Title VIII, SEC. 8203. TREATMENT OF FEDERAL EMPLOYEES, ANNUITANTS, AND OTHER INDIVIDUALS (WHO WOULD OTHERWISE HAVE BEEN ELIGIBLE FOR FEHBP) UNDER HEALTH PLANS. (a) Applicability. This section sets forth rules applicable, after the FEHBP termination date, with respect to individuals who (1) are eligible individuals under section 1001; and (2) but for this subtitle, would be eligible to enroll in a FEHBP plan. (b) Federal Employees. (1) Same treatment as non federal employees. A Federal employee shall be treated in the same way, for purposes of provisions of this Act outside of this subtitle, as if that individual were a non-Federal employee, including for purposes of any requirements relating to enrollment, individual or family premium payments, and employer premium payments. (2) Employer premium payments. Any employer premium payment required with respect to the employment of a Federal employee shall be payable from the appropriation or fund from which any Government contribution on behalf of such employee would have been payable under FEHBP. (3) Optional offer of fehbp supplemental plans. The Federal Government may, but is not required to (A) offer to Federal employees one or more FEHBP supplemental plans developed under subsection (f)(1); and (B) make a Government contribution with respect to the premium for such a plan. Any Government contribution under subparagraph (B) shall be payable from the same appropriation or fund as would a Government contribution under paragraph (2) on behalf of the Federal employee involved. (4) Definitions. In this subsection: (A) Federal employee. The term ``Federal employee'' means an ``employee'' as defined by section 8201. (B) Non-federal employee. The term ``non Federal employee'' means an ``employee'' as defined by section 1901. (c) Annuitants. (1) Health plan. (A) Authority to make certain withholdings from annuities. The Office of Personnel Management may, on the request of an annuitant enrolled in a health plan, withhold from the annuity of such annuitant any premiums required for such enrollment. The Office shall forward any amounts so withheld to the appropriate fund or as otherwise indicated in the request. A request under this subparagraph shall contain such information, and otherwise be made in such form and manner, as the Office shall by regulation prescribe. (B) Payment of alliance credit liability for annuitants below age 55. In the case of an annuitant who does not satisfy the eligibility requirements under section 6115, a Government contribution shall be made equal to such amount as is necessary to reduce the employee's liability under section 6111 to zero. (2) FEHBP supplemental plan. (A) Current annuitants. (i) In general. Each current annuitant (I) shall be eligible to enroll in FEHBP supplemental plans developed under subsection (f)(1); and (II) shall be eligible for the Government contribution amount described in clause (ii) toward the premium for such a plan. (ii) Government contribution amount. The Office of Personnel Management shall specify a level of Government contribution under this paragraph for a FEHBP supplemental plan. Such level (I) shall reasonably reflect the portion of the Government contributions (last provided under FEHBP) attributable to the portion of FEHBP benefits which the plan is designed to replace; and (II) shall be applied toward premiums for such a plan. (B) Future annuitants. In the case of a future annuitant, the Federal Government may, but is not required (i) to offer to such an annuitant one or more FEHBP supplemental plans developed under subsection (f)(1); and (ii) to make a Government contribution with respect to the premium for such a plan. (C) Definitions. In this paragraph: (i) Current annuitant. The term ``current annuitant'' means an individual who is residing in a State on January 1, 1998, and, on the day before such date, was (I) enrolled in a FEHBP plan as an annuitant; or (II) covered under a FEHBP plan as a family member (but only if such individual would otherwise have been eligible to enroll in a FEHBP plan as an annuitant). (ii) Future annuitant. The term ``future annuitant'' means an annuitant who is not a current annuitant. (d) Individuals Who Would Not Be Eligible for a Government Contribution Under FEHBP. (1) In general. In the case of an individual described in paragraph (2) (A) the Federal Government may, but is not required to, offer one or more FEHBP supplemental plans developed under subsection (f)(1); and (B) no Government contribution shall be payable with respect to the premium for such a plan. (2) Applicability. This subsection shall apply with respect to any individual who (but for this subtitle) would be eligible to enroll in a FEHBP plan, but would not be eligible for a Government contribution toward any such plan. (e) Medicare-Eligible Individuals. (1) Current medicare-eligible individuals. (A) In general. Each current medicare-eligible individual (i) shall be eligible to enroll in medicare supplemental plans developed under subsection (f)(2); and (ii) if such individual would (but for this subtitle) have been eligible for a Government contribution under FEHBP (assuming such individual were then enrolled thereunder), shall be eligible for the Government medicare contribution amount described in subparagraph (B) toward the premium for such a plan or toward the premium of a medicare select plan (as defined in paragraph (3)). (B) Medicare contribution amount. The Office of Personnel Management shall specify a level of Government contribution under this paragraph for a FEHBP medicare supplemental plan. Such level (i) shall reasonably reflect the portion of the Government contributions (last provided under FEHBP) attributable to the portion of FEHBP benefits which the plan is designed to replace; and (ii) except as otherwise provided in paragraph (3), shall be applied toward premiums for such a plan. (2) Future medicare-eligible individuals. In the case of a future medicare-eligible individual, the Federal Government may, but is not required to (A) offer to such a medicare-eligible individual one or more FEHBP medicare supplemental plans developed under subsection (f)(2); and (B) make a Government contribution with respect to the premium for such a plan. (3) Application of contribution toward medicare hmo option. (A) Election. A medicare-eligible individual may elect to have the amount of the Government contribution described in paragraph (1)(B) or referred to in paragraph (2)(B) applied toward premiums for enrollment with an eligible organization under a risk-sharing contract under section 1876 of the Social Security Act. (B) Level contribution rule. The level of such Government contribution on behalf of an individual shall be determined without taking into account any election under subparagraph (A). (4) Definitions. In this subsection: (A) Current medicare-eligible individual. The term ``current medicare-eligible individual'' means an individual who is residing in a State on January 1, 1998, and, on the day before such date, was a medicare-eligible individual. (B) Future medicare-eligible individual. The term ``future medicare-eligible individual'' means a medicare-eligible individual who is not a current medicare-eligible individual. (5) Inapplicability. Subsections (b) through (d) shall not apply with respect to a medicare-eligible individual. (f) Development of Supplemental Plans. (1) FEHBP supplemental plans. The Office of Personnel Management shall develop one or more FEHBP supplemental plans which are supplemental health benefit policies or cost sharing policies (as defined in section 1421(b)). Each such plan shall (A) be consistent with the applicable requirements of part 2 of subtitle E of title I (including the requirements under section 1423(f)); and (B) reflect (taking into consideration the benefits in the comprehensive benefit package) the overall level of benefits generally afforded under FEHBP (as last in effect). (2) FEHBP medicare supplemental plans. The Office of Personnel Management shall develop one or more medicare supplemental plans. Each such plan shall (A) offer benefits which shall include the core group of basic benefits identified under section 1882(p)(2) of the Social Security Act; and (B) reflect (taking into consideration the benefits provided under the medicare program) the overall level of benefits generally afforded under FEHBP (as last in effect). (g) Authorization of appropriations. The Government contributions authorized by this section on behalf of an annuitant (including an annuitant who is a medicare-eligible individual) shall be paid from annual appropriations which are authorized to be made for that purpose and which may be made available until expended. (h) Fund. (1) Establishment. There shall be established in the Treasury of the United States a fund into which shall be paid all contributions relating to any (A) FEHBP supplemental plan developed under subsection (f)(1); (B) FEHBP medicare supplemental plan developed under subsection (f)(2); or (C) health insurance program established under section 8204. (2) Administration and use. The fund shall be administered by the Office of Personnel Management, and any monies in the fund shall be available for purposes of the plan or program (referred to in paragraph (1)) to which they are attributable.