Statements on Introduced Bills and Joint Resolutions - S. 2657

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Ms. COLLINS (for herself and Mr. AKAKA):

S. 2657. A bill to amend part III of title 5, United States Code, to provide for the establishment of programs under which supplemental dental and vision benefits are made available to Federal employees, retirees, and their dependents, to expand the contracting authority of the Office of Personnel Management, and for other purposes; to the Committee on Governmental Affairs.

Ms. COLLINS. Mr. President. I am pleased today to introduce legislation with my friend and colleague, Senator AKAKA, that would give Federal employees, retirees, and their families greater access to comprehensive dental and vision insurance coverage. The Federal Employee Dental and Vision Benefits Enhancement Act of 2004 would establish a voluntary program under which Federal employees and annuitants may purchase dental and vision coverage. The legislation grants the Office of Personnel Management (OPM) the authority to select the appropriate combination of nationwide and regional companies and a variety of benefit packages to meet the diverse needs of our Federal employee and annuitant population.

The National Institute of Dental and Craniofacial Research estimates that for every dollar spent on dental disease prevention, $4 is saved in subsequent treatment costs. Improved access to dental and vision care is an essential component of any comprehensive health care strategy. Federal employees need and deserve increased access to dental and vision benefits.

Today, the Federal community has access to excellent medical coverage through the Federal Employees Health Benefits Program (FEHB). Unfortunately, the program provides reimbursement for only a small fraction of dental care. Customer surveys indicate that FEHB enrollees want more comprehensive dental and vision benefits than those that are currently being provided in the FEHB program. The increasing demand for dental and vision benefits has prompted Senator AKAKA and me to pursue legislation that would offer separate and improved coverage for Federal employees, retirees, and their families.

The stand-alone model contained in my legislation preserves the integrity of the FEHB while encouraging the purchase of additional dental and vision coverage. It is important to note that nothing in my legislation prevents the existing medical carriers from continuing to offer dental and vision coverage under the FEHBP. Further, nothing in the legislation precludes current FEHBP carriers from participating in the competitive process to offer benefits under the new voluntary dental and vision programs. The legislation simply provides a mechanism for dental and vision companies to participate in the Federal employee benefits arena.

In recognition of the enormous fiscal pressures faced by the Federal Government, the legislation is designed to provide an employee-paid dental and vision benefit, patterned after the Federal Employees Long-Term Care Insurance Program. By leveraging the purchasing power of the Federal Government, combined with market-driven competition, OPM would have the ability to provide access to more comprehensive dental and vision coverage to employees and retirees at no cost to the Federal Government. Federal employees would have the confidence that OPM has given its seal of approval to the benefit packages provided under the voluntary programs.

The legislation recognizes the geographic dispersion of the Federal workforce and the need for greater access to care through local dental and eye health professionals by requiring companies to provide coverage in under-served areas. For example, companies selected to provide coverage to a particular region would be required to develop and maintain provider networks in all States, including States where access to care may be less available.

While the legislation lists general categories of benefits that may be offered under the new programs, the statutory model is flexible to ensure that the benefit packages can be modified over time to incorporate future advances in dental and vision products, therapies, and technologies.

Employees look to their employer to provide education about their benefits. For this reason, the legislation requires OPM to make available the educational tools necessary so that Federal employees have a clear understanding of the choices available to them. Employees will have access to information on how the voluntary plans can supplement the existing, though limited, coverage offered by their medical plan under the FEHBP, to meet their individual needs for care. OPM would also educate employees about the value of their existing Flexible Spending Accounts to help cover out-of-pocket dental and vision expenses. These options can help Federal employees and annuitants get the best value for their premium dollar.

Administration by OPM would ensure that each contract is awarded on the basis of quality and price, and that the companies understand and adapt to the needs of Federal employees, retirees, and their families. Additionally, OPM would provide participants access to a process to appeal adverse benefit determinations. Premiums can be made through payroll or annuity deductions, direct payments to the participating companies, or both. The plans would be open to all Federal civilian employees and annuitants, regardless of whether they currently participate in the FEHBP.

As with the Long-Term Care Insurance Program, our measure for the success of the dental and vision programs would be the extent to which Federal employees purchase these benefits.

My colleagues and I have recognized, through our support of legislation to assist the Federal Government with its recruitment and retention efforts, that the Federal Government's most important asset is its human capital. Employees of 48 State governments offer or provide access to dental benefit plans to employees. Surveys indicate that 95 percent of employers with 500 or more employees provide dental insurance. The opportunity to purchase enhanced dental and vision coverage will help the government with its ongoing efforts to recruit and retain a highly qualified workforce.

The legislation is supported by the American Federation of Government Employees, the National Treasury Employees Union, the National Association of Dental Plans, and the American Optometric Association. I hope my colleagues will join me in providing our Federal employee community with greater access to dental and vision coverage.