percent for both high and low options.

These reductions were made possible in part by price controls that went into effect in August 1971, resulting in favorable financial experience for both Government-wide plans in the last half of calendar year 1971 and in calendar year 1972.

Premiums were also reduced in the Retired Federal Employees Health Benefits Program's Uniform Plan. Effective January 1, 1973, annuitants enrolled only in Basic coverage received Major Medical at no additional cost. The cost to those annuitants enrolled in Basic plus Major Medical coverage was reduced to the former cost of Basic only-from $4.50 to $.50 per self-only enrollment and from $9 to $1 for family enrollment. These cost reductions were made possible by sustained, favorable claims experience.

THREE MILLION copies of this consumer-oriented pamphlet went to employees and annuitants.

Open Season

An open season allows Federal employees and annuitants to enroll or change enrollment in the health benefits plans available to them. Effective April 7, 1971, regulations were amended to provide

employees and annuitants with an annual open

season.

The Commission held the second of the annual open seasons during fiscal 1973. From November 15 to November 30, 1972, 10,000 enrollees changed enrollment from one option to another within a health benefits plan, 43,000 changed from one plan to another, and 28,000 enrolled for the first time, representing a 1.2 percent increase over the total enrollment before the open season. This year, employees and annuitants were aided in their selection of a health benefits plan by a consumer-oriented pamphlet, "Information To Consider in Choosing a Health Plan." This new pamphlet was designed to aid Federal employees and annuitants in choosing the health plan or option that best meets their needs at different stages in their careers. Developed by the Commission and made available prior to the open season, the pamphlet is virtually the only one in the field and has been well received. It gives general information on the various types of health plans available to Federal employees and annuitants, their rights under the plans, defines many of the terms commonly used in health benefits brochures, and contains special information for annuitants and those employees preparing to retire. Over 3 million copies of the pamphlet have been printed. Copies were distributed to employees through their agencies and to annuitants by insertion with the open season information that was mailed to them.

Occupational Health

During fiscal 1973 the Commission continued progress toward its goal of making occupational health and alcoholism and drug prevention and referral services available to all Federal employees. As of June 30, 1972, occupational health services had been made available to 1,675,000 Federal employees. In fiscal 1973, 12,941 Federal employees who previously had no access to an occupational health program were added to this population. In addition, programs in which 28,992 employees participated were expanded to provide a broader range of services.

The per capita cost to participate in a health unit program varies according to the scope of services provided and the size of the population covered. The Division of Federal Employee Health, U.S. Public Health Service, in 1972 reported a range in per capita cost for operating their approximately

100 health units nationwide of from $15 to about $50. The average per capita cost for all Division of Federal Employee Health Units was approximately $25.

Efforts have also continued during fiscal 1973 to provide occupational health services to employees working in small groups and/or at remote locations. Establishment of on-site health units is usually impractical in these situations and alternative methods for providing health services had to be developed. One method presently being utilized to reach these employees is multiphasic screening, for early disease detection and prevention. The Commission's Boston, Chicago, New York, Philadelphia, and Seattle Regions are now utilizing this approach. Approximately 3,500 employees were screened in fiscal 1973. Other methods under development for providing services to this employee population are:

1. Fee-for-service contract with local physicians, clinics, and hospitals.

2. Contracting for services with public and private employers presently operating occupational health programs.

3. Jointly developing occupational health programs with public and private employers who do not presently have a program. The U.S. Public Health Service Division of Federal Employee Health has consistently played a strong role in assisting the Commission in organizing and operating health service programs. However, in

fiscal 1973, because of money and manpower restrictions, the Division of Federal Employee Health has been unable to meet the demands of Federal agencies to operate health units in areas with Federal populations of 300 or more employees. In view of this development, our efforts will increasingly need to be channeled toward helping Federal managers locate alternative sources from which professional services can be obtained.

To assist agency management in planning, operating, and evaluating their occupational health programs, the Commission is developing standards outlining minimum services necessary for adequacy. These standards will be issued as a Federal Personnel Manual Letter in fiscal 1974.

Alcoholism and Drug Abuse

The Commission made significant progress in fiscal 1973 in meeting its responsibilities for developing and maintaining apropriate prevention, treatment, and rehabilitation programs and services for alcoholism and drug abuse among Federal civilian employees:

-Approximately 83 percent of all Federal civilian employees are now covered by agency policy statements responsive to Public Law 91-616 and FPM Letter 792-4 regarding employee alcoholism programs. -Alcoholism program emphasis was on providing informal consultation to Federal agencies

implementing operational programs. For example, regional staff members participated in visits by the Department of Army Drug and Alcohol Technical Assistance Team to Army posts throughout the country.

-Training for agency program personnel was diversified and expanded. A seminar for medical personnel was developed under contract by

the National Council on Alcoholism and offered in Washington, D.C., in May. -"Here's Looking At Us . . .", an alcoholism program pamphlet for employees, was developed and has become a best seller. Agencies have ordered more than 700,000 copies. The booklet's purpose is to state Federal policy on alcoholism among Government employees

in a straightforward manner. It explains that alcoholism is a disease and should be treated as such, that employees at all levels may be affected, and that the Government is committed to long-range support of Federal civilian employee alcoholism programs. -Federal Personnel Manual Bulletin 792-8* initiated with Federal agencies the cooperative development of drug policy guidelines. The

Issued October 5, 1972.

Bulletin suggested the alcoholism program guidelines as a suitable point of departure. Agencies agreed, and developmental work on the guidelines was completed, with issuance expected in July 1973.

-As part of our cooperative responsibility under the drug abuse legislation, P.L. 92-255, the Commission became a working member of the Federal Executive Drug Abuse Council of the Special Action Office for Drug Abuse Prevention. Our efforts were concentrated in the area of education and training.

chapter V.

Better management of human resources in the Federal Government is a key factor in improving organizational effectiveness.

The quality of the Government's human resources, the development and utilization of their capabilities, and the costs of these resources are major controllable items. The quality of their management is measured and assessed by the longestablished program of personnel management evaluation for which the Civil Service Commission has leadership responsibility.

All public personnel programs are challenged to change, to adjust to an increasingly complex society. Evaluation is no exception. Under the umbrella goal of helping agency managers achieve greater organizational effectiveness, the Commission has as one of its 1974 improvement objectives a results-oriented Government-wide personnel management evaluation system.

This improvement was in the process of development well before the President asked for stated objectives. Fiscal 1973 saw the long-term overhaul of the evaluation system come close to completion. Its direction is toward a coordinated approach, linking the Commission's evaluation efforts not only with those made by agency headquarters, but with those by their field installations as well, where more productive personnel management can mean more efficient achievement of agency missions. Another aspect of the new system is the develop

ment of better evaluation methods and techniques, including better measures of personnel management effectiveness.

The emphasis will be on evaluating personnel management as an integral component of agency administration. For maximum organizational effectiveness, Federal personnel management must function as an essential moving part of the total management process.

Agency Evaluation Systems-Assessment

A landmark Presidential memorandum of October 9, 1969, charged the Commission with overall direction of a Government-wide personnel management evaluation and improvement effort. During fiscal 1973 the Commission began and concluded an in-depth appraisal of agency progress in implementing the personnel evaluation systems called for by the Presidential memorandum. This review and assessment of agency systems indicated that new efforts were needed, both by the Commission and by Federal agencies, to strengthen the process of evaluation in improving personnel management effectiveness.

Federal agencies, almost without exception, have developed and published personnel management goals and have developed evaluation plans to assure meeting the minimum evaluation system requirements spelled out in the Federal Personnel Manual. Along with an increase in evaluation