LETTER TO (Sanitized), PRESIDENT FROM ANDREW E. RUDDOCK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-00964R000100120005-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 14, 2016
• Document Release Date: July 22, 2003
• Sequence Number: 5
• Publication Date: November 2, 1960
• Content Type: LETTER

UNITYD STATES CIVIL SERVICE COM1lSSION AND U.S.CIVIL CE60MMISSION??
AND REFER TO
WASHINGTON 25, D.C.
President
Governmen'a; Employees Health Association, Inc.
24.30 E Street, N. W.
}dashington, D. C.
L
Enclosed for your information is a copy of a Notice to Health
Benefits Carriers concerning the recently-enacted Retired Federal
Employees Health Benefits Act. This notice appeared in the Federal
Register of October 25, 1960,
Under,the new law, certain annuitants who are retired Federal
employees or survivors of deceased Federal employees may receive a
Government contribution toward the cost of enrollment in a health
benefits plan which meets the requirements of the law as outlined
in the enclosed notice under the heading "Private Health Benefits
Plans." Your plan may meet these requirements.
Each eligible annuitant who is enrolled in a health plan meeting
these requirements will have the Government contribution added to.
his annuity check. The annuitant, will continue to pay his subscrip-
tion charges directly to the plan in which he is enrolled. We will
ask that plan to certify as to the annuitant's enrollment, the cost
of the plan to him, and perhaps other related items.
As stated in the notice, the Civil Service Commission intends
to compile a list of health benefits plans, enrollment in which will
qualify annuitants for the Government contribution. This listing
may also indicate those health benefits plans which are willing to
.consider new enrollments from such annuitants.
If you sponsor one, we invite you to submit the name of your
health benefits plan for inclusion in this list. In submitting the
name of your plan, indicate the length of time the plan has been
operating. Also, please give the total number of members of the
sponsoring organization, the number who are Federal employees or re-
tired Federal employees, and the name of the insurance carrier, if
NQV 2 1990
STAT
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any, underwriting the health benefits plan. If less than 50% of the
members of the organization are Federal employees or retired Federal
employees, and the plan is underwritten by an insurance company, in-
dicate whether the carrier underwriting the plan is licensed to do
business in all States and in the District of Columbia. Please also
indicate if your organization is willing to accept annuitants who
are beneficiaries under the new law as new members and permit them
to enroll in your health benefits plan. If yes, please state what
limitations (age restrictions, good health requirements, etc.), if
any, are Imposed by your plan.
Please submit your letter as soon as possible and no later than
December 1, 1960.
Sincerely yours,
Andrew E. Ruddock
Director
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UNITED STATES CIVIL SERVICE COMMISSION
RETIRED FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM
NOTICE TO HEALTH BENEFITS CARRIERS
Excerpt from the Federal Register of Oct. 25, 1960
General Statement
This notice is addressed to thosecarriers which are voluntary as-
sociations, corporations, partnerships, or other nongovernmental organi-
zations which lawfully offer health benefits plans.
For the purposes of this notice, a "health benefits plan" is an in-
surance policy or contract, medical or hospital service arrangement, mem-
bership or subscription contract, or similar agreement provided by a car-
rier for a stated periodic premium or subscription charge for the purpose
of providing, paying for, or reimbursing expenses for hospital care, sur-
gical or medical diagnosis, care, and treatment, drugs and medicines,
remedial care, or other medical supplies and services, or any combination
:of these.
Public Law 86-724 (74 Stat. 849) enacted September 8, 1960, provides
for a Government contribution toward the cost of health insurance for cer-
tain retired former employees of the United States, and survivors of former
employees, who are not covered by the Federal Employees Health Benefits
Act of 1959. An estimated 400,000 retired former employees and survivors
will be eligible for the benefits provided by Public Law 86-724 beginning
July 1, 1961. No new members can be added to the class of persons bene-
fiting under Public Law 86-724. Under the law, a beneficiary who wishes
to participate may elect to do so in one of two ways.
Private Health Benefits Plans
He may elect to receive a Federal contribution toward the cost of his
private health benefits plan. The contribution will, in most instancet,
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I initially be $3.00 for single enrollment and $6.00 for a family enrollment,
and will. be made directly to the beneficiary, who will continue to be re-
sponsible to the carrier for payment of premiums or subscription charges.
The Commission can contribute toward the cost of private health bene-
fits plans only if provided by a carrier which is lawfully engaged in pro-
viding health benefits and has done so for at least one year prior to the
date the contribution is made. Additionally, if the carrier is an insur-
ance company, it must be licensed to issue individual or group health in-
surance in all the States and the District of Columbia, except that this
licensing requirement does not apply to a group plan sponsored by an as-
sociation whose membership is at least 50 percent Federal employees and
retired Federal employees. The beneficiary need not have been a subscriber
for private health insurance for any prescribed length of time.
The Commission expects that it will receive requests. from various
sources asking (a) for the names of private health benefits plans, enroll-
.ment in which will qualify the beneficiary for the Government contribution
and (b) for the names of qualifying health benefits plans which are willing
to consider new enrollments. The Commission intends to compile a list of
qualified plans for readily answering these requests. If it is feasible
to do so, the Commission may distribute to all beneficiaries a list of
qualified carriers and indicate thereon which are willing to consider new
enrollments of beneficiaries.
The Commission invites and urges all carriers of qualified plans to
submit their names for inclusion in this proposed list. Submissions should
be made by each carrier by letter as soon as possible, but not later than
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December 1, 1960, and should state how long the carrier has been providing
health benefits and whether the carrier is an insurance company. If the
carrier is an insurance company, the submission should state whether it is
licensed in all of the States and the District of Columbia.
The Commission will include the names of employee (including retired
employee) organizations sponsoring health benefits plans in the proposed
list. The employee organization should submit information by letter as
soon as possible, but not later than December 1, 1960, and should state how
long it has been providing health benefits, the total number of members,
the number of members who are Federal employees or retired Federal employees,
.and the name of the underwriting insurance company, if any. The under-
writing insurance company should not submit its name for inclusion in the
proposed list unless it is itself qualified as specified above.
Any carrier which is willing to accept new enrollments of beneficiaries
under Public Law 86-724 is invited to inform the Commission of this fact .
The Commission will be interested in any limitations on new enrollments,
such as age restrictions, geographical limits within which the plan open-
.aces, good health requirement, and the like. These limitations are not
disqualifying, but may be noted in the proposed list of plans. The list
will refer beneficiaries directly to carriers for further information.
Government wide Plan
Alternatively, the beneficiary may enroll in a uniform Government-wide
plan furnished by a carrier under contract with the Civil Service Commission.
If he does, the Government will contribute toward the cost of the enroll-
ment in the same amount as for enrollment in a private plan, and the balance
of the cost will be met by deduction from his annuity.
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Because of the geographical dispersion of beneficiaries, the carrier
of the Government wide plan must be able to provide uniform benefits on a
world-wide basis. The Commission may select any carrier with this capa-
bility, except that, if the carrier is an insurance company, it must, under
the law, (1) be licensed to issue group health insurance in all the States
and the District of Columbia, and (2) in the most recent year for which
data are available, have made group health insurance benefit payments in
the United States equal to at least one per cent of all such payments made
in that year.
The Commission has notified, by direct mail, all carriers known to
the Commission which appear to have the necessary qualifications for selec-
tion as carrier of the Government-wide plan.
Regulations governing the Retired Federal Employees Health Benefits
Program will be issued later, after public notice.
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