment to the Highway - ment and third reading of the bill,
a
pp
accep a
1920-24. visory Board by Governor Teller Ammon The bill (S. 1697) was ordered to be
Member Colorado State Highway Advisory in 1938, ngrossed for a third reading, read the
Board, 1936--38. As a member of the Highway Advisory ird time, and passed, as follows:
Representative of the State of Colorado an Board, Mr. Downing pushed a completion 'Yt enacted by the Senate and House
t
-
ee, ap
the Oil States Advisory Commit
of the highway to Summit Lake on the of R resentatives of the United States of
pointed by the Governors of 12 of the prin- Mount Evans road, and realinement of im-
oipal oil-producing States, 1931-34. provement of the road from Summit Lake to EEC eri in Congress assembled, That section
Representative of the State of Colorado on of is I of the Mutual Defense Assist-
Mount Evans. His principal effort, however, f Act of 1961 (22 U.S.C. 1611a) is
the Interstate Oil Compact Commission, was to give aid to the Western Slope in amended to cad as follows:
created by the principal oil-producing States highway development so that the Western "SEC. 102. ponsibiilty for giving effect to
with congressional approval, se v to date. Slope would have an all-year-round highway p p
Chairman of the Gas Conservation Co m- to be completed from the north boundary Seccreta a ury of ores Sta his or suAct ch other shall beher officer a as s vested the
_ _. ...._.__-_~_ __ ........ - Se the
d G nee ation
cessor posy, the v? an
It thus appears that Mr. Downing has to as the `Adrninist tor'."
Commission, 1932 to date. Recently ap- held public office for more than 84 years, SEC. 2. Section 3 of title II of the
and Gas
pointed as. a member of said tOil
as many years as he has lived, and-during Mutual Defense Assis nee Control Act of
er
961
i
inn
n
. - never receives a penny of c~uiNc++owo+v++ +~+ follows:
Member of the National Petroleum Coun-
cil, appointed by. the Secretary of the In- his time. "SEC. 303. (a) This Act shA11 not be deemed
terior, 1951 to date. Mr. Downing is married to the former to prohibit furnishing econoirc and financial
Mabelle Jackson Bell of Dallas, Tex. He
Member of the National Conference of assistance to any nation or area, except the
Petroleum Regulatory Authorities, appointed has two children, Richard Downing, Denver Union of Soviet Socialist Republ s and Com-
to serve and help the Secretary of the In- attorney, associated with him in the prac- munist-held areas of the Far Easwhenever
terior during World War II from the State's tice of law, and Dr. Virginia Downing of the President determines that such assist-
standpoint. Boulder, Colo. engaged in research on the ance is important to the security of the
Member of the Governors Advisory Coun- causes and control of cancer. United States: Provided, That, after term-
cil, with reference to oil and gas matters, ination of assistance to any nation as pro-
during World War II. MUTUAL DEFENSE vided in sections 103(b) and 203 of this Act,
He has served on the Interstate Oil Com- AMENDMENT OF assistance shall be resumed to such nation
pact Commission under nine Colorado Gov- ASSISTANCE CONTROL ACT OF only in accordance with .section 104 of this
ernors, six Democrats (including Gov. Ed 1951 Act. The President shall immediately re-
Johnson who was Governor twice with an port any determination made pursuant to
18-year interlude as U.S. Senator) and three Mr. JOHNSON of Texas. Mr. Presi- this subsection with reasons therefor to the
Republicans. He has served many years as dent, I move that the Senate proceed Committees an Foreign Relations, Appropria-
vice president for Colorado -or as a member to the consideration of Calendar No. tions, and Armed Services of the Senate and
of the executive committee of the Inde- 596, Senate bill 1697. the Speaker of the House of Representatives.
pendent Petroleum Association of America. The motion was agreed to; and the "(b) The Administrator may, notwith-
He. has been one of the Nation's leaders Senate proceeded to consider the bill standing the requirements of the first proviso
to bring about laws, regulations, and prat- (S. 1697) to amend the mutual Defense of section 103(b) of this Act, direct the con-
tices which would encourage the develop- tinllance of assistance to a country which
ment of oil and gas on public lands. Assistance Control Act of 1951. knowingly permits shipments of items other
His chief accomplishment, however, was Mr. KEATING. Mr. President, may than arms, ammunition, Implements of war,
the development of the oil shales in Colo- we have an explanation of the bill? and atomic energy materials to any nation
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CONGRESSIONAL RECORD - SENATE September 10
.eceiving economic or financial as-
pursuant to a determination made
section 303(a) of this Act.
(3) an employee who receives monthly
compensation under the Federal Employees'
Compensation Act as a result of injury sus-
tained or illness contracted on or after such
date of enactment and who is determined by
the Secretary of Labor to be unable to re-
turn to duty, and
(4) a member of a family who receives
monthly compensation under the Federal
Employees' Compensation Act as the surviv-
ing beneficiary of (A) an employee who, hav-
ing completed five or more years of service,
dies as a result of illness or injury com-
passable under such Act or (B) a former
employee who is separated after having com-
pleted five or more years of service and who
dies while receiving monthly compensation
under such Act on account of injury sus-
tained or illness contracted on or after such
date of enactment and has been held by the
Secretary of Labor to have been unable to
return to duty.
For the purpose of this subsection, "serv-
ice" means service which is creditable for
the purposes of the Civil Service Retirement
Act.
(d) "Member of family" means an em-
ployee's or annuitant's spouse and any un-
married child (1) under the age of nine-
teen years (including (A) an adopted child,
and (B) a stepchild or recognized natural
child who lives with the employee or an-
nuitant in a regular parent-child relation-
ship), or (2) regardless of age who is in-
capable of self-support because of mental
or physical. Incapacity that existed prior to
his reaching the age of nineteen years.
(e) "Dependent husband" means a hus-
band who is incapable of self-support by
reason of mental or physical disability which
can be expected to continue for more than
one year.
(f) "Health benefits plans" means a group
insurance policy or contract, medical or hos-
pital service agreement, membership or sub-'
scription contract, orsimilar group arranage-
ment provided by a carrier for the purpose
of providing, paying for, or reimbursing ex-
penses for health services.
(g) "Carrier" means a voluntary associa-
tion, corporation, partnership, or other non-
governmental organization which is law-
employment of like nature, but no employee
or group of employees shall be excluded
solely on the basis of the hazardous nature
of their employment.
(b) Any annuitant who at the time, he
becomes an annuitant shall have been en-
rolled in a health benefits plan under this
Act-
(1) for a period not less than (A) the five
years of service immediately preceding retire-
ment or (B) the full period or periods of
service between the last day of the first
period, as prescribed by regulations of the
Commission, in which he is eligible to enroll
In such a plan and the date -on which he
becomes an annuitant, whichever is shorter,
or
(2) as a member of the family of an
employee or annuitant- ..
may continue his enrollment under such
conditk as of e,igibility as may be prescribed
by regulations of the Commission.
(c) If an erip.oyee has a spouse who is an
employee, either spouse (but not both) may
enroll for self and family, or either spouse
may enroll as an individual, but no person
may be enrolled both as an employee or
annuitant and as a member of the family.
(d) A change in the coverage of any em-
ployee or annuitant, or of any employee or
annuitant and members of his family, en-
rolled in a health benefits plan under this
Act may be made by the employee or annui-
tant upon application filed within sixty days
after the occurrence of a change In family
status or at such other times and under such
conditions as may be prescribed by regula-
tions of the Commission.
(e) A transfer of enrollment from one
health benefits plan described In section 4 to
another such plan may be made by an em-
ployee or annuitant at such times and under
such conditions as may be prescribed by
regulations of the Commission.
HEALTH BENEFITS PLANS
SEC. 4. The Commission may contract for
or approve the following health benefits
plans:
(1) SERVICE BENEFIT PLAN.-One Govern-
ment-wide plan (offering two levels of bene-
fits) under which payment is made by a
ADVISORY COMMISSION ON INTER-
GOVERNMENTAL RELATIONS
Mr. JOHNSON of Texas. Mr. Presi-
dent, I move that the Senate return to
the consideration of Calendar No. 581,
S. 2026.
The PRESIDING OFFICER. The
question is on agreeing to the motion of
the Senator from Texas.
The motion was agreed to, and the
Senate resumed the consideration of the
bill (S. 2026) to establish an Advisory
Commission on Intergovernmental Re-
lations.
Mr. JOHNSON of Texas. Mr. Presi-
dent, I yield to the Senator from South
Carolina [Mr. JOHNSTON].
FEDERAL EMPLOYEES HEALTH
BENEFITS ACT OF 1959
Mr. JOHNSTON of South Carolina.
Mr. President, at this time I ask the
Chair to lay before the Senate the
amendment of the House of Representa-
tives to Senate bill 2162.
The PRESIDING OFFICER laid before
the Senate the amendment of the House
of Representatives to the bill S. 2162 to
provide a health benefits program for
Government employees, which was, to
strike out all after the enacting clause
and insert:
That this Act may be cited as the "Fed-
eral Employees Health Benefits Act of 1959".
DEFINITIONS
SEC. 2. As used in this Act-
(a) "Employee" means an appointive or
elective officer or employee in or under the
executive, judicial, or legislative branch of
the United States Government, including a
Government-owned or controlled corpora-
tion (but not including any corporation
under the supervision of the Farm Credit
Administration, of which corporation any
member of the board of directors is elected
or appointed by private interests), or of the
municipal government of the District of
Columbia, and includes an Official Reporter
of Debates of the Senate and a person em-
ployed by the Official Reporters of Debates of
the Senate in connection with the perform-
ance of their official duties, and an employee
of Gallaudet College, but does not include
(1) a member of a "uniformed service" as
such term is defined in section 1072 of title
10 of the United States Code, (2) a non-
citizen employee whose permanent-duty
station is located outside a State of the
United States or the District of Columbia,
or (3) an employee of the Tennessee Valley
Authority.
(b) "Government" means the Government
of the United States of America (including
the municipal government of the District
of Columbia).
(c) "Annuitant" means-
(1) an employee who on or after the effec-
tive date of the provisions referred to in
section 15 retires on an immediate annuity,
under the Civil Service Retirement Act or
other retirement system for civilian em-
ployees of the Government, after twelve or
more years of service or for disability,
(2) a member of a family who receives
an immediate annuity as the survivor of a
retired employee described in clause (1) or
of an employee who dies after completing
live or more years of service,
fully engaged In providing, paying for, or carrier under contracts with physicians, hos-
reimbursing the cost of, health services under pitals, or other providers of health services
group insurance policies or contracts, medi- for benefits of the types described in section
cal or hospital service agreements, member- 5'(1) rendered to employees or annuitants, or
ship or subscription contracts, or similar members of their families, or, under certain
group arranagements, in consideration of conditions, payment is made by a carrier to
premums or other periodic charges payable the employee or annuitant or member of his
to the carrier, including a health benefits family.
plan duly sponsored or underwritten by an (2) INDEMNITY BENEFIT PLAN.-One Gov-
employee organization. ernment-wide plan (offering two levels of
States Civil Service Commission.
(f) "Employee organization" means an as-
sociation or other organization of employees
which- -
(1) is national in scope or
(2) in which membership is open to all
employees of a Government department,
agency, or independent establishment who
are eligible to enroll in a health benefits
plan under this Act,
and which on or before December 31, 1959,
benefits) under which a carrier agrees to pay
certain sums of money, not in excess of the
actual expenses Incurred, for benefits of the
types described in section 5(2).
(3) EMPLOYEE ORGANIZATION PLANS.-Em-
ployee organization plans which offer bene-
fits of the types referred to In section 5(3),
which are sponsored or underwritten, and are
administered, in whole or substantial part,
by employee organizations, which are avail-
able only to persons (and members of their
families) who at the time of enrollment are
members of the organization, and which an
SEC. 3. (a) Any employee may, at such (A) GROUP-PRACTICE 1PREPAYMENT PLANS: -
time, in such manner, and under such con- Group-practice prepayment plans which offer
ditions of eligibility as the Commission may health benefits of the types referred to In
by regulation prescribe, enroll in an RP- section 5(4), in whole or in substantial part
proved health benefits plan described in sec- on a prepaid basis, with professional services
tion 4 either as an individual or for self and thereunder provided by physicians practicing
family. Such regulations may provide for as a group In a -common center or centers.
the exclusion of employees on the basis of Such a group shall include physicians repre-
the nature and type of their employment or seating at least three major medical special: -
conditions pertaining thereto, such as, but ties who receive all or a substantial part of
not limited to, short-term appointments, their professional income from the prepaid
seasonal or intermittent employment, and funds.
Approved For Release 2004/02/03 : CIA-RDP61-00357R000300030071-5