Newswise — WASHINGTON – A new paper titled, “Multi-State Plans under the Affordable Care Act,” was released today by the George Washington University School of Public Health and Health Services (GW). Authored by Trish Riley and Jane Hyatt Thorpe of the GW Department of Health Policy and funded by The Commonwealth Fund, the paper examines key issues related to the development of multi-state plans (MSPs), a new type of insurance coverage created by a provision of the Affordable Care Act (ACA). MSPs will be administered through the federal Office of Personnel Management (OPM) and offered across state lines through the new state health insurance exchanges. The findings in this paper are based on interviews with federal and state policy makers and other stakeholders, and are intended to inform the development and implementation of MSPs.
A primary goal of the ACA is to increase consumer choice by stimulating market competition among health plans in order to offer more affordable, value-based options through the new health insurance exchanges. To further enhance competition, the ACA also requires that, over time, each state health insurance exchange must offer two MSPs, one of which must be a non-profit. Unlike other plans participating in state-based exchanges that will be subject to state-level licensure and insurance regulation requirements, MSPs will be licensed by the states, but otherwise regulated by the federal Office of Personnel Management. Furthermore, MSPs must offer a benefit package that is uniform in each state where available. Some states have expressed concern with the impact of this dual regulation and the feasibility of offering a uniform benefits package requirement across states. However, this would, at least initially, suggest the availability of fully portable health plans nationwide.
The authors address the challenges and opportunities that MSPs present, including concerns that MSPs may disrupt state markets, complicate state value-based purchasing efforts and lead to more consolidation and less competition as well as the opportunity for MSPs to create markets that drive all insurers to develop more competitive plans resulting in greater consumer choice.
“OPM will soon release a proposed regulation addressing the implementation of MSPs. We hope the issues raised in this paper will provide background and a framework for constructive discussion,” said co-author Trish Riley.
The article appears here: http://www.gwumc.edu/sphhs/departments/healthpolicy/dhp_publications/pub_uploads/dhpPublication_A80A0AAA-5056-9D20-3D25B59C65680B79.pdf
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About The Commonwealth Fund:The Commonwealth Fund is a private foundation supporting independent research on health policy reform and a high performance health system. http://www.commonwealthfund.org/
About the George Washington University School of Public Health and Health Services:Established in July 1997, the School of Public Health and Health Services brought together three longstanding university programs in the schools of medicine, business, and education that we have since expanded substantially. Today, more than 1,100 students from nearly every U.S. state and more than 40 nations pursue undergraduate, graduate, and doctoral-level degrees in public health. Our student body is one of the most ethnically diverse among the nation's private schools of public health. http://sphhs.gwumc.edu/
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