II

105TH CONGRESS

1ST SESSION S. 1496

To remove inequities between Congressional and contract employees regarding

access to health insurance.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 9, 1997

Mr. DASCHLE introduced the following bill; which was read twice and referred

to the Committee on Governmental Affairs

A BILL

To remove inequities between Congressional and contract

employees regarding access to health insurance.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Congressional Contrac5 tor Health Insurance Equity Act’’.

6 SEC. 2. DEFINITIONS.

7 For purposes of this Act:

8 (1) CONTRACT.—The term ‘‘contract’’ means

9 any contract for items or services or any lease of
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1 Government property (including any subcontract of

2 such contract or any sublease of such lease)—

3 (A) the consideration with respect to which

4 is greater than $75,000 per year,

5 ‘‘(B) with respect to a contract for serv6 ices, requires at least 1000 hours of services,

7 and

8 (B) entered into between any entity or in9 strumentality of the legislative branch of the

10 Federal Government and any individual or en11 tity employing at least 15 full-time employees.

12 (2) EMPLOYEE.—The term ‘‘employee’’ has the

13 meaning given such term under section 3(6) of the

14 Employee Retirement Income Security Act of 1974

15 (29 U.S.C. 1002(6)).

16 (3) ENTITY OF THE LEGISLATIVE BRANCH.—

17 The term ‘‘entity of the legislative branch’’ includes

18 the following:

19 (A) The House of Representatives.

20 (B) The Senate.

21 (C) The Capitol Guide Service.

22 (D) The Capitol Police.

23 (E) The Congressional Budget Office.

24 (F) The Office of the Architect of the Cap25 itol.
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1 (G) The Office of the Attending Physician.

2 (H) The Office of Compliance.

3 (4) GROUP HEALTH PLAN.—The term ‘‘group

4 health plan’’ means any plan or arrangement which

5 provides, or pays the cost of, health benefits that are

6 actuarially equivalent to the benefits provided under

7 the standard option service benefit plan offered

8 under chapter 89 of title 5, United States Code.

9 (5) INSTRUMENTALITY OF THE LEGISLATIVE

10 BRANCH.—The term ‘‘instrumentality of the legisla11 tive branch’’ means the following:

12 (A) The General Accounting Office.

13 (B) The Government Printing Office.

14 (C) The Library of Congress.

15 SEC. 3. GENERAL REQUIREMENTS CONCERNING CON16 TRACTS COVERED UNDER THIS ACT.

17 (a) IN GENERAL.—Any contract made or entered

18 into by any entity or instrumentality of the legislative

19 branch of the Federal Government shall contain provisions

20 that require that—

21 (1) all persons employed by the contractor in

22 the performance of the contract or at the location of

23 the leasehold be offered health insurance coverage

24 under a group health plan; and
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1 (2) with respect to the premiums for such plan

2 with respect to each employee—

3 (A) the contractor pay a percentage equal

4 to the average Government contribution re5 quired under section 8906 of title 5, United

6 States Code, for health insurance coverage pro7 vided under chapter 89 of such title; and

8 (B) the employee pay the remainder of

9 such premiums.

10 (b) OPTION TO PURCHASE.—

11 (1) IN GENERAL.—Notwithstanding section

12 8914 of title 5, United States Code, a contractor to

13 which subsection (a) applies that does not offer

14 health insurance coverage under a group health plan

15 to its employees on the date on which the contract

16 is to take effect, may obtain any health benefits plan

17 offered under chapter 89 of title 5, United States

18 Code, for all persons employed by the contractor in

19 the performance of the contract or at the location of

20 the leasehold. Any contractor that exercises the op21 tion to purchase such coverage shall make any Gov22 ernment contributions required for such coverage

23 under section 8906 of title 5, United States Code,

24 with the employee paying the contribution required

25 for such coverage for Federal employees.
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1 (2) CALCULATION OF AMOUNT OF PREMIUMS.—

2 Subject to paragraph (3)(B), the Director of the Of3 fice of Personnel Management shall calculate the

4 amount of premiums for health benefits plans made

5 available to contractor employees under paragraph

6 (1) separately from Federal employees and annu7 itants enrolled in such plans.

8 (3) REVIEW BY OFFICE OF PERSONNEL MAN9 AGEMENT.—

10 (A) ANNUAL REVIEW.—The Director of

11 the Office of Personnel Management shall re12 view at the end of each calendar year whether

13 the nonapplication of paragraph (2) would re14 sult in higher adverse selection, risk segmenta15 tion in, or a substantial increase in premiums

16 for such health benefits plans. Such review shall

17 include a study by the Director of the health

18 care utilization and risks of contractor employ19 ees. The Director shall submit a report to the

20 President, the Speaker of the House of Rep21 resentatives, and the President pro tempore of

22 the Senate which shall contain the results of

23 such review.

24 (B) NONAPPLICATION OF PARAGRAPH

25 (2).—Beginning in the calendar year following a
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1 certification by the Director of the Office of

2 Personnel Management under subparagraph

3 (A) that the nonapplication of paragraph (2)

4 will not result in higher adverse selection, risk

5 segmentation in, or a substantial increase in

6 premiums for such health benefits plans, para7 graph (2) shall not apply.

8 (4) REQUIREMENT OF OPM.—The Director of

9 the Office of Personnel Management shall take such

10 actions as are appropriate to enable a contractor de11 scribed in paragraph (1) to obtain the health insur12 ance described in such paragraph.

13 (c) ADMINISTRATIVE FUNCTIONS.—

14 (1) IN GENERAL.—The office within the entity

15 or instrumentality of the legislative branch of the

16 Federal Government which administers the health

17 benefits plans for Federal employees of such entity

18 or instrumentality shall perform such tasks with re19 spect to plan coverage purchased under subsection

20 (b) by contractors with contracts with such entity or

21 instrumentality.

22 (2) WAIVER AUTHORITY.—Waiver of the re23 quirements of this Act may be made by such office

24 upon application.
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1 SEC. 4. EFFECTIVE DATE.

2 (a) IN GENERAL.—This Act shall apply with respect

3 to contracts executed, modified, or renewed on or after

4 January 1, 1998.

5 (b) TERMINATION.—

6 (1) IN GENERAL.—This Act shall not apply on

7 and after October 1, 2002.

8 (2) TRANSITION RULE.—In the case of any con9 tract under which, pursuant to this Act, health in10 surance coverage is provided for calendar year 2002,

11 the contractor and the employees shall, notwithstanding section 3(a)(2), pay 11 12 ⁄3 of the otherwise

13 required monthly premium for such coverage in

14 monthly installments during the period beginning on

15 January 1, 2002, and ending before October 1,

16 2002.

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