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Nonappropriated Fund Health Benefit Program

The FY95 National Defense Authorization Act requires the DOD to provide a uniform Health Benefits Program (HBP) for DOD Nonappropriated Fund (NAF) employees. The DOD NAF HBP, implemented on January 1, 2000, provides medical and dental insurance to more than 87,000 eligible NAF employees, retirees, and dependents.

DCPAS works in close cooperation with DOD NAF employer representatives on the NAF Health Benefits Committee to oversee, review, and revise the comprehensive health benefits coverage provided to NAF employees. The NAF HBP consists of Preferred Provider Organizations (PPOs), indemnity and dental providers, and Health Maintenance Organizations (HMOs), with the DOD NAF employers managing HMO contracts. PPOs, indemnity policies, and dental plans that are linked to NAF medical plans are self-funded by NAF employers; claims and administrative costs are funded by employee premiums and employer nonappropriated funds. Aetna, the plan's third party-administrator, provides a broad range of administrative services for the self-insured medical benefits, self-insured dental plan, and a fully insured stand-alone dental insurance plan.