Edolphus Towns: “I would like to clarify several points in Section 1334 of H.R. 3590, regarding the Office of Personnel Management's…”

“I would like to clarify several points in Section 1334 of H.R. 3590, regarding the Office of Personnel Management's authority to provide oversight and set premiums of multi-State plans. OPM, of course, has administered the Federal Employees Health Benefits Program for over 50 years, and that program has served as a model for the Exchanges envisioned under this legislation. In administering the FEHB Program, OPM has been able to address the problem of uniformity of benefits and requirements across State lines using its authority under 8902(m) of Title 5. Section 1334(a)(4) of the Senate-passed bill states that 'the Director shall implement this subsection in a manner similar to the manner in which the Director implements the . . . Federal employees health benefit program under chapter 89 of title 5, United States Code'. The intent of this provision is that OPM oversee multi-State health plans in the same manner in which oversight is provided under the FEHB Program for the purposes of uniformity of health insurance plans. OPM should exercise this authority, as it does in the FEHBP, to ensure that multi-State plans offer uniform benefits, negotiate premiums with multi-State plans, and require these plans to set aside a certain amount of reserve funds.”