98-13782. Prohibition of ``Gag Clauses'' in the Federal Employees Health Benefits Program  

  • [Federal Register Volume 63, Number 98 (Thursday, May 21, 1998)]
    [Proposed Rules]
    [Pages 27902-27903]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-13782]
    
    
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    OFFICE OF PERSONNEL MANAGEMENT
    
    48 CFR Part 1609
    
    RIN 3206-AI27
    
    
    Prohibition of ``Gag Clauses'' in the Federal Employees Health 
    Benefits Program
    
    AGENCY: Office of Personnel Management.
    
    ACTION: Notice of proposed rule making.
    
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    SUMMARY: The Office of Personnel Management (OPM) is proposing to amend 
    the regulations to prohibit health benefit carriers participating in 
    the Federal Employees Health Benefits (FEHB) Program from entering into 
    contractual provisions with health care providers or health care 
    workers that would include a provision for incentive payments as an 
    inducement to reduce or limit communication with, or the delivery of 
    health care services to, FEHB enrollees. The rule is intended to ensure 
    providers' and health care workers' ability to communicate with, and 
    advise patients of, any medically necessary treatment options.
    
    DATES: Comments must be received on or before July 20, 1998.
    
    ADDRESSES: Comments should be directed to Abby L. Block, Chief, 
    Insurance Policy and Information Division, OPM, Room 3425, 1900 E 
    Street, NW., Washington, DC 20415-0001.
    
    FOR FURTHER INFORMATION CONTACT: Michael W. Kaszynski, (202) 606-0004.
    
    SUPPLEMENTARY INFORMATION: You may submit comments and data by sending 
    electronic mail (E-mail) to: [email protected]
        On February 20, 1998, the President signed an Executive Memorandum 
    directing the Office of Personnel Management (OPM) to take the 
    necessary steps to bring the FEHB Program into contractual compliance 
    with the Consumer (Patient) Bill of Rights and Responsibilities by no 
    later than year end 1999. The Memorandum specifically directed OPM to 
    propose regulations within 90 days to prohibit practices that restrict 
    physician-patient communications about medically necessary treatment 
    options. This action will prohibit FEHB participating carriers
    
    [[Page 27903]]
    
    from placing incentives in contracts with health care providers or 
    health care workers that would limit providers' or health care workers' 
    ability to discuss medically necessary treatment options with Federal 
    enrollees. We are aware that a proposal to enact a ``gag clause'' 
    regulation raises three broad areas of concern regarding: (1) potential 
    impairment of a health plan's ability to review utilization against 
    appropriate treatment protocols, (2) potential conflict with providers' 
    (including carriers') ethical or moral beliefs, and (3) impact on 
    providers' or workers' ability to discuss non-covered or high cost 
    treatment options. This regulation is not intended to limit a health 
    plan's ability to perform utilization review nor is it intended to 
    cause providers or health care workers to discuss treatment options 
    that they would not ordinarily discuss in their normal course of 
    practice because such options are against their professional judgement 
    and/or ethical, moral or religious beliefs. The regulation will ensure 
    that providers or health care workers have the ability to communicate 
    fully and openly with patients regarding medically necessary treatment 
    options regardless of cost or whether the benefits are covered by their 
    health plan. Simply stated, the amended regulation is intended to 
    remove any contractual impediment to a candid and open physician-
    patient relationship.
    
    Regulatory Flexibility Act
    
        I certify that this regulation will not have a significant economic 
    impact on a substantial number of small entities because the regulation 
    will only affect health insurance carriers under the Federal Employees 
    Health Benefits Program.
    
    Executive Order 12866, Regulatory Review
    
        This rule has been reviewed by the Office of Management and Budget 
    in accordance with Executive Order 12866.
    
    List of Subjects in 48 CFR Part 1609
    
        Administrative practice and procedure, Government employees, Health 
    facilities, Health insurance, Health professionals, Hostages, Iraq, 
    Kuwait, Lebanon, Reporting and record keeping requirements, Retirement.
    
    Office of Personnel Management.
    Janice R. Lachance,
    Director.
    
        For the reasons set forth in the preamble OPM proposes to amend 48 
    CFR Part 1609 as follows:
    
    Subpart 1609.70--Minimum Standards for Health Benefit Carriers
    
        1. The authority citation for 48 CFR Part 1609 continues to read as 
    follows:
    
        Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
    
        2. In Sec. 1609.7001 new paragraph (c)(7) is added to read as 
    follows:
    
    
    Sec. 1609.7001  Minimum Standards for Health Benefits Carriers
    
    * * * * *
        (c) * * *
        (7) Entering into contracts with providers or health care workers 
    that include incentive plans that directly or indirectly create an 
    inducement to limit communication of, or reduce, medically necessary 
    services to any individual covered under the FEHB Program.
    
    [FR Doc. 98-13782 Filed 5-19-98; 2:20 pm]
    BILLING CODE 6325-01-P
    
    
    

Document Information

Published:
05/21/1998
Department:
Personnel Management Office
Entry Type:
Proposed Rule
Action:
Notice of proposed rule making.
Document Number:
98-13782
Dates:
Comments must be received on or before July 20, 1998.
Pages:
27902-27903 (2 pages)
RINs:
3206-AI27: Prohibition of "Gag Clauses" in the Federal Employees Health Benefits Program
RIN Links:
https://www.federalregister.gov/regulations/3206-AI27/prohibition-of-gag-clauses-in-the-federal-employees-health-benefits-program
PDF File:
98-13782.pdf
CFR: (1)
48 CFR 1609.7001