RATE REDUCTION FOR MEDICARE ELIGIBLE FEDERAL ANNUITANTS.

SEC. 422. RATE REDUCTION FOR MEDICARE ELIGIBLE FEDERAL ANNUITANTS. (a) In General.— (1) The Office of Personnel Management shall, in consultation with carriers offering health benefits plans contracted pursuant to section 8902 of title 5, United States Code, reduce the rates charged medicare eligible individuals participating in such health benefit plans, by the amount, prorated for each covered medicare eligible individual, of the estimated cost of medical services and supplies which, but for the amendments made by subtitle A of title I and subtitle A of title II of this Act, would have been payable by such plans. (2) The reduced rates as provided under paragraph (1), shall apply as of the effective dates of the respective amendments. 102 STAT. 811 (b) Authorization of Availability of Employee Health Benefits Fund for Rate Reduction.—Funds in the Employees Health Benefits Fund established under section 8909 of title 5, United States Code, are available without fiscal year limitation for costs incurred by the Office of Personnel Management in making rate reductions provided under this section. (c) Definition.—For purposes of this section the term “medicare eligible individual” means any annuitant, survivor of an annuitant, or former spouse of an annuitant— (1) who is— (A) otherwise eligible for benefits under chapter 89 of title 5, United States Code; (B) eligible for benefits under part A of title XVIII of the Social Security Act; and (C) covered by the insurance program established under part B of such title; and (2) for whom benefits paid under title XVIII of the Social Security Act are the primary source of health care benefits.