Calendar No. 261

105TH CONGRESS

1ST SESSION H. R. 497

AN ACT

To repeal the Federal charter of Group Hospitalizapurposes. tion and Medical Services, Inc., and for other

NOVEMBER 6, 1997

Reported with an amendment and an amendment to the

title
II

Calendar No. 261

105TH CONGRESS

1ST SESSION H. R. 497

IN THE SENATE OF THE UNITED STATES

FEBRUARY 27, 1997

Received

MARCH 12, 1997

Read twice and referred to the Committee on Governmental Affairs

NOVEMBER 6, 1997

Reported by Mr. THOMPSON, with an amendment and an amendment to the

title

[Strike out all after the enacting clause and insert the part printed in italic]

AN ACT

To repeal the Federal charter of Group Hospitalization and

Medical Services, Inc., and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. REPEAL OF FEDERAL CHARTER OF GROUP

2 HOSPITALIZATION AND MEDICAL SERVICES,

3 INC.

4 (a) REPEAL OF FEDERAL CHARTER.—

5 (1) IN GENERAL.—The Act entitled ‘‘An Act

6 providing for the incorporation of certain persons as

7 Group Hospitalization, Inc.’’, approved August 11,

8 1939 (53 Stat. 1412), is repealed.

9 (2) AUTHORIZATION TO FILE ARTICLES OF IN10 CORPORATION.—Group Hospitalization and Medical

11 Services, Inc. is hereby authorized to file articles of

12 incorporation under the District of Columbia Non13 profit Corporation Act.

14 (3) EFFECTIVE DATE.—The amendment made

15 by paragraph (1) shall take effect upon the filing

16 and effectiveness of articles of incorporation of

17 Group Hospitalization and Medical Services, Inc.

18 under the District of Columbia Nonprofit Corpora19 tion Act.

20 (b) EFFECTS OF BECOMING A DISTRICT OF COLUM21 BIA NONPROFIT CORPORATION.—Effective upon the filing

22 and effectiveness of articles of incorporation of Group

23 Hospitalization and Medical Services, Inc. as authorized

24 in paragraph (2) of subsection (a), Group Hospitalization

25 and Medical Services, Inc.—
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1 (1) shall be a District of Columbia nonprofit

2 corporation subject to the articles of incorporation;

3 (2) shall be deemed organized and existing

4 under the District of Columbia Nonprofit Corpora5 tion Act, notwithstanding any of the provisions of

6 section 4 of the District of Columbia Nonprofit Cor7 poration Act regarding organizations subject to any

8 of the provisions of the insurance laws of the Dis9 trict of Columbia;

10 (3) shall be legally domiciled in the District of

11 Columbia;

12 (4) shall be regulated by the Superintendent of

13 Insurance of the District of Columbia in accordance

14 with the laws and regulations of the District of Co15 lumbia;

16 (5) shall continue to exist; and

17 (6) shall continue to be authorized to transact

18 business—

19 (A) under existing certificates of authority

20 and licenses issued to Group Hospitalization

21 and Medical Services, Inc. before such filing

22 and effectiveness,

23 (B) under the name ‘‘Group Hospitaliza24 tion and Medical Services, Inc.’’, and

25 (C) under applicable laws and regulations.
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1 SEC. 2. WAIVER OF CONGRESSIONAL REVIEW PERIOD.

2 Notwithstanding section 602(c)(1) of the District of

3 Columbia Self-Government and Governmental Reorganiza4 tion Act (sec. 1–233(c)(1), D.C. Code), the Hospital and

5 Medical Services Corporation Regulatory Act of 1996

6 (D.C. Act 11–505) shall take effect on the date of the

7 enactment of such Act or the date of the enactment of

8 this Act, whichever is later.

9 SECTION 1. CHARTER FOR GROUP HOSPITALIZATION AND

10 MEDICAL SERVICES, INC.

11 The Act entitled ‘‘An Act providing for the incorpora12 tion of certain persons as Group Hospitalization and Medi13 cal Services, Inc.’’, approved August 11, 1939, is amend14 ed—

15 (1) by inserting after section 9 the following new

16 section:

17 ‘‘SEC. 10. The corporation may have 1 class of mem18 bers, consisting of at least 1 member and not more than

19 30 members, as determined appropriate by the board of

20 trustees. The bylaws for the corporation shall prescribe the

21 designation of such class as well as the rights, privileges

22 and qualifications of such class, which may include, but

23 shall not be limited to—

24 ‘‘(1) the manner of election, appointment or re25 moval of a member of the corporation;
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1 ‘‘(2) matters on which a member of the corpora2 tion has the right to vote; and

3 ‘‘(3) meeting, notice, quorum, voting and proxy

4 requirements and procedures.

5 If a member of the corporation is a corporation, such mem6 ber shall be a nonprofit corporation.’’;

7 (2) by redesignating section 10 as section 11;

8 and

9 (3) by adding at the end of section 11 (as so re10 designated) the following: ‘‘The corporation may not

11 be dissolved without approval by Congress.’’.

12 SEC. 2. CONSISTENT COVERAGE FOR INDIVIDUALS EN13 ROLLED IN A HEALTH PLAN ADMINISTERED

14 BY THE FEDERAL BANKING AGENCIES.

15 (a) ENROLLMENT IN CHAPTER 89 PLAN.—For pur16 poses of chapter 89 of title 5, United States Code, any pe17 riod of enrollment shall be deemed to be a period of enroll18 ment in a health benefits plan under chapter 89 of such

19 title, if such enrollment is—

20 (1) in a health benefits plan administered by the

21 Federal Deposit Insurance Corporation before the ter22 mination of such plan on January 3, 1998; or

23 (2) subject to subsection (c), in a health benefits

24 plan (not under chapter 89 of such title) with respect

25 to which the eligibility of any employees or retired
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1 employees of the Board of Governors of the Federal

2 Reserve System terminates on January 3, 1998.

3 (b) ENROLLMENT; CONTINUED COVERAGE.—

4 (1) ENROLLMENT.—Subject to subsection (c),

5 any individual who, on January 3, 1998, is enrolled

6 in a health benefits plan described in paragraph (1)

7 or (2) of subsection (a) may enroll in an approved

8 health benefits plan under chapter 89 of title 5, Unit9 ed States Code, either as an individual or for self and

10 family, if, after taking into account the provisions of

11 subsection (a), such individual—

12 (A) meets the requirements of that chapter

13 89 for eligibility to become so enrolled as an em14 ployee, annuitant, or former spouse (within the

15 meaning of that chapter); or

16 (B) would meet the requirements of that

17 chapter 89 if, to the extent such requirements in18 volve either retirement system under such title 5,

19 such individual satisfies similar requirements or

20 provisions of the Retirement Plan for Employees

21 of the Federal Reserve System.

22 (2) DETERMINATIONS.—Any determination

23 under paragraph (1)(B) shall be made under guide24 lines established by the Office of Personnel Manage-
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1 ment in consultation with the Board of Governors of

2 the Federal Reserve System.

3 (3) CONTINUED COVERAGE.—Subject to sub4 section (c), any individual who, on January 3, 1998,

5 is entitled to continued coverage under a health bene6 fits plan described in paragraph (1) or (2) of sub7 section (a) shall be deemed to be entitled to continued

8 coverage under section 8905a of title 5, United States

9 Code, but only for the same remaining period as

10 would have been allowable under the health benefits

11 plan in which such individual was enrolled on Janu12 ary 3, 1998, if—

13 (A) the individual had remained enrolled in

14 that plan; and

15 (B) that plan did not terminate, or the eli16 gibility of such individual with respect to that

17 plan did not terminate, as described in sub18 section (a).

19 (4) COMPARABLE TREATMENT.—Subject to sub20 section (c), any individual (other than an individual

21 under paragraph (3)) who, on January 3, 1998, is

22 covered under a health benefits plan described in

23 paragraph (1) or (2) of subsection (a) as an unmar24 ried dependent child, but who does not then qualify

25 for coverage under chapter 89 of title 5, United States
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1 Code, as a family member (within the meaning of

2 that chapter) shall be deemed to be entitled to contin3 ued coverage under section 8905a of that title, to the

4 same extent and in the same manner as if such indi5 vidual had, on January 3, 1998, ceased to meet the

6 requirements for being considered an unmarried de7 pendent child of an enrollee under such chapter.

8 (5) EFFECTIVE DATE.—Coverage under chapter

9 89 of title 5, United States Code, pursuant to an en10 rollment under this section shall become effective on

11 January 4, 1998.

12 (c) ELIGIBILITY FOR FEHBP LIMITED TO INDIVID13 UALS LOSING ELIGIBILITY UNDER FORMER HEALTH

14 PLAN.—Nothing in subsection (a)(2) or any paragraph of

15 subsection (b) (to the extent that paragraph (2) relates to

16 the plan described in subsection (a)(2)) shall be considered

17 to apply with respect to any individual whose eligibility

18 for coverage under the plan does not involuntarily termi19 nate on January 3, 1998.

20 (d) TRANSFERS TO THE EMPLOYEES HEALTH BENE21 FITS FUND.—The Federal Deposit Insurance Corporation

22 and the Board of Governors of the Federal Reserve System

23 shall transfer to the Employees Health Benefits Fund,

24 under section 8909 of title 5, United States Code, amounts

25 determined by the Director of the Office of Personnel Man-
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1 agement, after consultation with the Federal Deposit Insur2 ance Corporation and the Board of Governors of the Federal

3 Reserve System, to be necessary to reimburse the Fund for

4 the cost of providing benefits under this section not other5 wise paid for by the individuals covered by this section.

6 The amounts so transferred shall be held in the Fund and

7 used by the Office of Personnel Management in addition

8 to amounts available under section 8906(g)(1) of title 5,

9 United States Code.

10 (e) ADMINISTRATION AND REGULATIONS.—The Office

11 of Personnel Management—

12 (1) shall administer the provisions of this section

13 to provide for—

14 (A) a period of notice and open enrollment

15 for individuals affected by this section; and

16 (B) no lapse of health coverage for individ17 uals who enroll in a health benefits plan under

18 chapter 89 of title 5, United States Code, in ac19 cordance with this section; and

20 (2) may prescribe regulations to implement this

21 section.
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Amend the title so as to read: ‘‘An Act to amend the

Federal charter for Group Hospitalization and Medical

Services, Inc., and for other purposes.’’.

Passed the House of Representatives February 26,

1997.

Attest: ROBIN H. CARLE,

Clerk.