[Federal Register: March 22, 1995 (Volume 60, Number 55)] [Proposed Rules] [Page 15074-15075] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr22mr95-23] ===================================================================== === Proposed Rules Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. ===================================================================== === [[Page 15074]] OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 890 RIN 3206-AG40 Federal Employees Health Benefits Program; HMO Plan Applications agency: Office of Personnel Management. action: Proposed rulemaking. ----------------------------------------------------------------------- summary: The Office of Personnel Management (OPM) is issuing proposed regulations that would clarify the policy under which it invites applications from comprehensive medical plans (HMO's) to participate in the Federal Employees Health Benefits (FEHB) Program. This clarification is necessary in order to ensure that OPM and the HMO's are providing the best possible service to FEHB enrollees. dates: Comments must be received on or before May 22, 1995. addresses: Written comments may be sent to Lucretia F. Myers, Assistant Director for Insurance Programs, Retirement and Insurance Group, Office of Personnel Management, P.O. Box 57, Washington, DC 20044; delivered to OPM, Room 4351, 1900 E Street NW., Washington, DC.; or FAXed to (202) 606-0633. for further information contact: Mary Ann Mercer, (202) 606-0004. supplementary information: On December 5, 1994, OPM published an interim regulation in the Federal Register (59 FR 62283) to clarify the policy under which it invites applications from comprehensive medical plans (HMO's) to participate in the FEHB Program. This year, OPM made a determination not to invite new plan applications, with a limited exception, for contract year 1996. OPM received numerous written comments and phone calls concerning the regulation. All of the commenters object that OPM did not give HMO's sufficient notice of its determination not to accept applications for the 1996 contract year. They contend that many HMO's had already expended a substantial amount of time in preparation for the application process and that OPM's decision, therefore, has caused them undue hardship. After careful consideration of the comments received, OPM has concluded that its timeframes had, in fact, been too compressed to allow for a thorough review of all the consequences of the decision not to invite applications. As a result, OPM has decided to accept both applications and benefit change proposals for contract year 1996. In addition, OPM is issuing this regulation as proposed rulemaking in order to provide the public with a longer comment period. Because the deadline for submission of applications is already past, OPM is extending the application due date for the 1996 contract year from January 31 to March 31, 1995. E.O. 12866, Regulatory Review This rule has been reviewed by OMB in accordance with E.O. 12866. Regulatory Flexibility Act I certify that these regulations will not have a significant economic impact on a substantial number of small entities because they primarily affect OPM's administrative procedures. List of Subjects in 5 CFR Part 890 Administrative practice and procedure, Government employees, Health facilities, Health insurance, Health professions, Hostages, Iraq, Kuwait, Lebanon, Reporting and recordkeeping requirements, Retirement. Office of Personnel Management. James B. King, Director. Accordingly, OPM proposes to amend 5 CFR part 890 as follows: PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM 1. The authority citation for part 890 continues to read as follows: Authority: 5 U.S.C. 8913; Sec. 890.803 also issued under 50 U.S.C. 403p, 22 U.S.C. 4069c and 4069c-1; subpart L also issued under sec. 599C of Pub. L. 101-513, 104 Stat. 2064, as amended. 2. In Sec. 890.203, paragraph (a)(1) is revised, paragraphs (a)(2) through (a)(4) are redesignated as paragraphs (a)(3) through (a)(5) respectively; newly designated paragraph (a)(5) is amended by revising the last sentence; a new paragraph (a)(2) is added; and a heading is added for paragraph (b) to read as follows: Sec. 890.203 Application for approval of, and proposal of amendments to, health benefits plans. (a) New plan applications. (1) The Director of OPM shall consider applications to participate in the FEHB Program from comprehensive medical plans (CMP's) at his or her discretion. If the Director of OPM determines that it is beneficial to enrollees and the Federal Employees Health Benefits Program to invite new plans to join the Program, OPM will publish a notice in the Federal Register. (2) When invited to participate, CMP's should apply for approval by writing to the Office of Personnel Management, Washington, DC 20415. Application letters must be accompanied by any descriptive material, financial data, or other documentation required by OPM. Plans must submit the letter and attachments in the OPM-specified format by January 31, or another date specified by OPM, of the year preceding the contract year for which applications are being accepted. Plans must submit evidence demonstrating they meet all requirements for approval by March 31 of the year preceding the contract year for which applications are being accepted. Plans that miss either deadline cannot be considered for participation in the next contract year. All newly approved plans must submit benefit and rate proposals to OPM by May 31 of the year preceding the contract year for which applications are being accepted in order to be considered for participation in that contract year. OPM may make counter-proposals at any time. * * * * * (5) * * * The extent of the data and documentation to be submitted by a plan so certified by HHS, as well as by a non-certified plan, for a particular review cycle may be obtained by writing directly to the Office of Insurance Programs, Retirement and Insurance Group, Office of Personnel Management, Washington, DC 20415. [[Page 15075]] (b) Participating plans. * * * [FR Doc. 95-7031 Filed 3-21-95; 8:45 am] BILLING CODE 6325-01-M