5 U.S.C. § 8904 — Types of benefits
submitted 60 years ago by Pub. L. 89-554 to r/title-5-GOVERNMENT-ORGANIZATION-AND-EMPLOYEES · 1,121 words · no verdicts yet
This law lists the kinds of health benefits federal plans can offer, like hospital, surgical, and drug coverage. It also limits what providers can charge older retirees not covered by Medicare. Providers who accept Medicare payment must accept equivalent payment under this chapter too.
(a) Plans described in section 8903 can offer these types of benefits. A Service Benefit Plan can cover: hospital benefits; surgical benefits; in-hospital medical benefits; ambulatory patient benefits; supplemental benefits; and obstetrical benefits. An Indemnity Benefit Plan can cover: hospital care; surgical care and treatment; medical care and treatment; obstetrical benefits; prescribed drugs, medicines, and prosthetic devices; and other medical supplies and services. Employee Organization Plans can offer either the Service Benefit Plan types, the Indemnity Plan types, or both. Comprehensive Medical Plans can also offer either type, or both. Every plan contracted for under the Service Benefit or Indemnity categories must include benefits both for general hospital care costs and for other, catastrophic health services.
(b)(1)(A) Except for prepayment plans described in section 8903(4), a plan cannot pay a retired enrollee age 65 or older who lacks Medicare Part A hospital coverage more, for covered inpatient hospital services, than the hospital-charge limits Medicare sets under section 1886 of the Social Security Act. Hospitals that have signed Medicare participation agreements — meaning they accept Medicare payment as full payment after patient copays — must also accept the matching chapter benefit payment and enrollee copay as full payment for those services. OPM must tell HHS if a hospital is found to knowingly and willfully violate this subsection on a repeated basis, and HHS may then impose sanctions.
(B)(i) Similarly, except for prepayment plans, a plan cannot pay a retired enrollee age 65 or older who lacks Medicare Part B coverage more, for covered physicians' services, than the Medicare Part B fee schedule amount. (ii) Physicians and suppliers who have signed Medicare participation agreements — accepting Medicare payment (including deductibles and coinsurance) as full payment — must accept the matching chapter payment and enrollee cost-sharing as full payment too. Physicians and suppliers who do not participate in Medicare Part B cannot charge more than Medicare's "limiting charge" for these same services. OPM must notify a physician or supplier found to violate this rule and explain the requirements and possible penalties, and must tell HHS if a physician or supplier is found to knowingly and willfully violate this clause on a repeated basis, so HHS can impose sanctions.
(C) If HHS decides a violation of this subsection is serious enough to bar a provider from Medicare for a set time, OPM must enforce a matching bar on that provider under this chapter.
(2) HHS, OPM, and their agents must share whatever information is needed to carry out this subsection.
(3)(A) Starting December 1, 1991, and periodically after that, HHS — consulting OPM — must give carriers of plans under section 8903 the Medicare program information they need to follow paragraph (1). (B) That "Medicare program information" includes the Medicare hospital-charge limits and the list of hospitals with Medicare participation agreements, plus the physician fee schedule amounts, limiting charges, and the list of participating physicians and suppliers.
(4) Before the fifth month ahead of each contract year, OPM's Director must arrange with HHS to make sure: (A) physicians and suppliers (participating or not) are told about the requirements in paragraph (1)(B); (B) enforcement steps, including against overcharging patients, are in place; and (C) carriers get the Medicare program information described in paragraph (3)(B)(ii).
The benefits to be provided under plans described by section 8903 of this title may be of the following types:
Hospital benefits.
Surgical benefits.
In-hospital medical benefits.
Ambulatory patient benefits.
Supplemental benefits.
Obstetrical benefits.
Hospital care.
Surgical care and treatment.
Medical care and treatment.
Obstetrical benefits.
Prescribed drugs, medicines, and prosthetic devices.
Other medical supplies and services.
Benefits of the types named under paragraph (1) or (2) of this subsection or both.
Benefits of the types named under paragraph (1) or (2) of this subsection or both.
All plans contracted for under paragraphs (1) and (2) of this subsection shall include benefits both for costs associated with care in a general hospital and for other health services of a catastrophic nature.
A plan, other than a prepayment plan described in section 8903(4) of this title, may not provide benefits, in the case of any retired enrolled individual who is age 65 or older and is not covered to receive Medicare hospital and insurance benefits under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.), to pay a charge imposed by any health care provider, for inpatient hospital services which are covered for purposes of benefit payments under this chapter and part A of title XVIII of the Social Security Act, to the extent that such charge exceeds applicable limitations on hospital charges established for Medicare purposes under section 1886 of the Social Security Act (42 U.S.C. 1395ww). Hospital providers who have in force participation agreements with the Secretary of Health and Human Services consistent with sections 1814(a) and 1866 of the Social Security Act (42 U.S.C. 1395f(a) and 1395cc), whereby the participating provider accepts Medicare benefits as full payment for covered items and services after applicable patient copayments under section 1813 of such Act (42 U.S.C. 1395e) have been satisfied, shall accept equivalent benefit payments and enrollee copayments under this chapter as full payment for services described in the preceding sentence. The Office of Personnel Management shall notify the Secretary of Health and Human Services if a hospital is found to knowingly and willfully violate this subsection on a repeated basis and the Secretary may invoke appropriate sanctions in accordance with section 1866(b)(2) of the Social Security Act (42 U.S.C. 1395cc(b)(2)) and applicable regulations.
A plan, other than a prepayment plan described in section 8903(4), may not provide benefits, in the case of any retired enrolled individual who is age 65 or older and is not entitled to Medicare supplementary medical insurance benefits under part B of title XVIII of the Social Security Act (42 U.S.C. 1395j et seq.), to pay a charge imposed for physicians’ services (as defined in section 1848(j) of such Act, 42 U.S.C. 1395w–4(j)) which are covered for purposes of benefit payments under this chapter and under such part, to the extent that such charge exceeds the fee schedule amount under section 1848(a) of such Act (42 U.S.C. 1395w–4(a)).
Physicians and suppliers who have in force participation agreements with the Secretary of Health and Human Services consistent with section 1842(h)(1) of such Act (42 U.S.C. 1395u(h)(1)), whereby the participating provider accepts Medicare benefits (including allowable deductible and coinsurance amounts) as full payment for covered items and services shall accept equivalent benefit and enrollee cost-sharing under this chapter as full payment for services described in clause (i). Physicians and suppliers who are nonparticipating physicians and suppliers for purposes of part B of title XVIII of such Act shall not impose charges that exceed the limiting charge under section 1848(g) of such Act (42 U.S.C. 1395w–4(g)) with respect to services described in clause (i) provided to enrollees described in such clause. The Office of Personnel Management shall notify a physician or supplier who is found to have violated this clause and inform them of the requirements of this clause and sanctions for such a violation. The Office of Personnel Management shall notify the Secretary of Health and Human Services if a physician or supplier is found to knowingly and willfully violate this clause on a repeated basis and the Secretary of Health and Human Services may invoke appropriate sanctions in accordance with sections 1128A(a) and 1848(g)(1) of such Act (42 U.S.C. 1320a–7a(a), 1395w–4(g)(1)) and applicable regulations.
If the Secretary of Health and Human Services determines that a violation of this subsection warrants excluding a provider from participation for a specified period under title XVIII of the Social Security Act, the Office shall enforce a corresponding exclusion of such provider for purposes of this chapter.
Notwithstanding any other provision of law, the Secretary of Health and Human Services and the Director of the Office of Personnel Management, and their agents, shall exchange any information necessary to implement this subsection.
Not later than December 1, 1991, and periodically thereafter, the Secretary of Health and Human Services (in consultation with the Director of the Office of Personnel Management) shall supply to carriers of plans described in paragraphs (1) through (3) of section 8903 the Medicare program information necessary for them to comply with paragraph (1).
For purposes of this paragraph, the term “Medicare program information” includes (i) the limitations on hospital charges established for Medicare purposes under section 1886 of the Social Security Act (42 U.S.C. 1395ww) and the identity of hospitals which have in force agreements with the Secretary of Health and Human Services consistent with section 1814(a) and 1866 of the Social Security Act (42 U.S.C. 1395f(a) and 1395cc), and (ii) the fee schedule amounts and limiting charges for physicians’ services established under section 1848 of such Act (42 U.S.C. 1395w–4) and the identity of participating physicians and suppliers who have in force agreements with such Secretary under section 1842(h) of such Act (42 U.S.C. 1395u(h)).
The Director of the Office of Personnel Management shall enter into an arrangement with the Secretary of Health and Human Services, to be effective before the first day of the fifth month that begins before each contract year, under which—
physicians and suppliers (whether or not participating) under the Medicare program will be notified of the requirements of paragraph (1)(B);
enforcement procedures will be in place to carry out such paragraph (including enforcement of protections against overcharging of beneficiaries); and
Medicare program information described in paragraph (3)(B)(ii) will be supplied to carriers under paragraph (3)(A).
Source credit: (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 603; Pub. L. 101–508, title VII, § 7002(f)(1), Nov. 5, 1990, 104 Stat. 1388–330; Pub. L. 102–378, § 2(76), Oct. 2, 1992, 106 Stat. 1355; Pub. L. 103–66, title XI, § 11003(a), Aug. 10, 1993, 107 Stat. 409.)
- 1966Enacted · Pub. L. 89-554 · 80 Stat. 603
- 1990Amended · Pub. L. 101-508 · 104 Stat. 1388
- 1992Amended · Pub. L. 102-378 · 106 Stat. 1355
- 1993Amended · Pub. L. 103-66 · 107 Stat. 409
A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-554 on 1966-09-06.
all 0 arguments · sorted by: best
no arguments yet — make the first case