I
105TH CONGRESS
1ST SESSION
H. R. 1574
To amend chapter 89 of title 5, United States Code, to permit Federal
employees and annuitants to elect to receive contributions into medical
savings accounts under the Federal Employees Health Benefits Program
(FEHBP).
IN THE HOUSE OF REPRESENTATIVES
MAY 8, 1997
Mr. SALMON (for himself, Mr. MICA, Mr. BALLENGER, Mr. BARTLETT of
Maryland, Mr. CAMPBELL, Mr. CANNON, Mr. COOKSEY, Mrs. CUBIN, Mr.
CUNNINGHAM, Mr. DUNCAN, Mr. ENSIGN, Mr. FOLEY, Mr. GOSS, Mr.
HAYWORTH, Mr. HILLEARY, Mrs. KELLY, Mr. KOLBE, Mr. MCCRERY,
Mr. NETHERCUTT, Mr. NORWOOD, Mr. PACKARD, Mr. PAUL, Mr.
SCARBOROUGH, Mr. BOB SCHAFFER of Colorado, Mr. SENSENBRENNER,
Mr. SHADEGG, Mr. SKEEN, Mr. SOUDER, Mr. STUMP, and Mr. WALSH)
introduced the following bill; which was referred to the Committee on
Government Reform and Oversight
A BILL
To amend chapter 89 of title 5, United States Code, to
permit Federal employees and annuitants to elect to
receive contributions into medical savings accounts under
the Federal Employees 
Health 
Benefits 
Program
(FEHBP).
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘FEHBP-Medical Sav-
ings Account Promotion Act of 1997’’.
SEC. 2. PERMITTING CONTRIBUTION TOWARDS MEDICAL
SAVINGS ACCOUNT THROUGH FEDERAL EM-
PLOYEES 
HEALTH 
BENEFITS 
PROGRAM
(FEHBP).
(a) GOVERNMENT CONTRIBUTION TO MEDICAL SAV-
INGS ACCOUNT.—
(1) IN
GENERAL.—Section 8906 of title 5,
United States Code, is amended by adding at the
end the following new subsection:
‘‘(j)(1) In the case of an employee or annuitant who
is enrolled in a catastrophic plan described by section
8903(5), there shall be a Government contribution under
this subsection to a medical savings account established
or maintained for the benefit of the individual. The con-
tribution under this subsection shall be in addition to the
Government contribution under subsection (b).
‘‘(2) The amount of the Government contribution
under this subsection with respect to an individual is equal
to the amount by which—
‘‘(A) the maximum contribution allowed under
subsection (b)(1) with respect to any employee or
annuitant, exceeds
‘‘(B) the amount of the Government contribu-
tion actually made with respect to the individual
under subsection (b) for coverage under the cata-
strophic plan.
‘‘(3) The Government contributions under this sub-
section shall be paid into a medical savings account (des-
ignated by the individual involved) in a manner that is
specified by the Office and consistent with the timing of
contributions under subsection (b).
‘‘(4) Subsections (f) and (g) shall apply to contribu-
tions under this section in the same manner as they apply
to contributions under subsection (b).
‘‘(5) For the purpose of this subsection, the term
‘medical savings account’ has the meaning given such term
by section 220(d) of the Internal Revenue Code of 1986
(as inserted by section 301(a) of Health Insurance Port-
ability and Accountability Act of 1996).’’.
(2) ALLOWING PAYMENT OF FULL AMOUNT OF
CHARGE
FOR
CATASTROPHIC
PLAN.—Section
8906(b)(2) of such title is amended by inserting ‘‘(or
100 percent of the subscription charge in the case
of a catastrophic plan)’’ after ‘‘75 percent of the
subscription charge’’.
(b) OFFERING OF CATASTROPHIC PLANS.—
(1) IN GENERAL.—Section 8903 of such title is
amended by adding at the end the following new
paragraph:
‘‘(5) CATASTROPHIC
PLANS.—One or more
plans described in paragraph (1), (2), or (3), but
which provide benefits of the types referred to by
paragraph (5) of section 8904(a), instead of the
types referred to in paragraphs (1), (2), and (3) of
such section.’’.
(2) TYPES OF BENEFITS.—Section 8904(a) of
such title is amended by inserting after paragraph
(4) the following new paragraph:
‘‘(5) CATASTROPHIC
PLANS.—Benefits of the
types named under paragraph (1) or (2) of this sub-
section or both, to the extent expenses covered by
the plan exceed $3,000.’’.
(3) DISREGARDING
CATASTROPHIC
PLANS
IN
DETERMINING LEVEL OF GOVERNMENT CONTRIBU-
TIONS.—Section 8906(a)(3) of such title is amended
by inserting ‘‘described by section 8903(3)’’ after
‘‘plans’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to contract terms beginning on or
after January 1, 1998.
Æ