A bill to permit Employee Organizations, which are not eligible to participate in the Federal Employees Health Benefits Program solely because of the requirement that applications for approval be filed before January 1, 1980, to apply for approval to offer a health benefits plan.
PL 99-53 (H.R.873), enacted 06/17/1985

PUBLIC LAW 99-53—JUNE 17, 1985 
99 STAT. 93 
Public Law 99-53 
99th Congress 
An Act 
To amend title 5, United States Code, to provide that employee organizations which 
are not eligible to participate in the Federal employees health benefits program 
solely because of the requirement that applications for approval be filed before 
January 1,1980, may apply to become so eligible, 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. AUTHORITY FOR ADDITIONAL EMPLOYEE ORGANIZATION 
PLANS. 
(a) DEFINITION OF AN EMPLOYEE ORGANIZATION.—Section 8901(8) of 
title 5, United States Code, is amended to read as follows: 
"(8) 'employee organization' meails— 
"(A) 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 this chapter and 
which, after December 31, 1978, and before January 1, 1980, 
applied to the Office for approval of a plan provided under 
section 8903(3) of this title; and 
"(B) an association or other organization which is na-
tional in scope, in which membership is open only to 
employees, annuitants, or former spouses, or any combina-
tion thereof, and which, during the 90-day period beginning 
on the date of enactment of section 8903a of this title, 
applied to the Office for approval of a plan provided under 
such section;". 
(b) AUTHORITY FOR ADDITIONAL PLANS.— 
(1) Title 5, United States Code, is amended by inserting after 
section 8903 the following: 
"§ 8903a. Additional health beneHts plans 
"(a) In addition to any plan under section 8903 of this title, the 
Office of Personnel Management may contract for or approve one or 
more health benefits plans under this section. 
"(b) A plan under this section may not be contracted for or 
approved unless it— 
"(1) is sponsored or underwritten, and administered, in whole 
or substantial part, by an employee organization described in 
section 8901(8)(B) of this title; 
"(2) offers benefits of the types named by paragraph (1) or (2) 
of section 8904 of this title or both; 
"(3) provides for benefits only by paying for, or providing 
reimbursement for, the cost of such benefits (as provided for 
under paragraph (1) or (2) of section 8903 of this title) or a 
combination thereof; and 
"(4) is available only to individuals who, at the time of 
enrollment, are full members of the organization and to mem-
bers of their families. 
June 17, 1985 
[H.R. 873] 
Government 
organization and 
employees. 
Health and 
medical care. 
Infra. 
5 u s e 8903a. 
Contracts. 
Contracts. 
Supra. 
99 STAT. 94 
PUBLIC LAW 99-53—JUNE 17, 1985 
Contracts. 
"(c) A Contract for a plan approved under this section shall 
require the carrier— 
"(1) to enter into an agreement approved by the Office with 
an underwriting subcontractor licensed to issue group health 
insurance in all the States and the District of Columbia; or 
"(2) to demonstrate ability to meet reasonable minimum 
financial standards prescribed by the Office. 
"(d) For the purpose of this section, an individual shall be consid-
ered a full member of an organization if such individual is eligible to 
exercise all rights and privileges incident to full membership in such 
organization (determined without regard to the right to hold elected 
office).". 
(2) The analysis for chapter 89 of title 5, United States Code, is 
amended by inserting after the item relating to section 8903 the 
following: 
"8903a. Additional health benefits plans.". 
SEC. 2. TECHNICAL AND CONFORMING AMENDMENTS. 
98 Stat. 3203. 
(a) Sections 8902(a), 8902(e), 8902(i), 8905(a), 8905(cXl), 8905(f), 
8908(b), and 8913(b) of title 5, United States Code, are each amended 
by striking out "8903 of this title" and inserting in lieu thereof 
"8903 or 8903a of this title". 
(b) Section 8903(3) of title 5, United States Code, is amended by 
striking out "employee organizations," and inserting in lieu thereof 
"employee organizations described in section 8901(8)(A) of this 
title,". 
(c) Section 8905(f) of title 5, United States Code, is further amend-
ed by striking out "plan described by that section" and inserting in 
lieu thereof "such plan". 
(d) Section 8907(a) of title 5, United States Code, is amended by 
striking out "section 8903" and inserting in lieu thereof "sections 
8903 and 8903a". 
(e) Section 8909(d) of title 5, United States Code, is amended— 
(1) by inserting "or 8903a" before "of this title"; and 
Contracts. 
(2) by adding at the end thereof the following: "If the succes-
sor organization is an organization described in section 
8901(8)(B) of this title, any employee, annuitant, or former 
spouse so transferred may not remain enrolled in the plan after 
the end of the contract term in which the merger occurs unless 
that individual is a full member of such organization (as deter-
mined under section 8903a(d) of this title).". 
(f) Section 8909(e) of title 5, United States Code, is amended by 
inserting "or 8903a" before "of this title". 
42 use 1395s. 
(g) Section 1840(d)(1) of the Social Security Act is amended by 
inserting "or 8903a" after "8903". 
SEC. 3. INSURANCE COVERAGE FOR RESTORED DISABILITY ANNUITANTS. 
(a) HEALTH INSURANCE.— 
(1) Section 8908 of title 5, United States Code, is amended by 
adding at the end thereof the following: 
"(c) A disability annuitant whose disability annuity under section 
8337 of this title was terminated and-is later restored under the 
second or third sentence of subsection (e) of such section may, under 
regulations prescribed by the Office, enroll in a health benefits plan 
Ante, p. 93. 
described by section 8903 or 8903a of this title if such annuitant was 
covered by any such plan immediately before such annuity was 
terminated.". 
PUBLIC LAW 99-53—JUNE 17, 1985 
99 STAT. 95 
(2)(A) The section heading for section 8908 of title 5, United 
States Code, is amended to read as follows: 
"§ 8908. Coverage of restored employees and survivor or disability 
annuitants". 
(B) The analysis for chapter 89 of title 5, United States Code, 
is amended by striking out the item relating to section 8908 and 
inserting in lieu thereof the following: 
"8908. Coverage of restored employees and survivor or disability annuitants.". 
(b) LIFE INSURANCE.—Section 8706 of title 5, United States Code, is 
98 Stat. 351. 
amended by adding at the end thereof the following: 
"(g) If the insurance of a former employee receiving a disability 
annuity under section 8337 of this title stops because of the termi-
nation of such annuity, and such annuity is thereafter restored 
under the second or third sentence of subsection (e) of such section, 
such former employee may, under regulations prescribed by the 
Office, elect to resume the insurance coverage which was so 
stopped.". 
(c) APPLICABILITY; NOTIFICATION REQUIREMENT; CONSTRUCTION.— 
5 use 8706 note. 
(1) The amendments made by this section shall apply with 
respect to any individual whose disability annuity is or was 
restored under section 8337(e) of title 5, United States Code, 
after December 31,1983. 
(2)(A) The Office of Personnel Management shall notify each 
individual under subparagraph (B) of any rights which such 
individual may have under section 8706(g) or section 8908(c) of 
Supra; ante, 
title 5, United States Code, as amended by this section, includ- 
P ^^• 
ing any procedures or deadlines which may apply with respect 
to the exercise of those rights. 
(B) Notification under this paragraph shall be provided to any 
individual who, as of the 90th day after the date of enactment of 
this Act, is receiving a disability annuity which was restored to 
such individual under section 8337(e) of title 5, United States 
Code, after December 31,1983. 
(3)(A) Nothing 
in this section 
shall 
be construed to 
authorize— 
(i) coverage under chapter 87 of title 5, United States 
Code, in the case of any individual who makes an election 
5 use 8701 
under section 8706(g) of such title (as amended by this Act), 
^
^ «^9 
for any period before the date of such election; or 
(ii) coverage under chapter 89 of title 5, United States 
5 use 8901 
Code, in the case of any individual who becomes enrolled in 
^
^ «^9 
a health benefits plan under section 8908(c) of such title (as 
amended by this Act), for any period before the date as of 
which such individual becomes so enrolled. 
99 STAT. 96 
PUBLIC LAW 99-53—JUNE 17, 1985 
(B) This paragraph applies with respect to any individual 
receiving a disability annuity which is or was restored 
under section 8337(e) of title 5, United States Code, after 
December 31, 1983, and before the expiration of the 90-day 
period beginning on the date of enactment of this Act. 
Approved June 17, 1985. 
LEGISLATIVE HISTORY—H.R. 873: 
HOUSE REPORT No. 99-72 (Comm. on Post Office and Civil Service). 
CONGRESSIONAL RECORD, Vol. 131 (1985): 
May 13, considered and passed House. 
June 3, considered and passed Senate.