PPACA’s Multi-State Plan Program Does Little for Payer Competition

The healthcare reform law’s Multi-State Plan Program, which was intended to allow customers and businesses to purchase health plans on the exchanges that extended beyond state lines, isn’t showing promising signs of promoting competition among such plans, according to a report by Politico.

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The federal Office of Personnel Management is required under the law to contract with at least two health insurers, one of them a nonprofit, in 31 states by next year. Lawmakers who drafted that section of the law hoped it would spark greater competition among large multi-state health plans.

On the other hand, preliminary results show the most likely candidates to win those contracts, especially Blue Cross Blue Shield affiliates, are already selling plans in those regions, casting doubt that the move will improve customers’ options or rates, according to the report.

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