On November 21, 2000, we issued Benefits Administration Letter (BAL) 00-224, providing information on implementing the Federal Employees Health Benefits Children's Equity Act of 2000 (Public Law 106-394).

On December 14, 2000, the Financial Policy Staff issued Payroll Office Letter (POL) P-00-36, providing information to payroll offices. We have attached a copy of this POL.

As we informed you in BAL 00-224, payroll offices will flag the records of employees who are subject to a court or administrative order to provide health benefits for their children. When such an employee attempts to make an enrollment change, the payroll office may contact the personnel office to determine whether the change is allowable.

Also, we stated in BAL 00-224 that when such an employee goes into nonpay status, he/she cannot elect to terminate the coverage. The employee must either make direct premium payments or incur a debt to be repaid when the employee returns to pay status. Please note that this applies only during the first year in nonpay status. Since, by law, an employee cannot continue FEHB coverage after a year in nonpay status, coverage terminates at the end of a year, even for those employees subject to a court/admin order.

Abby L. Block Assistant Director      for Insurance Programs

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