January 25, 1999




MEMORANDUM FOR SEE DISTRIBUTION
SUBJECT: Selection of Third Party Administrator (TPA) for the Department of Defense (DoD) Nonappropriated Fund (NAF) Health Benefits Program



In accordance with Public Law 103-337, DoD was required to provide a uniform NAF health and dental benefits program for its employees. The uniform program will replace each of the separate programs currently operated by each component of DoD (Army, Navy, Air Force, Marine Corps, Army and Air Force Exchange Service, and Navy Exchange Command) for its eligible NAF employees. After several years devoted to program evaluation and the procurement process, DoD entered into a contract with Aetna US Healthcare on January 15, 1999, for TPA services for the uniform NAF Health Benefits Program (HBP). Aetna will provide managed care networks, claims administration services, and other services related to the successful implementation and operation of the HBP for all DoD NAF Components.

The DoD NAF Employee Benefits Committee will meet with Aetna officials within the next two weeks to discuss implementation of the HBP on January 1, 2000. Additional information and guidance will be provided to major commands and installations as the implementation process proceeds.



//original signed//
David L. Snyder
Acting Deputy Assistant Secretary
(Civilian Personnel Policy)




DISTRIBUTION:
COMMANDER
U.S ARMY EUROPE AND SEVENTH ARMY, ATTN: AEAGA-CN
U.S ARMY FORCES COMMAND, ATTN: AFPI-CP
U.S ARMY MATERIEL COMMAND, ATTN: AMCPE-C
U.S ARMY TRAINING AND DOCTRINE COMMAND, ATTN: ATBO-C
U.S ARMY MILITARY DISTRICT OF WASHINGTON, ATTN: ANCP-ZA
U.S ARMY MEDICAL COMMAND, ATTN: MCPE-C
U.S ARMY MILITARY TRAFFIC MGMT COMMAND, ATTN: MTPAL-HRC
U.S ARMY PACIFIC COMMAND, ATTN: APPE-CP
U.S ARMY SOUTH, ATTN: SOCO-CP
U.S ARMY COMMUNITY AND FAMILY SUPPORT CENTER,
ATTN: CHIEF OPERATING OFFICER; CFSC-MS
U.S ARMY AVIATION AND TROOP COMMAND, ATTN: ATCOM
DoD STARS AND STRIPES PUBLISHER, ATTN: ROBERT TAYLOR
EIGHT U.S ARMY, ATTN: EAGA-CP

SUPERINTENDENT, U.S MILITARY ACADEMY, ATTN: MACP

DIRECTOR
DEFENSE LOGISTICS AGENCY, ATTN: DLA-CAHS


GENERAL MANAGER
DRAGON HILL LODGE
SHADES OF GREEN
HALE KOA HOTEL
AFRC-GARMISCH