```

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5295 Received in Senate (RDS)]

  2d Session
                                H. R. 5295

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 9, 2004

                                Received

_______________________________________________________________________

                                 AN ACT

 
 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Employees Dental and Vision 
Benefits Enhancement Act of 2004''.

SEC. 2. ENHANCED DENTAL BENEFITS.

    Subpart G of part III of title 5, United States Code, is amended by 
inserting after chapter 89 the following:

                ``CHAPTER 89A--ENHANCED DENTAL BENEFITS

``Sec.
``8921. Definitions.
``8922. Availability of dental benefits.
``8923. Contracting authority.
``8924. Benefits.
``8925. Information to individuals eligible to enroll.
``8926. Election of coverage.
``8927. Coverage of restored survivor or disability annuitants.
``8928. Premiums.
``8929. Preemption.
``8930. Studies, reports, and audits.
``8931. Jurisdiction of courts.
``8932. Administrative functions.
``Sec. 8921. Definitions
    ``In this chapter:
            ``(1) The term `employee' means an employee, as defined by 
        section 8901(1).
            ``(2) The terms `annuitant', `member of family', and 
        `dependent' have the meanings given such terms by section 8901.
            ``(3) The term `eligible individual' refers to an 
        individual described in paragraph (1) or (2), without regard to 
        whether the individual is enrolled in a health benefits plan 
        under chapter 89.
            ``(4) The term `Office' means the Office of Personnel 
        Management.
            ``(5) The term `qualified company' means a company (or 
        consortium of companies) that offers indemnity, preferred 
        provider organization, health maintenance organization, or 
        discount dental programs, and, if required, is licensed to 
        issue applicable coverage in any number of States, taking any 
        subsidiaries of such a company into account (and, in the case 
        of a consortium, considering the member companies and any 
        subsidiaries thereof, collectively).
            ``(6) The term `employee organization' means an association 
        or other organization of employees which is national in scope, 
        or in which membership is open to all employees of a Government 
        agency who are eligible to enroll in a health benefits plan 
        under chapter 89.
            ``(7) The term `State' includes the District of Columbia.
``Sec. 8922. Availability of dental benefits
    ``(a) The Office shall establish and administer a program through 
which an eligible individual may obtain dental coverage to supplement 
coverage available through chapter 89.
    ``(b) The Office shall determine, in the exercise of its reasonable 
discretion, the financial requirements for qualified companies to 
participate in the program.
    ``(c) Nothing in this chapter shall be construed to prohibit the 
availability of dental benefits provided by health benefits plans under 
chapter 89.
``Sec. 8923. Contracting authority
    ``(a)(1) The Office shall contract with a reasonable number of 
qualified companies for a policy or policies of benefits described 
under section 8924, without regard to section 5 of title 41 or any 
other statute requiring competitive bidding. An employee organization 
may contract with a qualified company for the purpose of participating 
with that qualified company in any contract between the Office and that 
qualified company.
    ``(2) The Office shall ensure that each resulting contract is 
awarded on the basis of contractor qualifications, price, and 
reasonable competition.
    ``(b) Each contract under this section shall contain--
            ``(1) the requirements under section 8902 (d), (f), and (i) 
        made applicable to contracts under this section by regulations 
        prescribed by the Office;
            ``(2) the terms of the enrollment period; and
            ``(3) such other terms and conditions as may be mutually 
        agreed to by the Office and the qualified company involved, 
        consistent with the requirements of this chapter and 
        regulations prescribed by the Office.
    ``(c) Nothing in this chapter shall, in the case of an individual 
electing dental supplemental benefit coverage under this chapter after 
the expiration of such individual's first opportunity to enroll, 
preclude the application of waiting periods more stringent than those 
that would have applied if that opportunity had not yet expired.
    ``(d)(1) Each contract under this chapter shall require the 
qualified company to agree--
            ``(A) to provide payments or benefits to an eligible 
        individual if such individual is entitled thereto under the 
        terms of the contract; and
            ``(B) with respect to disputes regarding claims for 
        payments or benefits under the terms of the contract--
                    ``(i) to establish internal procedures designed to 
                expeditiously resolve such disputes; and
                    ``(ii) to establish, for disputes not resolved 
                through procedures under clause (i), procedures for 1 
                or more alternative means of dispute resolution 
                involving independent third-party review under 
                appropriate circumstances by entities mutually 
                acceptable to the Office and the qualified company.
    ``(2) A determination by a qualified company as to whether or not a 
particular individual is eligible to obtain coverage under this chapter 
shall be subject to review only to the extent and in the manner 
provided in the applicable contract.
    ``(3) For purposes of applying the Contract Disputes Act of 1978 to 
disputes arising under this chapter between a qualified company and the 
Office--
            ``(A) the agency board having jurisdiction to decide an 
        appeal relative to such a dispute shall be such board of 
        contract appeals as the Director of the Office of Personnel 
        Management shall specify in writing (after appropriate 
        arrangements, as described in section 8(c) of such Act); and
            ``(B) the district courts of the United States shall have 
        original jurisdiction, concurrent with the United States Court 
        of Federal Claims, of any action described in section 10(a)(1) 
        of such Act relative to such a dispute.
    ``(e) Nothing in this section shall be considered to grant 
authority for the Office or third-party reviewer to change the terms of 
any contract under this chapter.
    ``(f) Contracts under this chapter shall be for a uniform term of 7 
years and may not be renewed automatically.
``Sec. 8924. Benefits
    ``(a) The Office may prescribe reasonable minimum standards for 
enhanced dental benefits plans offered under this chapter and for 
qualified companies offering the plans.
    ``(b) Each contract may include more than 1 level of benefits that 
shall be made available to all eligible individuals.
    ``(c) The benefits to be provided under enhanced dental benefits 
plans under this chapter may be of the following types:
            ``(1) Diagnostic.
            ``(2) Preventive.
            ``(3) Emergency care.
            ``(4) Restorative.
            ``(5) Oral and maxillofacial surgery.
            ``(6) Endodontics.
            ``(7) Periodontics.
            ``(8) Prosthodontics.
            ``(9) Orthodontics.
    ``(d) A contract approved under this chapter shall require the 
qualified company to cover the geographic service delivery specified by 
the Office. The Office shall require qualified companies to include 
underserved areas (with respect to dental services) in their service 
delivery areas.
    ``(e) If an individual has dental coverage under a health benefits 
plan under chapter 89 and also has coverage under a plan under this 
chapter, the health benefits plan under chapter 89 shall be the first 
payor of any benefit payments.
``Sec. 8925. Information to individuals eligible to enroll
    ``(a) The qualified companies, at the direction and with the 
approval of the Office, shall make available to each individual 
eligible to enroll in a dental benefits plan information on services 
and benefits (including maximums, limitations, and exclusions) that the 
Office considers necessary to enable the individual to make an informed 
decision about electing coverage.
    ``(b) The Office shall make available to each individual eligible 
to enroll in a dental benefits plan, information on services and 
benefits provided by qualified companies participating under chapter 
89.
``Sec. 8926. Election of coverage
    ``(a) An eligible individual may enroll in a dental benefits plan 
for self-only, self plus one, or for self and family. If an eligible 
individual has a spouse who is also eligible to enroll, either spouse, 
but not both, may enroll for self plus one or self and family. An 
individual may not be enrolled both as an employee, annuitant, or other 
individual eligible to enroll and as a member of the family.
    ``(b) The Office shall prescribe regulations under which--
            ``(1) an eligible individual may enroll in a dental 
        benefits plan; and
            ``(2) an enrolled individual may change the self-only, self 
        plus one, or self and family coverage of that individual.
    ``(c)(1) Regulations under subsection (b) shall permit an eligible 
individual to cancel or transfer the enrollment of that individual to 
another dental benefits plan--
            ``(A) before the start of any contract term in which there 
        is a change in rates charged or benefits provided, in which a 
        new plan is offered, or in which an existing plan is 
        terminated; or
            ``(B) during other times and under other circumstances 
        specified by the Office.
    ``(2) A transfer under paragraph (1) shall be subject to waiting 
periods provided under a new plan.
``Sec. 8927. Coverage of restored survivor or disability annuitants
    ``A surviving spouse, disability annuitant, or surviving child 
whose annuity is terminated and later restored may continue enrollment 
in a dental benefits plan, subject to the terms and conditions 
prescribed in regulations issued by the Office.
``Sec. 8928. Premiums
    ``(a) Each eligible individual obtaining supplemental dental 
coverage under this chapter shall be responsible for 100 percent of the 
premiums for such coverage.
    ``(b) The Office shall prescribe regulations specifying the terms 
and conditions under which individuals are required to pay the premiums 
for enrollment.
    ``(c) The amount necessary to pay the premiums for enrollment may--
            ``(1) in the case of an employee, be withheld from the pay 
        of such an employee; and
            ``(2) in the case of an annuitant, be withheld from the 
        annuity of such an annuitant.
    ``(d) All amounts withheld under this section shall be paid 
directly to the qualified company.
    ``(e) Each participating qualified company shall maintain 
accounting records that contain such information and reports as the 
Office may require.
    ``(f)(1) The Employees Health Benefits Fund is available, without 
fiscal year limitation, for reasonable expenses incurred by the Office 
in administering this chapter before the first day of the first 
contract period, including reasonable implementation costs.
    ``(2)(A) There is established in the Employees Health Benefits Fund 
a Dental Benefits Administrative Account, which shall be available to 
the Office, without fiscal year limitation, to defray reasonable 
expenses incurred by the Office in administering this chapter after the 
start of the first contract year.
    ``(B) A contract under this chapter shall include appropriate 
provisions under which the qualified company involved shall, during 
each year, make such periodic contributions to the Dental Benefits 
Administrative Account as necessary to ensure that the reasonable 
anticipated expenses of the Office in administering this chapter during 
such year are defrayed.
``Sec. 8929. Preemption
    ``The terms of any contract that relate to the nature, provision, 
or extent of coverage or benefits (including payments with respect to 
benefits) shall supersede and preempt any State or local law, or any 
regulation issued thereunder, which relates to dental benefits, 
insurance, plans, or contracts.
``Sec. 8930. Studies, reports, and audits
    ``(a) Each contract shall contain provisions requiring the 
qualified company--
            ``(1) to furnish such reasonable reports as the Office 
        determines to be necessary to enable it to carry out its 
        functions under this chapter; and
            ``(2) to permit the Office and representatives of the 
        Government Accountability Office to examine such records of the 
        qualified company as may be necessary to carry out the purposes 
        of this chapter.
    ``(b) Each Government agency shall keep such records, make such 
certifications, and furnish the Office, the qualified company, or both, 
with such information and reports as the Office may require.
    ``(c) The Office shall conduct periodic reviews of plans under this 
chapter, including a comparison of the dental benefits available under 
chapter 89, to ensure the competitiveness of plans under this chapter. 
The Office shall cooperate with the Government Accountability Office to 
provide periodic evaluations of the program.
``Sec. 8931. Jurisdiction of courts
    ``The district courts of the United States have original 
jurisdiction, concurrent with the United States Court of Federal 
Claims, of a civil action or claim against the United States under this 
chapter after such administrative remedies as required under section 
8923(d) have been exhausted, but only to the extent judicial review is 
not precluded by any dispute resolution or other remedy under this 
chapter.
``Sec. 8932. Administrative functions
    ``(a) The Office shall prescribe regulations to carry out this 
chapter. The regulations may exclude an employee on the basis of the 
nature and type of employment or conditions pertaining to it.
    ``(b) The Office shall, as appropriate, provide for coordinated 
enrollment, promotion, and education efforts as appropriate in 
consultation with each qualified company. The information under this 
subsection shall include information relating to the dental benefits 
available under chapter 89, including the advantages and disadvantages 
of obtaining additional coverage under this chapter.''.

SEC. 3. ENHANCED VISION BENEFITS.

    Subpart G of part III of title 5, United States Code, is amended by 
inserting after chapter 89A (as added by section 2) the following:

                ``CHAPTER 89B--ENHANCED VISION BENEFITS

``Sec.
``8941. Definitions.
``8942. Availability of vision benefits.
``8943. Contracting authority.
``8944. Benefits.
``8945. Information to individuals eligible to enroll.
``8946. Election of coverage.
``8947. Coverage of restored survivor or disability annuitants.
``8948. Premiums.
``8949. Preemption.
``8950. Studies, reports, and audits.
``8951. Jurisdiction of courts.
``8952. Administrative functions.
``Sec. 8941. Definitions
    ``In this chapter:
            ``(1) The term `employee' means an employee, as defined by 
        section 8901(1).
            ``(2) The terms `annuitant', `member of family', and 
        `dependent' have the meanings given such terms by section 8901.
            ``(3) The term `eligible individual' refers to an 
        individual described in paragraph (1) or (2), without regard to 
        whether the individual is enrolled in a health benefits plan 
        under chapter 89.
            ``(4) The term `Office' means the Office of Personnel 
        Management.
            ``(5) The term `qualified company' means a company (or 
        consortium of companies) that offers indemnity, preferred 
        provider organization, health maintenance organization, or 
        discount vision programs, and, if required, is licensed to 
        issue applicable coverage in any number of States, taking any 
        subsidiaries of such a company into account (and, in the case 
        of a consortium, considering the member companies and any 
        subsidiaries thereof, collectively).
            ``(6) The term `employee organization' means an association 
        or other organization of employees which is national in scope, 
        or in which membership is open to all employees of a Government 
        agency who are eligible to enroll in a health benefits plan 
        under chapter 89.
            ``(7) The term `State' includes the District of Columbia.
``Sec. 8942. Availability of vision benefits
    ``(a) The Office shall establish and administer a program through 
which an eligible individual may obtain vision coverage to supplement 
coverage available through chapter 89.
    ``(b) The Office shall determine, in the exercise of its reasonable 
discretion, the financial requirements for qualified companies to 
participate in the program.
    ``(c) Nothing in this chapter shall be construed to prohibit the 
availability of vision benefits provided by health benefits plans under 
chapter 89.
``Sec. 8943. Contracting authority
    ``(a)(1) The Office shall contract with a reasonable number of 
qualified companies for a policy or policies of benefits described 
under section 8944, without regard to section 5 of title 41 or any 
other statute requiring competitive bidding. An employee organization 
may contract with a qualified company for the purpose of participating 
with that qualified company in any contract between the Office and that 
qualified company.
    ``(2) The Office shall ensure that each resulting contract is 
awarded on the basis of contractor qualifications, price, and 
reasonable competition.
    ``(b) Each contract under this section shall contain--
            ``(1) the requirements under section 8902 (d), (f), and (i) 
        made applicable to contracts under this section by regulations 
        prescribed by the Office;
            ``(2) the terms of the enrollment period; and
            ``(3) such other terms and conditions as may be mutually 
        agreed to by the Office and the qualified company involved, 
        consistent with the requirements of this chapter and 
        regulations prescribed by the Office.
    ``(c) Nothing in this chapter shall, in the case of an individual 
electing vision supplemental benefit coverage under this chapter after 
the expiration of such individual's first opportunity to enroll, 
preclude the application of waiting periods more stringent than those 
that would have applied if that opportunity had not yet expired.
    ``(d)(1) Each contract under this chapter shall require the 
qualified company to agree--
            ``(A) to provide payments or benefits to an eligible 
        individual if such individual is entitled thereto under the 
        terms of the contract; and
            ``(B) with respect to disputes regarding claims for 
        payments or benefits under the terms of the contract--
                    ``(i) to establish internal procedures designed to 
                expeditiously resolve such disputes; and
                    ``(ii) to establish, for disputes not resolved 
                through procedures under clause (i), procedures for 1 
                or more alternative means of dispute resolution 
                involving independent third-party review under 
                appropriate circumstances by entities mutually 
                acceptable to the Office and the qualified company.
    ``(2) A determination by a qualified company as to whether or not a 
particular individual is eligible to obtain coverage under this chapter 
shall be subject to review only to the extent and in the manner 
provided in the applicable contract.
    ``(3) For purposes of applying the Contract Disputes Act of 1978 to 
disputes arising under this chapter between a qualified company and the 
Office--
            ``(A) the agency board having jurisdiction to decide an 
        appeal relative to such a dispute shall be such board of 
        contract appeals as the Director of the Office of Personnel 
        Management shall specify in writing (after appropriate 
        arrangements, as described in section 8(c) of such Act); and
            ``(B) the district courts of the United States shall have 
        original jurisdiction, concurrent with the United States Court 
        of Federal Claims, of any action described in section 10(a)(1) 
        of such Act relative to such a dispute.
    ``(e) Nothing in this section shall be considered to grant 
authority for the Office or third-party reviewer to change the terms of 
any contract under this chapter.
    ``(f) Contracts under this chapter shall be for a uniform term of 7 
years and may not be renewed automatically.
``Sec. 8944. Benefits
    ``(a) The Office may prescribe reasonable minimum standards for 
enhanced vision benefits plans offered under this chapter and for 
qualified companies offering the plans.
    ``(b) Each contract may include more than 1 level of benefits that 
shall be made available to all eligible individuals.
    ``(c) The benefits to be provided under enhanced vision benefits 
plans under this chapter may be of the following types:
            ``(1) Diagnostic (to include refractive services).
            ``(2) Preventive.
            ``(3) Eyewear.
    ``(d) A contract approved under this chapter shall require the 
qualified company to cover the geographic service delivery specified by 
the Office. The Office shall require qualified companies to include 
underserved areas (with respect to vision services) in their service 
delivery areas.
    ``(e) If an individual has vision coverage under a health benefits 
plan under chapter 89 and also has coverage under a plan under this 
chapter, the health benefits plan under chapter 89 shall be the first 
payor of any benefit payments.
``Sec. 8945. Information to individuals eligible to enroll
    ``(a) The qualified companies, at the direction and with the 
approval of the Office, shall make available to each individual 
eligible to enroll in a vision benefits plan information on services 
and benefits (including maximums, limitations, and exclusions) that the 
Office considers necessary to enable the individual to make an informed 
decision about electing coverage.
    ``(b) The Office shall make available to each individual eligible 
to enroll in a vision benefits plan, information on services and 
benefits provided by qualified companies participating under chapter 
89.
``Sec. 8946. Election of coverage
    ``(a) An eligible individual may enroll in a vision benefits plan 
for self-only, self plus one, or for self and family. If an eligible 
individual has a spouse who is also eligible to enroll, either spouse, 
but not both, may enroll for self plus one or self and family. An 
individual may not be enrolled both as an employee, annuitant, or other 
individual eligible to enroll and as a member of the family.
    ``(b) The Office shall prescribe regulations under which--
            ``(1) an eligible individual may enroll in a vision 
        benefits plan; and
            ``(2) an enrolled individual may change the self-only, self 
        plus one, or self and family coverage of that individual.
    ``(c)(1) Regulations under subsection (b) shall permit an eligible 
individual to cancel or transfer the enrollment of that individual to 
another vision benefits plan--
            ``(A) before the start of any contract term in which there 
        is a change in rates charged or benefits provided, in which a 
        new plan is offered, or in which an existing plan is 
        terminated; or
            ``(B) during other times and under other circumstances 
        specified by the Office.
    ``(2) A transfer under paragraph (1) shall be subject to waiting 
periods provided under a new plan.
``Sec. 8947. Coverage of restored survivor or disability annuitants
    ``A surviving spouse, disability annuitant, or surviving child 
whose annuity is terminated and later restored may continue enrollment 
in a vision benefits plan, subject to the terms and conditions 
prescribed in regulations issued by the Office.
``Sec. 8948. Premiums
    ``(a) Each eligible individual obtaining supplemental vision 
coverage under this chapter shall be responsible for 100 percent of the 
premiums for such coverage.
    ``(b) The Office shall prescribe regulations specifying the terms 
and conditions under which individuals are required to pay the premiums 
for enrollment.
    ``(c) The amount necessary to pay the premiums for enrollment may--
            ``(1) in the case of an employee, be withheld from the pay 
        of such an employee; and
            ``(2) in the case of an annuitant, be withheld from the 
        annuity of such an annuitant.
    ``(d) All amounts withheld under this section shall be paid 
directly to the qualified company.
    ``(e) Each participating qualified company shall maintain 
accounting records that contain such information and reports as the 
Office may require.
    ``(f)(1) The Employees Health Benefits Fund is available, without 
fiscal year limitation, for reasonable expenses incurred by the Office 
in administering this chapter before the first day of the first 
contract period, including reasonable implementation costs.
    ``(2)(A) There is established in the Employees Health Benefits Fund 
a Vision Benefits Administrative Account, which shall be available to 
the Office, without fiscal year limitation, to defray reasonable 
expenses incurred by the Office in administering this chapter after the 
start of the first contract year.
    ``(B) A contract under this chapter shall include appropriate 
provisions under which the qualified company involved shall, during 
each year, make such periodic contributions to the Vision Benefits 
Administrative Account as necessary to ensure that the reasonable 
anticipated expenses of the Office in administering this chapter during 
such year are defrayed.
``Sec. 8949. Preemption
    ``The terms of any contract that relate to the nature, provision, 
or extent of coverage or benefits (including payments with respect to 
benefits) shall supersede and preempt any State or local law, or any 
regulation issued thereunder, which relates to vision benefits, 
insurance, plans, or contracts.
``Sec. 8950. Studies, reports, and audits
    ``(a) Each contract shall contain provisions requiring the 
qualified company--
            ``(1) to furnish such reasonable reports as the Office 
        determines to be necessary to enable it to carry out its 
        functions under this chapter; and
            ``(2) to permit the Office and representatives of the 
        Government Accountability Office to examine such records of the 
        qualified company as may be necessary to carry out the purposes 
        of this chapter.
    ``(b) Each Government agency shall keep such records, make such 
certifications, and furnish the Office, the qualified company, or both, 
with such information and reports as the Office may require.
    ``(c) The Office shall conduct periodic reviews of plans under this 
chapter, including a comparison of the vision benefits available under 
chapter 89, to ensure the competitiveness of plans under this chapter. 
The Office shall cooperate with the Government Accountability Office to 
provide periodic evaluations of the program.
``Sec. 8951. Jurisdiction of courts
    ``The district courts of the United States have original 
jurisdiction, concurrent with the United States Court of Federal 
Claims, of a civil action or claim against the United States under this 
chapter after such administrative remedies as required under section 
8943(d) have been exhausted, but only to the extent judicial review is 
not precluded by any dispute resolution or other remedy under this 
chapter.
``Sec. 8952. Administrative functions
    ``(a) The Office shall prescribe regulations to carry out this 
chapter. The regulations may exclude an employee on the basis of the 
nature and type of employment or conditions pertaining to it.
    ``(b) The Office shall, as appropriate, provide for coordinated 
enrollment, promotion, and education efforts as appropriate in 
consultation with each qualified company. The information under this 
subsection shall include information relating to the vision benefits 
available under chapter 89, including the advantages and disadvantages 
of obtaining additional coverage under this chapter.''.

SEC. 4. TECHNICAL AND CONFORMING AMENDMENT.

    The table of chapters for part III of title 5, United States Code, 
is amended by inserting after the item relating to chapter 89 the 
following:

``89A. Enhanced Dental Benefits.............................       8921
``89B. Enhanced Vision Benefits.............................    8941''.

SEC. 5. APPLICATION TO POSTAL SERVICE EMPLOYEES.

    Section 1005(f) of title 39, United States Code, is amended in the 
second sentence by striking ``chapters 87 and 89'' and inserting 
``chapters 87, 89, 89A, and 89B''.

SEC. 6. SENSE OF CONGRESS.

    (a) Findings.--Congress finds that--
            (1) oral and vision health and general health and well-
        being are inseparable, and access to dental and vision services 
        is an essential factor in maintaining good health;
            (2) Federal employees and their families deserve and desire 
        additional coverage options and place value on maintaining good 
        oral and vision health; and
            (3) it is in the interest of the Federal Government to 
        remain competitive in attracting and retaining highly skilled 
        employees and taking reasonable steps to ensure the health and 
        well-being of its employees.
    (b) Sense of Congress.--It is the sense of Congress that health 
insurance benefits available to Federal employees should be sufficient 
to promote the health and productivity of all Federal workers and to 
support the recruitment and retention of a highly qualified workforce. 
To help achieve these goals, Congress should evaluate the supplemental 
plans established under the this Act to determine the options for and 
feasibility of providing an employer contribution.

SEC. 7. REQUIREMENT TO STUDY HEALTH BENEFITS COVERAGE FOR DEPENDENT 
              CHILDREN WHO ARE FULL-TIME STUDENTS.

    Not later than 6 months after the date of enactment of this Act, 
the Office of Personnel Management shall submit to Congress a report 
describing and evaluating options whereby benefits under chapter 89 of 
title 5, United States Code, could be made available to an unmarried 
dependent child under 25 years of age who is enrolled as a full-time 
student at an institution of higher education, as defined under section 
101 of the Higher Education Act of 1965 (20 U.S.C. 1001).

SEC. 8. HEARING BENEFITS REPORTING REQUIREMENT.

    (a) In General.--Not later than 6 months after the date of 
enactment of this Act, the Office of Personnel Management shall submit 
to Congress a report describing and evaluating options whereby 
additional hearing benefits could be made available to--
            (1) Federal employees and annuitants;
            (2) qualified relatives of Federal employees and 
        annuitants; and
            (3) other appropriate classes of individuals.
    (b) Required Content.--The report shall include--
            (1) a description of the hearing benefits currently 
        available under the Federal employees health benefits program;
            (2) a description of any hearing plans currently offered by 
        carriers participating in the Federal employees health benefits 
        program;
            (3) a description of specific hearing benefits that could 
        be offered in addition to those described in paragraphs (1) and 
        (2), including any maximums, limitations, exclusions, and 
        definitions that might be relevant;
            (4) a description of the specific classes of individuals 
        (as referred to generally in paragraphs (1) through (3) of 
        subsection (a)) to whom those additional benefits should be 
        made available, including any definitions and other terms or 
        conditions that might be relevant;
            (5) a description and assessment of the various contracting 
        arrangements by which the Government could make those 
        additional benefits available, including whether such benefits 
        should be contracted for on a regional or national basis;
            (6) the estimated cost of those additional benefits, 
        including an analysis relating to whether any regular 
        Government contributions or allocation for start-up costs might 
        be necessary or appropriate;
            (7) a description of how those additional benefits could be 
        made available through--
                    (A) the Federal employees health benefits program;
                    (B) one or more plans outside the Federal employees 
                health benefits program, including supplemental plans 
                referred to in paragraph (2);
                    (C) the program described in subparagraph (A) in 
                combination with one or more of the plans described in 
                subparagraph (B); and
                    (D) any other hearing coverage delivery method;
            (8) an analysis of the advantages and disadvantages 
        associated with the alternatives described under paragraph (7), 
        including--
                    (A) the relative cost effectiveness and efficiency 
                of each;
                    (B) the likely impact of each alternative on the 
                overall attractiveness of the Federal employees health 
                benefits program to individuals eligible to enroll, 
                particularly Federal employees and annuitants; and
                    (C) the extent to which each alternative might 
                affect the relative competitiveness of the various 
                carriers and plans currently participating in the 
                Federal employees health benefits program (including as 
                a provider of supplemental benefits);
            (9) a recommendation from the Office as to its preferred 
        method or methods for providing those additional benefits; and
            (10) any proposed legislation or other measures the Office 
        considers necessary in order to implement any of the foregoing.

SEC. 9. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the date of 
enactment of this Act and shall apply to contracts that take effect in 
any year beginning after December 31, 2005.

            Passed the House of Representatives October 8, 2004.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.
```