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.

Proposed Rules Federal Register

63282

Vol. 62, No. 229

Friday, November 28, 1997

OFFICE OF PERSONNEL

MANAGEMENT

5 CFR Part 890

RIN 3206–AH61

Federal Employees Health Benefits

Program: Disenrollment

AGENCY: Office of Personnel

Management.

ACTION: Proposed rule.

SUMMARY: The Office of Personnel

Management (OPM) is proposing

regulations that are consistent with

existing administrative procedures

requiring employing offices to provide

information about enrollees in the

Federal Employees Health Benefits

(FEHB) Program to the carriers of the

FEHB plans in which they are enrolled.

Carriers are also required to use the

information provided by employing

offices to reconcile their enrollment

records. The proposed regulations

would also regularize the conditions

that would allow carriers to disenroll

individuals when their employing office

of record does not show them as

enrolled in the carrier’s plan and the

carrier is otherwise unable to verify the

enrollment. The purpose of these

proposed regulations is to facilitate

reconciliation of carrier and employing

office enrollment records, especially in

cases where the carrier has not

previously received a notice showing an

enrollment no longer is valid.

DATES: Comments must be received on

or before December 29, 1997.

ADDRESSES: Send written comments to

Frank D. Titus, Assistant Director for

Insurance Programs, Retirement and

Insurance Service, Office of Personnel

Management, P.O. Box 57, Washington,

DC 20044; or deliver to OPM, Room

3425, 1900 E Street NW., Washington,

DC; or FAX to (202) 606–0633.

FOR FURTHER INFORMATION CONTACT:

Margaret Sears (202) 606–0004.

SUPPLEMENTARY INFORMATION: The

proposed regulations are consistent with

existing procedures that require

employing offices to report to each

carrier on a quarterly basis the names

and certain other data about employees

and other individuals serviced through

its payroll office(s) who are enrolled in

the carrier’s plan. OPM would specify

the format and the information to be

contained in the report, such as the

individual’s Social Security Number

and the amount of withholdings and

contributions for that individual.

Carriers would use the information to

reconcile their enrollment records.

Currently, when the carrier receives a

quarterly report, it is required by

contract to compare the enrollees listed

with its own record of enrollees for that

payroll office. If the carrier records

show an enrollee that is not listed by the

payroll office, the carrier contacts the

payroll office for an explanation. The

payroll office provides documentation

to resolve the discrepancy or gives the

reason the employee is no longer in the

plan or no longer on the payroll (for

example, the employee canceled the

enrollment, separated from Federal

service, retired, changed plans, or

transferred to a different agency) and the

effective date of the change.

The proposed regulations would

adopt as regulatory requirements the

current administrative quarterly

reporting requirement and the

requirement for carriers to use the

information to reconcile their

enrollment records. If the payroll office

of record with the carrier is unable to

provide information about the

enrollment, the proposed regulations

would give the carrier the authority to

disenroll the individual, after giving

him or her the opportunity to respond.

Carriers do not currently have the

authority to disenroll individuals.

The proposed regulations also provide

an administrative procedure for

notifying the enrollee of the

disenrollment. Under these procedures

the carrier would be required to notify

the enrollee that the employing agency

of record did not show him or her as

enrolled. The enrollee would have 31

days after the date of the notice to

provide documentation showing that he

or she was enrolled in the plan. If the

enrollee did not provide such

documentation within the required time

frame, the carrier would disenroll him

or her without further notice.

Under the proposed regulations the

employee or annuitant could ask his or

her employing office or retirement

system to reconsider the carrier’s

decision to disenroll the enrollee. The

employing office would be required to

notify both the enrollee and the carrier

of its determination, fully explaining its

findings and conclusions.

We expect that few individuals would

reach the end of this process without

their actual enrollment status becoming

clear. However, in the event that an

individual was disenrolled under the

proposed regulations and it is later

discovered that another provision of the

regulations should have been applied to

the individual’s circumstances, the

disenrollment under this regulation

would become void and the enrollment

would be reinstated retroactively to the

date of the disenrollment. For example,

if it later became clear that the

individual’s enrollment should have

continued because he or she retired

under circumstances allowing

continued enrollment, the

disenrollment would become void.

The proposed regulations would

allow a carrier to end a self only

enrollment upon receipt of reliable

information that the enrollee had died.

A carrier may learn of the death of an

enrollee when it processes the claim for

hospital or physician costs incurred at

the time of death. It may also learn of

an enrollee’s death when

correspondence is returned by the

Postal Service with the notation that the

addressee is deceased. These would be

considered reliable sources. Since proof

of death is not required, the carrier

would send notification of its action to

the enrollee so that the enrollee, if still

living, could so inform the carrier. The

discovery that the report of death was in

error would void the disenrollment.

The proposed regulations would

allow a carrier to disenroll a child

survivor annuitant when the child

becomes age 22, unless the carrier has

information indicating that the child is

eligible for continued coverage because

the child is incapable of self support

due to a physical or mental disability.

The proposed regulations include an

administrative procedure under which

the child can ask the retirement system

to reconsider the carrier’s decision to

disenroll the child. The carrier is also

required to provide the child with

notice of his or her conversion right and

possible eligibility for temporary

continuation of coverage.
Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Proposed Rules 63283

Finally, the proposed regulations

allow the carrier to disenroll a former

employee who notifies the carrier that

he or she has separated from Federal

employment under circumstances that

do not entitle him or her to an

immediate annuity. The carrier would

be required to send the individual a

written notice prescribed or approved

by OPM.

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

administrative procedures for Federal

agencies and health benefit carriers that

participate in the FEHB Program.

Executive Order 12866, Regulatory

Review

This rule has been reviewed by the

Office of Management and Budget in

accordance with Executive Order 12866.

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.

Janice R. Lachance,

Acting 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; § 890.102(f) also

issued under sec. 153 of Pub. L. 104–134;

§ 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 subpart A, § 890.110 is added to

read as follows:

§ 890.110 Enrollment reconciliation.

(a) Each employing office must report

to each carrier on a quarterly basis the

names of the individuals who are

enrolled in the carrier’s plan in a format

and containing such information as

required by OPM.

(b) The carrier must compare the data

provided with its own enrollment

records. When the carrier finds in its

aggregate enrollment records

individuals whose names do not appear

in the report from the employing office

of record, the carrier must request the

employing office to provide the

documentation necessary to resolve the

discrepancy.

3. In subpart C, § 890.308 is added to

read as follows:

§ 890.308 Disenrollment.

(a)(1) Except as otherwise provided in

this section, a carrier that cannot

reconcile its record of an individual’s

enrollment with agency enrollment

records must provide written notice to

the individual that the employing office

of record does not show him or her as

enrolled in the carrier’s plan and that he

or she will be disenrolled 31 days after

the date of the notice unless the enrollee

provides appropriate documentation to

resolve the discrepancy. Appropriate

documentation includes, but is not

limited to, a copy of the Standard Form

2809 (basic enrollment document), the

Standard Form 2810 transferring the

enrollment into the gaining employing

office (or the equivalent electronic

submission), copies of earnings and

leave statements or annuity statements

showing withholdings for the health

benefits plan, or a document or other

credible information from the enrollee’s

employing office stating that the

employee is entitled to continued

enrollment in the plan and that the

premiums are being paid.

(2) If the carrier does not receive

documentation required under

paragraph (a)(1) of this section within

the specified time frame, the carrier

must disenroll the individual, without

further notice.

(3) The enrollee may request his or

her employing office to reconsider the

carrier’s decision to disenroll the

individual. The request for

reconsideration must be made in writing

and must include the enrollee’s name,

address, Social Security Number or

other personal identification number,

name of carrier, reason(s) for the

request, and, if applicable, retirement

claim number.

(4) A request for reconsideration of

the carrier’s decision must be filed

within 60 calendar days after the date of

the carrier’s disenrollment notice. The

time limit on filing may be extended

when the individual shows that he or

she was not notified of the time limit

and was not otherwise aware of it, or

that he or she was prevented by

circumstances beyond his or her control

from making the request within the time

limit.

(5) After reconsideration, the

employing office must issue a written

notice of its final decision to the

individual and the carrier. The notice

must fully set forth the findings and

conclusions on which the decision was

based.

(6) If, at any time after the

disenrollment has occurred, the

employing office or OPM determines

that another provision of this part

applies to the individual’s enrollment or

the carrier discovers or receives

appropriate documentation showing

that another section of this part applies

to the individual’s enrollment, the

disenrollment under paragraph (a)(2) of

this section is void and coverage is

reinstated retroactively.

(b) When a carrier receives, from any

reliable source, information of the death

of an enrollee with a self only

enrollment, the carrier may take action

to disenroll the individual on the date

set forth in § 890.304(a)(1)(iv) or

§ 890.304(b)(4) of this part, as

appropriate. The carrier must attempt to

notify the affected individual or a family

member of the disenrollment. If, at any

time after the disenrollment has

occurred, the employing office or OPM

determines that another provision of

this part applies to the individual’s

enrollment or the carrier discovers or

receives appropriate documentation

showing that another section of this part

applies to the individual’s enrollment,

the disenrollment under this paragraph

(b) is void and coverage is reinstated

retroactively.

(c)(1) When a child survivor annuitant

covered under a self only enrollment

reaches age 22, the carrier may take

action to disenroll the individual

effective with the date set forth in

§ 890.304(c)(1) unless records with the

carrier indicate that the child is

incapable of self support due to a

physical or mental disability. The

carrier must provide the enrollee with a

written notice of disenrollment

prescribed or approved by OPM.

(2) The child survivor enrollee may

request the retirement system to

reconsider the carrier’s decision to

disenroll the individual. The request for

reconsideration must be made in writing

and include the enrollee’s name,

address, Social Security Number or

other identifier, name of carrier,

reason(s) for the request, and the

survivor annuity claim number.

(3) A request for reconsideration of

the carrier’s decision must be filed with

the retirement system within 30

calendar days from the date of the

carrier’s disenrollment notice. The time

limit on filing may be extended when

the individual shows that he or she was

not notified of the time limit and was

not otherwise aware of it, or that he or

she was prevented by circumstances

beyond his or her control from making

the request within the time limit.

(4) After reconsideration, the

retirement system must issue a written
63284 Federal Register / Vol. 62, No. 229 / Friday, November 28, 1997 / Proposed Rules

notice of its final decision to the

individual and provide a copy to the

carrier. The notice must fully set forth

the findings and conclusions on which

the decision was based.

(5) If, at any time after the

disenrollment has occurred, the

employing office or OPM determines

that another provision of this part

applies to the individual’s enrollment or

the carrier discovers or receives

appropriate documentation showing

that another section of this part applies

to the individual’s enrollment, the

disenrollment under paragraph (c)(1) of

this section is void and coverage is

reinstated retroactively.

(d) When an enrollee notifies the

carrier that he or she has separated from

Federal employment and is no longer

eligible for enrollment, the carrier must

disenroll the individual, subject to the

31-day temporary extension of coverage

and conversion right under § 890.401,

on the last day of the pay period in

which the separation occurred, if

known, otherwise the carrier must

disenroll the employee on the date the

employee provides as the date of

separation. The carrier must notify the

enrollee of his or her right to convert to

a nongroup contract with the carrier and

possible eligibility to enroll under the

temporary continuation of coverage

provisions as set forth in subpart K of

this part based on the termination of

enrollment as provided under

§ 890.304(a)(1)(i).

[FR Doc. 97–31166 Filed 11–26–97; 8:45 am]

BILLING CODE 6325–01–P

DEPARTMENT OF AGRICULTURE

Food Safety and Inspection Service

9 CFR Part 381

[Docket No. 97–006P]

RIN 0583–AC33

Addition of Mexico to the List of

Countries Eligible to Export Poultry

Products Into the United States

AGENCY: Food Safety and Inspection

Service, USDA.

ACTION: Proposed rule.

SUMMARY: The Food Safety and

Inspection Service (FSIS) is proposing

to add Mexico to the list of countries

eligible to export poultry products into

the United States. Reviews of Mexico’s

laws, regulations, and other materials

show that its poultry processing system

meets requirements equivalent to all

provisions in the Poultry Products

Inspection Act (PPIA) and its

implementing regulations.

Only poultry products that have been

slaughtered in federally inspected

establishments in the United States or in

establishments in other countries

eligible to export poultry to the United

States and have then been processed in

certified Mexican establishments would

be permitted to be imported into the

United States. All poultry products

exported from Mexico to the United

States must be reinspected at the U.S.

ports-of-entry by FSIS inspectors.

This action would enable certified

poultry processing establishments in

Mexico to export processed poultry

products into the United States.

DATES: Comments must be received on

or before January 27, 1998.

ADDRESSES: Send an original and two

copies of comments to: FSIS Docket

Clerk, Docket #97–006P, Room 102,

Cotton Annex, 300 C Street, SW,

Washington, DC 20250–3700. Reference

materials cited in this document and

any comments received will be available

for public inspection in the FSIS Docket

Room from 8:30 a.m. to 1:00 p.m. and

from 2:00 p.m. to 4:30 p.m., Monday

through Friday.

FOR FURTHER INFORMATION CONTACT: Mr.

Mark Manis, Director, International

Policy Development Division, Office of

Policy, Program Development and

Evaluation; (202) 720–6400.

SUPPLEMENTARY INFORMATION:

Background

FSIS is proposing to amend the

poultry products inspection regulations

to add Mexico to the list of countries

eligible to export poultry products to the

United States. Section 17 of the PPIA

(21 U.S.C. 466) prohibits the

importation into the United States of

slaughtered poultry or poultry products

unless they are healthful, wholesome, fit

for human food, not adulterated, and

contain no dye, chemical, preservative,

or ingredient which renders them

unhealthful, unwholesome, adulterated,

or unfit for human food. Imported

poultry products must be in compliance

with the poultry products inspection

regulations to ensure that they meet the

standards provided in the PPIA. 9 CFR

381.196 establishes the procedures by

which foreign countries wanting to

export poultry or poultry products to

the United States may become eligible

to do so.

Section 381.196(a) requires

authorities in a foreign country’s poultry

inspection system to certify that (1) the

system provides standards equivalent to

those of the United States and (2) the

legal authority for the system and its

implementing regulations are equivalent

to those of the United States.

Specifically, a country’s regulations

must impose requirements equivalent to

those of the United States in the

following areas: (1) Ante-mortem and

post-mortem inspection; (2) official

controls by the national government

over plant construction, facilities, and

equipment; (3) direct and continuous

supervision of slaughter activities and

product preparation by official

inspection personnel; (4) separation of

establishments certified to export from

those not certified; (5) maintenance of a

single standard of inspection and

sanitation throughout certified

establishments; and (6) official controls

over condemned product.

Section 381.196 also requires a

poultry inspection system maintained

by a foreign country, with respect to

establishments preparing products in

that country for export to the United

States, to ensure that those

establishments and their poultry

products comply with requirements

equivalent to the provisions of the PPIA

and the poultry products inspection

regulations. Foreign country authorities

must be able to ensure that all

certifications required under Subpart T

of the poultry product inspection

regulations (Imported Poultry Products)

can be relied upon before approval to

export poultry and poultry products to

the United States may be granted. Here,

the government of Mexico would be

responsible for establishing a system of

controls to ensure that only poultry

from eligible countries and

establishments is used in poultry

products processed in Mexico and

destined for the United States. Besides

relying on its initial determination of a

country’s eligibility, coupled with

ongoing reviews to ensure that products

shipped to the United States are safe,

wholesome and properly labeled and

packaged, FSIS randomly samples

imported meat and poultry products for

reinspection as they enter the United

States.

In addition to meeting the

certification requirements, a foreign

country’s inspection system must be

evaluated by FSIS before eligibility to

export poultry and poultry products can

be granted. This evaluation consists of

two processes: a document review and

an on-site review. The document review

is an evaluation of the laws, regulations,

and other written materials used by the

country to operate its inspection

program. To help the country in

organizing its material, FSIS gives the

country questionnaires asking for

detailed information about the country’s

inspection practices and procedures in