I 

111TH CONGRESS 

1ST SESSION H. R. 3438 

To amend title 5, United States Code, to establish a national health program 

administered by the Office of Personnel Management to offer Federal 

employee health benefits plans to individuals who are not Federal employees, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2009 

Mr. ISSA introduced the following bill; which was referred to the Committee 

on Oversight and Government Reform, and in addition to the Committee 

on Ways and Means, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend title 5, United States Code, to establish a national 

health program administered by the Office of Personnel 

Management to offer Federal employee health benefits 

plans to individuals who are not Federal employees, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Access to Insurance 

5 for all Americans Act’’. 


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1 SEC. 2. EXTENSION OF FEDERAL EMPLOYEE HEALTH IN2 SURANCE. 

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

4 United States Code, is amended— 

5 (1) by redesignating chapters 89A and 89B as 

6 chapters 89B and 89C, respectively; and 

7 (2) by inserting after chapter 89 the following: 

8 ‘‘CHAPTER 89A—HEALTH INSURANCE FOR 

9 NON-FEDERAL EMPLOYEES 

10 ‘‘SEC. 8921. DEFINITIONS. 

11 ‘‘In this chapter— 

12 ‘‘(1) the terms defined under section 8901 shall 

13 have the meanings given such terms under that sec14 tion; and 

15 ‘‘(2) the term ‘Office’ means the Office of Per16 sonnel Management. 

17 ‘‘SEC. 8922. HEALTH INSURANCE FOR NON-FEDERAL EM18 PLOYEES. 

19 ‘‘(a) The Office shall administer a health insurance 

20 program for non-Federal employees in accordance with 

21 this chapter. 

22 ‘‘(b) Except as provided under this chapter, the Of23 fice shall prescribe regulations to apply the provisions of 

24 chapter 89 to the greatest extent practicable to eligible 

25 individuals covered under this chapter. 


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1 ‘‘SEC. 8923. CONTRACT REQUIREMENT. 

2 ‘‘(a) For each calendar year, the Office shall enter 

3 into a contract with 1 or more carriers to make available 

4 1 or more health benefits plans (subject to the provisions 

5 of this chapter) to eligible individuals under this chapter. 

6 ‘‘(b) In carrying out this section, the Office may re7 quire 1 or more carriers to enter into a contract described 

8 in subsection (a), as a condition of entering into a contract 

9 under section 8902. 

10 ‘‘SEC. 8924. ELIGIBILITY OF NON-FEDERAL EMPLOYEES. 

11 ‘‘(a) Except as provided under subsection (b), any in12 dividual may enroll in a health benefits plan under this 

13 section. 

14 ‘‘(b) An individual may not enroll in a health benefits 

15 plan under this chapter if the individual— 

16 ‘‘(1) is enrolled or eligible to enroll for coverage 

17 under a public health insurance program, includ18 ing— 

19 ‘‘(A) title XVIII of the Social Security Act; 

20 ‘‘(B) a State plan under title XIX of the 

21 Social Security Act; 

22 ‘‘(C) a State plan under title XX of the 

23 Social Security Act; or 

24 ‘‘(D) any other program determined by the 

25 Office; 


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1 ‘‘(2) is enrolled or eligible to enroll in a plan 

2 under chapter 89; or 

3 ‘‘(3) is a member of the uniformed services as 

4 defined under section 101(a)(5) of title 10. 

5 ‘‘SEC. 8925. ALTERNATIVE CONDITIONS TO FEDERAL EM6 PLOYEE HEALTH BENEFITS PLANS. 

7 ‘‘(a) Rates charged and premiums paid for a health 

8 benefits plan under this chapter may differ between or 

9 among geographic regions. 

10 ‘‘(b) No Government contribution shall be made for 

11 any individual under this chapter. 

12 ‘‘(c) In the administration of this chapter, the Office 

13 shall ensure that individuals covered under this chapter 

14 shall be in a risk pool that is separate from the risk pool 

15 maintained for individuals covered under chapter 89.’’. 

16 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

17 (1) CONTRACT REQUIREMENT UNDER CHAPTER

18 89.—Section 8902 of title 5, United States Code, is 

19 amended by adding after subsection (o) the fol20 lowing: 

21 ‘‘(p) Any contract under this chapter may include, 

22 at the discretion of the Office, a provision that the carrier 

23 shall enter into a contract to provide 1 or more health 

24 benefits plans as described under chapter 89A.’’. 


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1 (2) TABLE OF CHAPTERS.—The table of chap2 ters for part III of title 5, United States Code, is 

3 amended— 

4 (A) by redesignating the items relating to 

5 chapters 89A and 89B as chapters 89B and 

6 89C, respectively; and 

7 (B) by inserting after the item relating to 

8 chapter 89 the following: 

‘‘89A. Health Insurance for Non-Federal Employees ........... 8921’’. 

9 SEC. 3. DEDUCTION FOR PREMIUMS PAID BY FEHBP NON10 EMPLOYEE ENROLLEES. 

11 (a) IN GENERAL.—Part VII of subchapter B of chap12 ter 1 of the Internal Revenue Code of 1986 (relating to 

13 additional itemized deductions) is amended by redesig14 nating section 224 as section 225 and by inserting after 

15 section 223 the following new section: 

16 ‘‘SEC. 224. PREMIUMS PAID FOR FEHBP COVERAGE. 

17 ‘‘(a) IN GENERAL.—In the case of an individual, 

18 there shall be allowed as a deduction an amount equal to 

19 the amount paid as premiums during the taxable year for 

20 coverage for the taxpayer, his spouse, and dependents 

21 under health insurance provided pursuant to chapter 89A 

22 of title 5, United States Code. 

23 ‘‘(b) SPECIAL RULES.— 

24 ‘‘(1) COORDINATION WITH MEDICAL DEDUC25 TION, ETC.—Any amount paid by a taxpayer for inVerDate Nov 24 2008 21:28 Aug 03, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3438.IH H3438

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1 surance to which subsection (a) applies shall not be 

2 taken into account in computing the amount allow3 able to the taxpayer as a deduction under section 

4 162(l) or 213(a). Any amount taken into account in 

5 determining the credit allowed under section 35 shall 

6 not be taken into account for purposes of this sec7 tion. 

8 ‘‘(2) DEDUCTION NOT ALLOWED FOR SELF-EM9 PLOYMENT TAX PURPOSES.—The deduction allow10 able by reason of this section shall not be taken into 

11 account in determining an individual’s net earnings 

12 from self-employment (within the meaning of section 

13 1402(a)) for purposes of chapter 2.’’. 

14 (b) DEDUCTION ALLOWED IN COMPUTING AD15 JUSTED GROSS INCOME.—Subsection (a) of section 62 of 

16 such Code is amended by inserting before the last sentence 

17 the following new paragraph: 

18 ‘‘(22) PREMIUMS PAID FOR FEHBP COV19 ERAGE.—The deduction allowed by section 224.’’. 

20 (c) CLERICAL AMENDMENT.—The table of sections 

21 for part VII of subchapter B of chapter 1 of such Code 

22 is amended by redesignating the item relating to section 

23 224 as an item relating to section 225 and inserting before 

24 such item the following new item: 

‘‘Sec. 224. Premiums paid for FEHBP coverage.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years ending after the 

3 date of the enactment of this Act. 

4 SEC. 4. PLAN FOR EXTENSION OF FEDERAL EMPLOYEE 

5 HEALTH BENEFITS PROGRAM. 

6 Not later than 6 months after the date of enactment 

7 of this Act and after consultation with appropriate ex8 perts, representatives of affected individuals, and Federal 

9 officers, the Director of the Office of Personnel Manage10 ment shall submit a comprehensive plan to Congress 

11 that— 

12 (1) provides for the orderly implementation of 

13 the amendments made by this Act; and 

14 (2) includes a schedule of actions to be taken 

15 to provide for that implementation. 

Æ 


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