Federal Employees Health Benefits Acquisition Regulations: Self Plus One and Contract Matrix Update

Citation85 FR 16907
Record Number2020-06015
Published date25 March 2020
SectionRules and Regulations
CourtPersonnel Management Office
Federal Register, Volume 85 Issue 58 (Wednesday, March 25, 2020)
[Federal Register Volume 85, Number 58 (Wednesday, March 25, 2020)]
                [Rules and Regulations]
                [Pages 16907-16910]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-06015]
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                OFFICE OF PERSONNEL MANAGEMENT
                48 CFR Parts 1603 and 1652
                RIN 3206-AN56
                Federal Employees Health Benefits Acquisition Regulations: Self
                Plus One and Contract Matrix Update
                AGENCY: Office of Personnel Management.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: The Office of Personnel Management (OPM) is making a technical
                correction to the Federal Employees Health Benefits Acquisition
                Regulations (FEHBAR) to add the self plus one enrollment type to
                carrier advertising instructions. OPM is also updating and amending the
                Federal Employees Health Benefits (FEHB) Program contract clause
                matrix.
                DATES: This rule is effective March 25, 2020.
                FOR FURTHER INFORMATION CONTACT: Michael W. Kaszynski, Senior Policy
                Analyst, at [email protected].
                SUPPLEMENTARY INFORMATION: On April 2, 2019, OPM issued proposed
                regulations to the FEHBAR (84 FR 12569) to list a self plus one
                enrollment type in carrier advertising instructions. The proposed rule
                clarified that carriers are required to list all current enrollment
                types when advertising their health plans enrollment codes and premium
                rates to enrollees. This change is a technical correction and does not
                alter current FEHB family member eligibility guidelines.
                 Section 706 of the Bipartisan Budget Act of 2013 amended chapter 89
                of title 5 United States Code by adding a self plus one enrollment type
                for Federal employees and annuitants under the FEHB Program. The self
                plus one enrollment type became available during the 2015 Open Season
                for the 2016 plan year and was codified in a final rule at https://www.federalregister.gov/documents/2015/09/17/2015-23348/federal-employees-health-benefits-program-self-plus-one-enrollment-type. A self
                plus one enrollment covers the enrollee and one eligible family member,
                designated by the enrollee. Eligible family members under a self plus
                one enrollment include a spouse or eligible child as set forth in Sec.
                890.302 of title 5 CFR.
                 This final rule amends the FEHBAR at 48 CFR part 1603 to list a
                self plus one enrollment type in the advertising instructions. OPM
                considers this change a technical correction as it does not change the
                operational requirements of the FEHB Program and does not alter current
                FEHB family member eligibility guidelines.
                 This final rule also updates and amends the contract clause matrix
                to align with current FAR and FEHBAR requirements. OPM publishes
                applicable contract clauses and clause headings in the FEHBAR.
                Annually, OPM determines which Federal Acquisition Regulation (FAR) and
                FEHBAR contract clauses are applicable to FEHB carrier contracts and
                includes them in these contracts.
                 The proposed regulation provided notice to interested stakeholders
                that OPM is updating the FEHBAR contract clause matrix at 48 CFR
                1652.370. This final regulation updates the contract clause matrix to
                align with current FAR and FEHBAR requirements and include clauses
                currently incorporated in all Federal Employees Health Benefits (FEHB)
                Program carrier contracts.
                Response to Comments
                 The 30-day comment period for the proposed rule ended on May 2,
                2019. OPM received comments from a citizen and an association of FEHB
                health organizations. The citizen commenter, who supports the
                regulatory change, asserted that is important that federal
                [[Page 16908]]
                workers have a clear ability to see self and self plus one codes.
                 OPM also received comments from an association of health
                organizations. The association expressed support for OPM's update to
                the FEHBAR matrix and suggested a few technical corrections. The
                commenter stated that the title at FAR 52.204-7 should read ``Award
                Management.'' This change has been incorporated into this final rule.
                 The commenter also proposed a change at FAR 52.203-19 (Prohibition
                on Requiring Certain Internal Confidentiality Agreements or Statements)
                to apply this clause to only community rated carrier contracts. FAR
                3.909-3(b)(1) directs us to include the clause at 52.203-19,
                Prohibition on Requiring Certain Internal Confidentiality Agreements or
                Statements, in all solicitations and resultant contracts, other than
                personal services contracts with individuals. Therefore, no change has
                been made to the final rule based on this comment.
                 The commenter stated that FAR Clause 52.204-9, captioned
                ``Personnel Identity Verification of Contractor Personnel'' applies to
                experience rated carrier contracts based on their use of OPM's letter
                of credit system but suggested that the clause does not apply to
                community rated carriers. OPM agrees with this comment. Accordingly,
                the ``T'' has been removed from community rated carrier contracts
                column of the matrix for this clause.
                 The commenter recommended that we adopt FAR 52.204-23 (Prohibition
                on Contracting for Hardware, Software, and Services Developed or
                Provided by Kaspersky Lab and Other Covered Entities) for both
                community rated and experience rated carrier contracts. We agree that
                this is an appropriate change, so we have added the clause to the
                matrix for both experience rated and community rated carrier contracts.
                 The commenter also proposed that we update the FEHBAR Truth in
                Negotiations Act (TINA) threshold. The FEHBAR contract clauses that
                reference the TINA dollar threshold state that the threshold shall be
                adjusted by the same amount and at the same time as any change to the
                threshold for application of the Truth in Negotiations Act pursuant to
                41 U.S.C. 254b(a)(7). Therefore, the clauses are self-updating and
                there is no need to further update the FEHBAR.
                Regulatory Impact Analysis
                 Executive Orders 12866 and 13563 direct agencies to assess all
                costs and benefits of available regulatory alternatives and, if
                regulation is necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety effects, distribute impacts, and equity). Executive
                Order 13563 also emphasizes the importance of quantifying both costs
                and benefits, of reducing costs, of harmonizing rules, and of promoting
                flexibility. This rule is not a significant regulatory action under
                E.O. 12866.
                Reducing Regulation and Controlling Regulatory Costs
                 This final rule is not an E.O. 13771 regulatory action because is
                not significant under E.O. 12866.
                Regulatory Flexibility Act
                 The Office of Personnel Management certifies that this rule will
                not have a significant economic impact on a substantial number of small
                entities.
                Federalism
                 We have examined this rule in accordance with Executive Order
                13132, Federalism, and have determined that this rule will not have any
                negative impact on the rights, roles and responsibilities of state,
                local, or tribal governments.
                Civil Justice Reform
                 This regulation meets the applicable standard set forth in
                Executive Order 12988.
                Unfunded Mandates Reform Act of 1995
                 This rule will not result in the expenditure by state, local, and
                tribal governments, in the aggregate, or by the private sector, of $100
                million or more in any year and it will not significantly or uniquely
                affect small governments. Therefore, no actions were deemed necessary
                under the provisions of the Unfunded Mandates Reform Act of 1995.
                Congressional Review Act
                 This action pertains to agency management, personnel, and
                organization and does not substantially affect the rights or
                obligations of no agency parties and, accordingly, is not a ``rule'' as
                that term is used by the Congressional Review Act (Subtitle E of the
                Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
                Therefore, the reporting requirement of 5 U.S.C. 801 does not apply.
                Paperwork Reduction Act
                 Notwithstanding any other provision of law, no person is required
                to respond to, nor shall any person be subject to a penalty for failure
                to comply with a collection of information subject to the requirements
                of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
                unless that collection of information displays a currently valid Office
                of Management and Budget (OMB) Control Number. This rule involves an
                OMB approved collection of information subject to the PRA--OMB No.
                3206-0160, Health Benefits Election Form. The public reporting burden
                for this collection is estimated to average 30 minutes per response,
                including time for reviewing instructions, searching existing data
                sources, gathering and maintaining the data needed, and completing and
                reviewing the collection of information. The total burden hour estimate
                for this form is 9,000 hours. The systems of record notice for this
                collection is: OPM/Central 1 Civil Service Retirement and Insurance
                Records, available at https://www.opm.gov/information-management/privacy-policy/sorn/opm-sorn-central-1-civil-service-retirement-and-insurance-records.pdf.
                List of Subjects in 48 CFR Parts 1603 and 1652
                 Government employees, Government procurement, Health insurance,
                Reporting and recordkeeping requirements.
                Office of Personnel Management.
                Alexys Stanley,
                Regulatory Affairs Analyst.
                 Accordingly, OPM amends title 48, Code of Federal Regulations,
                parts 1603 and 1652, as follows:
                PART 1603--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
                INTEREST
                0
                1. The authority citation for part 1603 continues to read as follows:
                 Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
                0
                2. In Sec. 1603.7002, paragraph (e) is revised to read as follows:
                1603.7002 Additional guidelines.
                * * * * *
                 (e)(1) Not give instructions on enrollment. Statements on
                enrollment procedures, requirements, or eligibility shall be limited to
                those such as: To sign up, fill out a Health Benefits Election Form
                (Standard Form 2809) from your personnel office indicating the
                enrollment you want or use your agency's electronic enrollment system.
                 (2) The enrollment codes for (plan's name) are:
                (i) Self Only __ Enrollment Code __
                (i) Self Plus One __ Enrollment Code __
                [[Page 16909]]
                (iii) Self and Family __ Enrollment Code __
                 (3) The form must then be returned to your personnel office before
                the (date) deadline. Your (plan's name) coverage will begin the first
                pay period in January, (year). If you are a retired Federal employee
                and need forms, contact the Office of Personnel Management, 1900 E
                Street NW, Attn: Retirement Benefits Branch, Washington, DC 20415 or
                visit www.opm.gov/forms.
                * * * * *
                PART 1652--CONTRACT CLAUSES
                0
                3. The authority citation for part 1652 continues to read as follows:
                 Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
                0
                4. Section 1652.370 is revised to read as follows
                1652.370 Use of the matrix.
                 (a) The matrix in this section lists the FAR and FEHBAR clauses to
                be used with contracts based on cost analysis and contracts based on a
                combination of cost and price analysis. Carriers shall submit initial
                applications and requests for renewals on the basis that the new
                contract or contract renewal will include the clauses indicated.
                 (b) Certain contract clauses are mandatory for FEHBP contracts.
                Other clauses are to be used only when made applicable by pertinent
                sections of the FAR or FEHBAR. An ``M'' in the ``Use Status'' column
                indicates that the clause is mandatory. An ``A'' indicates that the
                clause is to be used only when the applicable conditions are met.
                 (c) Clauses are incorporated in the contract either in full text or
                by reference. If the full text is to be used, the matrix indicates a
                ``T''. If the clause is incorporated by reference, the matrix indicates
                an ``R''.
                 FEHBP Clause Matrix
                ----------------------------------------------------------------------------------------------------------------
                 Use with Use with
                 Clause Title Use status experience community rated
                 rated contracts contracts
                ----------------------------------------------------------------------------------------------------------------
                FAR 52.202-1...................... Definitions.............. M T T
                FAR 52.203-3...................... Gratuities............... M T T
                FAR 52.203-5...................... Covenant Against M T T
                 Contingent Fees.
                FAR 52.203-7...................... Anti-Kickback Procedures. M T T
                FAR 52.203-12..................... Limitation on Payments to M T T
                 Influence Certain
                 Federal Transactions.
                FAR 52.203-13..................... Contractor Code of M T T
                 Business Ethics and
                 Conduct.
                FAR 52.203-17..................... Contractor Employee M T T
                 Whistleblower Rights and
                 Requirement to Inform
                 Employees of
                 Whistleblower Rights.
                FAR 52.203-19..................... Prohibition Requiring M T T
                 Internal Confidentiality
                 Agreements or Statements.
                FAR 52.204-7...................... System For Award M T T
                 Management.
                FAR 52.204-9...................... Personnel Identity M T ...............
                 Verification of
                 Contractor Personnel.
                FAR 52.204-21..................... Basic Safeguarding of M T T
                 Contractor Information
                 Systems.
                FAR 52.204-23..................... Prohibition on M T T
                 Contracting for
                 Hardware, Software, and
                 Services Developed or
                 Provided by Kaspersky
                 Lab and Other Covered
                 Entities.
                FAR 52.209-9...................... Updates of Publicly M T ...............
                 Available Information
                 Regarding Responsibility
                 Matters.
                1652.203-70....................... Misleading, Deceptive, or M T T
                 Unfair Advertising.
                1652.204-70....................... Contractor Records M T T
                 Retention.
                1652.204-71....................... Coordination of Benefits. M T T
                1652.204-72....................... Filing Health Benefit M T T
                 Claims/Court Review of
                 Disputed Claims.
                1652.204-73....................... Taxpayer Identification M T T
                 Number.
                1652.204-74....................... Large Provider Agreements M T ...............
                FAR 52.209-6...................... Protecting the M T T
                 Government's Interest
                 When Subcontracting With
                 Contractors Debarred,
                 Suspended, or Proposed
                 for Debarment.
                FAR 52.215-2...................... Audit & Records-- M T T
                 Negotiation.
                FAR 52.215-10..................... Price Reduction for M T ...............
                 Defective Cost or
                 Pricing Data.
                FAR 52.215-12..................... Subcontractor Certified M T ...............
                 Cost or Pricing Data.
                FAR 52.215-15..................... Pension Adjustments and M T ...............
                 Asset Reversions.
                FAR 52.215-18..................... Reversion or Adjustment M T ...............
                 of Plans for
                 Postretirement Benefits
                 (PRB) Other Than
                 Pensions.
                1652.215-70....................... Rate Reduction for M T T
                 Defective Pricing or
                 Defective Cost or
                 Pricing Data.
                1652.215-71....................... Investment Income........ M T ...............
                1652.216-70....................... Accounting and Price M ............... T
                 Adjustment.
                1652.216-71....................... Accounting and Allowable M T ...............
                 Cost.
                FAR 52.219-8...................... Utilization of Small M T T
                 Business Concerns.
                FAR 52.222-1...................... Notice to the Government M T T
                 of Labor Disputes.
                FAR 52.222-3...................... Convict Labor............ M T T
                FAR 52.222-4...................... Contract Work Hours and M T T
                 Safety Standards Act--
                 Overtime Compensation.
                FAR 52.222-21..................... Prohibition of Segregated M T T
                 Facilities.
                FAR 52.222-26..................... Equal Opportunity........ M T T
                FAR 52.222-29..................... Notification of Visa A T T
                 Denial.
                FAR 52.222-35..................... Equal Opportunity for M T T
                 Veterans.
                FAR 52.222-36..................... Equal Opportunity for M T T
                 Workers With
                 Disabilities.
                [[Page 16910]]
                
                FAR 52.222-37..................... Employment Reports on M T T
                 Veterans.
                FAR 52.222-50..................... Combating Trafficking in M T T
                 Persons.
                FAR 52.222.54..................... Employment Eligibility M T T
                 Verification.
                1652.222-70....................... Notice of Significant M T T
                 Events.
                FAR 52.223-6...................... Drug-Free Workplace...... A T T
                FAR 52.223-18..................... Encouraging Contractor M T T
                 Policies to Ban Text
                 Messaging While Driving.
                1652.224-70....................... Confidentiality of M T T
                 Records.
                FAR 52.227-1...................... Authorization and Consent M T T
                FAR 52.227-2...................... Notice and Assistance M T T
                 Regarding Patent and
                 Copyright Infringement.
                FAR 52.229-4...................... Federal, State and Local M T T
                 Taxes (State and local
                 Adjustments.
                1652.229-70....................... Taxes--Foreign Negotiated A T T
                 Benefits Contracts.
                FAR 52.232-8...................... Discounts for Prompt M T T
                 Payment.
                FAR 52.232-17..................... Interest................. M T T
                FAR 52.232-23..................... Assignment of Claims..... A T T
                FAR 52.232-33..................... Payment by Electronic M T T
                 Funds Transfer--System
                 for Awards Management.
                1652.232-70....................... Payments--Community-Rated A ............... T
                 Contracts.
                1652.232-71....................... Payments--Experience- A T ...............
                 Rated Contracts.
                1652.232-72....................... Non-Commingling of FEHBP M T ...............
                 Funds.
                1652.232-73....................... Approval for Assignment M T T
                 of Claims.
                FAR 52.233-1...................... Disputes................. M T T
                FAR 52.233-4...................... Applicable Law for Breach M T T
                 of Contract Claim.
                FAR 52.239-1...................... Privacy or Security M T T
                 Safeguards.
                FAR 52.242-1...................... Notice of Intent to M T ...............
                 Disallow Costs.
                FAR 52.242-3...................... Penalties for Unallowable M T ...............
                 Costs.
                FAR 52.242-13..................... Bankruptcy............... M T T
                1652.243-70....................... Changes--Negotiated M T T
                 Benefits Contracts.
                FAR 52.244-5...................... Competition in M T ...............
                 Subcontracting.
                FAR 52.244-6...................... Subcontracts for M T ...............
                 Commercial Items.
                1652.244-70....................... Subcontracts............. M T ...............
                1652.245-70....................... Government Property M T T
                 (Negotiated Benefits
                 Contracts).
                FAR 52.246-25..................... Limitation of Liability-- M T ...............
                 Services.
                1652.246-70....................... FEHB Inspection.......... M T T
                FAR 52.247-63..................... Preference for U.S.-Flag M T T
                 Air Carriers.
                1652.249-70....................... Renewal and Withdrawal of M T T
                 Approval.
                1652.249-71....................... FEHBP Termination for M T T
                 Convenience of the
                 Government--Negotiated
                 Benefits Contracts.
                1652.249-72....................... FEHBP Termination for M T T
                 Default--Negotiated
                 Benefits Contracts.
                FAR 52.251-1...................... Government Supply Sources A T ...............
                FAR 52.252-4...................... Alterations in Contract.. A T T
                FAR 52.252-6...................... Authorized Deviations in M T T
                 Clauses.
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                [FR Doc. 2020-06015 Filed 3-24-20; 8:45 am]
                 BILLING CODE 6325-63-P
                

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