--- kind: "section" citation: "5 U.S.C. § 8903" title: "5" title_heading: "Government Organization and Employees" number: "8903" heading: "Health benefits plans" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/5/8903" units: - "Part III — Employees" - "Subpart G — Insurance and Annuities" - "Chapter 89 — Health Insurance" --- # §8903. Health benefits plans The [Office](/usc/5/5402.md?p=3) of Personnel Management may contract for or approve the following [health benefits plans](/usc/5/8901.md?p=6): - (1) **Service Benefit Plan.—** One [Government](/usc/5/4101.md?p=3)-wide plan, which may be underwritten by participating affiliates licensed in any number of [States](/usc/5/8521.md?p=a-3), offering at least 2 levels of benefits for enrollees under this chapter generally and at least 2 levels of benefits for enrollees under the Postal [Service](/usc/5/8401.md?p=26) Health Benefits Program established under [section 8903c](/usc/5/8903c.md), under which payment is made by a [carrier](/usc/5/8901.md?p=7) under contracts with physicians, hospitals, or other providers of health [services](/usc/5/8401.md?p=26) for benefits of the types described by [section 8904(1) of this title](/usc/5/8904.md) given to [employees](/usc/5/4701.md?p=a-2), [annuitants](/usc/5/8401.md?p=2), [members](/usc/5/8401.md?p=20) of their families, [former spouses](/usc/5/8401.md?p=12), or [persons](/usc/5/7103.md?p=a-1) having continued coverage under [section 8905a of this title](/usc/5/8905a.md), or, under certain conditions, payment is made by a [carrier](/usc/5/8901.md?p=7) to the [employee](/usc/5/4701.md?p=a-2), [annuitant](/usc/5/8401.md?p=2), family [member](/usc/5/8401.md?p=20), [former spouse](/usc/5/8401.md?p=12), or [person](/usc/5/7103.md?p=a-1) having continued coverage under [section 8905a of this title](/usc/5/8905a.md). - (2) **Indemnity Benefit Plan.—** One [Government](/usc/5/4101.md?p=3)-wide plan, offering two levels of benefits, under which a [carrier](/usc/5/8901.md?p=7) agrees to [pay](/usc/5/7511.md?p=a-4) certain sums of money, not in excess of the actual expenses incurred, for benefits of the types described by [section 8904(2) of this title](/usc/5/8904.md). - (3) **Employee Organization Plans.—** [Employee organization](/usc/5/8901.md?p=8) plans which offer benefits of the types referred to by [section 8904(3) of this title](/usc/5/8904.md), which are sponsored or underwritten, and are administered, in whole or substantial part, by [employee organizations](/usc/5/8901.md?p=8) described in [section 8901(8)(A) of this title](/usc/5/8901.md?p=8-A), which are available only to individuals, and [members](/usc/5/8401.md?p=20) of their families, who at the time of enrollment are [members](/usc/5/8401.md?p=20) of the organization. - (4) **Comprehensive Medical Plans.—** - (A) **Group-practice prepayment plans.—** Group-practice prepayment plans which offer health benefits of the types referred to by [section 8904(4) of this title](/usc/5/8904.md), in whole or in substantial part on a prepaid basis, with professional [services](/usc/5/8401.md?p=26) thereunder provided by physicians practicing as a group in a common center or centers. The group shall include at least 3 physicians who receive all or a substantial part of their professional income from the prepaid [funds](/usc/5/8401.md?p=6) and who represent 1 or more medical specialties appropriate and necessary for the population proposed to be served by the plan. - (B) **Individual-practice prepayment plans.—** Individual-practice prepayment plans which offer health [services](/usc/5/8401.md?p=26) in whole or substantial part on a prepaid basis, with professional [services](/usc/5/8401.md?p=26) thereunder provided by individual physicians who agree, under certain conditions approved by the [Office](/usc/5/5402.md?p=3), to accept the payments provided by the plans as full payment for covered [services](/usc/5/8401.md?p=26) given by them including, in addition to in-hospital [services](/usc/5/8401.md?p=26), general care given in their [offices](/usc/5/5402.md?p=3) and the patients’ homes, out-of-hospital diagnostic procedures, and preventive care, and which plans are offered by organizations which have successfully operated similar plans before approval by the [Office](/usc/5/5402.md?p=3) of the plan in which [employees](/usc/5/4701.md?p=a-2) may enroll. - (C) **Mixed model prepayment plans.—** Mixed model prepayment plans which are a combination of the type of plans described in [subparagraph (A)](#4-A) and the type of plans described in [subparagraph (B)](#4-B). ## Source credit (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 602; Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 98–615, § 3(3), Nov. 8, 1984, 98 Stat. 3203; Pub. L. 99–53, § 2(b), June 17, 1985, 99 Stat. 94; Pub. L. 99–251, title I, §§ 102, 111, Feb. 27, 1986, 100 Stat. 14, 19; Pub. L. 100–654, title II, § 202(b), Nov. 14, 1988, 102 Stat. 3845; Pub. L. 105–266, § 3(b), Oct. 19, 1998, 112 Stat. 2366; Pub. L. 117–108, title I, § 101(a)(2)(A), Apr. 6, 2022, 136 Stat. 1135.) ## Notes | Historical and Revision Notes | | | | --- | --- | --- | | Derivation | U.S. Code | Revised Statutes and
Statutes at Large | | | 5 U.S.C. 3003. | Sept. 28, 1959, Pub. L. 86–382, § 4, 73 Stat. 711. | | | | July 8, 1963, Pub. L. 88–59, § 1(b), 77 Stat. 77. | Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report. ### Editorial Notes ### Amendments 2022—Par. (1). Pub. L. 117–108 substituted “at least 2 levels of benefits for enrollees under this chapter generally and at least 2 levels of benefits for enrollees under the Postal Service Health Benefits Program established under section 8903c” for “two levels of benefits”. 1998—Par. (1). Pub. L. 105–266 substituted “plan, which may be underwritten by participating affiliates licensed in any number of States,” for “plan,”. 1988—Par. (1). Pub. L. 100–654 substituted “former spouses, or persons having continued coverage under section 8905a of this title,” for “or former spouses,” and “former spouse, or person having continued coverage under section 8905a of this title.” for “or former spouse.” 1986—Par. (4)(A). Pub. L. 99–251, § 102, amended second sentence generally, substituting “at least 3 physicians” for “physicians representing at least three major medical specialties” and inserted “and who represent 1 or more medical specialties appropriate and necessary for the population proposed to be served by the plan”. Par. (4)(C). Pub. L. 99–251, § 111, added subpar. (C). 1985—Par. (3). Pub. L. 99–53 inserted “described in section 8901(8)(A) of this title” after “employee organizations”. 1984—Par. (1). Pub. L. 98–615, § 3(3), substituted “employees, annuitants, members of their families, or former spouses” for “employees or annuitants, or members of their families” and “employee, annuitant, family member, or former spouse” for “employee or annuitant or member of his family”. 1978—Pub. L. 95–454 substituted “Office of Personnel Management” and “Office” for “Civil Service Commission” and “Commission”, respectively, wherever appearing. ### Statutory Notes and Related Subsidiaries ### Effective Date of 1988 Amendment Amendment by Pub. L. 100–654 applicable with respect to any calendar year beginning, and contracts entered into or renewed for any calendar year beginning, after end of 9-month period beginning Nov. 14, 1988, and with respect to any qualifying event occurring on or after first day of first calendar year beginning after end of such 9-month period, see section 203 of Pub. L. 100–654, set out as a note under section 8902 of this title. ### Effective Date of 1984 Amendment Amendment by Pub. L. 98–615 effective May 7, 1985, with enumerated exceptions, and applicable to any individual who is married to an employee or annuitant on or after that date, see section 4(a)(2) of Pub. L. 98–615, as amended, set out as a note under section 8341 of this title. ### Effective Date of 1978 Amendment Amendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title.