Epstein Becker Green Health Care and Life Sciences Client Alert

The Centers for Medicare & Medicaid Services (“CMS”) recently announced its 2015 key priorities for compliance reviews of qualified health plans (“QHPs”) offered in the federally facilitated marketplaces (“FFMs”). Through a document titled “Key Priorities for FFM Compliance Reviews for the 2015 Benefit Year,”[1] released on April 2, 2015, CMS has outlined its areas of focus for QHP issuer compliance reviews.

A new priority for 2015 is prescription drug formulary compliance, including meeting drug coverage minimums and the provision of a process to allow enrollees to request and access clinically appropriate drugs not included in the formulary. All other areas of focus are the same as those identified as 2014 priorities, including:

  • complying with issuer participation standards,
  • maintaining a sufficient provider network,
  • ensuring access to Essential Community Providers,
  • not employing marketing practices or benefit designs that discourage enrollment of individuals with significant health needs, and
  • ensuring compliance of appointed agents/brokers.

CMS will continue its good faith compliance policy through 2015 for QHP issuers that demonstrate a good faith effort to comply with QHP certification and operational requirements. CMS conducted 23 audits of QHP issuers in 2014 and noted in public presentations that the agency found a lack of familiarity with QHP requirements. Many of the examined policies and procedures were non-existent, had been recently created prior to the audit date, or did not address QHP-specific requirements. Common findings included a QHP issuer’s failure to:

  • meet notice accessibility requirements,
  • address requirements on maintaining current and accurate provider directories,
  • ensure compliance with agent/broker training and registration requirements, and
  • ensure that agent/broker compensation is equal inside and outside the FFM.

If a QHP issuer fails to implement policies and procedures that reflect FFM requirements, then it will be difficult for the issuer to demonstrate that it has acted in good faith. As with the 2014 cycle, issuers were again invited to volunteer for audit during the 2015 cycle.

CMS has not yet stated whether it will be extending its good faith compliance policy for 2016. Issuers should not expect this policy to continue indefinitely and should be prepared for a CMS QHP compliance review.

Epstein Becker Green can assist plans in evaluating whether to volunteer for review and in preparing for CMS's 2015 review of QHP compliance in the FFM.

* * *

This Client Alert was authored by Helaine I. Fingold and M. Brian Hall, IV. For additional information about the issues discussed in this Client Alert, please contact one of the authors or the Epstein Becker Green attorney who regularly handles your legal matters.


ENDNOTE

[1] The Centers for Medicare & Medicaid Services, “Key Priorities for FFM Compliance Reviews for the 2015 Benefit Year” (April 2, 2015).

Jump to Page

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.