LETTER TO (SANITIZED) FROM ANDREW E. RUDDOCK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-00868R000100080006-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 13
• Document Creation Date: December 22, 2016
• Document Release Date: August 28, 2009
• Sequence Number: 6
• Publication Date: August 16, 1962
• Content Type: LETTER

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~ - wuuxwa REPLY '~
"U.S.. CIVIL SERVICE COMM,
UNIT - STATES CIVIL. SERVICE COIVI taSION AND REFER 70
BUREAU OF RETIREMENT AN? INSURANCE Ftt-E BF3T
Government Fnployees Health Assn., Tnc.
P . o . Box x+63
Washington ~+, D. C.
AUG 1 ~ ~~~~
Attached are copies of proposed amendments to the regulations govern-
ing the Federal Employees Health Benefits Program and e~cplanations of
the reasons for the proposals. The proposed amendments were published
in the Federal Register of August 17, 1962, and interested persons may
submit written comments, suggestions, or objections within 30 days of
that date.
We plan to make the amendment to section 89.3(e) and the new section
89.?~(c) effective no later than October 1, 1962, and the remaining
amendments effective November 1, 1962. Because of the tight sched-
ule necessary to meet this objective, we urge you to submit-your
comments, suggestions, or objections as early as possible so that
they can be given careful consideration within the time available.
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are [braeketed]a
Additions to the text ure underscored; deletions of present text
.Section 89.1(k) is amended by adding the following sentence at the
end of the paragraph: '
"Whenever, in this part, a eriod of time is defined by be inning
and ending dates, the period includes thy: beginning and ending dates,rr
Section 89a2(b)(2) is amended to read as follows:
"(2) Employees whose employment is of uncertain or purely,tempo-
nary duration, or who are employed for brief periods at intervals,
and employees [or] rho are expected to work less than six months-in
each year [.] except employees having career-conditional or career
.appointments who are employed .under a-cooperative work-study program of
at least one year's duration which requires the employee to be in pay
status during not less than one-third of the total time required for
completion of the program.<
Amendment to Part 89
(Health Benefits Regulations)
Section 89,3(e) is amended to read as follows:.
"(1) Not less often than once every three years, the Commission
will by regulation provide every employee an opportunity for enrollment
and change of enrollment, on such terms and conditions as it may pre-
s cribe
(2) During the period October l to October l5, 1962, any employee
who has not been an enrolled employee at any-time during the period
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May 1, 1962, to September 30, 1962, may register to be enrolled. Durin
the period October 1 to October 15, 1962, any employee enrolled for self
alone may change his enrollment to self and family in .the same plan and
option.
(3)__During the period October 1 to October 15, 1963, any employee, who.
is not registered to be enrolled may register to be enrolled, and any
enrolled employee may change his enrollment from one plan or option to
another, or from self alone to self and family, or both."
Section 89.3(f)(1) is amended to read as follows:
"(1) An enrolled employee or annuitant may register to change his-
enrollment from himself alone to himself and family, and an employee,
if registered not to be enrolled, may register to be enrolled, at any
time during the period beginning 31 days before a change in marital
status and ending 60 days after the change in marital status. An
employee who registers to change his enrollment under the preceding
sentence may, at the same time, register to change his enrollment to
another plan or option. An enrolled employee or annuitant may change
his enrollment from himself alone to himself and family within 60 days..
after any other change in family status."
Section 89.3(f)(2) and (3) are amended to read as follows:
"(2) An employee or annuitant may at any time register to change
his enrollment from self and family to self alone. An employee or
annuitant who is covered by the enrollment of another under this. part
may register to be enrolled for self alone within 31 days after a
registration to change the covering enrollment has been filed under
authority of this paragraph."
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(3) An employee who is not enrolled, but is covered by chapter 55
of title 10, United States Code, hereinafter referred to as Medicare
or by enrollment,. under this part or Part 88, of [a spouse] another, may
register to be enrolled within 31 days after termination of Medicare or
the other's [spouse's]`-`enrollment, other than by death or cancellation,
and within 60 days after termination, by death, of Medicare or the
other's enrollmento An employee-annuitant who was, immediately before
retirement, covered by the enrollment of another under this part and had
been covered (including enrollment in his own right) under this part
since his first opportunity or for the five years immediately preceding
his retirement,. whichever is shorter, may enroll within 31 days after
the termination of his coverage, other than by cancellation, [An em-
ployee who is not enrolled, but is covered by Mecare or by the enroll-
ment, under this part, of a parent, may register to be enrolled within
31 days after the termination of his coverage. An employee or annuitant
who is covered by enrollment of another under this part may register to
be enrolled for self alone within 31 days after a registration to change
the covering enrollment under subparagraph (2) of this paragraph has
been fileda]"
Section 8943 is amended by redesignating paragraphs (k) and (1) as
(n) and (o), respectively, and adding the following new paragraphs:
"(k) On reaohing 19m An employee who is not registered to be en-
rolled may register to be enrolled within 31 days after hisl9th birthdays"
"(1) On return from a uniformed service. (1) The enrollment of
an employee or annuitant whose enrollment was terminated because he
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entered on duty in a uniformed service for a period of time not limited
to 30 days or less shall be reinstated automatically on the day the
employee. is restored to a civilian position pursuant to Part 35 of this
chapter or other similar authority or on the day the annuitant is
separated from. the uniformed service, as the case may be.
"(2)_An employee who enters on duty in a uniformed service for
a period of time not limited to 30 days or less may register to enroll
or to change his enrollment within 31 days after he is restored to a
civilian position pursuant to Part 35 of this chapter or other similar
authority; and an annuitant who enters on duty in a uniformed service
for a period of time not limited to 30 days or less may register to
change his enrollment within 31 days of ter he is separated from the
.uniformed service."
"(m) Change in employment status. (1) If an employee or annuitant
is entitled to provide coverage for another by a self~and~family enroll-
ment, but both are enrolled for self alone, he may change his enrollment
to self and family within 31 days after the other's is terminated. by a
change in employment status which results in loss of eligibility.."
Section 89.1 is amended by:
Amending paragraph (b) to read as follows:
"(b) Change to self alone. The effective date of a change of en-
rollment under section 89.3(f)(2) is the first day of the first pay_perod
after the Health Benefits Registration Form is received by the employing
office . "
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Redesignating paragraph (c) as (d), and inserting the following new
paragraph:
(c) Open season, (1) The effective date o,f changes of enrollment
under section 89+3('~) is the first day of. the first pay period beginning
on or after November l of the year in which the Health benefits Regis-
tration Form is received b~he employing office.
"(2) The effective date of new enrollments under section 893(d)
is the first, day of the first pay period beginning on or after November l
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of the year in which the Health Benefits Registration Form is received by
the employing office.. which follows a pay period in which. the employee is
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inpay status except that if the employee;is a substitute in the postal
field service the effective date of his new enrollment is the first day
of the first pay period beginning on or after November l of the year in
which the Health .Benefits Registration Form is received which follows the
sixth consecutive pay period in ,which he was.: in p.ay status"and in each of
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which he drew sufficient pays after other deductions, to permit withhold-
ink the amount-necessary for his share of the cost of the health benefits
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..plan he selects,."
Section 89b5 is amended by adding anew paragrap'Yr 89.5(c),.to read.
as .follows:
"(c) Survivor annuitants. Tf an employee who is entitled to health
benefits coverage as a survivor annuitant elects to enroll. or to con-
time to be enrolled under his eligibility as an employee,, and. is there-
after separated without entitlement to immediate. annuity-based on his own
service his~emplAyee-acquired enrollment may be reinstated on appligation
to his retirement officeR Reinstatement shall be effective immediately
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after termination if the application is received by the retirement office
within 60 days of separation; otherwise reinstatement will be effective
on the first day of the first pay period following receipt of the appli=
cation. Amounts necessary to pay the former employee's share of the
cost of this enrollment will be withheld from the annuity which he re-
ce"fives as a survivor annuitant."
Section 89.6 is amended to read as follows:
"? 89.6 Cancellation of enrollment.
"An enrolled employee or annuitant may at any time register to
cancel his enrollment by filing with his employing office a properly
completed Health Benefits Registration Form. The cancellation becomes
effective on the last day of the pay period following the pay period
in which the Health Benefits Registration Form canceling his enroll-
ment is received by his employing office except that the cancellation
of an employee or annuitant having a monthly or four-weekly pay period
will become effective at the end of the pay period in which .the Health
Benefits Registration Form is received if the Form is_received not less'
than l5 days before the end of the pay period. He and the members of his
.family are not entitled to the temporary extension of coverage for con-
version or to convert to an individual contract for health benefits."
Section 89.7 is amended:
By deleting "and suspension" from the heading "Termination and
suspension of enrollment";
By adding the following new subparagraph (6) to paragraph (a):
j'(6) The day he is separated, furloughed, or placed on leave
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of absence in accordance with the provisions of Part 35 of this chapter
or other simi7.ar authority for the purpose of permitting duty not limited
to 30 days or less in a uniformed service.";
By deleting paragraph (b);
By redesignating paragr?aph (c) as (b) and by adding the following
new subparagraph (3) to the paragraph:
"(3) The day he enters on active duty in a uniformed service for
the purpose of performing duty not limited to 30 days or less"; and
By redesignating paragraph (d) as (c) and amending subparagraph (2)
of that paragraph to read as follows:
"(2) The day the employee or annuitant ce].-
lation.. This r1o~s not ^.~ply to survivor-annuitants.
In addition, the subp ~r. a` a: apt?,s are reor~;a.nized, c1?rific:d, and simpl.ifi.Pd.
In the course of sirir~lif~rir;; the rE:gula:.ions two suhstantivc rights of
employees covered by a ,~arent.'s enrcl.l.mert e;Fre affected:
- he loses the right to enro]_l. on cancell:~.tion of h:i_s
parent's enrollment
- his time for c;nrollmrnt fo].lotiin the death of the ~:n-
rolled parent is cx~endcd to ;(~ ri ys from the; formc;r
31.
These changes are riot bel_ic.ved significant, particularly ir. view of the;
new right to enroll on reaching; 19.
rJew S 89.3(k). I?iany younger employees register not to be enrolled beca_usc~
fey-ar~ e, covered by the c~nrol.lmrnts of their parents either under this
part or in other individual and group policies. Ordinarily they will lost:
this coverage upon re.~rching an age specified in th? policy. If the parE:nt
is enrolled under this part, r~ae have provision fari the employee to enroll
for himself. If the parent's coverage is not under this part, there is no
provision for the employee to unroll until an open season. Since the most
common age for loss of coverage is 19, we are providing that employees
reaching their 19th birthday may register to be enrolled. It does not a~-~
pear to be worthwhile t?o provide specially for employees enrolled as family
members under policies sc:.tting other ages for termination of coverage in
view of the administrative burden entai.lec? in verifying the date of loss,of
coverage.
New ~ 89.3(1).. This amendment is intended to compl?te .a. change of pro-
cedure with re;;ard to employees who Inter on duty in a uniformed service
(see the explanation of the amendment 'to section 89.7).
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9p3(m}, ~.'wo employee~3 usu~.~.~y a hz~band and wife frequent3:y enroll.
for se f alone, even though it would be possible for one of them to proms
vide coverage for the other by enrolling fox^ self and fam~lyr Tn facts
we have encouraged such enrollments. when no maternity benefits appear
needed because they save both the government and the employee money.
However -if one cif` them lases his ooverageg eeg.y by resigning from Federal
employment, the other must wait ~zntil the. next open.~eason before he can
cYiange to a self-~andwfa~nily enrol.~ment~,
We propose to perm3.t the employee-who remain$ on the .rolls to change to
a self-~a~id~fam3.ly oz~ollment 3~nmedate~..y~ Under this proposal, there. may
be adverse selection iri the ease of the wife who becomes pregnant and
resigns If her husband then ohanges=-his enrollment tc self and family,
the carrier would be obligated far maternity benef.tsa Nevertheless, we
?~h3.nl~ this type t~f adverse selection will be negligible, since most
people needingmaternity benefits will .already be enrolled for self and
:family, and the inequities that wi~.l be avoided-by adoption of the pro-
posal are of greater impr~rtannep
$9a~t(b)'o The effect of this amendment is to eliminate the requirement'
~haemployee have been ~ pay status when he ehsnges his enrollment
:from self. and family to self onlyd ;This eliminates a' potential delay in
making the change effective and dues notein3ure carriers since an em~-
pl,oyee not 3.n pay status would. be entitled to free coverage. f.or self and
family under th?e present regulations Presently the pay status require-
men:t does nc~t apply wherry by death or other caarcumstances~ the employee
lases a17. members 'of his family..
~ s9~,l~(c)n This paragraph is inserted to provide an appropriate effec-~
ti~r~i ~ date for open season enrollment and ohanges of enro~.Tment, Pay
status- ie not a requirement far change of enrollment,
~945(~}. When an employee eligible?to be enrolled is covered by the
enr~ent of anoth.ert and that other diesg the employee may become a
sua^~rivor annuitant As such she has- the option of wcontinuing the other
enrollment as a survivor annuitant or of enx^olling in her own right as
an employeeb If she continues as a survivor annuitant her coverage
wi~.l be terminated if she marries or for any other reason loses title to
her`annuity~ If she enrolls as an employee her coverage will be termi-
nated by the employing office if she leaves the service otter than by
.retirement on immediate annuity based on her own service,
As a practical matters th:e employing office cannot properly transfer her
exxrcallment to the retirement offices because the employing office will
not know whether she is currently entitled to survivor annui'ty~ We pro-
pose, therefore to continue her employee enrollment. upon her application
to the retirement offieem Tf she applies promptly (within 60 days) her
enrollment will be continuousd If she delays longer9 her enrollment will
be reinstated prospectivelyo
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g 89.6. The. effective date of .cancellation has been set so as to allow time
o~ he carriers to receive notice oP the.,cancellatibn before the effective
date so that carriers will not pay Claims for employees who have already
canceled. The present regulations provide sufficient tuns for employees who
are paid biweekly. The time allowod~ however, ~.s axcessive for employees
and annuitants who are paid monthly. The proposed, amendment will reduce the
time presently allowed for employees who-are paid monthly or at four-weekly
intervals. .The proposal is believed to produce the mast rapid ~~ffecti.ve
date- for cancellation consonant with u'de~uatr~ notice to the c-~;;~rz~-'s..~~r~ J:t;
should save money for employees r~n~? ~, . ~, ;. t ~~ >'.z ~_>