83 FR 32191 - Federal Employees Health Benefits Program and Federal Employees Dental and Vision Insurance Program: Expiration of Coverage of Children of Same-Sex Domestic Partners; Federal Flexible Benefits Plan: Pre-Tax Payment of Health Benefits Premiums: Conforming Amendments

OFFICE OF PERSONNEL MANAGEMENT

Federal Register Volume 83, Issue 134 (July 12, 2018)

Page Range		32191-32193
FR Document		2018-14938

On October 30, 2013, OPM published final regulations in the Federal Register to expand coverage for children of same-sex domestic partners under the Federal Employees Health Benefits (FEHB) Program and the Federal Employees Dental and Vision Insurance Program (FEDVIP). The regulation allowed children of same-sex domestic partners living in states that did not allow same-sex couples to marry to be covered family members under the FEHB and the FEDVIP. Due to a subsequent Supreme Court decision legalizing same-sex marriage in all states, OPM published an interim final regulation on December 2, 2016, that created a regulatory exception that only allowed children of same-sex domestic partners living overseas to maintain their FEHB and FEDVIP coverage until September 30, 2018. OPM recognized that there were additional requirements placed on overseas federal employees that did not apply to other civilian employees with duty stations in the United States making it difficult to travel to the United States to marry their same-sex partners. Understanding that we have provided agencies with additional time for compliance given that overseas federal employees may not have been able to marry immediately following the Supreme Court decision, OPM is issuing a final rule removing references to domestic partners and domestic partnerships from the regulations. Based on the Supreme Court decision and the two additional year's lead time for domestic partners overseas to marry, the current language in the CFR is not needed and may be somewhat confusing. There is no change in coverage for children whose same-sex partners are married.

Federal Register, Volume 83 Issue 134 (Thursday, July 12, 2018)

[Federal Register Volume 83, Number 134 (Thursday, July 12, 2018)]
[Rules and Regulations]
[Pages 32191-32193]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14938]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 83, No. 134 / Thursday, July 12, 2018 / Rules 
and Regulations

[[Page 32191]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 890, 892, and 894

RIN 3206-AN34


Federal Employees Health Benefits Program and Federal Employees 
Dental and Vision Insurance Program: Expiration of Coverage of Children 
of Same-Sex Domestic Partners; Federal Flexible Benefits Plan: Pre-Tax 
Payment of Health Benefits Premiums: Conforming Amendments

AGENCY: U.S. Office of Personnel Management.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: On October 30, 2013, OPM published final regulations in the 
Federal Register to expand coverage for children of same-sex domestic 
partners under the Federal Employees Health Benefits (FEHB) Program and 
the Federal Employees Dental and Vision Insurance Program (FEDVIP). The 
regulation allowed children of same-sex domestic partners living in 
states that did not allow same-sex couples to marry to be covered 
family members under the FEHB and the FEDVIP. Due to a subsequent 
Supreme Court decision legalizing same-sex marriage in all states, OPM 
published an interim final regulation on December 2, 2016, that created 
a regulatory exception that only allowed children of same-sex domestic 
partners living overseas to maintain their FEHB and FEDVIP coverage 
until September 30, 2018. OPM recognized that there were additional 
requirements placed on overseas federal employees that did not apply to 
other civilian employees with duty stations in the United States making 
it difficult to travel to the United States to marry their same-sex 
partners. Understanding that we have provided agencies with additional 
time for compliance given that overseas federal employees may not have 
been able to marry immediately following the Supreme Court decision, 
OPM is issuing a final rule removing references to domestic partners 
and domestic partnerships from the regulations. Based on the Supreme 
Court decision and the two additional year's lead time for domestic 
partners overseas to marry, the current language in the CFR is not 
needed and may be somewhat confusing. There is no change in coverage 
for children whose same-sex partners are married.

DATES: This rule is effective on September 30, 2018.

FOR FURTHER INFORMATION CONTACT: Michael W. Kaszynski, Senior Policy 
Analyst, at Michael.Kaszynski@opm.gov or (202) 606-0004.

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking

    The Federal Employees Health Benefits (FEHB) Program is 
administered by the Office of Personnel Management (OPM) in accordance 
with Title 5, Chapter 89 United States Code and our implementing 
regulations (title 5, parts 890, 892, 894 and title 48, chapter 16). 
The statute establishes the basic rules for benefits, enrollment, and 
participation in the Federal insurance programs.

Background

    The Federal Employees Health Benefits (FEHB) Program provides 
health insurance to about 8.2 million Federal employees, retirees, and 
their dependents each year. It is the largest employer-sponsored health 
insurance program in the country providing more than $53 billion in 
health care benefits annually. Coverage options available to eligible 
individuals include self only, self plus one or self and family 
coverage in an approved health benefits plan. Eligible family members 
include the spouse of an employee or annuitant and a child under 26 
years of age, including adopted children, stepchildren or foster 
children or a child regardless of age who is incapable of self-support 
because of mental or physical disability which existed before age 26.
    Effective January 1, 2014, the Office of Personnel Management (OPM) 
published the ``Federal Employees Health Benefits Program and Federal 
Employees Dental and Vision Insurance Program: Expanding Coverage of 
Children; Federal Flexible Benefits Plan: Pre-Tax Payment of Health 
Benefits Premiums: Conforming Amendments'' final rule (78 FR 64873) to 
extend FEHB and FEDVIP coverage to children of same-sex domestic 
partners of Federal employees and annuitants who would marry their 
partners but live in states that did not allow same-sex couples to 
marry. As the result of the June 26, 2015, Supreme Court Obergefell v. 
Hodges decision, all U.S. states now allow same-sex couples to marry. 
Accordingly, as of January 2016, coverage of an enrollee's 
stepchild(ren) is only allowed if the couple is married. OPM also 
published an interim final regulation (81 FR 86905) on December 2, 
2016. The rule amended Sec. Sec.  890.302 and 894.101 of title 5, Code 
of Federal Regulations. The amendments allow an employing agency to 
request, and for OPM to grant, a continued coverage exception for 
children of an employee's same-sex domestic partner living outside the 
United States. Any coverage under such an exception will not extend 
beyond September 30, 2018. The OPM recognized there were additional 
requirements placed on overseas employees (as compared to civilian 
employees with duty stations in the United States) making it difficult 
to travel to the United States to marry same-sex partners. Therefore, 
OPM created the authority to allow an exception for children of Federal 
employees in a domestic partnership and living outside of the United 
States. If requested by an enrollee's agency, coverage of children of 
same-sex domestic partners can be continued under self and family or 
self plus one enrollment in the FEHB and FEDVIP Programs. This 
regulation removes this continued coverage exception which expires for 
overseas employees on September 30, 2018.

Comments Received on the Interim Rule

    We received five comments on the Interim rule. All commenters were 
in support of the rule. No commenters recommended changes to the rule. 
Therefore, no changes have been made to this Final rule based on the 
comments received.

Expected Impact of Changes

    This rule eliminates all regulatory language in FEHB, FEDVIP and 
FedFlex that authorizes coverage for children of same-sex domestic 
partners, effective September 30, 2018. This rule amends

[[Page 32192]]

the regulations to remove the language that authorizes coverage of 
children of same-sex domestic partners since all enrollees now have the 
right to marry in the United States. The regulatory language that 
authorized coverage for children of same-sex domestic partners overseas 
is also being removed from the regulation effective September 30, 2018. 
There is no change to the population of children who have access to 
coverage based on this rule.

Executive Order 13563 and 12866 Requirements

    Executive Orders 13563 and 12866 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, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a not significant regulatory 
action under Executive Order 12866.

Paperwork Reduction Act Requirements

    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. With this rule there is 
no change to an existing OMB approved collection of information subject 
to the PRA--OMB No. 3206-0160, Health Benefits Election Form. The 
system 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.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities.

Executive Order 13771: Reducing Regulation and Controlling Regulatory 
Costs

    This rule is not an E.O. 13771 regulatory action because this rule 
is not significant under E.O. 12866.

List of Subjects

5 CFR Part 890

    Administration and general provisions, Administrative practice and 
procedure, Administrative sanctions imposed against health care 
providers, Benefits for former spouses, Benefits for United States 
hostages in Iraq and Kuwait and United States hostages captured in 
Lebanon, Benefits in medically underserved areas, Contributions and 
withholdings, Department of Defense Federal Employees Health Benefits 
Program demonstration project, Employee benefit plans, Enrollment, 
Government employees, Health benefits plans, Limit on inpatient 
hospital charges, physician charges, and FEHB benefit payments, 
Reporting and recordkeeping requirements, Retirement, Temporary 
continuation of coverage, Temporary extension of coverage and 
conversion, Transfers from retired FEHB Program.

5 CFR Part 892

    Administrative practice and procedure, Government employees' health 
insurance, Pre-tax payment of health benefits premiums, Taxes, Wages.

5 CFR Part 894

    Administrative practice and procedure, Government employees, Health 
insurance, Taxes, Wages.

U.S. Office of Personnel Management.
Jeff T.H. Pon,
Director.

    Accordingly, OPM is amending title 5, Code of Federal Regulations 
as follows:

PART 890--FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM

0
1. The authority citation for part 890 continues to read as follows:

    Authority:  5 U.S.C. 8913; Sec. 890.301 also issued under sec. 
311 of Pub. L. 111-03, 123 Stat. 64; Sec. 890.111 also issued under 
section 1622(b) of Pub. L. 104-106, 110 Stat. 521; Sec. 890.112 also 
issued under section 1 of Pub. L. 110-279, 122 Stat. 2604; 5 U.S.C. 
8913; Sec. 890.803 also issued under 50 U.S.C. 403p, 22 U.S.C. 4069c 
and 4069c-1; subpart L also issued under sec. 599C of Pub. L. 101-
513, 104 Stat. 2064, as amended; Sec. 890.102 also issued under 
sections 11202(f), 11232(e), 11246 (b) and (c) of Pub. L. 105-33, 
111 Stat. 251; and section 721 of Pub. L. 105-261, 112 Stat. 2061; 
Pub. L. 111-148, as amended by Pub. L. 111-152.


0
2. In Sec.  890.302, revise paragraphs (a)(2)(iii) and (b)(2) and 
remove paragraphs (b)(3) through (7) to read as follows:


Sec.  890.302   Coverage of family members.

    (a) * * *
    (2) * * *
    (iii) Children are entitled to receive benefits under only one 
enrollment regardless of whether the children qualify as family members 
under the enrollment of both parents or of a parent and a stepparent 
and regardless of whether the parents are married, unmarried, divorced, 
or legally separated. To ensure that no person receives benefits under 
more than one enrollment, each enrollee must promptly notify the 
insurance carrier as to which family members will be covered under his 
or her enrollment. These individuals are not covered under the other 
enrollment.
    (b) * * *
    (2) For purposes of this part, the term ``stepchild'' refers to the 
child of an enrollee's spouse and shall continue to refer to such child 
after the enrollee's divorce from the spouse or death of the spouse, so 
long as the child continues to live with the enrollee in a regular 
parent-child relationship.
* * * * *

PART 892--FEDERAL FLEXIBLE BENEFITS PLAN: PRE-TAX PAYMENT OF HEALTH 
BENEFITS PREMIUMS

0
3. The authority citation for part 892 continues to read as follows:

    Authority:  5 U.S.C. 8913; 5 U.S.C. 1103(a)(7); 26 U.S.C. 125.


0
4. In Sec.  892.101, the definition of a ``Qualifying life event'' is 
amended by revising the introductory text to read as follows:


Sec.  892.101   Definitions.

* * * * *
    Qualifying life (QLE) event means an event that may permit changes 
to your FEHB enrollment as well as changes to your premium conversion 
election as described in Treasury regulations at 26 CFR 1.125-4. Such 
events include the following:
* * * * *

0
5. Section 892.102 is revised to read as follows:


Sec.  [thinsp]892.102   What is premium conversion and how does it 
work?

    Premium conversion is a method of reducing your taxable income by 
the amount of your contribution to your FEHB insurance premium. If you 
are a participant in the premium conversion plan, Section 125 of the 
Internal

[[Page 32193]]

Revenue Code allows you to reduce your salary (through an employer 
allotment) and provide that portion of your salary back to your 
employer. Instead of being paid to you as taxable income, this allotted 
amount is used to purchase your FEHB insurance for you. The effect is 
that your taxable income is reduced. Because taxable income is reduced, 
the amount of tax you pay is reduced. You save on Federal income tax, 
Social Security and Medicare tax and in most States and localities, 
State and local income taxes.

PART 894--FEDERAL EMPLOYEES DENTAL AND VISION INSURANCE PROGRAM

0
6. The authority citation for part 894 continues to read as follows:

    Authority:  5 U.S.C. 8962; 5 U.S.C. 8992; Subpart C also issued 
under section 1 of Pub. L. 110-279, 122 Stat. 2604.

0
7. In Sec.  894.101, the definitions for ``Domestic partner'' and 
``Domestic partnership'' are removed and the definition for 
``Stepchild'' is revised to read as follows:


Sec.  894.101   Definitions.

* * * * *
    Stepchild means your spouse's child born within or outside marriage 
or his or her adopted child. The child of your spouse shall continue to 
be considered your stepchild after your divorce from your spouse or the 
death of your spouse so long as the child continues to live with you in 
a regular parent-child relationship.
* * * * *

0
8. In Sec.  894.403, paragraph (a) is revised to read as follows:


Sec.  894.403   Are FEDVIP premiums paid on a pre-tax basis?

    (a) Your FEDVIP premiums are paid on a pre-tax basis (called 
premium conversion) if you are an active employee, your salary is 
sufficient to make the premium allotments, and your agency will be able 
to make pre-tax allotments.
* * * * *
[FR Doc. 2018-14938 Filed 7-11-18; 8:45 am]
 BILLING CODE 6325-63-P

32192 Federal Register / Vol. 83, No. 134 / Thursday, July 12, 2018 / Rules and Regulations

the regulations to remove the language Executive Order 13771: Reducing ■ 2. In § 890.302, revise paragraphs
that authorizes coverage of children of Regulation and Controlling Regulatory (a)(2)(iii) and (b)(2) and remove
same-sex domestic partners since all Costs paragraphs (b)(3) through (7) to read as
enrollees now have the right to marry in This rule is not an E.O. 13771 follows:
the United States. The regulatory regulatory action because this rule is not § 890.302 Coverage of family members.
language that authorized coverage for significant under E.O. 12866. (a) * * *
children of same-sex domestic partners (2) * * *
List of Subjects
overseas is also being removed from the (iii) Children are entitled to receive
regulation effective September 30, 2018. 5 CFR Part 890 benefits under only one enrollment
There is no change to the population of Administration and general regardless of whether the children
children who have access to coverage provisions, Administrative practice and qualify as family members under the
based on this rule. procedure, Administrative sanctions enrollment of both parents or of a parent
imposed against health care providers, and a stepparent and regardless of
Executive Order 13563 and 12866
Benefits for former spouses, Benefits for whether the parents are married,
Requirements
United States hostages in Iraq and unmarried, divorced, or legally
Executive Orders 13563 and 12866 Kuwait and United States hostages separated. To ensure that no person
direct agencies to assess all costs and captured in Lebanon, Benefits in receives benefits under more than one
benefits of available regulatory medically underserved areas, enrollment, each enrollee must
alternatives and, if regulation is Contributions and withholdings, promptly notify the insurance carrier as
necessary, to select regulatory Department of Defense Federal to which family members will be
approaches that maximize net benefits Employees Health Benefits Program covered under his or her enrollment.
demonstration project, Employee benefit These individuals are not covered under
(including potential economic,
plans, Enrollment, Government the other enrollment.
environmental, public health and safety (b) * * *
employees, Health benefits plans, Limit
effects, distributive impacts, and (2) For purposes of this part, the term
on inpatient hospital charges, physician
equity). Executive Order 13563 ‘‘stepchild’’ refers to the child of an
charges, and FEHB benefit payments,
emphasizes the importance of Reporting and recordkeeping enrollee’s spouse and shall continue to
quantifying both costs and benefits, of requirements, Retirement, Temporary refer to such child after the enrollee’s
reducing costs, of harmonizing rules, continuation of coverage, Temporary divorce from the spouse or death of the
and of promoting flexibility. This rule extension of coverage and conversion, spouse, so long as the child continues
has been designated a not significant Transfers from retired FEHB Program. to live with the enrollee in a regular
regulatory action under Executive Order parent-child relationship.
12866. 5 CFR Part 892
* * * * *
Administrative practice and
Paperwork Reduction Act procedure, Government employees’ PART 892—FEDERAL FLEXIBLE
Requirements health insurance, Pre-tax payment of BENEFITS PLAN: PRE-TAX PAYMENT
Notwithstanding any other provision health benefits premiums, Taxes, OF HEALTH BENEFITS PREMIUMS
of law, no person is required to respond Wages.
■ 3. The authority citation for part 892
to, nor shall any person be subject to a 5 CFR Part 894 continues to read as follows:
penalty for failure to comply with a Administrative practice and Authority: 5 U.S.C. 8913; 5 U.S.C.
collection of information subject to the procedure, Government employees, 1103(a)(7); 26 U.S.C. 125.
requirements of the Paperwork Health insurance, Taxes, Wages.
Reduction Act of 1995 (44 U.S.C. 3501 ■ 4. In § 892.101, the definition of a
U.S. Office of Personnel Management. ‘‘Qualifying life event’’ is amended by
et seq.) (PRA), unless that collection of
Jeff T.H. Pon, revising the introductory text to read as
information displays a currently valid
Director. follows:
Office of Management and Budget
(OMB) Control Number. With this rule Accordingly, OPM is amending title 5, § 892.101 Definitions.
there is no change to an existing OMB Code of Federal Regulations as follows: * * * * *
approved collection of information Qualifying life (QLE) event means an
PART 890—FEDERAL EMPLOYEES
subject to the PRA—OMB No. 3206– event that may permit changes to your
HEALTH BENEFITS PROGRAM
0160, Health Benefits Election Form. FEHB enrollment as well as changes to
The system of record notice for this ■ 1. The authority citation for part 890 your premium conversion election as
collection is OPM/Central 1 Civil continues to read as follows: described in Treasury regulations at 26
Service Retirement and Insurance CFR 1.125–4. Such events include the
Authority: 5 U.S.C. 8913; Sec. 890.301
Records, available at https:// also issued under sec. 311 of Pub. L. 111–03, following:
www.opm.gov/information- 123 Stat. 64; Sec. 890.111 also issued under * * * * *
management/privacy-policy/sorn/opm- section 1622(b) of Pub. L. 104–106, 110 Stat. ■ 5. Section 892.102 is revised to read
sorn-central-1-civil-service-retirement- 521; Sec. 890.112 also issued under section as follows:
1 of Pub. L. 110–279, 122 Stat. 2604; 5 U.S.C.
and-insurance-records.pdf. 8913; Sec. 890.803 also issued under 50 § 892.102 What is premium conversion
Regulatory Flexibility Act U.S.C. 403p, 22 U.S.C. 4069c and 4069c–1; and how does it work?
amozie on DSK3GDR082PROD with RULES

subpart L also issued under sec. 599C of Pub. Premium conversion is a method of
I certify that these regulations will not L. 101–513, 104 Stat. 2064, as amended; Sec.
890.102 also issued under sections 11202(f),
reducing your taxable income by the
have a significant economic impact on amount of your contribution to your
11232(e), 11246 (b) and (c) of Pub. L. 105–
a substantial number of small entities. 33, 111 Stat. 251; and section 721 of Pub. L. FEHB insurance premium. If you are a
105–261, 112 Stat. 2061; Pub. L. 111–148, as participant in the premium conversion
amended by Pub. L. 111–152. plan, Section 125 of the Internal

VerDate Sep<11>2014 16:03 Jul 11, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\12JYR1.SGM 12JYR1

Document Created: 2018-11-06 10:22:19
Document Modified: 2018-11-06 10:22:19

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		This rule is effective on September 30, 2018.
Contact		Michael W. Kaszynski, Senior Policy Analyst, at [email protected] or (202) 606-0004.
FR Citation		83 FR 32191
RIN Number		3206-AN34
CFR Citation		5 CFR 890 5 CFR 892 5 CFR 894
CFR Associated		Administration and General Provisions; Administrative Practice and Procedure; Administrative Sanctions Imposed Against Health Care Providers; Benefits for Former Spouses; Benefits for United States Hostages in Iraq and Kuwait and United States Hostages Captured in Lebanon; Benefits in Medically Underserved Areas; Contributions and Withholdings; Department of Defense Federal Employees Health Benefits Program Demonstration Project; Employee Benefit Plans; Enrollment; Government Employees; Health Benefits Plans; Limit on Inpatient Hospital Charges; Physician Charges; Fehb Benefit Payments; Reporting and Recordkeeping Requirements; Retirement; Temporary Continuation of Coverage; Temporary Extension of Coverage and Conversion; Transfers from Retired Fehb Program; Government Employees' Health Insurance; Pre-Tax Payment of Health Benefits Premiums; Taxes; Wages and Health Insurance