Regulatory Advisory

OPM Releases Rule Implementing Multi-State Plan Program

In conjunction with a number of exchange-related regulations released last week, the U.S. Office of Personnel Management (OPM) has issued a proposed rule implementing the Multi-State Plan Program (MSPP) under the Affordable Care Act (ACA). ACA requires the OPM to contract with at least two insurers, one of which must be a nonprofit, to offer at least two multi-state plans (MSPs) in each state health insurance exchange. Under the law, the insurers must initially offer MSP coverage in at least 31 states, but must then phase in all 50 states and the District of Columbia by the fourth year of participating in MSPP. The OPM, which has experience administering MSPs through the Federal Employee Health Benefits Plan, would directly negotiate premiums with insurers, conduct rate reviews and resolve appeals, while working closely with states to administer the program and ensure consistency with state insurance laws. The proposed rule, attached, has a 30-day comment period.