--- kind: "section" citation: "5 U.S.C. § 9004" title: "5" title_heading: "Government Organization and Employees" number: "9004" heading: "Financing" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/5/9004" units: - "Part III — Employees" - "Subpart G — Insurance and Annuities" - "Chapter 90 — Long-Term Care Insurance" --- # §9004. Financing - (a) **In General.—** Each [eligible individual](/usc/5/8951.md?p=3) obtaining long-term care insurance coverage under this chapter shall be responsible for 100 percent of the premiums for such coverage. - (b) **Withholdings.—** - (1) **In general.—** The amount necessary to [pay](/usc/5/7511.md?p=a-4) the premiums for enrollment may— - (A) in the case of an [employee](/usc/5/4701.md?p=a-2), be withheld from the [pay](/usc/5/7511.md?p=a-4) of such [employee](/usc/5/4701.md?p=a-2); - (B) in the case of an [annuitant](/usc/5/8401.md?p=2), be withheld from the annuity of such [annuitant](/usc/5/8401.md?p=2); - (C) in the case of a [member of the uniformed services](/usc/5/9001.md?p=3) described in [section 9001(3)](/usc/5/9001.md?p=3), be withheld from the [pay](/usc/5/7511.md?p=a-4) of such [member](/usc/5/8401.md?p=20); and - (D) in the case of a [retired member of the uniformed services](/usc/5/9001.md?p=4) described in [section 9001(4)](/usc/5/9001.md?p=4), be withheld from the retired [pay](/usc/5/7511.md?p=a-4) or retainer [pay](/usc/5/7511.md?p=a-4) payable to such [member](/usc/5/8401.md?p=20). - (2) **Voluntary withholdings for qualified relatives.—** Withholdings to [pay](/usc/5/7511.md?p=a-4) the premiums for enrollment of a [qualified relative](/usc/5/9001.md?p=5) may, upon election of the appropriate [eligible individual](/usc/5/8951.md?p=3) (described in [section 9001(1)](/usc/5/9001.md?p=1)–(4)), be withheld under [paragraph (1)](#b-1) to the same extent and in the same manner as if enrollment were for such individual. - (c) **Direct Payments.—** All amounts withheld under this section shall be paid directly to the [carrier](/usc/5/8901.md?p=7). - (d) **Other Forms of Payment.—** Any enrollee who does not elect to have premiums withheld under [subsection (b)](#b) or whose [pay](/usc/5/7511.md?p=a-4), annuity, or [retired or retainer pay](/usc/5/5531.md?p=3) (as referred to in [subsection (b)(1)](#b-1)) is insufficient to cover the withholding required for enrollment (or who is not receiving any regular amounts from the [Government](/usc/5/4101.md?p=3), as referred to in [subsection (b)(1)](#b-1), from which any such withholdings may be made, and whose premiums are not otherwise being provided for under [subsection (b)(2)](#b-2)) shall [pay](/usc/5/7511.md?p=a-4) an amount equal to the full amount of those charges directly to the [carrier](/usc/5/8901.md?p=7). - (e) **Separate Accounting Requirement.—** Each [carrier](/usc/5/8901.md?p=7) participating under this chapter shall maintain records that permit it to [account](/usc/5/8401.md?p=1) for all amounts received under this chapter (including investment [earnings](/usc/5/8401.md?p=10) on those amounts) separate and apart from all other [funds](/usc/5/8401.md?p=6). - (f) **Reimbursements.—** - (1) **Reasonable initial costs.—** - (A) **In general.—** The [Employees](/usc/5/4701.md?p=a-2)’ Life Insurance [Fund](/usc/5/8401.md?p=6) is available, without fiscal year limitation, for reasonable expenses incurred by the [Office](/usc/5/5402.md?p=3) of Personnel Management in administering this chapter before the start of the 7-year period described in [section 9003(d)(2)(B)](/usc/5/9003.md?p=d-2-B), including reasonable implementation costs. - (B) **Reimbursement requirement.—** Such [Fund](/usc/5/8401.md?p=6) shall be reimbursed, before the end of the first year of that 7-year period, for all amounts obligated or expended under [subparagraph (A)](#f-1-A) (including lost investment income). Such reimbursement shall be made by [carriers](/usc/5/8901.md?p=7), on a pro rata basis, in accordance with appropriate provisions which shall be included in master contracts under this chapter. - (2) **Subsequent costs.—** - (A) **In general.—** There is hereby established in the [Employees](/usc/5/4701.md?p=a-2)’ Life Insurance [Fund](/usc/5/8401.md?p=6) a Long-Term Care Administrative [Account](/usc/5/8401.md?p=1), which shall be available to the [Office](/usc/5/5402.md?p=3), without fiscal year limitation, to defray reasonable expenses incurred by the [Office](/usc/5/5402.md?p=3) in administering this chapter after the start of the 7-year period described in [section 9003(d)(2)(B)](/usc/5/9003.md?p=d-2-B). - (B) **Reimbursement requirement.—** Each master contract under this chapter shall include appropriate provisions under which the [carrier](/usc/5/8901.md?p=7) involved shall, during each year, make such periodic contributions to the Long-Term Care Administrative [Account](/usc/5/8401.md?p=1) as necessary to ensure that the reasonable anticipated expenses of the [Office](/usc/5/5402.md?p=3) in administering this chapter during such year (adjusted to reconcile for any earlier overestimates or underestimates under this subparagraph) are defrayed. ## Source credit (Added Pub. L. 106–265, title I, § 1002(a), Sept. 19, 2000, 114 Stat. 766.)