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‘‘§ 7344. Administrative and personnel flexibility
‘‘(a) In order to carry out this subchapter, the Sec-
retary may—
‘‘(1) subject to section 1822(c) of this title,
carry out administrative reorganizations of the De-
partment without regard to those provisions of sec-
tion 510 of this title following subsection (a) of that
section; and
‘‘(2) when the Secretary finds it is cost-effective
or necessary in order to provide health care services
in a timely manner—
‘‘(A) enter into contracts for procurement
of any commercially available item at a cost of
under $100,000 without regard to any provision
of law or regulation (i) requiring competitive
procedures; (ii) mandating or giving priority to
any source of supply; or (iii) pertaining to pro-
tests; and
‘‘(B) enter into contracts without regard to
section 8110(c) of this title for the performance
of services previously performed by employees
of the Department.
‘‘(b)(1) The Secretary may establish alternative per-
sonnel systems or procedures for personnel at facilities of-
fering qualified health coverage under this title, or for per-
sonnel at facilities operating in a State (or portion of a
790
Title IX
State) that is operating under a single payer system,
whenever the Secretary considers such action necessary,
except that the Secretary shall provide for preference eligi-
bles (as defined in section 2108 of title 5) in a manner
comparable to the preference for such eligibles under sub-
chapter I of chapter 33, and subchapter I of chapter 35,
of such title.
‘‘(2) In establishing alternative personnel systems or
procedures under this subsection, the Secretary shall in-
clude the following:
‘‘(A) A system that ensures that applicants for
employment and employees are appointed, promoted,
and assigned on the basis of merit and fitness.
‘‘(B) An equal employment opportunity pro-
gram.
‘‘(C) Compensation systems which will be used
to set rates of pay that are competitive with rates
of pay paid by health-care providers other than the
Department and that take into consideration the dif-
ficulty, responsibility, and qualification requirements
of the work performed.
‘‘(D) A formal performance appraisal system.
‘‘(E) A system to address unacceptable conduct
and performance by employees, including a general
statement of violations, sanctions, and procedures
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Title IX
which shall be made known to all employees, and a
dispute resolution procedure.
‘‘(F) A formal policy regarding the accrual and
use of sick leave and annual leave.
‘‘(c) The Secretary may carry out appropriate pro-
motional, advertising, and marketing activities to inform
individuals of the availability of facilities of the Depart-
ment offering qualified health coverage.
‘‘§ 7345. Veterans Health Care Transition Fund
‘‘(a) For each of fiscal years 1995 and 1996, the Sec-
retary of the Treasury shall credit to a special fund (in
this section referred to as the ‘Fund’) of the Treasury an
amount equal to—
‘‘(1) $1,200,000,000 for fiscal year 1995; and
‘‘(2) $800,000,000 for fiscal year 1996.
‘‘(b) Amounts in the Fund shall be available to the
Secretary only for VA health coverage authorized under
this chapter. Such amounts are available without fiscal
year limitation for costs of commencing the offering of VA
health coverage, including consulting services, equipment,
marketing, and other costs, minor construction, and (sub-
ject to section 8104 of this title) major construction.
‘‘(c) The Secretary shall submit to Congress, no later
than March 1, 1996, a report concerning the operation
of the Department of Veterans Affairs health care system
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Title IX
in preparing for, and operating under, national health care
reform under the Bipartisan Health Care Reform Act of
1994 during fiscal years 1995 and 1996. The report shall
include a discussion of—
‘‘(1) the adequacy of amounts in the Fund for
the offering of VA health coverage;
‘‘(2) the quality of care provided by the Depart-
ment; and
‘‘(3) the ability of the Department to attract
patients.
‘‘§ 7346. Funding provisions: grants and other sources
of assistance
‘‘The Secretary may apply for and accept, if awarded,
any grant or other source of funding that is intended to
meet the needs of special populations and that but for this
section is unavailable to facilities of the Department or
to qualified health coverage offered by the Government if
funds obtained through the grant or other source of fund-
ing will be used through a facility of the Department offer-
ing qualified health coverage.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 73 is amended by striking out
the item relating to the heading for subchapter IV and
inserting in lieu thereof the following:
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Title IX
‘‘SUBCHAPTER IV—PARTICIPATION AS PART OF NATIONAL HEALTH CARE
REFORM
‘‘7341. Organization of health care facilities as facilities offering qualified
health coverage
‘‘7342. Operation of health care facilities within States operating as single
payer areas.
‘‘7343. Health care resource agreements.
‘‘7344. Administrative and personnel flexibility.
‘‘7345. Veterans Health Coverage Transition Fund.
‘‘7346. Funding provisions: grants and other sources of assistance.
‘‘SUBCHAPTER V—RESEARCH CORPORATIONS’’.
SEC. 9003. ELIGIBILITY FOR CHAPTER 17 CARE.
(a) NURSING HOME CARE.—Section 1710(a)(1) of
title 38, United States Code, is amended by inserting ‘‘(or,
in the case of a veteran described in subparagraph (A)
or (D) below, shall furnish nursing home care)’’ after
‘‘may furnish nursing home care’’.
(b) OUTPATIENT CARE
FOR ENROLLED VETER-
ANS.—Paragraph (1) of section 1712(a) of such title is
amended—
(1) by striking out ‘‘and’’ at the end of sub-
paragraph (C);
(2) by striking out the period at the end of sub-
paragraph (D) and inserting in lieu thereof a semi-
colon; and
(3) by adding at the end the following:
‘‘(E) to any veteran described in section
1831(b) of this title who is enrolled under section
1811 of this title and the Bipartisan Health Care
Reform Act of 1994 with VA health coverage (as de-
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Title IX
fined in section 1801 of this title), for any disability
to the extent that care and treatment of that disabil-
ity is not included within standard coverage (as de-
fined in section 1801 of this title);’’.
(c) OBVIATE-THE-NEED OUTPATIENT CARE.—(1)
Paragraph (2) of such section is amended by striking out
‘‘The Secretary’’ and all that follows through ‘‘this sub-
section—’’ and inserting in lieu thereof ‘‘Except as pro-
vided in subsection (b) of this section, the Secretary shall
furnish on an ambulatory or outpatient basis such medical
services as the Secretary determines are needed—’’.
(2) Paragraph (4) of such section is amended by
striking out ‘‘medical services for a purpose described in
paragraph (5) of this subsection’’ and inserting in lieu
thereof ‘‘, to the extent that facilities are available, such
medical services as the Secretary determines are needed’’.
(3) Such section is further amended—
(A) by striking out paragraph (5); and
(B) by redesignating paragraphs (6) and (7) as
paragraphs (5) and (6), respectively.
(d) 
CONFORMING
AMENDMENTS.—(1) 
Section
1701(6)(A)(i) of such title is amended by striking out
‘‘(except under the conditions described in section
1712(a)(5)(A) of this title)’’.
795
Title IX
(2) Section 1701(6)(B)(i)(II) of such title is amended
by striking ‘‘section 1712(a)(5)(B)’’ and inserting in lieu
thereof ‘‘section 1712’’.
(3) Section 1703(a)(2)(B) of such title is amended
by striking out ‘‘for a purpose described in section
1712(a)(5)(B) of this title’’ and inserting in lieu thereof
‘‘to complete treatment incident to hospital, nursing home,
or domiciliary care that has been provided by the Depart-
ment’’.
(4) Section 1712A(b)(1) of such title is amended by
striking out ‘‘section 1712(a)(5)(B)’’ and inserting in lieu
thereof ‘‘section 1703(a)(2)(B)’’.
SEC. 9004. AUTHORITY TO PROVIDE HEALTH CARE FOR
HERBICIDE AND RADIATION EXPOSURE.
(a) 
AUTHORIZED
INPATIENT
CARE.—Section
1710(e) of title 38, United States Code, is amended to
read as follows:
‘‘(e)(1)(A) Subject to paragraph (4), a herbicide-ex-
posed veteran is eligible for hospital care and nursing
home care under subsection (a)(1)(G) for any disease
specified in subparagraph (B).
‘‘(B) The diseases referred to in subparagraph (A)
are those for which the National Academy of Sciences, in
a report issued in accordance with section 2 of the Agent
Orange Act of 1991, has determined—
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Title IX
‘‘(i) that there is sufficient evidence to conclude
that there is a positive association between occur-
rence of the disease in humans and exposure to a
herbicide agent;
‘‘(ii) that there is evidence which is suggestive
of an association between occurrence of the disease
in humans and exposure to a herbicide agent, but
such evidence is limited in nature; or
‘‘(iii) that available studies are insufficient to
permit a conclusion about the presence or absence of
an association between occurrence of the disease in
humans and exposure to a herbicide agent.
‘‘(2) A radiation-exposed veteran is eligible for hos-
pital care and nursing home care under subsection
(a)(1)(G) for—
‘‘(A) any disease listed in section 1112(c)(2) of
this title; and
‘‘(B) any other disease for which the Secretary,
based on the advice of the Advisory Committee on
Environmental Hazards, determines that there is
credible evidence of a positive association between
occurrence of the disease in humans and exposure to
ionizing radiation.
‘‘(3) Subject to paragraph (4), a veteran who the Sec-
retary finds may have been exposed while serving on active
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Title IX
duty in the Southwest Asia theater of operations during
the Persian Gulf War to a toxic substance or environ-
mental hazard is eligible for hospital care and nursing
home care under subsection (a)(1)(G) of this section for
any disability which becomes manifest before October 1,
1996, notwithstanding that there is insufficient medical
evidence to conclude that such disability may be associated
with such exposure.
‘‘(4) Hospital and nursing home care may not be pro-
vided under or by virtue of paragraph (1) after September
30, 1996, or, in the case of a veteran described in para-
graph (3), after September 30, 1998.
‘‘(5) For purposes of this subsection and section
1712 of this title—
‘‘(A) the term ‘herbicide-exposed veteran’
means a veteran (i) who served on active duty in the
Republic of Vietnam during the Vietnam era, and
(ii) who the Secretary finds may have been exposed
during such service to a herbicide agent;
‘‘(B) the term ‘herbicide agent’ has the mean-
ing given that term in section 1116(a)(4) of this
title; and
‘‘(C) the term ‘radiation-exposed veteran’ has
the meaning given that term in section 1112(c)(4) of
this title.’’.
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Title IX
(b) AUTHORIZED OUTPATIENT CARE.—Section 1712
of such title is amended—
(1) in subsection (a)(1) (as amended by section
9003(b)), by adding at the end the following:
‘‘(F) during the period before October 1, 1996,
to any herbicide-exposed veteran for any disease list-
ed in section 1710(e)(1)(B) of this title; and
‘‘(G) to any radiation-exposed veteran for any
disease covered under section 1710(e)(1)(C) of this
title.’’; and
(2) in subsection (i)(3)—
(A) by striking out ‘‘(A)’’; and
(B) by striking out ‘‘, or (B)’’ and all that
follows through ‘‘title’’.
(c) SAVINGS PROVISION.—The provisions of sections
1710(e) and 1712(a) of title 38, United States Code, as
in effect on the day before the date of the enactment of
this Act, shall apply with respect to hospital care, nursing
home care, and medical services in the case of any veteran
furnished care or services before such date of enactment
on the basis of presumed exposure to a substance or radi-
ation under the authority of those provisions.
799
Title IX
SEC. 9005. EXTENSION OF AUTHORITY TO PROVIDE PRIOR-
ITY OUTPATIENT HEALTH CARE FOR EXPO-
SURE TO ENVIRONMENTAL HAZARDS.
Section 1712(a)(1)(D) of title 38, United States
Code, is amended by striking out ‘‘December 31, 1994,
for any disability’’ and inserting in lieu thereof ‘‘October
1, 1998, for any disability which becomes manifest before
October 1, 1996,’’.
SEC. 9006. REPORT ON WAIVING COST-SHARING FOR CER-
TAIN MEDICAL CARE FOR DEPENDENTS OF
PERSIAN GULF VETERANS WHO MAY HAVE
BEEN EXPOSED TO ENVIRONMENTAL HAZ-
ARDS.
(a) REPORT.—The Secretary of Veterans Affairs
shall submit to Congress a report on the desirability and
the feasibility of waiving any requirement for cost-sharing
in the case of medical care described in subsection (b) that
is provided through VA health coverage under chapter 18
of title 38, United States Code (as added by section 9001),
to an individual who is a VA enrollee enrolled under fam-
ily-member eligibility under section 1813 of that chapter.
(b) PERSIAN GULF WAR ILLNESS.—Medical care re-
ferred to in subsection (a) is medical care provided to a
family member of a veteran described in subparagraph (C)
of section 1710(e)(1) of title 38, United States Code, for
any disease or disability occurring in that family member
800
Title IX
which the Secretary finds may be related to the service
of the veteran in the Southwest Asia theater of operations
during the Persian Gulf War.
(c) MATTERS TO BE CONSIDERED.—In preparing
the report under subsection (a), the Secretary shall con-
sider relevant studies, including those that have been (or
that are being) conducted by the Department of Veterans
Affairs, the Department of Defense, the National Insti-
tutes of Health, the National Academy of Sciences, and
private health care providers.
(d) SUBMISSION OF REPORT.—The report under sub-
section (a) shall be submitted not later than 60 days after
the date of the enactment of this Act.
SEC. 9007. STUDY OF THE EFFECT OF TELEMEDICINE ON
THE DELIVERY OF VA HEALTH CARE SERV-
ICES.
(a) IN GENERAL.—During each of fiscal years 1995
through 1997, the Secretary of Veterans Affairs shall
carry out a study of the effect of telemedicine on the deliv-
ery, accessibility, and quality of health care services avail-
able to individuals who are eligible for coverage through
the Department of Veterans Affairs.
(b) REPORTS.—Not later than 120 days after the
date of the enactment of this Act and annually thereafter
through 1998, the Secretary shall submit to the Commit-
801
Title IX
tees on Veterans’ Affairs of the Senate and House of Rep-
resentatives a report, including descriptions of the
telemedicine applications benefiting veterans, relating to
the study conducted under subsection (a).
(c) CONSULTATION.—Each study under subsection
(a) shall be carried out in consultation with the Secretary
of Health and Human Services, the Secretary of Defense,
the Chair of the White House Information Infrastructure
Task Force, and the Director of High Performance Com-
puting and Communications in the Executive Office of the
President.
SEC. 9008. LEGISLATIVE PROPOSAL ON VA HEALTH COV-
ERAGE FOR MEDICARE BENEFICIARIES.
(a) IN GENERAL.—
(1) LEGISLATIVE PROPOSAL.—Not later than 1
year after the date of the enactment of this Act, the
Secretary, in consultation with the Secretary of Vet-
erans Affairs, shall develop and submit to Congress
a proposal for legislation which provides for obtain-
ing VA health coverage for medicare beneficiaries
who are veterans.
(2) MEDICARE BENEFICIARY.—For purposes of
this section, the term ‘‘medicare beneficiary’’ means
an individual who is eligible for benefits under part
802
Title IX
A of title XVIII of the Social Security Act and is en-
rolled under part B of such title.
(b) CONTENTS OF THE PROPOSAL.—A proposal for
legislation submitted under subsection (a) shall—
(1) provide for an appropriate methodology by
which the Secretary shall make payment to the Sec-
retary of Veterans Affairs for the enrollment of med-
icare beneficiaries;
(2) provide individuals the opportunity to re-
main enrolled to obtain VA health coverage without
an interruption in coverage upon becoming medicare
beneficiaries; and
(3) provide medicare beneficiaries who are vet-
erans with the opportunity to enroll to obtain VA
health coverage as an individual or with family mem-
bers.
SEC. 9009. OUTPATIENT CLINIC PILOT PROGRAM.
(a) PILOT PROGRAM.—The Secretary of Veterans Af-
fairs shall carry out a pilot program to reduce waiting
times for patients seeking health-care services in out-
patient clinics of the Department of Veterans Affairs and
the traveling distance to such clinics.
(b) ADDITIONAL CLINICS.—Under the pilot program,
the Secretary shall provide for the operation of approxi-
mately 20 new outpatient clinics around 2 medical centers
803
Title X, Subtitle A
of the Department of Veterans Affairs. The Secretary
shall select the locations for the clinics so that veterans
served by one of the clinics would be within a one-hour
drive of such a clinic.
(c) SERVICES.—The Secretary shall ensure that the
clinics provide a wide range of services, including x-ray,
laboratory, physical therapy, respiratory therapy, pharma-
ceutical services, and psychological services, to be available
at those clinics.
(d) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated, for each of fiscal years
1998 through 2004, such sums are may be necessary to
carry out this section.
TITLE X—MISCELLANEOUS
SAVINGS PROVISIONS
TABLE OF CONTENTS OF TITLE
Subtitle A—Automobile Insurance Coordination
Sec. 10001. Definitions.
Sec. 10002. Provision of automobile insurance medical services through health
plans.
Sec. 10003. Payment for automobile insurance medical services.
Sec. 10004. Payment facilitation.
Sec. 10005. Payment of State administrative expenses.
Sec. 10006. Construction.
Subtitle B—Prefunding Government Health Benefits
Contributions
Sec. 10101. Requirement that certain agencies prefund government health ben-
efits contributions for their annuitants.
804
Title X, Subtitle A
Subtitle A—Automobile Insurance
Coordination
SEC. 10001. DEFINITIONS.
In this subtitle—
(1) INJURED INDIVIDUAL.—The term ‘‘injured
individual’’ means an individual who has a bodily in-
jury or illness sustained in an automobile accident
and who is entitled to receive automobile insurance
medical services from a health plan.
(2) AUTOMOBILE INSURANCE MEDICAL SERV-
ICES.—The term ‘‘automobile insurance medical
services’’ means services and items covered by auto-
mobile insurance that are medically necessary or ap-
propriate for treatment of bodily injuries or illnesses
sustained in automobile accidents and that are with-
in the scope of the benefits to which an injured indi-
vidual is entitled under his or her health plan.
(3) AUTOMOBILE
INSURANCE
CARRIER.—The
term ‘‘automobile insurance carrier’’ means an in-
surance company, employer, or fund that is liable for
payment for automobile insurance medical services
based either on a direct contractual obligation to an
injured individual or an obligation on behalf of a
person responsible for causation of an injured indi-
vidual’s bodily injury or illness.
805
Title X, Subtitle A
(4) HEALTH PLAN.—The term ‘‘health plan’’
means a plan or organization that pays for the serv-
ices of health care providers and is subject to Fed-
eral or State regulation.
SEC. 10002. PROVISION OF AUTOMOBILE INSURANCE MEDI-
CAL SERVICES THROUGH HEALTH PLANS.
(a) IN GENERAL.—An individual enrolled in a health
plan shall receive automobile insurance medical services
exclusively through the provision (or arrangement for the
provision) of such services by the health plan. Such serv-
ices shall be subject to all quality, cost containment, and
anti-fraud and abuse provisions that apply generally to
medical services provided by or through health plans.
(b) ALTERNATIVE PERMITTED.—
(1) BY AGREEMENT.—Subsection (a) shall not
prevent an individual and an automobile insurance
carrier from agreeing that treatment for bodily in-
jury or illness sustained in an automobile accident
shall be provided other than by or through the
health plan in which the individual is enrolled. No-
tice of any such agreement shall be filed with the in-
jured individual’s health plan. Upon receipt of such
notice, the health plan shall be absolved of all re-
sponsibility for payment of any services covered by
the agreement.
806
Title X, Subtitle A
(2) MEDICARE AND MEDICAID.—Subsection (a)
shall not prevent a State from requiring automobile
insurance carrier to make direct payment to health
care providers for automobile insurance medical
services that are covered both by (A) medicare or
medicaid, and (B) and automobile insurance con-
tract that is required by law and provides for direct
payment of medical services regardless of fault. Pay-
ment for automobile insurance medical services in
such circumstances shall be made to the extent of
the automobile insurance carrier’s liability under the
applicable contract, in accordance with fee schedules
prescribed under section 10003(d), and such services
shall be subject to all quality, cost containment, and
anti-fraud and abuse provisions that apply generally
to medical services provided by or through health
plans.
SEC. 10003. PAYMENT FOR AUTOMOBILE INSURANCE MEDI-
CAL SERVICES.
(a) PAYMENT TO HEALTH PLANS.—Each automobile
insurance carrier that is liable for payment for automobile
insurance medical services provided to an injured individ-
ual by a health plan shall make payment to the health
plan for such services to the extent of its obligations under
the applicable automobile insurance contract. Any feder-
807
Title X, Subtitle A
ally funded health care plan shall have first priority, over
the right of any other person, to receive payment pursuant
to any obligation under an automobile insurance policy
covering automobile insurance medical services.
(b) REIMBURSEMENT
FOR COST SHARING.—Each
automobile insurance carrier shall remain liable, to the ex-
tent of its obligations under the applicable automobile in-
surance contract, for reimbursement of any deductibles or
coinsurance paid by an injured individual for automobile
insurance medical services.
(c) LIMITATION OF LIABILITY.—Except with respect
to payments to health plans as required by subsection (a)
and to reimbursement of deductibles and coinsurance in
accordance with subsection (b), nothing in this subtitle or
any other provision of law shall require an automobile in-
surance carrier or any person insured by such a carrier
to make any payment to a health plan, health care pro-
vider, or any other person for (1) automobile insurance
medical services, or (2) other health care services or items
used to treat an injury or illness sustained in an auto-
mobile accident that are not medically necessary or appro-
priate.
(d) USE OF FEE SCHEDULES.—
(1) IN GENERAL.—Irrespective of the type of
health plan providing automobile insurance medical
808
Title X, Subtitle A
services, payment by automobile insurance carriers
for such services shall be made to the plan in ac-
cordance with any fee schedule or schedules estab-
lished for health care services generally. Each State
shall develop or approve a fee schedule applicable to
payment for any automobile insurance medical serv-
ices that are not covered by a generally applicable
fee schedule or schedules.
(2) 
ALTERNATIVE
PAYMENT
METHODOLO-
GIES.—Fee schedules shall not be required in any
case in which an automobile insurance carrier and a
health plan have agreed on an alternative payment
arrangement.
(e) REIMBURSEMENT FOR PAYMENTS MADE.—Noth-
ing in this subtitle or any other provision of law shall im-
pair the right of a health plan or automobile insurance
carrier to seek reimbursement from any person liable for
a bodily injury or illness sustained in an automobile acci-
dent for payments made for automobile insurance medical
services to treat such injury or illness.
(f) RIGHTS TO COVERAGE FOR ADDITIONAL TREAT-
MENT.—Subject to the provisions of subsection (c), noth-
ing in this subtitle shall impair any rights with respect
to medically necessary or appropriate services and items
to which an individual injured in an automobile accident
809
Title X, Subtitle A
is entitled that are not automobile insurance medical serv-
ices as defined in this subtitle.
SEC. 10004. PAYMENT FACILITATION.
(a) IN GENERAL.—In each State, an efficient and ef-
fective system shall be established for prompt payment for
automobile insurance medical services by automobile in-
surance carriers to health plans. Such systems shall re-
quire automobile insurance carriers and health plans to
interface effectively, including through the use of cost-ef-
fective computer data programs, in order to specify the
automobile insurance carrier or carriers liable for payment
for automobile insurance medical services. Such systems
also shall include mechanisms for resolution, including ar-
bitration, of any issues or disputes that may arise in con-
nection with such payment. The results of the resolution
of issues and disputes under the mechanisms prescribed
pursuant to this subsection, including the use of any fee
schedule under section 10003(d), shall be admissible in
evidence only for purposes of recovery under section
10003(e).
(b) SANCTIONS.—In each State, appropriate sanc-
tions shall be prescribed for the failure of a health plan,
an automobile insurance carrier, or any other person to
comply with the requirements established pursuant to sub-
section (a). Such sanctions shall include a penalty for late
810
Title X, Subtitle A
payment, which shall be imposed on any automobile insur-
ance carrier that delays payment to a health plan after
the amount of reimbursement is established pursuant to
the procedures prescribed under subsection (a).
SEC. 10005. PAYMENT OF STATE ADMINISTRATIVE EX-
PENSES.
(a) IN GENERAL.—The Secretary of Health and
Human Services shall provide for payment to each State,
from the allotment to the State provided under subsection
(b), of an amount equal to the amount expended by the
State for administrative expenses in carrying out this sub-
title in the State. Such payments shall be made at a time
and manner specified by the Secretary and shall be condi-
tioned upon the State providing the Secretary with such
information as the Secretary may require in order to com-
pute the appropriate amount of payments to be made.
This subsection constitutes budget authority in advance
of appropriations Acts, and represents the obligation of
the Federal Government to provide payments to States in
accordance with the applicable provisions of this section.
(b) STATE ALLOTMENT.—
(1) IN GENERAL.—The Secretary shall establish
a formula for allotting among the States for each
fiscal year the total amount of funds made available
under paragraph (2) for the fiscal year.
811
Title X, Subtitle B
(2) FUNDS AVAILABLE.—The total amount of
funds available under this paragraph—
(A) for fiscal year 1997 is $300,000,000,
and
(B) 
for 
each 
succeeding 
fiscal 
year
(through fiscal year 2004) is $100,000,000.
SEC. 10006. CONSTRUCTION.
(a) COORDINATION WITH OTHER PROVISIONS OF
THIS ACT.—The provisions of this subtitle shall be con-
strued to be consistent with and shall be implemented in
accordance with the other provisions of this Act.
(b) EFFECT ON WORKERS’ COMPENSATION LAW.—
Nothing in this subtitle shall affect rights or obligations
under workers’ compensation law.
Subtitle 
B—Prefunding 
Govern-
ment Health Benefits Contribu-
tions
SEC. 10101. REQUIREMENT THAT CERTAIN AGENCIES
PREFUND GOVERNMENT HEALTH BENEFITS
CONTRIBUTIONS FOR THEIR ANNUITANTS.
(a) DEFINITIONS.—For the purpose of this section—
(1) the term ‘‘agency’’ means any agency or
other instrumentality within the executive branch of
the Government, the receipts and disbursements of
which are not generally included in the totals of the
812
Title X, Subtitle B
budget of the United States Government submitted
by the President;
(2) the term ‘‘health benefits plan’’ means, with
respect to an agency, a health benefits plan, estab-
lished by or under Federal law, in which employees
or annuitants of such agency may participate;
(3) the term ‘‘health-benefits coverage’’ means
coverage under a health benefits plan’’;
(4) an individual shall be considered to be an
‘‘annuitant of an agency’’ if such individual is enti-
tled to an annuity, under a retirement system estab-
lished by or under Federal law, by virtue of—
(A) such individual’s service with, and sep-
aration from, such agency; or
(B) being the survivor of an annuitant
under subparagraph (A) or of an individual who
died while employed by such agency; and
(5) the term ‘‘Office’’ means the Office of Per-
sonnel Management.
(b) PREFUNDING REQUIREMENT.—
(1) IN GENERAL.—Effective as of October 1,
1994, each agency (or February 1, 1995, in the case
of the agency with the greatest number of employ-
ees, as determined by the Office) shall be required
to prepay the Government contributions which are
813
Title X, Subtitle B
or will be required in connection with providing
health-benefits coverage for annuitants of such agen-
cy.
(2) REGULATIONS.—The Office shall prescribe
such regulations as may be necessary to carry out
this section. The regulations shall be designed to en-
sure at least the following:
(A) Amounts paid by each agency shall be
sufficient to cover the amounts which would
otherwise be payable by such agency (on a
‘‘pay-as-you-go’’ basis), on or after the applica-
ble effective date under paragraph (1), on be-
half of—
(i) individuals who are annuitants of
the agency as of such effective date; and
(ii) individuals who are employed by
the agency as of such effective date, or
who become employed by the agency after
such effective date, after such individuals
have become annuitants of the agency (in-
cluding their survivors).
(B)(i) For purposes of determining any
amounts payable by an agency—
(I) this section shall be treated as if
it had taken effect at the beginning of the
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Title X, Subtitle B
20-year period which ends on the effective
date applicable under paragraph (1) with
respect to such agency; and
(II) in addition to any amounts pay-
able under subparagraph (A), each agency
shall also be responsible for paying any
amounts for which it would have been re-
sponsible, with respect to the 20-year pe-
riod described in subclause (I), in connec-
tion with any individuals who are annu-
itants or employees of the agency as of the
applicable effective date under paragraph
(1).
(ii) Any amounts payable under this sub-
paragraph for periods preceding the applicable
effective date under paragraph (1) shall be pay-
able in equal installments over the 20-year pe-
riod beginning on such effective date.
(c) FASB STANDARDS.—Regulations under sub-
section (b) shall be in conformance with the provisions of
standard 106 of the Financial Accounting Standards
Board, issued in December 1990.
(d) CLARIFICATION.—Nothing in this section shall be
considered to permit or require duplicative payments on
behalf of any individuals.