A bill to amend title 5, United States Code, to allow Federal employees an alternative to the Federal health benefit plans administered by private insurance carriers by providing for the establishment of a health benefit plan to be administered by the Civil Service Commission, and for other purpose.

Directs the Civil Service Commission to develop, provide, and administer a Government health benefits plan, to be known as the Government benefit plan under which payment is made by the Commission under contracts with physician and hospitals, for benefits to employers or members of their families. (Adds 5 U.S.C. 8903(b))

Revises the biweekly Government contrubution for health benefits to: (1) 55 percent for pay periods after January 1, 1975; (2) 65 percent for pay periods commencing after January 1, 1976; and (3) 75 for pay periods commencing after January 1, 1977. (Amends 5 U.S.C. 8906(b))