UNCLASSIFIED
DTG: 031319Z  SEP 1999

FROM: DA WASHINGTON DC//SAMR-CP//

TO: AIG 9893
AIG 9150

INFO: ZEN EUROPEAN STARS AND STRIPES
ZEN PACIFIC STARS AND STRIPES
ZEN DLA FT BELVOIR VA
ZEN CFSC-HR ALEXANDRIA VA
ZEN CFSC-MS ALEXANDRIA VA
ZEN NFS RED RIVER TX
ZEN ACPERS ALEXANDRIA VA
ZEN PERSONNEL AND EMPLOYMENT SERVICES WASH

XMT: CDRUSACFSC ALEXANDRIA VA//CFSC-HR-P//
CDRPERSCOM ALEXANDRIA VA//TAPC-CP//

ACCT:
TEXT: UNCLAS

SUBJECT: DEPARTMENT OF DEFENSE (DoD) NONAPPROPRIATED FUND (NAF) HEALTH BENEFITS PROGRAM (DoD NAF HBP) PREMIUM NEGOTIABILITY ISSUES AND HMO ISSUES

THIS MESSAGE PROVIDES THE LATEST OFFICE OF THE SECRETARY OF DEFENSE (OSD) POSITION REGARDING SUBJECT ISSUES, AND ARE PROVIDED FOR IMPLEMENTATION.

1. WHAT PREMIUM COST FEATURES OF THE UNIFORM PLAN ARE NEGOTIABLE?

   ANSWER: THE FOLLOWING APPLIES TO PREMIUM COST SHARING:

  1. PREMIUM COST SHARING BETWEEN THE EMPLOYER AND THE EMPLOYEE IS NEGOTIABLE WITHIN THE RANGES INDICATED IN THE JULY 16, 1999 ASD (FMP) MEMORANDUM.

  2. PREMIUM COST SHARING MUST BE IDENTICAL FOR SINGLE AND FAMILY COVERAGE.

  3. PREMIUM COST SHARING MUST BE IDENTICAL FOR MEDICAL AND DENTAL COVERAGE.

  4. PREMIUM COST SHARING MUST BE IDENTICAL FOR EMPLOYEES AND RETIREES EXCEPT WHERE THE LATTER ARE GRANDFATHERED.

  5. WE ARE EXPLORING THE DUTY TO BARGAIN, IF ANY, FOR POST RETIREMENT MEDICAL PREMIUM SHARING.

2. ARE THEIR SPECIAL CONSIDERATIONS FOR HEALTH MAINTENANCE ORGANIZATION (HMO) PLANS?

   ANSWER: YES. THE FOLLOWING APPLIES TO HMOs:

  1. HMO PLANS AND BENEFITS IN EFFECT ON JULY 16, 1999, ARE "GRANDFATHERED" AS A TRANSITIONAL PART OF THE UNIFORM PLAN.

  2. EXISTING HMO PREMIUM-SHARING ARRANGEMENTS THAT DIFFER FROM THE POLICY MEMORANDUM OF JULY 16, 1999, MAY BE CONTINUED BUT NOT NEGOTIATED OUTSIDE THOSE LIMITS.

  3. HMO BENEFITS MAY NOT BE CHANGED NOR NEW HMOs IMPLEMENTED WITHOUT PRIOR REVIEW BY THE DOD NAF EMPLOYEE BENEFITS COMMITTEE AND THE ODASD (CPP).

3. PLEASE BE ADVISED THAT THIS OFFICE WILL CONTINUE TO FORWARD OSD'S DIRECTIONS TO THE FIELD ON THIS PROGRAM AS SOON AS WE RECEIVE THEM. THIS DIRECTIVE ORIGINATED FROM THE DOD NAF PERSONNEL POLICY OFFICE.

4. POINT OF CONTACT FOR QUESTIONS RELATING TO LABOR RELATION/NEGOTIATIONS IS MR. RUSS COBURN, DSN 221-7763 OR 703-325-7763.




Addendum Revison to POC- 01/08/01

4. POINT OF CONTACT FOR QUESTIONS RELATING TO LABOR RELATION/NEGOTIATIONS IS MR. PETER GARY, DSN 221-7763 OR 703-325-7763.

SANDRA G. CURRAN, Chief, 703-325-7762
NAF Personnel Policy and Program Division