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What you should know about new HHS rules on state control of health plans

Louise Norris

In mid-April, the Department of Health and Human Services published its market stabilization final rule. The regulations gave states new flexibility to determine whether health plans sold in the exchange (qualified health plans, or QHPs) have adequate provider networks and prescription drug formularies that aren’t discriminatory in their design.

HHS notes that shifting responsibility to states is a direct result of President Trump’s executive order that directed federal agencies “to provide greater flexibility to States and cooperate with them in implementing healthcare programs.” In promulgating the new rules, HHS explains that they are “committed to returning to states their traditional authority to regulate health plans.”

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