II 

Calendar No. 783

108TH CONGRESS 

2D SESSION S. 2657

[Report No. 108–393] 

To amend part III of title 5, United States Code, to provide for the establishment of programs under which supplemental dental and vision benefits 

are made available to Federal employees, retirees, and their dependents, 

to expand the contracting authority of the Office of Personnel Management, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 14, 2004

Ms. COLLINS (for herself, Mr. AKAKA, Mr. LIEBERMAN, Mr. VOINOVICH, and 

Mr. SANTORUM) introduced the following bill; which was read twice and 

referred to the Committee on Governmental Affairs 

OCTOBER 8, 2004

Reported by Ms. COLLINS, without amendment 

A BILL

To amend part III of title 5, United States Code, to provide 

for the establishment of programs under which supplemental dental and vision benefits are made available 

to Federal employees, retirees, and their dependents, to 

expand the contracting authority of the Office of Personnel Management, and for other purposes.
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•S 2657 RS 

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 ‘‘Federal Employee 

5 Dental and Vision Benefits Enhancement Act of 2004’’. 

6 SEC. 2. ENHANCED DENTAL BENEFITS FOR FEDERAL EM7 PLOYEES. 

8 (a) IN GENERAL.—Subpart G of part III of title 5, 

9 United States Code, is amended by inserting after chapter 

10 89 the following:

11 ‘‘CHAPTER 89A—ENHANCED DENTAL 

12 BENEFITS

‘‘Sec. 

‘‘8951. Definitions. 

‘‘8952. Availability of dental benefits. 

‘‘8953. Contracting authority. 

‘‘8954. Benefits. 

‘‘8955. Information to individuals eligible to enroll. 

‘‘8956. Election of coverage. 

‘‘8957. Coverage of restored survivor or disability annuitants. 

‘‘8958. Premiums. 

‘‘8959. Preemption. 

‘‘8960. Studies, reports, and audits. 

‘‘8961. Jurisdiction of courts. 

‘‘8962. Administrative functions.

13 ‘‘§ 8951. Definitions 

14 ‘‘In this chapter: 

15 ‘‘(1) The term ‘employee’ means an employee 

16 defined under section 8901(1). 

17 ‘‘(2) The terms ‘annuitant’, ‘member of family’, 

18 and ‘dependent’ have the meanings as such terms 
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1 are defined under paragraphs (3), (5), and (9), re2 spectively, of section 8901. 

3 ‘‘(3) The term ‘eligible individual’ refers to an 

4 individual described in paragraph (1) or (2), without 

5 regard to whether the individual is enrolled in a 

6 health benefits plan under chapter 89. 

7 ‘‘(4) The term ‘Office’ means the Office of Per8 sonnel Management. 

9 ‘‘(5) The term ‘qualified company’ means a 

10 company (or consortium of companies) that offers 

11 indemnity, preferred provider organization, health 

12 maintenance organization, or discount dental pro13 grams and if required is licensed to issue applicable 

14 coverage in any number of States, taking any sub15 sidiaries of such a company into account (and, in the 

16 case of a consortium, considering the member com17 panies and any subsidiaries thereof, collectively). 

18 ‘‘(6) The term ‘employee organization’ means 

19 an association or other organization of employees 

20 which is national in scope, or in which membership 

21 is open to all employees of a Government agency 

22 who are eligible to enroll in a health benefits plan 

23 under chapter 89. 

24 ‘‘(7) The term ‘State’ includes the District of 

25 Columbia. 
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1 ‘‘§ 8952. Availability of dental benefits 

2 ‘‘(a) The Office shall establish and administer a pro3 gram through which an eligible individual may obtain den4 tal coverage to supplement coverage available through 

5 chapter 89. 

6 ‘‘(b) The Office shall determine, in the exercise of its 

7 reasonable discretion, the financial requirements for quali8 fied companies to participate in the program. 

9 ‘‘(c) Nothing in this chapter shall be construed to 

10 prohibit the availability of dental benefits provided by 

11 health benefits plans under chapter 89. 

12 ‘‘§ 8953. Contracting authority 

13 ‘‘(a)(1) The Office shall contract with a reasonable 

14 number of qualified companies for a policy or policies of 

15 benefits described under section 8954 without regard to 

16 section 5 of title 41 or any other statute requiring com17 petitive bidding. An employee organization may contract 

18 with a qualified company for the purpose of participating 

19 with that qualified company in any contract between the 

20 Office and that qualified company. 

21 ‘‘(2) The Office shall ensure that each resulting con22 tract is awarded on the basis of contractor qualifications, 

23 price, and reasonable competition. 

24 ‘‘(b) Each contract under this section shall contain—
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1 ‘‘(1) the requirements under section 8902(d), 

2 (f), and (i) made applicable to contracts under this 

3 section by regulations prescribed by the Office; 

4 ‘‘(2) the terms of the enrollment period; and 

5 ‘‘(3) such other terms and conditions as may be 

6 mutually agreed to by the Office and the qualified 

7 company involved, consistent with the requirements 

8 of this chapter and regulations prescribed by the Of9 fice. 

10 ‘‘(c) Nothing in this chapter shall, in the case of an 

11 individual electing dental supplemental benefit coverage 

12 under this chapter after the expiration of such individual’s 

13 first opportunity to enroll, preclude the application of 

14 waiting periods more stringent than those that would have 

15 applied if that opportunity had not yet expired. 

16 ‘‘(d)(1) Each contract under this chapter shall re17 quire the qualified company to agree—

18 ‘‘(A) to provide payments or benefits to an eli19 gible individual if such individual is entitled thereto 

20 under the terms of the contract; and 

21 ‘‘(B) with respect to disputes regarding claims 

22 for payments or benefits under the terms of the con23 tract—
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1 ‘‘(i) to establish internal procedures de2 signed to expeditiously resolve such disputes; 

3 and 

4 ‘‘(ii) to establish, for disputes not resolved 

5 through procedures under clause (i), procedures 

6 for 1 or more alternative means of dispute reso7 lution involving independent third-party review 

8 under appropriate circumstances by entities

9 mutually acceptable to the Office and the quali10 fied company. 

11 ‘‘(2) A determination by a qualified company as to 

12 whether or not a particular individual is eligible to obtain 

13 coverage under this chapter shall be subject to review only 

14 to the extent and in the manner provided in the applicable 

15 contract. 

16 ‘‘(3) For purposes of applying the Contract Disputes 

17 Act of 1978 to disputes arising under this chapter between 

18 a qualified company and the Office—

19 ‘‘(A) the agency board having jurisdiction to de20 cide an appeal relative to such a dispute shall be 

21 such board of contract appeals as the Director of the 

22 Office of Personnel Management shall specify in 

23 writing (after appropriate arrangements, as de24 scribed in section 8(c) of such Act); and 
7

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1 ‘‘(B) the district courts of the United States 

2 shall have original jurisdiction, concurrent with the 

3 United States Court of Federal Claims, of any ac4 tion described in section 10(a)(1) of such Act rel5 ative to such a dispute. 

6 ‘‘(e) Nothing in this section shall be considered to 

7 grant authority for the Office or third-party reviewer to 

8 change the terms of any contract under this chapter. 

9 ‘‘(f) Contracts under this chapter shall be for a uni10 form term of 7 years and may not be renewed automati11 cally. 

12 ‘‘§ 8954. Benefits 

13 ‘‘(a) The Office may prescribe reasonable minimum 

14 standards for enhanced dental benefits plans offered 

15 under this chapter and for qualified companies offering 

16 the plans. 

17 ‘‘(b) Each contract may include more than 1 level of 

18 benefits that shall be made available to all eligible individ19 uals. 

20 ‘‘(c) The benefits to be provided under enhanced den21 tal benefits plans under this chapter may be of the fol22 lowing types: 

23 ‘‘(1) Diagnostic. 

24 ‘‘(2) Preventive. 

25 ‘‘(3) Emergency care. 
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1 ‘‘(4) Restorative. 

2 ‘‘(5) Oral and maxillofacial surgery. 

3 ‘‘(6) Endodontics. 

4 ‘‘(7) Periodontics. 

5 ‘‘(8) Prosthodontics. 

6 ‘‘(9) Orthodontics. 

7 ‘‘(d) A contract approved under this chapter shall re8 quire the qualified company to cover the geographic serv9 ice delivery specified by the Office. The Office shall require 

10 qualified companies to include dentally underserved areas 

11 in their service delivery areas. 

12 ‘‘(e) If an individual has dental coverage under a 

13 health benefits plan under chapter 89 and also has cov14 erage under a plan under this chapter, the health benefits 

15 plan under chapter 89 shall be the first payor of any ben16 efit payments. 

17 ‘‘§ 8955. Information to individuals eligible to enroll 

18 ‘‘(a) The qualified companies at the direction and 

19 with the approval of the Office, shall make available to 

20 each individual eligible to enroll in a dental benefits plan 

21 information on services and benefits (including maxi22 mums, limitations, and exclusions), that the Office con23 siders necessary to enable the individual to make an in24 formed decision about electing coverage. 
9

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1 ‘‘(b) The Office shall make available to each indi2 vidual eligible to enroll in a dental benefits plan, informa3 tion on services and benefits provided by qualified compa4 nies participating under chapter 89. 

5 ‘‘§ 8956. Election of coverage 

6 ‘‘(a) An eligible individual may enroll in a dental ben7 efits plan for self-only, self plus one, or for self and family. 

8 If an eligible individual has a spouse who is also eligible 

9 to enroll, either spouse, but not both, may enroll for self 

10 plus one or self and family. An individual may not be en11 rolled both as an employee, annuitant, or other individual 

12 eligible to enroll and as a member of the family. 

13 ‘‘(b) The Office shall prescribe regulations under 

14 which—

15 ‘‘(1) an eligible individual may enroll in a den16 tal benefits plan; and 

17 ‘‘(2) an enrolled individual may change the self18 only, self plus one, or self and family coverage of 

19 that individual. 

20 ‘‘(c)(1) Regulations under subsection (b) shall permit 

21 an eligible individual to cancel or transfer the enrollment 

22 of that individual to another dental benefits plan—

23 ‘‘(A) before the start of any contract term in 

24 which there is a change in rates charged or benefits 
10

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1 provided, in which a new plan is offered, or in which 

2 an existing plan is terminated; or 

3 ‘‘(B) during other times and under other cir4 cumstances specified by the Office. 

5 ‘‘(2) A transfer under paragraph (1) shall be subject 

6 to waiting periods provided under a new plan. 

7 ‘‘§ 8957. Coverage of restored survivor or disability 

8 annuitants 

9 ‘‘A surviving spouse, disability annuitant, or sur10 viving child whose annuity is terminated and is later re11 stored, may continue enrollment in a dental benefits plan 

12 subject to the terms and conditions prescribed in regula13 tions issued by the Office. 

14 ‘‘§ 8958. Premiums 

15 ‘‘(a) Each eligible individual obtaining supplemental 

16 dental coverage under this chapter shall be responsible for 

17 100 percent of the premiums for such coverage. 

18 ‘‘(b) The Office shall prescribe regulations specifying 

19 the terms and conditions under which individuals are re20 quired to pay the premiums for enrollment. 

21 ‘‘(c) The amount necessary to pay the premiums for 

22 enrollment may—

23 ‘‘(1) in the case of an employee, be withheld 

24 from the pay of such an employee; or
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1 ‘‘(2) in the case of an annuitant, be withheld 

2 from the annuity of such an annuitant. 

3 ‘‘(d) All amounts withheld under this section shall be 

4 paid directly to the qualified company. 

5 ‘‘(e) Each participating qualified company shall 

6 maintain accounting records that contain such informa7 tion and reports as the Office may require. 

8 ‘‘(f)(1) The Employee Health Benefits Fund is avail9 able, without fiscal year limitation, for reasonable ex10 penses incurred by the Office in administering this chapter

11 before the first day of the first contract period, including 

12 reasonable implementation costs. 

13 ‘‘(2)(A) There is established in the Employees Health 

14 Benefits Fund a Dental Benefits Administrative Account, 

15 which shall be available to the Office, without fiscal year 

16 limitation, to defray reasonable expenses incurred by the 

17 Office in administering this chapter after the start of the 

18 first contract year. 

19 ‘‘(B) A contract under this chapter shall include ap20 propriate provisions under which the qualified company in21 volved shall, during each year, make such periodic con22 tributions to the Dental Benefits Administrative Account 

23 as necessary to ensure that the reasonable anticipated ex24 penses of the Office in administering this chapter during 

25 such year are defrayed. 
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1 ‘‘§ 8959. Preemption 

2 ‘‘The terms of any contract that relate to the nature, 

3 provision, or extent of coverage or benefits (including pay4 ments with respect to benefits) shall supersede and pre5 empt any State or local law, or any regulation issued 

6 thereunder, which relates to dental benefits, insurance, 

7 plans, or contracts. 

8 ‘‘§ 8960. Studies, reports, and audits 

9 ‘‘(a) Each contract shall contain provisions requiring 

10 the qualified company to— 

11 ‘‘(1) furnish such reasonable reports as the Of12 fice determines to be necessary to enable it to carry 

13 out its functions under this chapter; and 

14 ‘‘(2) permit the Office and representatives of 

15 the General Accounting Office to examine such 

16 records of the qualified company as may be nec17 essary to carry out the purposes of this chapter. 

18 ‘‘(b) Each Federal agency shall keep such records, 

19 make such certifications, and furnish the Office, the quali20 fied company, or both, with such information and reports 

21 as the Office may require. 

22 ‘‘(c) The Office shall conduct periodic reviews of 

23 plans under this chapter, including a comparison of the 

24 dental benefits available under chapter 89, to ensure the 

25 competitiveness of plans under this chapter. The Office 
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1 shall cooperate with the General Accounting Office to pro2 vide periodic evaluations of the program. 

3 ‘‘§ 8961. Jurisdiction of courts 

4 ‘‘The district courts of the United States have origi5 nal jurisdiction, concurrent with the United States Court 

6 of Federal Claims, of a civil action or claim against the 

7 United States under this chapter after such administrative 

8 remedies as required under section 8953(d) have been ex9 hausted, but only to the extent judicial review is not pre10 cluded by any dispute resolution or other remedy under 

11 this chapter. 

12 ‘‘§ 8962. Administrative functions 

13 ‘‘(a) The Office shall prescribe regulations to carry 

14 out this chapter. The regulations may exclude an employee 

15 on the basis of the nature and type of employment or con16 ditions pertaining to it. 

17 ‘‘(b) The Office shall, as appropriate, provide for co18 ordinated enrollment, promotion, and education efforts as 

19 appropriate in consultation with each qualified company. 

20 The information under this subsection shall include infor21 mation relating to the dental benefits available under 

22 chapter 89, including the advantages and disadvantages 

23 of obtaining additional coverage under this chapter.’’. 
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1 SEC. 3. ENHANCED VISION BENEFITS FOR FEDERAL EM2 PLOYEES. 

3 Subpart G of part III of title 5, United States Code, 

4 is amended by inserting after chapter 89A (as added by 

5 section 2 of this Act) the following:

6 ‘‘CHAPTER 89B—ENHANCED VISION 

7 BENEFITS

‘‘Sec. 

‘‘8981. Definitions. 

‘‘8982. Availability of vision benefits. 

‘‘8983. Contracting authority. 

‘‘8984. Benefits. 

‘‘8985. Information to individuals eligible to enroll. 

‘‘8986. Election of coverage. 

‘‘8987. Coverage of restored survivor or disability annuitants. 

‘‘8988. Premiums. 

‘‘8989. Preemption. 

‘‘8990. Studies, reports, and audits. 

‘‘8991. Jurisdiction of courts. 

‘‘8992. Administrative functions.

8 ‘‘§ 8981. Definitions 

9 ‘‘In this chapter: 

10 ‘‘(1) The term ‘employee’ means an employee 

11 defined under section 8901(1). 

12 ‘‘(2) The terms ‘annuitant’, ‘member of family’, 

13 and ‘dependent’ have the meanings as such terms 

14 are defined under paragraphs (3), (5), and (9), re15 spectively, of section 8901. 

16 ‘‘(3) The term ‘eligible individual’ refers to an 

17 individual described in paragraph (1) or (2), without 

18 regard to whether the individual is enrolled in a 

19 health benefits plan under chapter 89. 
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1 ‘‘(4) The term ‘Office’ means the Office of Per2 sonnel Management. 

3 ‘‘(5) The term ‘qualified company’ means a 

4 company (or consortium of companies) that offers 

5 indemnity, preferred provider organization, health 

6 maintenance organization, or discount vision pro7 grams and if required is licensed to issue applicable 

8 coverage in any number of States, taking any sub9 sidiaries of such a company into account (and, in the 

10 case of a consortium, considering the member com11 panies and any subsidiaries thereof, collectively). 

12 ‘‘(6) The term ‘employee organization’ means 

13 an association or other organization of employees 

14 which is national in scope, or in which membership 

15 is open to all employees of a Government agency 

16 who are eligible to enroll in a health benefits plan 

17 under chapter 89. 

18 ‘‘(7) The term ‘State’ includes the District of 

19 Columbia. 

20 ‘‘§ 8982. Availability of vision benefits 

21 ‘‘(a) The Office shall establish and administer a pro22 gram through which an eligible individual may obtain vi23 sion coverage to supplement coverage available through 

24 chapter 89.
16

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1 ‘‘(b) The Office shall determine, in the exercise of its 

2 reasonable discretion, the financial requirements for quali3 fied companies to participate in the program. 

4 ‘‘(c) Nothing in this chapter shall be construed to 

5 prohibit the availability of vision benefits provided by 

6 health benefits plans under chapter 89. 

7 ‘‘§ 8983. Contracting authority 

8 ‘‘(a)(1) The Office shall contract with a reasonable 

9 number of qualified companies for a policy or policies of 

10 benefits described under section 8984 without regard to 

11 section 5 of title 41 or any other statute requiring com12 petitive bidding. An employee organization may contract

13 with a qualified company for the purpose of participating 

14 with that qualified company in any contract between the 

15 Office and that qualified company. 

16 ‘‘(2) The Office shall ensure that each resulting con17 tract is awarded on the basis of contractor qualifications, 

18 price, and reasonable competition. 

19 ‘‘(b) Each contract under this section shall contain—

20 ‘‘(1) the requirements under section 8902 (d), 

21 (f), and (i) made applicable to contracts under this 

22 section by regulations prescribed by the Office; 

23 ‘‘(2) the terms of the enrollment period; and 

24 ‘‘(3) such other terms and conditions as may be 

25 mutually agreed to by the Office and the qualified 
17

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1 company involved, consistent with the requirements 

2 of this chapter and regulations prescribed by the Of3 fice. 

4 ‘‘(c) Nothing in this chapter shall, in the case of an 

5 individual electing vision supplemental benefit coverage 

6 under this chapter after the expiration of such individual’s 

7 first opportunity to enroll, preclude the application of 

8 waiting periods more stringent than those that would have 

9 applied if that opportunity had not yet expired. 

10 ‘‘(d)(1) Each contract under this chapter shall re11 quire the qualified company to agree—

12 ‘‘(A) to provide payments or benefits to an eli13 gible individual if such individual is entitled thereto 

14 under the terms of the contract; and 

15 ‘‘(B) with respect to disputes regarding claims 

16 for payments or benefits under the terms of the con17 tract—

18 ‘‘(i) to establish internal procedures de19 signed to expeditiously resolve such disputes; 

20 and 

21 ‘‘(ii) to establish, for disputes not resolved 

22 through procedures under clause (i), procedures 

23 for 1 or more alternative means of dispute reso24 lution involving independent third-party review 

25 under appropriate circumstances by entities 
18

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1 mutually acceptable to the Office and the quali2 fied company. 

3 ‘‘(2) A determination by a qualified company as to 

4 whether or not a particular individual is eligible to obtain 

5 coverage under this chapter shall be subject to review only 

6 to the extent and in the manner provided in the applicable 

7 contract. 

8 ‘‘(3) For purposes of applying the Contract Disputes 

9 Act of 1978 to disputes arising under this chapter between 

10 a qualified company and the Office—

11 ‘‘(A) the agency board having jurisdiction to de12 cide an appeal relative to such a dispute shall be 

13 such board of contract appeals as the Director of the 

14 Office of Personnel Management shall specify in 

15 writing (after appropriate arrangements, as de16 scribed in section 8(c) of such Act); and 

17 ‘‘(B) the district courts of the United States 

18 shall have original jurisdiction, concurrent with the 

19 United States Court of Federal Claims, of any ac20 tion described in section 10(a)(1) of such Act rel21 ative to such a dispute. 

22 ‘‘(e) Nothing in this section shall be considered to 

23 grant authority for the Office or third-party reviewer to 

24 change the terms of any contract under this chapter. 
19

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1 ‘‘(f) Contracts under this chapter shall be for a uni2 form term of 7 years and may not be renewed automati3 cally. 

4 ‘‘§ 8984. Benefits 

5 ‘‘(a) The Office may prescribe reasonable minimum 

6 standards for enhanced vision benefits plans offered under 

7 this chapter and for qualified companies offering the 

8 plans. 

9 ‘‘(b) Each contract may include more than 1 level of 

10 benefits that shall be made available to all eligible individ11 uals. 

12 ‘‘(c) The benefits to be provided under enhanced vi13 sion benefits plans under this chapter may be of the fol14 lowing types: 

15 ‘‘(1) Diagnostic (to include refractive services). 

16 ‘‘(2) Preventive. 

17 ‘‘(3) Eyewear. 

18 ‘‘(d) A contract approved under this chapter shall re19 quire the qualified company to cover the geographic serv20 ice delivery specified by the Office. The Office shall require 

21 qualified companies to include visually underserved areas 

22 in their service delivery areas. 

23 ‘‘(e) If an individual has vision coverage under a 

24 health benefits plan under chapter 89 and also has cov25 erage under a plan under this chapter, the health benefits 
20

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1 plan under chapter 89 shall be the first payor of any ben2 efit payments. 

3 ‘‘§ 8985. Information to individuals eligible to enroll 

4 ‘‘(a) The qualified companies at the direction and 

5 with the approval of the Office, shall make available to 

6 each individual eligible to enroll in a vision benefits plan 

7 information on services and benefits (including maxi8 mums, limitations, and exclusions), that the Office con9 siders necessary to enable the individual to make an in10 formed decision about electing coverage. 

11 ‘‘(b) The Office shall make available to each indi12 vidual eligible to enroll in a vision benefits plan, informa13 tion on services and benefits provided by qualified compa14 nies participating under chapter 89. 

15 ‘‘§ 8986. Election of coverage 

16 ‘‘(a) An eligible individual may enroll in a vision bene17 fits plan for self-only, self plus one, or for self and family. 

18 If an eligible individual has a spouse who is also eligible 

19 to enroll, either spouse, but not both, may enroll for self 

20 plus one or self and family. An individual may not be en21 rolled both as an employee, annuitant, or other individual 

22 eligible to enroll and as a member of the family. 

23 ‘‘(b) The Office shall prescribe regulations under 

24 which—
21

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1 ‘‘(1) an eligible individual may enroll in a vision 

2 benefits plan; and 

3 ‘‘(2) an enrolled individual may change the self4 only, self plus one, or self and family coverage of 

5 that individual. 

6 ‘‘(c)(1) Regulations under subsection (b) shall permit 

7 an eligible individual to cancel or transfer the enrollment 

8 of that individual to another vision benefits plan—

9 ‘‘(A) before the start of any contract term in 

10 which there is a change in rates charged or benefits

11 provided, in which a new plan is offered, or in which 

12 an existing plan is terminated; or 

13 ‘‘(B) during other times and under other cir14 cumstances specified by the Office. 

15 ‘‘(2) A transfer under paragraph (1) shall be subject 

16 to waiting periods provided under a new plan. 

17 ‘‘§ 8987. Coverage of restored survivor or disability 

18 annuitants 

19 ‘‘A surviving spouse, disability annuitant, or sur20 viving child whose annuity is terminated and is later re21 stored, may continue enrollment in a vision benefits plan 

22 subject to the terms and conditions prescribed in regula23 tions issued by the Office. 
22

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1 ‘‘§ 8988. Premiums 

2 ‘‘(a) Each eligible individual obtaining supplemental 

3 vision coverage under this chapter shall be responsible for 

4 100 percent of the premiums for such coverage. 

5 ‘‘(b) The Office shall prescribe regulations specifying 

6 the terms and conditions under which individuals are re7 quired to pay the premiums for enrollment. 

8 ‘‘(c) The amount necessary to pay the premiums for 

9 enrollment may—

10 ‘‘(1) in the case of an employee, be withheld 

11 from the pay of such an employee; or 

12 ‘‘(2) in the case of an annuitant, be withheld 

13 from the annuity of such an annuitant. 

14 ‘‘(d) All amounts withheld under this section shall be 

15 paid directly to the qualified company. 

16 ‘‘(e) Each participating qualified company shall 

17 maintain accounting records that contain such informa18 tion and reports as the Office may require. 

19 ‘‘(f)(1) The Employee Health Benefits Fund is avail20 able, without fiscal year limitation, for reasonable ex21 penses incurred by the Office in administering this chapter 

22 before the first day of the first contract period, including 

23 reasonable implementation costs. 

24 ‘‘(2)(A) There is established in the Employees Health 

25 Benefits Fund a Vision Benefits Administrative Account, 

26 which shall be available to the Office, without fiscal year 
23

•S 2657 RS 

1 limitation, to defray reasonable expenses incurred by the 

2 Office in administering this chapter after the start of the 

3 first contract year. 

4 ‘‘(B) A contract under this chapter shall include ap5 propriate provisions under which the qualified company in6 volved shall, during each year, make such periodic con7 tributions to the Vision Benefits Administrative Account 

8 as necessary to ensure that the reasonable anticipated ex9 penses of the Office in administering this chapter during 

10 such year are defrayed. 

11 ‘‘§ 8989. Preemption 

12 ‘‘The terms of any contract that relate to the nature, 

13 provision, or extent of coverage or benefits (including pay14 ments with respect to benefits) shall supersede and pre15 empt any State or local law, or any regulation issued 

16 thereunder, which relates to vision benefits, insurance, 

17 plans, or contracts. 

18 ‘‘§ 8990. Studies, reports, and audits 

19 ‘‘(a) Each contract shall contain provisions requiring 

20 the qualified company to— 

21 ‘‘(1) furnish such reasonable reports as the Of22 fice determines to be necessary to enable it to carry 

23 out its functions under this chapter; and 

24 ‘‘(2) permit the Office and representatives of 

25 the General Accounting Office to examine such 
24

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1 records of the qualified company as may be nec2 essary to carry out the purposes of this chapter. 

3 ‘‘(b) Each Federal agency shall keep such records, 

4 make such certifications, and furnish the Office, the quali5 fied company, or both, with such information and reports 

6 as the Office may require. 

7 ‘‘(c) The Office shall conduct periodic reviews of 

8 plans under this chapter, including a comparison of the 

9 vision benefits available under chapter 89, to ensure the 

10 competitiveness of plans under this chapter. The Office 

11 shall cooperate with the General Accounting Office to pro12 vide periodic evaluations of the program. 

13 ‘‘§ 8991. Jurisdiction of courts 

14 ‘‘The district courts of the United States have origi15 nal jurisdiction, concurrent with the United States Court 

16 of Federal Claims, of a civil action or claim against the 

17 United States under this chapter after such administrative 

18 remedies as required under section 8983(d) have been ex19 hausted, but only to the extent judicial review is not pre20 cluded by any dispute resolution or other remedy under 

21 this chapter. 

22 ‘‘§ 8992. Administrative functions 

23 ‘‘(a) The Office shall prescribe regulations to carry 

24 out this chapter. The regulations may exclude an employee 
25

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1 on the basis of the nature and type of employment or con2 ditions pertaining to it. 

3 ‘‘(b) The Office shall, as appropriate, provide for co4 ordinated enrollment, promotion, and education efforts as 

5 appropriate in consultation with each qualified company. 

6 The information under this subsection shall include infor7 mation relating to the vision benefits available under chap8 ter 89, including the advantages and disadvantages of ob9 taining additional coverage under this chapter.’’. 

10 SEC. 4. TECHNICAL AND CONFORMING AMENDMENT. 

11 The table of chapters for part III of title 5, United 

12 States Code, is amended by inserting after the item relat13 ing to chapter 89 the following:

‘‘89A. Enhanced Dental Benefits .................................................. 8951

‘‘89B. Enhanced Vision Benefits .................................................. 8981’’.

14 SEC. 5. APPLICATION TO POSTAL SERVICE EMPLOYEES. 

15 Section 1005(f) of title 39, United States Code, is 

16 amended in the second sentence by striking ‘‘chapters 87 

17 and 89’’ and inserting ‘‘chapters 87, 89, 89A, and 89B’’. 

18 SEC. 6. SENSE OF CONGRESS. 

19 (a) FINDINGS.—Congress finds that—

20 (1) oral and vision health and general health 

21 and well-being are inseparable and access to dental 

22 and vision services is an essential factor in maintain23 ing good health; 
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1 (2) Federal employees and their families de2 serve and desire additional coverage options and 

3 place value on maintaining good oral and vision 

4 health; and 

5 (3) it is in the interest of the Federal Govern6 ment to remain competitive in attracting and retain7 ing highly skilled employees and taking reasonable 

8 steps to ensure the health and well-being of its em9 ployees. 

10 (b) SENSE OF CONGRESS.—It is the sense of Con11 gress that health insurance benefits available to Federal 

12 employees should be sufficient to promote the health and 

13 productivity of all Federal workers and to support the re14 cruitment and retention of a highly qualified workforce. 

15 To help achieve these goals, Congress should evaluate the 

16 supplemental plans established under the Federal Em17 ployee Dental and Vision Benefits Enhancement Act of 

18 2004 to determine the options for and feasibility of pro19 viding an employer contribution. 

20 SEC. 7. REQUIREMENT TO STUDY HEALTH BENEFITS COV21 ERAGE FOR DEPENDENT CHILDREN WHO 

22 ARE FULL-TIME STUDENTS. 

23 Not later than 6 months after the date of enactment 

24 of this Act, the Office of Personnel Management shall sub25 mit to Congress a report describing and evaluating options 
27

•S 2657 RS 

1 whereby benefits under chapter 89 of title 5, United 

2 States Code, could be made available to an unmarried de3 pendent child under 25 years of age who is enrolled as 

4 a full-time student at an institution of higher education 

5 as defined under section 101 of the Higher Education Act 

6 of 1965 (20 U.S.C. 1001). 

7 SEC. 8. EFFECTIVE DATE. 

8 The amendments made by this Act shall take effect 

9 on the date of enactment of this Act and shall apply to 

10 contracts that take effect with respect to the calendar year 

11 2006.
Calendar No. 783

108TH CONGRESS 

2D SESSION S. 2657

[Report No. 108–393] 

A BILL

To amend part III of title 5, United States Code, 

Management, and for other purposes. tracting authority of the Office of Personnel tirees, and their dependents, to expand the conefits are made available to Federal employees, reunder which supplemental dental and vision bento provide for the establishment of programs 

OCTOBER 8, 2004

Reported without amendment