shall be responsible for 100 percent of the premiums for
such coverage.
‘‘(b) WITHHOLDINGS.—
‘‘(1) IN GENERAL.—The amount necessary to
pay the premiums for enrollment may—
‘‘(A) in the case of an employee, be with-
held from the pay of such employee;
‘‘(B) in the case of an annuitant, be with-
held from the annuity of such annuitant;
‘‘(C) in the case of a member of the uni-
formed services described in section 9001(3), be
withheld from the pay of such member; and
‘‘(D) in the case of a retired member of
the uniformed services described in section
9001(4), be withheld from the retired pay or re-
tainer pay payable to such member.
‘‘(2) VOLUNTARY WITHHOLDINGS FOR QUALI-
FIED
RELATIVES.—Withholdings to pay the pre-
miums for enrollment of a qualified relative may,
upon election of the appropriate eligible individual
(described in section 9001(1)–(4)), be withheld
under paragraph (1) to the same extent and in the
same manner as if enrollment were for such indi-
vidual.
‘‘(c) DIRECT
PAYMENTS.—All amounts withheld
under this section shall be paid directly to the carrier.
‘‘(d) OTHER FORMS
OF PAYMENT.—Any enrollee
who does not elect to have premiums withheld under sub-
section (b) or whose pay, annuity, or retired or retainer
pay (as referred to in subsection (b)(1)) is insufficient to
cover the withholding required for enrollment (or who is
not receiving any regular amounts from the Government,
as referred to in subsection (b)(1), from which any such
withholdings may be made, and whose premiums are not
otherwise being provided for under subsection (b)(2)) shall
pay an amount equal to the full amount of those charges
directly to the carrier.
‘‘(e) SEPARATE ACCOUNTING REQUIREMENT.—Each
carrier participating under this chapter shall maintain
records that permit it to account for all amounts received
under this chapter (including investment earnings on
those amounts) separate and apart from all other funds.
‘‘(f) REIMBURSEMENTS.—
‘‘(1) REASONABLE INITIAL COSTS.—
‘‘(A) IN GENERAL.—The Employees’ Life
Insurance Fund is available, without fiscal year
limitation, for reasonable expenses incurred by
the Office of Personnel Management in admin-
istering this chapter before the start of the 7-
year period described in section 9003(d)(2)(B),
including reasonable implementation costs.
‘‘(B) REIMBURSEMENT
REQUIREMENT.—
Such Fund shall be reimbursed, before the end
of the first year of that 7-year period, for all
amounts obligated or expended under subpara-
graph (A) (including lost investment income).
Such reimbursement shall be made by carriers,
on a pro rata basis, in accordance with appro-
priate provisions which shall be included in
master contracts under this chapter.
‘‘(2) SUBSEQUENT COSTS.—
‘‘(A) IN GENERAL.—There is hereby estab-
lished in the Employees’ Life Insurance Fund a
Long-Term Care 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 7-year period de-
scribed in section 9003(d)(2)(B).
‘‘(B) REIMBURSEMENT
REQUIREMENT.—
Each master contract under this chapter shall
include appropriate provisions under which the
carrier involved shall, during each year, make
such periodic contributions to the Long-Term
Care Administrative Account as necessary to
ensure that the reasonable anticipated expenses
of the Office in administering this chapter dur-
ing such year (adjusted to reconcile for any ear-
lier overestimates or underestimates under this
subparagraph) are defrayed.
‘‘§ 9005. Preemption
‘‘The terms of any contract under this chapter which
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 long-
term care insurance or contracts.
‘‘§ 9006. Studies, reports, and audits
‘‘(a) PROVISIONS RELATING TO CARRIERS.—Each
master contract under this chapter shall contain provi-
sions requiring the carrier—
‘‘(1) to furnish such reasonable reports as the
Office of Personnel Management 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 General Accounting Office to examine such
records of the carrier as may be necessary to carry
out the purposes of this chapter.
‘‘(b) PROVISIONS RELATING
TO FEDERAL AGEN-
CIES.—Each Federal agency shall keep such records,
make such certifications, and furnish the Office, the car-
rier, or both, with such information and reports as the
Office may require.
‘‘(c) REPORTS BY THE GENERAL ACCOUNTING OF-
FICE.—The General Accounting Office shall prepare and
submit to the President, the Office of Personnel Manage-
ment, and each House of Congress, before the end of the
third and fifth years during which the program under this
chapter is in effect, a written report evaluating such pro-
gram. Each such report shall include an analysis of the
competitiveness of the program, as compared to both
group and individual coverage generally available to indi-
viduals in the private insurance market. The Office shall
cooperate with the General Accounting Office to provide
periodic evaluations of the program.
‘‘§ 9007. Jurisdiction of courts
‘‘The district courts of the United States have origi-
nal jurisdiction of a civil action or claim described in para-
graph (1) or (2) of section 9003(c), after such administra-
tive remedies as required under such paragraph (1) or (2)
(as applicable) have been exhausted, but only to the extent
judicial review is not precluded by any dispute resolution
or other remedy under this chapter.
‘‘§ 9008. Administrative functions
‘‘(a) IN GENERAL.—The Office of Personnel Manage-
ment shall prescribe regulations necessary to carry out
this chapter.
‘‘(b) ENROLLMENT PERIODS.—The Office shall pro-
vide for periodic coordinated enrollment, promotion, and
education efforts in consultation with the carriers.
‘‘(c) CONSULTATION.—Any regulations necessary to
effect the application and operation of this chapter with
respect to an eligible individual described in paragraph (3)
or (4) of section 9001, or a qualified relative thereof, shall
be prescribed by the Office in consultation with the appro-
priate Secretary.
‘‘(d) INFORMED DECISIONMAKING.—The Office shall
ensure that each eligible individual applying for long-term
care insurance under this chapter is furnished the infor-
mation necessary to enable that individual to evaluate the
advantages and disadvantages of obtaining long-term care
insurance under this chapter, including the following:
‘‘(1) The principal long-term care benefits and
coverage available under this chapter, and how those
benefits and coverage compare to the range of long-
term care benefits and coverage otherwise generally
available.
‘‘(2) Representative examples of the cost of
long-term care, and the sufficiency of the benefits
available under this chapter relative to those costs.
The information under this paragraph shall also
include—
‘‘(A) the projected effect of inflation on the
value of those benefits; and
‘‘(B) a comparison of the inflation-adjusted
value of those benefits to the projected future
costs of long-term care.
‘‘(3) Any rights individuals under this chapter
may have to cancel coverage, and to receive a total
or partial refund of premiums. The information
under this paragraph shall also include—
‘‘(A) the projected number or percentage
of individuals likely to fail to maintain their
coverage (determined based on lapse rates expe-
rienced under similar group long-term care in-
surance programs and, when available, this
chapter); and
‘‘(B)(i) a summary description of how and
when premiums for long-term care insurance
under this chapter may be raised;
‘‘(ii) the premium history during the last
10 years for each qualified carrier offering long-
term care insurance under this chapter; and
‘‘(iii) if cost increases are anticipated, the
projected premiums for a typical insured indi-
vidual at various ages.
‘‘(4) The advantages and disadvantages of long-
term care insurance generally, relative to other
means of accumulating or otherwise acquiring the
assets that may be needed to meet the costs of long-
term care, such as through tax-qualified retirement
programs or other investment vehicles.
‘‘§ 9009. Cost accounting standards
‘‘The cost accounting standards issued pursuant to
section 26(f) of the Office of Federal Procurement Policy
Act (41 U.S.C. 422(f)) shall not apply with respect to a
long-term care insurance contract under this chapter.’’.
(b) CONFORMING AMENDMENT.—The analysis for
part III of title 5, United States Code, is amended by add-
ing at the end of subpart G the following:
‘‘90. Long-Term Care Insurance .........................................................
9001.’’.
SEC. 3. EFFECTIVE DATE.
The Office of Personnel Management shall take such
measures as may be necessary to ensure that long-term
care insurance coverage under title 5, United States Code,
as amended by this Act, may be obtained in time to take
effect not later than the first day of the first applicable
pay period of the first fiscal year which begins after the
end of the 18-month period beginning on the date of the
enactment of this Act.
Passed the House of Representatives May 9, 2000.
Attest:
Clerk.