FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM (FEHBP)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000400500012-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Document Release Date: September 12, 2008
• Sequence Number: 12
• Publication Date: November 17, 1983
• Content Type: MEMO

A
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OLL 83-2306/2 .
17 November 1983
SUBJECT: Federal Employees Health Benefits Program (FEHBP)
REFERENCE: OLL 83-2306/1 Dated 2 November 1983, Subject: A
Bill to Reform the Federal Emergency Health Bene-
fits Program (FEHBP)
1. Attached are two additional FEHBP-related bills
recently introduced--S. 2051 in the Senate and H.R. 4261 in
the House. The Senate bill is, in*my lay terminology, an
anti-antitrust bill and not one with substantive FEHBP
content. H.R. 4261 proposes creation of a'Federal Employees
Health Benefit Information Center.
2. This office will continue to monitor the progress
of, and report on, these bills as appropriate.
raison Division
Office of Legislative Liaison
Attachment:
As stated
Distribution:
Original - OLL Record w/atts
1 - OLL Chrono w/o atts
1 - D/OLL w/o atts
1 - DD/OLL w/o atts
1 - C/LD/OL /o atts
rl- LEG/OLL w/o atts
1 - DD/Pers w a s
1 - DD/Pers/Specials Programs w/atts
1 - TBC Chrono w/o atts
1 - TBC Subject w/atts
OLL:LD:TBC: aw (18 November 1983)
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S 15480
summary of the conclusions of the SEC's
1982 Major Issues Conference; to the Com-
mittee on Banking, Housing, and.Urban Af-
fairs.
EC-1950. A communication from the
Chairman of the Board of Governors of the
Federal Reserve System transmitting, pur-
suant to law, a report on a new Privacy Act
system of records; to the Committee on
Governmental Affairs.
EC-1951. A communication from the
Comptroller General of the United States
transmitting, -pursuant to law, a report enti-
tled "Review of the Audit of the Disabled
American Veterans National Headquarters'
Financial Statements for the year Ended
December 31, 1982"; to the Committee on
Veterans' Affairs.
. EC-1952. A communication from 'the
Comptroller General of the United States
transmitting, pursuant to law, a report on
proposals for 20 deferrals of budget authori-,
ty totaling a $1,924,778,000; Jointly, pursu-
ant to the order of January 30, 1975, to the
Committees on Agriculture, Nutrition, .and
Forestry, Appropriations, Armed Services,
the Budget, Commerce, Science, and Trans-
portation,'Energy and Natural Resources,
Environment and Public Works, Finance,
Foreign Relations, Governmental Affairs,'
and Labor and Human Resources.
EC-1953. A communication from the As-
sistant Secretary of Defense (Comptroller)
transmitting, pursuant to law, 19 confiden-
tial selected acquisition reports for certain
weapons systems; to the -Committee on
Armed Services.
EC-1954. A communication from the Di-
rector of the Defense Security Assistance
Agency transmitting, pursuant to law, a
report on a proposed foreign military sale to
Saudi Arabia; to the Committee on Armed
Services. -
REPORTS OF COMMITTEES
The following reports of committees
were submitted:
By Mr. MATHIAS, from the Committee
on Rules and Administration, without
amendment: ?
S. Res. 269. An original resolution relating
to a day care center for children of Senate
employees (Rept. No. 98-298).
By Mr. McCLURE, from the Committee
on Energy and Natural - Resources, with
amendments: -
S. 1090. A bill to establish a National Out-
door Recreation Resources Review Commis-
sion to study and recommend appropriate
policies and activities for Government agen-
cies at the Federal, State, and local levels
and for the private sector, to assure the con- clinics utilizing National Health Service
tinued availability of quality outdoor re_crea-' Corps personnel; to the Committee- on
tion experiences in America to the yea~-iiabor and Human Resources:
2Q00, and for other purposes (with addition- -By...M~iI' JEPSEN:
al views) (Rept. No. 98-299). 9 l\ S. 2060.71 bill to provide that, in the case
o~ any indiv dual who dies while in active
servicmember of the Armed-Services
EXECUTIVE REPORTS -OF ? as a result of disease, wounds, or injury in-
COMMITTEES curred as a result of a hostile action outside
the United States, any Federal income tax
The following executive reports- of liability of such person with respect to the
committees were submitted: year of such persons death shall not apply;
to the Committee on Finance.
By Mr. TOWER, from the Committee on By Mr. MOYNIHAN (for himself and
Armed Services: - Mr. D'AMATO):
The following-named officer for appoint- - S. 2061. A bill to declare certain lands held
ment to the grade of lieutenant general -on by the Seneca Nation of Indians to be part
the retired list pursuant to the provisions of of the Allegany Reservation in the State of
title 10, United States Code, section 1370: New York; to the Select Committee on
To be lieutenant general Indian Affairs. .~ -
By Mr. HEINZ:
United States Air Force (Exec. Rept. 98-19).
CORD - SENATE November.4, 1983
The following bills and joint resolu-
tions were introduced, read -the first
and second time by unanimous con-'
sent, and referred as indicated:
By Mr. SPECTER:
S. 2051. A bill entitled "The Health'Care
Cost Containment Act of 1983"; to the Com-
mittee on the Judiciary.
By Mr. HELMS (for himself, Mr.
HUDDLESTON, Mrs. HAWKINS, Mr.
WILSON, and Mr. Symms):
S. 2052. A bill to amend the Perishable Ag-
ricultural Commodities Act, 1930, by im-
pressing a trust on perishable agricultural
commodities and sales proceeds of such
commodities for the benefit of the unpaid
seller, and for other purposes; to the Com-
mittee on Agriculture, Nutrition, and For-
estry.
By Mr. CHAFEE:'
S. 2053. A bill to promote the full partici-
pation of severely disabled individuals in
community and family life; to the Commit-
tee on Finance.. , .
;,By Mr. SYMMS; .
S. 2054. A bill to suspend for a 3-year-
period the duty on ?hydrazone, 3-(4-methyl=
piperazinyliminomethyl) rifamycin SV; to
the. Committee oil Finance. -' .
S. 2055. A bill. to suspend for a 3-year
period the duty on 5H-Dibenz (b f ) azepine-
the German-American Tricentennial. -and
for other purposes; to the Committee on the
Judiciary.
By Mrs. HAWKINS:
S.J. Res. 193. Joint resolution designating
March 6, 1984, as 'Frozen Food Day"; to the
Committee on the Judiciary.
SUBMISSION OF CONCURRENT
AND SENATE RESOLUTIONS -
The following concurrent resolutions
and Senate were read, and referred (or
acted upon), as indicated:
By Mr. MATHIAS from the Commit-
tee on Rules and Administration:
S. Res. 269. An original resolution relating
to a day care center for children of Senate
employees; placed on the calendar. .
By Mr. MURKOWSKI (for himself,
Mr. PEacY, Mr. PELL, and Mr.
GLENN):
S. .Res. 270. Resolution expressing the
sense of the Senate with respect to the,
North Korean bombing in Rangoon; to the
Committee on Foreign Relations.
By Mr. CHAFEE (for himself, Mr.
Mrs. KASSEBAUM, and Mr. HATFIELD):
S. Res. 271. Resolution deploring the loss
of life in the earthquake in Turkey; submit-
ted'and.placed on the calendar..
5-propanamine, 10, 11-dihydro-N-methyl-, - By.Mr. DURENBERGER (for himself
monohydrochloride; to the Committee on and Mr. BOREN):
Finance:
S. 2056. A bill to suspend for a 3-year
period the duty ' on a 3-((Hydroxy-
diphenylacetyl)oxy)-1, 1-dimethylpiperi-
dinium bromide; to the Committee on Fi-
nance.
S. Con. Res. 84. Concurrent resolution to
encourage State and local governments to
focus on the problems of child custody,
child support, and related domestic. issues;
S. 2057. A bill to amend the Consolidated STATMENT ON INTRODUCED
Farm and Rural Development Act to im- BILLS AND JOINT RESOLUTIONS...
prove and streamline the provision of farm By Mr. SPECTER:
credit assistance through the consolidation
of the real estate, operating, economic emer- S. 2051, A bill entitled the "Health
gency, soil and water, limited resource, rec- Care Cost Containment Act of ?1983";
reation and rural youth loan programs into. to the Committee on the Judiciary. -
one Agricultural Adjustment Loan; to HEALTH CARE COST CONTAINMENT ACT OF 1983
reduce paperwork and make the FmHA loan
process more responsive to farmers' needs; Mr. SPECTER. Mr. President, today
and for other purposes;, to the Committee I am introducing the "Health- Care
on Agriculture, Nutrition, and Forestry. Cost Containment Act of 1983." This,
By Mr. MOYNIHAN: - ' legislation is designed to confront
S. 2058: A bill to require the disposal of what has become a national crisis-the
certain lands at Montauk Air Force Station, disappearance . of affordable' health
East'Hampton Township, N.Y.,'for park and care in the United States.
recreation purposes; to the -Committee on By any statistical measure, health
Governmental Affairs.
By Mr. DOMENICI (for himself and. care costs are sharply on the. rise, far
Mr. HATCH): - outstripping the ability of most Ameri-
S. 2059. A bill to provide revised 'reim-- cans to pay for it. Last year-the health
bursement criteria for small rural health care Component- of 'the Consumer
Price Index rose by 12.1 percent, more
than twice the national inflation rate.
A semiprivate hospital room in a 'big
city now costs an average of almost
$300 a day, an increase of 160 percent
since 1976. - -
Unchecked by market forces or regu-
lation, escalating 'health care costs
burden consumers in several punishing
guises. There are higher taxes for
medicare and medicaid. Health insur-
ance premiums steadily' rise with
annual increases -of 30 percent. or
more. And aggregate higher health
care costs 'ultimately 'fuel inflation at
the expense of the quality of life of all
. Health care is not, a luxury. ,It is a
basic necessity,of -life that cannot-be
the term of the Presidential Commission for - allowed to slip inexorably -out? of the
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November 4, 1983
%6NGRESSIONAL RECORD = SENW S. 15481
financial reach of American families. This legislation will provide a start- charges for such services, or collecting, dis-
The Health Care Cost Containment ing point to consider the wisdom of tributing; publishing or using analyses or in-
Act, of 1983 offers a useful step in con- these proposed modifications. It may terpretations of such information:
trolling these costs. - ' be that hearings and-further consider- (b) collecting 'and distributing insurance
Essentially, the legislation provides. ation _ will, prove these proposals. claims for health care services: or
a limited antitrust exemption, to ac- unwise or subject to modification, but (c) negotiating, entering into or acting
complish two results. First, it would upon agreements with health care providers
the problems are so serious that we with. respect to the_titilization of health care
'allow health care' insurers to collabo- shall consider the manner of dealing services or the levels of charges or reim-
rate in collecting health-care data on with these problems. bursement for health cafe services.
the costs and quality of care rendered This legislation is not a panacea to SEC. 5. (a) Activities permitted by this Act
by health care providers such as hospi-' the problem of exploding health care may be investigated at any time by the At-
tals and clinics. This infofmation base costs, but it offers a suggestion toward torney General for the purpose of-
would? promote better informed con- . cost containment, a problem deserving (1) determining whether .the 'activities
Sumer choices on health care while our urgent attention. I ask unanimous under investigation are subject to the Act:
spurring competition among the pro- consent that the bill be reprinted in or
viders of such care. Second, it would', the RECORD. ' have (2) detethe eff whether hsuch . ave heteff ct
allow insurers to enter into agree-' There no objection, the bill of had the the cost will have the rviect
meets with providers clearly stipulat- increasing thhe cost of health care sereides
was ordered ? to be printed. in' the - or unduly restricting competition in the e?-
ing the level and cost of health care, -'RECORD, as-follows - ? . livery or financing of. health care services.
thereby promoting competition with S. 2051 (b) In the event the Attorney General un-
the health care industry and giving Be it'enacted by the Senate and House of. dertakes an investigation, all persons en-
further clarity to consumer decisions Representatives of the United States of gaged in .the particular activity that is the
on' how to choose health care'most ef- America in Congress assembled .. subject of the investigation shall be given
ficiently. SEC. 2. The Congress finds: notice thereof in writing. The Attorney
This legislation recognizes that it is The spiraling 'costs Of the United States General shall conduct.his investigation in
the health care insurers, ? or so-called health care' system requires cooperation conformance with. . procedures to be estab-
third-party payors , of. health care among various private sectors to control .lished by him pursuant to section 553- of
costs, that are in a good position to' re= those costs . title 5, United States Code. If the Attorney
The public interest requires that health General determines after the conclusion of
strain costs. Consumers lack enough insurers and other payors who reimburse re- such investigation that an activity does not
information under the present system. cipients for the expense of health care, or -comply with the requirements of this Act.
A limited antitrust exemption will give pay providers directly on behalf of such re- he shall give written notice of such determi-
insurers a mechanism to more accu- cipients, be encouraged to work together to = nation, which notice shall-
rately assess costs so that they may in- contain the cost to recipients; and _ (1) include a statement of the circum-
telligently deal with health care pro-' The health care cost spiral appears not stances underlying, and the reasons in sup-
viders to the benefit of all consumers. only to be part of the national inflation in port of, the determination: and
In order to insure that this_exemp- the cost of living, but also to exceed other.. (2)'state with specificity any actions re-
inflation ' only promotes joint activities inflation rates; and quired in order for. the activity to come into
Insurers and others have .cooperated in compliance..,
- which help contain costs, the bill au- the limited collection, exchange, interpreta- (c) If persons engaged in the activity
thorizes the Attorney General to in- tion and use of data on the delivery of and under investigation fail to take the actions
vestigate all the joint conduct pro- . charges for health care service, with a salu- specified by the Attorney General within
vided hereunder. If the Attorney Gen- tart' effect on health care costs; and sixty days, he shall commence an action in
eral determines that the joint activity It is desirable that such cooperation con- - the United States District Court for the Dis-
fails to contain costs or, unduly re tinue and that the right to engage in fur- tract of Columbia to restrain and prevent
failsts. Competition, the bill provides ther cooperative efforts to contain health the offending activity.
that s. competney General shall provides care costs be clarified. (d) In the event the district court finds
SEC. 3. As used in this chapter- that the venture or program is in violation
the cessation of, such activities. This (a) "Health care provider" means an indi- of the requirements of section 4 or 5 of this
investigatory and remedial . power vidual; group of individuals; hospital, clinic, ' Act, such court shall order the cessation of
would effectively 'deter potential partnership, corporation, association, com- ' such activity..
abuses of the limited antitrust exemp- Pany, firm or any other form of business en- ? (e) Any party aggrieved by the determina-
tion the bill provides. terprise which provides medical and other ' tion of the district court may, within thirty
The exemption is designed to over- health services, or any association of such days of such determination, seek review by
ride any conflicting State lwhich health care providers. the court of appeals on the grounds that
ridel any conflicting
health care law a ors from (b) "Insurer" means any individual, group such determination is erroneous.
of individuals, partnership,. Corporation, as= ' (f) Information generated in the.course of
performing the bill's designated activi- sociation, company, firm or any other form any Investigation or court"action, or'submit-
ties. It -is not intended to supersede of business enterprise authorized to do the . ted by any person in connection therewith,
State hospital cost control statutes or business of insurance or administer insur shall. be exempt " from disclosure under sec.
insurance laws which do not conflict ance under the laws of the United States or'' tion 552 of title 5, United States Code.,
with the bill's purpose, but which may of a State,. territory, district, or possession ' (g) Neither a determination by the Attor-
impose additional duties or responsi- thereof, or any association of such Insurers. hey General pursuant to subsections (a) and -
impose on ayo l duties
ors. (c) "Health care services" means any item (b), or by the district court or court of ap-
The magnitude or provid the health care or service defined in 42 U.S.C. section 1395x peals pursuant to subsections (d) and (e),
cost control problem compels Govern- (q), and (d), all asgamended, (j), (m), (n), (p), datnor ionns any isssuede in connection opinions. or the ewith,
ment and private business to take un-. (d) "Person" means an individual, group shall be admissible in evidence in any ad-
usual steps to reach solutions. Anti- of individuals, partnership, corporation, as- ministrative or judicial proceedings in sup-
trust exemptions are not suggested sociation. company, firm or any other form- port of any claim under the antitrust laws.
lightly: -But in order to control costs, of business enterprise. _ SEC. 6. This Act shall supersede any law of
and to promote competition, this SEC. 4. The antitrust laws, as defined In any of the several states that might other-
and t exem lion appears 1 of the Clayton Act, and the Feder- wise prohibit the actions authorized within,
p to be war- al Trade Commission Act, shall not apply to the intent of Congress being to encourage
ranted. any activity undertaken (either directly or payors or health care services to assist in
Since the Federal antitrust laws through a third party or parties) individual- containing health care costs.
have been -enacted, they have been of ly by an insurer or other person engaged in
enormous benefit to our Nation in p'ro- making payments with respect to charges By Mr. HELMS (for himself, Mr.
moting competition. As a variety of- for health care services or jointly among HUDDLESTON,' Mrs. HAWKINS.
economic problems-have arisen, it has such insurers or such persons for the pur? Mr. WILSON, and Mr. SYMMS):
been appropriate to restructure the pose of acquiring, S. 2052. A bill to amend the Perish-
application of these antitrust laws in processing. reporting or ana-
lyzin ing information relating to the quality, able Agricultural Commodities Act,
the interest of clarifying those laws to cost or utilization of health care services, in- 1930, by impressing a trust on perish-
promote the national interest. eluding reasonable and customary levels of able agricultural commodities and
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