A bill to amend chapter 89 of title 5, United States Code, to provide improved health benefits for Federal employees.

Directs the Civil Service Commission to develop and implement a Government health benefit program (to be known as the Government Benefit Plan) under which the Commission will pay for health services provided pursuant to contracts with physicians, hospitals or other suppliers of such services.

Provides that no employee or annuitant shall be required to pay any portion of a payment due under such contract.

Includes, among the services to be provided under the Plan, the services presently provided under the Service Benefit Plan, and the Indemnity Benefit Plan, and care, treatment and devices relating to dental, orthopedic, hearing, and sight problems. Includes routine examinations, or routine well-baby care, immunizations, and institutional or residential custodial care, treatment and devices.

Directs that the plan be implemented by January 1, 1972. Increases the Government contribution for health benefits for employees or annuitants enrolled in health benefits plans to an amount equal to (a) 55 percent of subscription charges, effective January 1, 1972; (b) 65 percent, effective January 1, 1973; and (c) 75 percent, effective January 1, 1974.