A new rule from the Centers for Medicare & Medicaid Services (CMS) has created a new “death panel” for states to choose from to help reduce health care costs.
The rule, published in the Federal Register on Monday, was written by CMS director Kathleen Sebelius and the agency’s undersecretary for health, David Korten.
It requires states to have a single, neutral third party that will be charged with determining whether a health care plan is compliant with the ACA.
It’s part of an effort by President Donald Trump to eliminate the so-called death panels that would be required for health care plans that do not meet certain requirements, such as those for affordable coverage.
The new rule is a big deal for many reasons.
“This is the most significant rule of its kind,” Korten said in a statement.
“It is also the first rule of any size to explicitly require states to set up a death panel that would assess whether health plans meet ACA requirements for affordable health coverage.”
The new rules come in addition to a number of other regulations released by CMS, including the implementation of new state regulations requiring health plans to cover a certain set of services and a requirement that health plans provide health care planning information.
In the new rule, states are also required to have at least one neutral third-party to conduct their analysis of whether plans meet the requirements of the ACA, but that third party must be a third party in addition that of the insurer that provides the plan, and must have the ability to review the plans records.
The death panel could result in states being forced to charge more for health insurance and potentially increase premiums, and it could have a significant impact on the quality of care offered by insurers.
The federal rule also requires that a state’s health plan provider must have at minimum five members, who are appointed by the state and the commissioner of the state.
The new rule also gives states the option of having only one neutral or neutral-sounding person as a third-parties to review plans records and other information.
“States have an obligation to provide an open and honest process to the American people to ensure that their residents receive the best quality of health care,” Kortan said in the statement.
States can choose not to use a neutral third parties and will have to provide the information and information about the plans to the agency.
States have until the end of June to request a waiver from the rule, and if they do not do so, they could be held liable for any future costs.
States will have 30 days to respond to the new rules.
The Associated Press contributed to this report.