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8 16–15.000 Scope of part.

gation with subscribers or providers of

health services. This part contains the general cost principles and procedures for the ne

$ 16-15.203 Indirect costs. gotiation and administration of FEHBP contracts.

The provisions of FPR 1-15.203

apply to the allocation of general and Subpart 16-15.1-Applicability administrative type costs by means of

a “dividend formula”. 8 16–15.101 Scope of subpart.

8 16-15.205 Selected costs. FPR 1-15.1 is applicable to the administration of FEHBP contracts. In

§ 16–15.205-1 Advertising. accordance with FPR 1-15.106, Part 115 will be used whenever cost analysis

(a) In applying the provisions of

FPR 1-15.205-1 to charges for media is performed and whenever a fixedprice type contract clause requires the

messages, the cost of those announcedetermination or negotiation of costs.

ments, the primary effect of which is Consequently, costs for an experience

to disseminate information on rated contract shall be determined in health care cost containment or preaccordance with FPR 1-15.2. The cost ventive health care, will be allowable, principles of FPR 1-15 are not applica subject to advance approval by the ble to that portion of a community Contracting Officer as to the total rated contract that does not require amount per year, insofar as the costs cost analysis and/or the determination of the messages are allocated to all unor negotiation of costs.

derwritten and non-underwritten lines

of business. However, cost of messages Subpart 16-15.2-Contracts with which are intended to, or which have FEHBP Carriers

the primary effect of, calling favorable

attention to the contractor (or subcon8 16–15.200 Scope of subpart.

tractor) for the purpose of enhancing FPR 1-15.2 is applicable in its entire

its overall image, or to sell its health ty to FEHBP contracts that require

plan, will be disallowed. cost analysis and/or the determination

(b) The cost of media messages or negotiation of costs. As the need which are directed at advising current arises, OPM will publish guidelines in FEHBP subscribers on how to obtain this chapter 16 to be used for inter- benefits shall be an allowable expense preting the application of FPR 1-15.2 within the meaning of FPR 1-15.205-1 to the FEHBP contracts. These guide- since this service is directly related to lines are not intended as a deviation performance of the FEHBP contract. from or a substitute for the FPR 1-15 If there is any question regarding the unless specifically stated. The guide- allowability of such a cost, the carrier lines are as follows:

may request an advance approval re8 16-15.201 Basic considerations.

garding the content and cost of the

message. In the absence of specific contract terms to the contrary, FEHBP costs 8 16–15.205-2 Bad debts. will be classified and defined in accordance with OPMPR 16-4.153.

The chargeability of erroneous bene

fit payments, overpayments and dupli8 16-15.201-5 Credits.

cate payments directly attributable to

performance of the FEHBP contract The provisions of 1-15.201-5 shall

shall be determined in accordance apply to income, rebates, allowances and other credits resulting from bene

with the specific terms of the FEHBP fit payments which include, but are

contract. These erroneous benefit paynot limited to, coordination of benefit

ments do not come within the intent refunds, hospital year-end settlements,

of FPR 1-15.205-2. uncashed checks, utilization review refunds, and refunds attributable to liti

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Subpart 16-20.2-General Provisions

PART 16-26–CONTRACT MODIFICA16-20.202 Other record retention require

TIONS ments. AUTHORITY: 40 U.S.C. 486(c); 5 U.S.C. 8913.

Subpart 16-26.4-Novation and SOURCE: 46 FR 51582, Oct. 20, 1981, unless

Change of Name Agreements otherwise noted.

8 16-26.401 General. Subpart 16-20.1-Purpose and Applicability

The provisions of FPR 1-26 are ap

plicable to the administration of 8 16-20.102 Applicability.

FEHBP contracts.
The contracting officer shall require (40 U.S.C. 486(c); 5 U.S.C. 8913)
FEHBP carriers to retain contract re- (46 FR 51582, Oct. 20, 1981)

Chapter 17 [Reserved


A list of current CFR titles, subtitles, chapters, subchapters and parts and an alphabetical list of agencies publishing in the CFR are included in the CFR Index and Finding Aids volume to the Code of Federal Regulations which is published separately and revised annually.

Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
List of CFR Sections Affected

90-140 0-82--31


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