§18054 — Title 42 The Public Health and Welfare | U.S. Code

Summary

The Director of the Office of Personnel Management must sign contracts with health insurers so each State Exchange offers at least two multi‑State qualified health plans. These plans can be for individuals or, for small employers, group coverage. Contracts must be at least one year long and can renew automatically. The Director can skip the normal competitive‑bidding rules. At least one contract must be with a non‑profit. The Director will set rules like a medical loss ratio, a profit margin, premiums, and other terms to protect enrollees, and can block any plan that does not meet those rules. The Director can pull approval only after notice and a chance for a hearing to the insurer. At least one offered plan must not cover the services listed in section 18023(b)(1)(B)(i). Insurers must be licensed in every State where they offer the plan and follow State laws that do not conflict with these rules. Each multi‑State plan must offer the same package of essential health benefits in every State and meet qualified plan rules, including bronze, silver, gold, and catastrophic levels. States may require extra benefits beyond the essential package. People in these plans can get the same premium tax credits and cost‑sharing help as other qualified plan enrollees, and States must make payments to individuals or directly to the plan. If a State had age rating rules more protective than 3:1 before March 23, 2010, the State can require plans in its Exchanges to follow those rules. New plans must expand by offering in at least 60% of States in year one, 70% in year two, 85% in year three, and then in all States thereafter. These plans count as Exchange‑certified. The program must be run separately from the Federal Employees Health Benefit Program, with separate risk pools, staff, and resources. An advisory board with many enrollee members must be created. Money may be appropriated as needed to run the program.

Title 42, §18054

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)The Director of the Office of Personnel Management (referred to in this section as the “Director”) shall enter into contracts with health insurance issuers (which may include a group of health insurance issuers affiliated either by common ownership and control or by the common use of a nationally licensed service mark), without regard to section 6101 of title 41 or other statutes requiring competitive bidding, to offer at least 2 multi-State qualified health plans through each Exchange in each State. Such plans shall provide individual, or in the case of small employers, group coverage.

(2)Each contract entered into under paragraph (1) shall be for a uniform term of at least 1 year, but may be made automatically renewable from term to term in the absence of notice of termination by either party. In entering into such contracts, the Director shall ensure that health benefits coverage is provided in accordance with the types of coverage provided for under section 2701(a)(1)(A)(i) of the Public Health Service Act [42 U.S.C. 300gg(a)(1)(A)(i)].

(3)In entering into contracts under paragraph (1), the Director shall ensure that at least one contract is entered into with a non-profit entity.

(4)The Director shall implement this subsection in a manner similar to the manner in which the Director implements the contracting provisions with respect to carriers under the Federal employees health benefit program 11 So in original. The words “employees health benefit program” probably should be capitalized. under chapter 89 of title 5, including (through negotiating with each multi-state 22 So in original. Probably should be “multi-State”. plan)—

(A)a medical loss ratio;

(B)a profit margin;

(C)the premiums to be charged; and

(D)such other terms and conditions of coverage as are in the interests of enrollees in such plans.

(5)The Director may prohibit the offering of any multi-State health plan that does not meet the terms and conditions defined by the Director with respect to the elements described in subparagraphs (A) through (D) of paragraph (4).

(6)In entering into contracts under this subsection, the Director shall ensure that with respect to multi-State qualified health plans offered in an Exchange, there is at least one such plan that does not provide coverage of services described in section 18023(b)(1)(B)(i) of this title.

(7)Approval of a contract under this subsection may be withdrawn by the Director only after notice and opportunity for hearing to the issuer concerned without regard to subchapter II of chapter 5 and chapter 7 of title 5.

(b)A health insurance issuer shall be eligible to enter into a contract under subsection (a)(1) if such issuer—

(1)agrees to offer a multi-State qualified health plan that meets the requirements of subsection (c) in each Exchange in each State;

(2)is licensed in each State and is subject to all requirements of State law not inconsistent with this section, including the standards and requirements that a State imposes that do not prevent the application of a requirement of part A of title XXVII of the Public Health Service Act [42 U.S.C. 300gg et seq.] or a requirement of this title; 33 See References in Text note below.

(3)otherwise complies with the minimum standards prescribed for carriers offering health benefits plans under section 8902(e) of title 5 to the extent that such standards do not conflict with a provision of this title; 3 and

(4)meets such other requirements as determined appropriate by the Director, in consultation with the Secretary.

(c)(1)A multi-State qualified health plan meets the requirements of this subsection if, in the determination of the Director—

(A)the plan offers a benefits package that is uniform in each State and consists of the essential benefits described in section 18022 of this title;

(B)the plan meets all requirements of this title 3 with respect to a qualified health plan, including requirements relating to the offering of the bronze, silver, and gold levels of coverage and catastrophic coverage in each State Exchange;

(C)except as provided in paragraph (5), the issuer provides for determinations of premiums for coverage under the plan on the basis of the rating requirements of part A of title XXVII of the Public Health Service Act; and

(D)the issuer offers the plan in all geographic regions, and in all States that have adopted adjusted community rating before March 23, 2010.

(2)Nothing in paragraph (1)(A) shall preclude a State from requiring that benefits in addition to the essential health benefits required under such paragraph be provided to enrollees of a multi-State qualified health plan offered in such State.

(3)(A)An individual enrolled in a multi-State qualified health plan under this section shall be eligible for credits under section 36B of title 26 and cost sharing assistance under section 18071 of this title in the same manner as an individual who is enrolled in a qualified health plan.

(B)A requirement by a State under paragraph (2) that benefits in addition to the essential health benefits required under paragraph (1)(A) be provided to enrollees of a multi-State qualified health plan shall not affect the amount of a premium tax credit provided under section 36B of title 26 with respect to such plan.

(4)A State shall make payments—

(A)to an individual enrolled in a multi-State qualified health plan offered in such State; or

(B)on behalf of an individual described in subparagraph (A) directly to the multi-State qualified health plan in which such individual is enrolled;

(5)With respect to a multi-State qualified health plan that is offered in a State with age rating requirements that are lower than 3:1, the State may require that Exchanges operating in such State only permit the offering of such multi-State qualified health plans if such plans comply with the State’s more protective age rating requirements.

(d)A multi-State qualified health plan that is offered under a contract under subsection (a) shall be deemed to be certified by an Exchange for purposes of section 18031(d)(4)(A) of this title.

(e)Notwithstanding paragraphs (1) and (2) of subsection (b), the Director shall enter into a contract with a health insurance issuer for the offering of a multi-State qualified health plan under subsection (a) if—

(1)with respect to the first year for which the issuer offers such plan, such issuer offers the plan in at least 60 percent of the States;

(2)with respect to the second such year, such issuer offers the plan in at least 70 percent of the States;

(3)with respect to the third such year, such issuer offers the plan in at least 85 percent of the States; and

(4)with respect to each subsequent year, such issuer offers the plan in all States.

(f)The requirements under chapter 89 of title 5 applicable to health benefits plans under such chapter shall apply to multi-State qualified health plans provided for under this section to the extent that such requirements do not conflict with a provision of this title.3

(g)(1)Nothing in this section shall be construed to permit the Director to allocate fewer financial or personnel resources to the functions of the Office of Personnel Management related to the administration of the Federal Employees Health Benefit Program under chapter 89 of title 5.

(2)Enrollees in multi-State qualified health plans under this section shall be treated as a separate risk pool apart from enrollees in the Federal Employees Health Benefit Program under chapter 89 of title 5.

(3)The Director may establish such separate units or offices within the Office of Personnel Management as the Director determines to be appropriate to ensure that the administration of multi-State qualified health plans under this section does not interfere with the effective administration of the Federal Employees Health Benefit Program under chapter 89 of title 5.

(4)The Director may appoint such additional personnel as may be necessary to enable the Director to carry out activities under this section.

(5)In carrying out this section, the Director shall ensure that the program under this section is separate from the Federal Employees Health Benefit Program under chapter 89 of title 5. Premiums paid for coverage under a multi-State qualified health plan under this section shall not be considered to be Federal funds for any purposes.

(6)Nothing in this section shall require that a carrier offering coverage under the Federal Employees Health Benefit Program under chapter 89 of title 5 also offer a multi-State qualified health plan under this section.

(h)The Director shall establish an advisory board to provide recommendations on the activities described in this section. A significant percentage of the members of such board shall be comprised of enrollees in a multi-State qualified health plan, or representatives of such enrollees.

(i)There is authorized to be appropriated, such sums as may be necessary to carry out this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Public Health Service Act, referred to in subsecs. (b)(2) and (c)(1)(C), is act July 1, 1944, ch. 373, 58 Stat. 682. Part A of title XXVII of the Act is classified generally to part A (§ 300gg et seq.) of subchapter XXV of chapter 6A of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 201 of this title and Tables. This title, referred to in subsecs. (b)(2), (3), (c)(1)(B), and (f), is title I of Pub. L. 111–148, Mar. 23, 2010, 124 Stat. 130, which enacted this chapter and enacted, amended, and transferred numerous other sections and notes in the Code. For complete classification of title I to the Code, see Tables. Codification In subsec. (a)(1), “section 6101 of title 41” substituted for “section 5 of title 41, United States Code,” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

§18054 Multi-State plans