An Act to amend chapter 89 of title 5, United States Code, to establish uniformity in Federal employee health benefits and coverage by preempting certain State or local laws which are inconsistent with such contracts, and for other purposes.
PL 95-368 (H.R.2931), enacted 09/17/1978

92 STAT. 606 
PUBLIC LAW 95-368—SEPT. 17, 1978 
Public Law 95-368 
95th Congress 
Sept. 17. 1978 
[H.R. 2931] 
Federal 
employees. 
Uniformity in 
health benefits, 
establishment. 
Effective 
date; 
limitation. 
5 use 8902 
note. 
An Act 
To amend chapter 89 of title 5, United States Code, to establish uniformity in Fed-
eral employee health benefits and coverage by preempting certain State or 
local laws which are inconsistent with such contracts, and for other purposes. 
Be it enacted hy the Senate and House of Representati/ves of the 
United States of America in Congress assembled. That section 8902 
of title 5, United States Code, relating to contracts for Federal 
employee health benefits plans, is amended by adding at the end 
thereof the following new subsection: 
"(m) (1) The provisions of any contract under this chapter which 
relate to the nature or extent of coverage or benefits (including pay-
ments with respect to benefits) shall supersede and preempt any State 
or local law, or any regulation issued thereunder, which relates to 
health insurance or plans to the extent that such law or regulation is 
inconsistent with such contractual provisions. 
"(2) (A) Notwithstanding the provisions of paragraph (1) of this 
subsection, if a contract under this chapter provides for the provision 
of, the payment for, or the reimbursement of the cost of health services 
for the care and treatment of any particular health condition, the 
carrier shall provide, pay, or reimburse up to the limits of its contract 
for any such health service properly provided by any person licensed 
under State law to provide such service if such service is provided to 
an individual covered by such contract who is a member of a medically 
underserved population (within the meaning of section 1302(7) of 
the Public Health Service Act (42 U.S.C. 300e-l7)). 
"(B) The provisions of subparagraph (A) shall not apply to con-
tracts entered into providing prepayment plans described in section 
8903(4) of this title.". 
SEC. 2. Section 8901(8) of title 5, United States Code, is amended 
by striking out "before January 1, 1964" and inserting in lieu thereof 
"after December 31,1978, and before January 1,1980". 
SEC. 3. The provisions of section 8902 (m) (2) of title 5, United States 
Code, as added by the first section of this Act, shall apply to services 
provided under any contract entered into or renewed after Decem-
ber 31, 1979; except that such provisions shall not apply to services 
provided after December 31,1984. 
Approved September 17, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-282 (Comm. on Post Office and Civil Service). 
SENATE REPORT No. 95-903 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD: 
Vol. 123 (1977): June 20, considered and passed House. 
Vol. 124 (1978): June 5, considered and passed Senate, amended. 
Aug. 10, House concurred in certain Senate amendments, in 
others with amendments. 
Aug. 25, Senate concurred in House amendments.