Coverage of Certain Preventive Services Under the Affordable Care Act, 7236-7281 [2023-01981]
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Federal Register / Vol. 88, No. 22 / Thursday, February 2, 2023 / Proposed Rules
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 54
[REG 124930–21]
RIN 1545–BQ35
DEPARTMENT OF LABOR
Employee Benefits Security
Administration
29 CFR Part 2590
RIN 1210–AC13
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
45 CFR Parts 147 and 156
[CMS–9903–P]
RIN 0938–AU94
Coverage of Certain Preventive
Services Under the Affordable Care
Act
Internal Revenue Service,
Department of the Treasury; Employee
Benefits Security Administration,
Department of Labor; Centers for
Medicare & Medicaid Services,
Department of Health and Human
Services.
ACTION: Notice of proposed rulemaking.
AGENCY:
These proposed rules would
amend regulations regarding coverage of
certain preventive services under the
Patient Protection and Affordable Care
Act, which requires non-grandfathered
group health plans and nongrandfathered group or individual
health insurance coverage to cover
certain contraceptive services without
cost sharing. Current regulations
include exemptions and optional
accommodations for entities and
individuals with religious or moral
objections to coverage of contraceptive
services. These rules propose rescinding
the moral exemption rule. These
proposed rules also would establish a
new individual contraceptive
arrangement that individuals enrolled in
plans or coverage sponsored, arranged,
or provided by objecting entities may
use to obtain contraceptive services at
no cost directly from a provider or
facility that furnishes contraceptive
services. Contraceptive services would
be available through the proposed
individual contraceptive arrangement
without any involvement on the part of
an objecting entity. Under these
proposed rules, a provider or facility
that furnishes contraceptive services in
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SUMMARY:
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accordance with the individual
contraceptive arrangement for eligible
individuals would be able to be
reimbursed for its costs by entering into
an arrangement with an issuer on a
Federally-facilitated Exchange or State
Exchange on the Federal platform,
which in turn may seek a user fee
adjustment.
DATES: To be assured consideration,
comments must be received at one of
the addresses provided below, by April
3, 2023.
ADDRESSES: In commenting, please refer
to file code CMS–9903–P.
Comments, including mass comment
submissions, must be submitted in one
of the following three ways (please
choose only one of the ways listed):
1. Electronically. You may submit
electronic comments on this regulation
to https://www.regulations.gov. Follow
the ‘‘Submit a comment’’ instructions.
2. By regular mail. You may mail
written comments to the following
address ONLY: Centers for Medicare &
Medicaid Services, Department of
Health and Human Services, Attention:
CMS–9903–P, P.O. Box 8016, Baltimore,
MD 21244–8016.
Please allow sufficient time for mailed
comments to be received before the
close of the comment period.
3. By express or overnight mail. You
may send written comments to the
following address ONLY: Centers for
Medicare & Medicaid Services,
Department of Health and Human
Services, Attention: CMS–9903–P, Mail
Stop C4–26–05, 7500 Security
Boulevard, Baltimore, MD 21244–1850.
For information on viewing public
comments, see the beginning of the
SUPPLEMENTARY INFORMATION section.
FOR FURTHER INFORMATION CONTACT:
Jason Sandoval, Internal Revenue
Service, Department of the Treasury, at
(202) 317–5500; Beth Baum or Matthew
Meidell, Employee Benefits Security
Administration, Department of Labor, at
(202) 693–8335; David Mlawsky,
Centers for Medicare & Medicaid
Services, Department of Health and
Human Services, at (410) 786–6851; for
matters related to financial support,
Allison Yadsko, Centers for Medicare &
Medicaid Services, Department of
Health and Human Services, at (410)
786–1740.
Customer Service Information:
Individuals interested in obtaining
information from the Department of
Labor (DOL) concerning employmentbased health coverage laws may call the
Employee Benefits Security
Administration (EBSA) Toll-Free
Hotline at 1–866–444–EBSA (3272) or
visit the DOL’s website (www.dol.gov/
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ebsa). In addition, information from the
Department of Health and Human
Services (HHS) on private health
insurance coverage and coverage
provided by non-Federal Governmental
group health plans can be found on the
Centers for Medicare & Medicaid
Services (CMS) website (www.cms.gov/
cciio), and information on health care
reform can be found at
www.HealthCare.gov.
SUPPLEMENTARY INFORMATION:
Inspection of Public Comments:
Comments received before the close of
the comment period are available for
viewing by the public, including any
personally identifiable or confidential
business information that is included in
a comment. We post comments received
before the close of the comment period
on the following website as soon as
possible after they have been received:
https://www.regulations.gov. Follow the
search instructions on that website to
view public comments. CMS will not
post on regulations.gov public
comments that make threats to
individuals or institutions or suggest
that the commenter will take actions to
harm another individual. CMS
continues to encourage individuals not
to submit duplicative comments. We
will post acceptable comments from
multiple unique commenters even if the
content is identical or nearly identical
to other comments.
I. Background
A. Legislative, Regulatory and Judicial
History
The Patient Protection and Affordable
Care Act (Pub. L. 111–148) was enacted
on March 23, 2010. The Health Care and
Education Reconciliation Act of 2010
(Pub. L. 111–152) was enacted on March
30, 2010. These statutes are collectively
known as the Affordable Care Act
(ACA). The ACA reorganized, amended,
and added to the provisions of part A of
title XXVII of the Public Health Service
Act (PHS Act) relating to group health
plans and health insurance issuers in
the group and individual markets. The
ACA added section 715(a)(1) to the
Employee Retirement Income Security
Act of 1974 (ERISA) and section
9815(a)(1) to the Internal Revenue Code
(Code) to incorporate the provisions of
part A of title XXVII of the PHS Act into
ERISA and the Code, and to make them
applicable to group health plans and
health insurance issuers providing
health insurance coverage in connection
with group health plans. The sections of
the PHS Act incorporated into ERISA
and the Code are sections 2701 through
2728.
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Section 2713 of the PHS Act, as added
by the ACA and incorporated into
ERISA and the Code, requires nongrandfathered group health plans and
health insurance issuers offering nongrandfathered group or individual
health insurance coverage to provide
coverage of certain specified preventive
services without cost sharing, including,
under section 2713(a)(4) of the PHS Act,
benefits for certain women’s preventive
health services as provided for in
comprehensive guidelines supported by
the Health Resources and Services
Administration (HRSA).1 2 On August 1,
2011, HRSA adopted guidelines for
women’s preventive health services
(2011 HRSA-Supported Guidelines)
based on recommendations of the
independent Institute of Medicine
(IOM), now known as the National
Academy of Medicine.3 As relevant
here, the 2011 HRSA-Supported
Guidelines included sterilization
procedures, patient education and
counseling for women with
reproductive capacity, and all Food and
Drug Administration (FDA)-approved,
cleared, or granted contraceptives, as
prescribed by a health care provider
(collectively, contraceptive services).4
1 In addition to the specified preventive services
addressed in section 2713 of the PHS Act, section
3203 of the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act), enacted on March 27,
2020, requires non-grandfathered group health
plans and health insurance issuers offering nongrandfathered group or individual health insurance
to cover any qualifying coronavirus preventive
service without cost sharing, pursuant to section
2713(a) of the PHS Act (including the regulations
under 26 CFR 54.9815–2713, 29 CFR 2590.715–
2713, and 45 CFR 147.130 (or any successor
regulations)).
2 The final regulations generally provide that
plans and issuers must cover a preventive service
pursuant to a new or changed recommendation
starting with the first plan year (or, in the
individual market, policy year) that begins on or
after the date that is one year after the date on
which the new recommendation is issued. 26 CFR
54.9815–2713(b)(1); 29 CFR 2590.715–2713(b)(1);
45 CFR 147.130(b)(1). Coverage of qualifying
coronavirus preventive services must begin on an
expedited timeline. Public Law 116–136, 3203, 134
Stat. 367 (2020); 26 CFR 54.9815–2713T(b)(3); 29
CFR 2590.715–2713(b)(3); 45 CFR 147.130(b)(3).
3 The references to ‘‘women’’ in these proposed
rules should be considered to include any
individual potentially capable of becoming
pregnant, including cisgender women, transgender
men, and non-binary individuals. Plans and issuers
are required to cover contraceptive services for all
such individuals consistent with the requirements
in 26 CFR 54.9815–2713, 29 CFR 2590.715–2713,
and 45 CFR 147.130. See FAQs About Affordable
Care Act Implementation (Part XXVI) (May 11,
2015), Q5, available at https://www.dol.gov/sites/
dolgov/files/ebsa/about-ebsa/our-activities/
resource-center/faqs/aca-part-xxvi.pdf and https://
www.cms.gov/CCIIO/Resources/Fact-Sheets-andFAQs/Downloads/aca_implementation_faqs26.pdf.
4 The references in this document to
‘‘contraception,’’ ‘‘contraceptive,’’ ‘‘contraceptive
coverage,’’ or ‘‘contraceptive services’’ generally
include all contraceptives, sterilization, and related
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Except as discussed later in this section,
non-grandfathered group health plans
and health insurance issuers offering
non-grandfathered group or individual
patient education and counseling recommended by
the HRSA-Supported Women’s Preventive Services
Guidelines, unless otherwise indicated. The
Guidelines issued in 2011 referred to
‘‘Contraceptive Methods and Counseling’’ as ‘‘[a]ll
Food and Drug Administration approved
contraceptive methods, sterilization procedures,
and patient education and counseling for all women
with reproductive capacity.’’ The Guidelines, as
amended in December 2016 refer, under the header
‘‘Contraception,’’ to: ‘‘the full range of femalecontrolled U.S. Food and Drug Administrationapproved contraceptive methods, effective family
planning practices, and sterilization procedures,’’
‘‘contraceptive counseling, initiation of
contraceptive use, and follow-up care (e.g.,
management, and evaluation as well as changes to
and removal or discontinuation of the contraceptive
method),’’ and ‘‘instruction in fertility awarenessbased methods, including the lactation amenorrhea
method.’’ See https://www.hrsa.gov/womensguidelines-2016/. The Guidelines as
amended in 2019 maintain the contraception
guideline, and note, under the header
‘‘Contraception’’, the applicability of the Religious
Exemptions and Accommodations for Coverage of
Certain Preventive Services. See https://
www.hrsa.gov/womens-guidelines-2019. The
Guidelines as amended in December 2021, which
are effective for plan years and policy years
beginning on or after December 30, 2022, refer,
under the header ‘‘Contraception,’’ to ‘‘the full
range of contraceptives and contraceptive care to
prevent unintended pregnancies and improve birth
outcomes.’’ Unlike in previous versions of the
Guidelines, the term ‘‘methods’’ no longer appears
in that phrase, as the FDA does not and never has
approved, granted, or cleared contraceptive
methods, only contraceptive products. With the
removal of the phrase ‘‘female-controlled’’, all
condoms are included in the December 2021
guidelines, which include ‘‘screening, education,
counseling, and provision of contraceptives
(including in the immediate postpartum period)’’
including ‘‘follow-up care (e.g., management,
evaluation and changes, including the removal,
continuation, and discontinuation of
contraceptives).’’ The 2021 Guidelines include ‘‘the
full range of U.S. Food and Drug Administration
(FDA)- approved, -granted, or -cleared
contraceptives, effective family planning practices,
and sterilization procedures be available as part of
contraceptive care.’’ The 2021 Guidelines do not
include sterilization surgery for men. See https://
www.hrsa.gov/womens-guidelines/. The
following sentence appears in the December 2016
Guidelines: ‘‘Additionally, instruction in fertility
awareness-based methods, including the lactation
amenorrhea method, although less effective, should
be provided for women desiring an alternative
method.’’ Although that specific sentence does not
appear in the December 2021 Guidelines, HRSA
maintains that other language in the December 2021
Guidelines establishes that such instruction is
included in those Guidelines. Additionally, the U.S.
District Court for the Eastern District of Texas has
issued a temporary restraining order and
preliminary injunction that the effective date of the
deletion of that sentence from the December 2021
Guidelines is delayed until further order of the
Court, and as a consequence the sentence remains
in those Guidelines. The Court enjoined HRSA and
all persons in active concert or participation with
them from using or applying the December 2021
Guidelines to delete the above language, thereby
maintaining that current language unless and until
it is changed through a final rule issued after notice
to the public and an opportunity to comment. TiceHarouff v. Johnson, 6:22–cv–201–JDK (E.D. Tex.
Aug. 12, 2022).
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health insurance coverage were required
to provide coverage consistent with the
2011 HRSA-Supported Guidelines,
without cost sharing, for plan years (or,
in the individual market, policy years)
beginning on or after August 1, 2012. As
fully discussed in footnote 4 of this
preamble, the 2011 HRSA-Supported
Guidelines have been updated several
times; plans and issuers are currently
required to provide coverage without
cost sharing consistent with the HRSASupported Guidelines as amended in
2019.
HHS, DOL, and the Department of the
Treasury (collectively, the Departments)
previously issued rules and guidance
implementing section 2713 of the PHS
Act, including guidance specific to
coverage of contraceptive services.5 The
Departments also previously issued
rules providing exemptions from the
contraceptive coverage requirement for
entities and individuals with moral or
religious objections to contraceptive
coverage, and accommodations through
which objecting entities are not required
to contract, arrange, pay, or provide a
referral for contraceptive coverage while
at the same time ensuring that
participants, beneficiaries, and enrollees
enrolled in coverage sponsored or
arranged by an objecting entity could
separately obtain contraceptive services
at no cost. Specifically, the Departments
have issued:
• Interim final rules on July 19, 2010,
at 75 FR 41726 (July 2010 interim final
rules), which implemented the
preventive services requirements of
section 2713 of the PHS Act;
• Interim final rules amending the
July 2010 interim final rules on August
3, 2011, at 76 FR 46621 (August 2011
interim final rules), which provided
HRSA with the authority to exempt
group health plans established or
maintained by certain religious
employers (and group health insurance
coverage provided in connection with
those plans) from the requirement to
cover contraceptive services consistent
with the HRSA-Supported Guidelines;
• Final rules on February 15, 2012, at
77 FR 8725 (February 2012 final rules),
which finalized the definition of
‘‘religious employer’’ in the August
2011 interim final rules without
modification;
• An advanced notice of proposed
rulemaking on March 21, 2012, at 77 FR
16501 (March 2012 ANPRM), soliciting
comments on how to provide for
coverage of recommended preventive
services, including contraceptive
services, without cost sharing, while
5 See section II.B of the preamble for a description
of the applicable guidance.
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simultaneously ensuring that certain
nonprofit organizations with religious
objections to contraceptive coverage
would not be required to contract,
arrange, pay, or provide a referral for
that coverage;
• Proposed rules on February 6, 2013,
at 78 FR 8456 (February 2013 proposed
rules), which proposed to simplify and
clarify the definition of ‘‘religious
employer’’ for purposes of the religious
employer exemption, and proposed
accommodations for group health plans
established or maintained by certain
nonprofit religious organizations with
religious objections to contraceptive
coverage (and group health insurance
coverage provided in connection with
those plans) and for insured student
health plans arranged by certain
nonprofit religious organizations that
are institutions of higher education with
religious objections to contraceptive
coverage;
• Final rules on July 2, 2013, at 78 FR
39870 (July 2013 final rules), which
simplified and clarified the definition of
‘‘religious employer’’ for purposes of the
religious employer exemption,
established an accommodation process
for health coverage established or
maintained or arranged by eligible
organizations, 6 and established the
process for participating issuers to seek
a user fee adjustment under the
applicable accommodations;
• Interim final rules on August 27,
2014, at 79 FR 51092 (August 2014
interim final rules), which amended the
July 2013 final rules in light of the
United States Supreme Court’s interim
order in connection with an application
for an injunction in Wheaton College v.
Burwell 7 (Wheaton interim order), and
provided an alternative process that an
eligible organization may use to provide
notice of its religious objection to the
coverage of contraceptive services;
• Proposed rules on August 27, 2014,
at 79 FR 51118 (August 2014 proposed
rules), which proposed potential
changes to the definition of ‘‘eligible
organization’’ for purposes of the
accommodation process in light of the
Supreme Court’s decision in Burwell v.
Hobby Lobby Stores, Inc.; 8
• Final rules on July 14, 2015, at 80
FR 41317 (July 2015 final rules), which
6 That accommodation process, which was the
only process by which certain employers could
avoid the contraceptive coverage requirement under
the July 2013 final rules, now forms the basis for
what is instead an optional accommodation process
under final rules published on November 15, 2018,
at 83 FR 57536 (November 2018 Religious
Exemption final rules).
7 Wheaton College v. Burwell, 134 S. Ct. 2806, 573
U.S. 958, 189 L. Ed. 2d 856 (2014).
8 Burwell v. Hobby Lobby Stores, Inc., 134 S. Ct.
2751, 573 U.S. 682, 189 L. Ed. 2d 675 (2014).
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finalized the July 2010 interim final
rules, the August 2014 interim final
rules related to the process an eligible
organization uses to provide notice of its
religious objection to the coverage of
contraceptive services, as well as the
August 2014 proposed rules, which had
proposed expanding the definition of
‘‘eligible organization’’ to allow closely
held for-profit entities to access an
accommodation with respect to the
coverage of contraceptive services;
• A request for information on July
26, 2016, at 81 FR 47741 (July 2016
RFI), which requested public comments
on alternative ways for objecting
organizations to obtain an
accommodation in light of the Supreme
Court’s decision in Zubik v. Burwell; 9
• Frequently Asked Questions on
January 9, 2017 (FAQs Part 36), which
summarized alternative potential
accommodations and stated that the
Departments were not modifying the
existing accommodations because the
Departments continued to be of the view
that the existing accommodations were
consistent with the Religious Freedom
Restoration Act (RFRA) 10 and that
alternative accommodations were not
feasible; 11
• Interim final rules on October 13,
2017, at 82 FR 47792 (October 2017
Religious Exemption interim final
rules), which expanded existing
religious exemptions from the
contraceptive coverage requirement to
objecting entities and individuals and
made the existing accommodation
process optional;
• Interim final rules on October 13,
2017, at 82 FR 47838 (October 2017
Moral Exemption interim final rules),
which created exemptions for entities
and individuals that object to the
contraceptive coverage requirement
based on moral convictions, and
provided objecting entities access to the
optional accommodation process;
• Final rules on November 15, 2018,
at 83 FR 57536 (November 2018
Religious Exemption final rules), which
finalized the expanded religious
exemptions and optional
accommodation process in the October
2017 Religious Exemption interim final
rules;
• Final rules on November 15, 2018,
at 83 FR 57592 (November 2018 Moral
Exemption final rules), which finalized
9 Zubik
v. Burwell, 136 S. Ct. 1557 (2016).
U.S.C. 2000bb–1, et seq.
11 FAQs About Affordable Care Act
Implementation Part 36 (Jan. 17, 2017), available at
https://www.dol.gov/sites/dolgov/files/EBSA/aboutebsa/our-activities/resource-center/faqs/aca-part36.pdf and https://www.cms.gov/cciio/resources/
fact-sheets-and-faqs/downloads/aca-faqs-part36_19-17-final.pdf.
10 42
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the new moral exemptions and optional
accommodation process in the October
2017 Moral Exemption interim final
rules;
• Frequently Asked Questions on
August 16, 2021 (FAQs Part 48), which
announced the Departments would
initiate rulemaking to amend the
November 2018 Religious and Moral
Exemption final rules in light of recent
litigation; 12
• Frequently Asked Questions on
January 10, 2022 (FAQs Part 51), which
acknowledged complaints received
about compliance with the
contraceptive coverage requirement and
clarified currently applicable
guidance; 13 and
• Frequently Asked Questions on July
28, 2022 (FAQs Part 54), which further
clarified the contraceptive coverage
requirement and currently applicable
guidance.14
During the period in which the
Departments issued these rules and
guidance, organizations and individuals
filed lawsuits challenging the
contraceptive coverage requirement and
regulations as being inconsistent with
various legal protections, including
RFRA. Plaintiffs included religious
nonprofit organizations, for-profit
businesses controlled by religious
individuals, and others, including
several non-religious organizations that
opposed the required coverage of certain
contraceptives on the basis of nonreligious moral convictions. These
lawsuits first led to the Supreme Court’s
ruling in Burwell v. Hobby Lobby Stores,
Inc.15 The Supreme Court ruled in
Hobby Lobby that, under RFRA, the
contraceptive coverage requirement
could not be applied to closely held forprofit corporations because doing so
imposed a substantial burden on the
owners’ exercise of religion and was not
the least restrictive means of advancing
12 FAQs About Affordable Care Act
Implementation Part 48 (Aug. 16, 2021), available
at https://www.cms.gov/files/document/faqs-part48.pdf and https://www.dol.gov/sites/dolgov/files/
EBSA/about-ebsa/our-activities/resource-center/
faqs/aca-part-48.pdf.
13 FAQs About Affordable Care Act
Implementation Part 51, Families First Coronavirus
Response Act and Coronavirus Aid, Relief, and
Economic Security Act Implementations (Jan. 10,
2022), available at https://www.dol.gov/sites/
dolgov/files/EBSA/about-ebsa/our-activities/
resource-center/faqs/aca-part-51.pdf and https://
www.cms.gov/CCIIO/Resources/Fact-Sheets-andFAQs/Downloads/FAQs-Part-51.pdf.
14 FAQs About Affordable Care Act
Implementation Part 54 (July 28, 2022), available at
https://www.dol.gov/sites/dolgov/files/EBSA/aboutebsa/our-activities/resource-center/faqs/aca-part54.pdf and https://www.cms.gov/files/document/
faqs-part-54.pdf.
15 Burwell v. Hobby Lobby Stores, Inc, 134 S. Ct.
2751 (2014).
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a compelling governmental interest.16 In
response to Hobby Lobby, the July 2015
final rules allowed closely held forprofit companies to access the existing
accommodation process.
Later, a second series of legal
challenges were filed by religious
nonprofit organizations that argued that
the accommodation itself impermissibly
burdened their religious beliefs. On May
16, 2016, the Supreme Court issued a
per curiam decision in Zubik v. Burwell,
vacating the judgments of the Courts of
Appeals—most of which had ruled in
the Departments’ favor—and remanding
the cases ‘‘in light of the substantial
clarification and refinement in the
positions of the parties’’ that had been
supplied in supplemental briefs.17 The
Court anticipated that, on remand, the
Courts of Appeals would ‘‘allow the
parties sufficient time to resolve any
outstanding issues between them.’’ 18
The Departments issued the July 2016
RFI to gather public comments in
response to the Zubik decision.
FAQs Part 36 summarized the public
comments and suggestions regarding the
accommodation process. In Zubik, the
Court suggested that the parties submit
to the court information about whether
cost-free contraceptive coverage could
be provided to employees, through the
objecting employers’ health insurance
issuers, without the employers having to
provide any notice to the issuers or the
Government.19 Some comments
received in response to the July 2016
RFI suggested that such an
accommodation process would not be
acceptable to some employers with
religious objections, and some
comments suggested that it would create
significant administrative and
operational challenges that would
potentially undermine individuals’
seamless access to full and equal health
coverage, including contraceptive
coverage. Commenters also noted that
the process would not work for selfinsured plans for which there is no
issuer with a duty to provide coverage.
The Zubik plaintiffs alternatively
suggested creating contraceptive-only
insurance policies in which women
would affirmatively enroll. Comments
received in response to the July 2016
RFI expressed, among other concerns,
that these policies might not be
authorized under State contract and
insurance law.
Beginning in 2015, lawsuits
challenging the contraceptive coverage
requirement were also filed by non16 Id.
at 2775–79.
v. Burwell, 136 S. Ct. 1557, 1560 (2016).
17 Zubik
18 Id.
19 578
U.S. 901.
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religious organizations with moral
objections to contraceptive coverage. In
one case, March for Life v. Burwell, a
nonprofit, non-religious organization
and two of the organization’s individual
employees filed a complaint claiming
that the contraceptive coverage
requirement (1) violated the equal
protection component of the Due
Process Clause of the Fifth Amendment,
(2) violated the individual employees’
rights under RFRA, (3) violated the
individuals’ rights under the First
Amendment’s Free Exercise Clause, and
(4) was arbitrary and capricious under
the Administrative Procedure Act
(APA).20 Challenges by non-religious,
nonprofit organizations led to
conflicting opinions among Federal
courts. On August 31, 2015, the District
Court for the District of Columbia agreed
with the March for Life plaintiffs on the
organization’s equal protection claim
and the employees’ RFRA claims, and
while not ruling on the APA claim,
issued a permanent injunction against
the Departments.21 That injunction
remains in place. Conversely, in another
case, the U.S. Court of Appeals for the
Third Circuit (Third Circuit) on August
4, 2017 held that Real Alternatives—a
non-religious section 501(c)(3) nonprofit
organization and a moral objector—was
not similarly situated to a religious
organization and was therefore not
entitled to an exemption.22 The Third
Circuit concluded that ‘‘a secular
antiabortion group mirrors a single-issue
interest group and not a religious
organization that takes advantage of the
Exemption.’’ 23 In refusing to extend the
exemption to a secular nonprofit
organization, the Third Circuit
recognized the ‘‘vast history of
legislative protections that single out
and safeguard religious freedom but not
moral philosophy.’’ 24
In October 2017, the Departments
issued the October 2017 Moral
Exemption interim final rules and the
October 2017 Religious Exemption
interim final rules (together, the October
2017 interim final rules), each of which
went into effect immediately upon
release. Those rules expanded
exemptions and accommodations to
include employers that object to
contraceptive coverage on nonreligious
moral grounds, along with expanding
the available religious exemptions. As
stated in the October 2017 Moral
20 March for Life v. Burwell, 128 F. Supp. 3d 116
(D.D.C. 2015).
21 Id. at 134.
22 Real Alternatives v. Sec’y of HHS, 150 F. Supp.
3d 419, affirmed 867 F. 3d 338 (3d Cir. 2017).
23 Id. at 349.
24 Id. at 350.
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Exemption interim final rules, with
respect to the new exemption for nonreligious nonprofit organizations, the
Departments were aware of two small
nonprofit organizations that had filed
lawsuits raising non-religious moral
objections to coverage of some
contraceptives. HHS noted in the 2017
Moral Exemption interim final rules that
both of those entities had fewer than
five employees enrolled in health
coverage, and both required all of their
employees to agree with their
opposition to the coverage as a
condition of employment.25 In the
November 2018 Moral Exemption final
rules, without data available to estimate
the actual number of entities that would
make use of the expanded exemption for
for-profit entities without publicly
traded ownership interests and that
object to the contraceptive coverage
requirement based on sincerely held
moral convictions, the Departments
estimated that fewer than 10 entities, if
any, would do so.26
Numerous states filed lawsuits
challenging the October 2017 interim
final rules, contending that the October
2017 interim final rules were both
procedurally invalid and arbitrary and
capricious, and thus violated the APA.
Pennsylvania and New Jersey sued in
the Eastern District of Pennsylvania,
while Massachusetts sued in the District
of Massachusetts, and California,
Delaware, Maryland, New York, and
Virginia sued in the Northern District of
California.27 They all asked the courts to
enjoin the interim final rules.
Two Federal district courts issued
preliminary injunctions blocking the
October 2017 interim final rules
nationwide. The Northern District of
California did so based on the states’
likelihood of success on their
procedural APA claim—that the interim
final rules were invalid for failing to
follow notice and comment
rulemaking.28 On appeal, the Ninth
Circuit affirmed the district court
decision though it limited the
geographic scope of the injunction to
the five states that were then plaintiffs
in the case. The Eastern District of
Pennsylvania enjoined the interim final
rules nationwide, holding that plaintiffs
were likely to succeed on their claims
25 82
FR 47856–47857.
FR 57627.
27 Nine other states later joined the California
litigation: Connecticut, Hawaii, Illinois, Minnesota,
North Carolina, Rhode Island, Vermont,
Washington, and Oregon, along with the District of
Columbia, and an additional three states (Colorado,
Michigan, and Nevada) moved to intervene in June
2019.
28 California v. Azar, 281 F. Supp. 3d 806 (N.D.
Cal. 2017), affirmed, 911 F.3d 558 (9th Cir. 2018).
26 83
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that the Departments did not follow
proper procedures in issuing the interim
final rules, and that the interim final
rules contradict the statute.29 While the
preliminary injunctions were on appeal,
the Departments issued the November
2018 Religious Exemption final rules
and the November 2018 Moral
Exemption final rules (together, the
November 2018 final rules). The district
courts in California and Pennsylvania
both enjoined enforcement of the
November 2018 final rules, and the
courts of appeals upheld those
injunctions.30
The November 2018 Religious
Exemption final rules ultimately
expanded existing exemptions for
individuals and entities with religious
objections to coverage of contraceptive
services. All nonprofit and for-profit
employers with sincerely held religious
objections to contraceptive coverage
became eligible for religious
exemptions, as did private universities
and colleges with religious objections
with respect to student health insurance
coverage. Those rules retained the
existing accommodation process but
made it optional.31
In January 2020, the Supreme Court
granted petitions for writ of certiorari in
the Trump v. Pennsylvania and Little
Sisters of the Poor Saints Peter and Paul
Home v. Pennsylvania cases and
consolidated them, to review whether
the Departments had the authority to
promulgate rules exempting employers
with religious or moral objections from
the requirement to cover contraceptive
services.32 The Court held that the
Departments have broad authority to
identify and create both moral and
religious exemptions and that the final
rules were not procedurally invalid.33
The Court indicated that it was proper
for the Departments to take RFRA into
account when considering religious
exemptions, but the Court did not
decide whether the rules violated the
APA’s arbitrary-and-capricious
standard.34 In litigation following the
Supreme Court’s decision, some
plaintiffs continue to argue that the
Departments did not sufficiently weigh
29 See Pennsylvania v. Trump, 281 F. Supp. 3d
553 (E.D. Pa. 2017), affirmed, 930 F.3d 543 (3d Cir.
2019).
30 See Pennsylvania v. Trump, 351 F. Supp. 3d
791 (E.D. Pa. 2019), affirmed, 930 F.3d 543 (3d Cir.
2019); and California v. Azar, 351 F. Supp. 3d 1267
(N.D. Cal. 2019) (enjoining the final rules with
respect to 14 plaintiff states and the District of
Columbia); affirmed, 941 F.3d 410 (9th Cir. 2019).
31 83 FR 57536, 57537–38.
32 Little Sisters of the Poor Saints Peter & Paul
Home v. Pennsylvania, 140 S. Ct. 918 (2020).
33 Little Sisters of the Poor Saints Peter & Paul
Home v. Pennsylvania, 140 S. Ct. 2367, 2386 (2020).
34 Id. at 2383–84.
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the benefits of expanded employer
exemptions against the harms of
depriving more women of contraceptive
coverage.35
Individuals also filed lawsuits
claiming that the contraceptive coverage
requirement forced them to choose
between (1) purchasing health insurance
that forces them to subsidize abortion or
(2) forgoing health insurance. The
District Court for the Northern District
of Texas agreed with the plaintiffs in a
class action lawsuit, DeOtte v. Azar, and
issued a permanent injunction covering
a class of individuals and a class of
employers, which was ultimately
vacated by the Fifth Circuit.36
The states continue to challenge the
November 2018 final rules as arbitrary
and capricious in three lawsuits. In
Massachusetts v. Dept. of Health &
Human Services, Massachusetts argued
that the moral exemption is overbroad,
and that the Departments failed to
consider the reliance interests of women
who stand to lose contraceptive
coverage due to either of the
exemptions.37 The U.S. District Court
for the District of Massachusetts ruled
that the November 2018 final rules were
neither arbitrary and capricious nor
unconstitutional.38 The Massachusetts
litigation (now on appeal) is currently
being held in abeyance, while California
v. Becerra and Pennsylvania v. Biden
are stayed.39
B. Basis for Rulemaking
Section 2713(a)(4) of the PHS Act,
also known as the Women’s Health
Amendment, was enacted as part of the
ACA to ensure that plans and health
insurance issuers cover women’s
preventive health needs. Access to
contraception is an essential component
of women’s health care in part because
contraception is effective at reducing
unintended pregnancy. Studies report
that 99 percent of sexually-active
women have used at least one method
of contraception at some point during
35 See appellees supplemental brief, State of
California v. Azar, Nos. 19–15072, 19–15118, 19–
15150 (9th Cir., Aug. 28, 2020). (‘‘For example, the
court will have to determine . . . whether
defendants’ justifications are implausible because
the Exemption Rules are not tailored to address the
purported problems that the Rules identify . . .’’)
36 DeOtte v. Azar, 393 F. Supp. 3d 490 (N.D. Tex.
2019), DeOtte v. Nevada, No. 19–10754 (5th Cir.
Dec. 17, 2021).
37 See Mem. & Order (Op.), Massachusetts v.
Dept. of Health & Human Services, No. 17-cv-11930
(D. Mass. Jan. 15, 2021), ECF No. 139.
38 Id.
39 See Stay Order, Massachusetts v. Dept. of
Health & Human Services, No. 21–1076 (1st Cir.
Mar. 12, 2021); Joint Status Report, California v.
Becerra, No. 4:17 cv 5783–HSG (N.D. Cal. Oct. 29,
2021); and Stay Order, Pennsylvania v. Biden, No.
2:17–cv–04540–WB (E.D. Pa. March 8, 2021).
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their lifetime, 40 regardless of religious
affiliation.41 The Centers for Disease
Control and Prevention (CDC) found
that 65.3 percent of American women
aged 15 to 49 years were using
contraception from 2017 to 2019.42 The
contraceptive coverage requirement has
resulted in more women using
contraception, especially long-acting
reversible contraceptives (LARCs), such
as intrauterine devices (IUDs) and
implants.43 Without health insurance or
other health coverage, contraception can
be prohibitively expensive,44 and the
cost may deter women from obtaining
needed care.45 Unintended pregnancies
have negative health consequences for
both women and children.46 Poor and
low-income women are most likely to
have an unintended pregnancy 47 and
are also more likely to be unable to
afford contraception. Further, the U.S.
Supreme Court’s decision in Dobbs v.
Jackson Women’s Health
Organization, 48 which allows for
Federal and State laws that significantly
limit access to abortion and thus
removes one key option for women in
making health care decisions, has
placed a heightened importance on
access to contraceptive services
nationwide. Ensuring access to
40 Daniels, K., Mosher, W., & Jones, J. (2013).
Contraceptive Methods Women Have Ever Used:
United States, 1982–2010. National Health
Statistics Reports, 62: 1–15.
41 Jones, R.K. (2020). People of all Religions Use
Birth Control and Have Abortions. Guttmacher
Institute. https://www.guttmacher.org/print/article/
2020/10/people-all-religions-use-birth-control-andhave-abortions.
42 National Center for Health Statistics, Current
Contraceptive Status Among Women Aged 15–49:
United States, 2017–2019. Daniels, K., & Abma, J.C.
(2020) Current contraceptive status among women
aged 15–49: United States, 2017–2019. NCHS Data
Brief, no 388. Hyattsville, MD: National Center for
Health Statistics. Available at https://www.cdc.gov/
nchs/products/databriefs/db388.htm.
43 Snyder, A. H., Weisman, C. S., Liu, G., Leslie,
D., & Chuang, C. H. (2018). The Impact of the
Affordable Care Act on Contraceptive Use and Costs
among Privately Insured Women. Women’s health
issues: official publication of the Jacobs Institute of
Women’s Health, 28(3), 219–223. https://doi.org/
10.1016/j.whi.2018.01.005.
44 Becker, N.V. & Polsky, D. (2015). Women Saw
Large Decrease in Out-Of-Pocket Spending for
Contraceptives After ACA Mandate Removed Cost
Sharing. Health Affairs, 34(7): 1204–1208. Available
at https://www.healthaffairs.org/doi/10.1377/
hlthaff.2015.0127.
45 Sonfield, A. (2011). ‘‘The Case for Insurance
Coverage of Contraceptive Services and Supplies
Without Cost-Sharing.’’ Guttmacher Policy Review,
14(1): 7–15.
46 ‘‘Preventing Unplanned Pregnancy.’’ National
Conference of State Legislatures (2021). Available
at: https://www.ncsl.org/research/health/
preventing-unplanned-pregnancy.aspx.
47 Guttmacher Institute (2019). ‘‘Unintended
Pregnancy in the United States.’’ Available at
https://www.guttmacher.org/sites/default/files/
factsheet/fb-unintended-pregnancy-us.pdf.
48 Dobbs v. Jackson Women’s Health
Organization, No. 19–1392, 597 U.S. __(2022).
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contraception at no cost (other than the
premium or contribution paid for health
coverage 49) is a national public health
imperative, as it is a means to prevent
unintended pregnancies and help
provide better health and economic
outcomes for women, so that they can
exercise control over their reproductive
health and family planning decisions,
particularly in states with prohibitions
or tight restrictions on abortion.
In previous rulemakings, the
Departments established exemptions
and accommodations for a variety of
entities. Although the November 2018
final rules expanded religious
exemptions, the Departments have
concluded that these rulemakings did
not give sufficient consideration to
women’s significant interests in access
to contraceptive services. Requiring
individuals with low incomes to pay
out-of-pocket for contraceptive services
creates a disproportionate financial
burden and unnecessary barrier to care
for those individuals who must spend a
greater percentage of their income on
contraceptive services.50 The
exemptions also ignore the government
interest in promoting coverage for
contraceptive services and assuring
access to contraception. Furthermore,
section 1 of Executive Order 13985,
‘‘Executive Order on Advancing Racial
Equity and Support for Underserved
Communities Through the Federal
Government’’ (E.O. 13985), instructs the
Federal Government to consider ways to
affirmatively advance equity, civil
rights, racial justice, and equal
opportunity, with an emphasis on
including historically marginalized
communities and individuals. As noted
previously, requiring individuals to pay
out-of-pocket for contraceptive services
will disproportionately burden lowwage workers. A considerable
percentage of low-income women in the
U.S. already rely on safety-net clinics
49 For ease of reference, this preamble describes
the proposed individual contraceptive arrangement
as providing access to contraceptive services ‘‘at no
cost.’’ However, individuals eligible for the
individual contraceptive arrangement would
typically have to pay a premium or contribution to
enroll in the group health plan or health insurance
coverage sponsored, arranged, or provided by an
objecting entity.
50 Although many women try and use multiple
contraceptive methods for various reasons, nearly
one in five women (18 percent) say they are not
currently using their preferred method of birth
control. The primary reason women say they are not
using their preferred method of contraception is
because they cannot afford it. See Frederiksen, B.,
Ranji, U., Salganikoff, A., & Long, M., (2021),
Women’s Sexual and Reproductive Health Services:
Key Findings from the 2020 KFF Women’s Health
Survey. https://www.kff.org/womens-health-policy/
issue-brief/womens-sexual-and-reproductivehealth-services-key-findings-from-the-2020-kffwomens-health-survey/.
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for contraception services.51 Lowincome women also have the least
access to contraception through
employer-sponsored health insurance.52
Given that non-white women are
overrepresented among low-wage
workers, exemptions for employers of
low-wage workers from requiring
coverage for contraceptive services
could further disproportionately burden
non-white women by limiting their
access to contraceptive coverage and
reproductive care through employersponsored coverage. This decrease in
access to health care has also resulted in
an increase in the prevalence of
unplanned pregnancies for non-white
and low-income individuals.53 In
addition, historically marginalized
communities and individuals are
disproportionately affected by racial
biases in health care. Racial bias has led
to more skepticism about the safety of
women’s health care and less
knowledge about the efficacy of various
forms of birth control for family
planning among non-white women.54
The disparities in maternal health
among women of different races can be
addressed in part by removing financial
barriers to accessing contraceptive
services. Racial-ethnic disparities in
access to reproductive health care,
including contraceptive services, are
widespread.55 Improving access to
contraceptive services is critical to
narrowing disparities in reproductive
health access and outcomes, as well as
longer-term outcomes. Access to
postpartum contraception is important
to increase spacing between
pregnancies, as short intervals between
pregnancies can be associated with
adverse health outcomes.56 Access to
contraceptive services without cost
sharing increases knowledge about safe
and effective forms of birth control
planning and decreases financial
constraints that prevent continuation of
appropriate contraception use for
women in marginalized communities.
Additionally, access to contraceptive
services has wide-ranging economic
effects for women, from increased
educational attainment to increases in
labor force participation and lifetime
earnings.57
In addition to addressing the policy
objectives discussed previously, these
proposed rules are consistent with
meeting the objectives of several
Executive Orders and a Presidential
Memorandum issued by President
Biden. On January 28, 2021, President
Biden issued Executive Order 14009,
‘‘Strengthening Medicaid and the
Affordable Care Act’’ (E.O. 14009).58
Section 3 of E.O. 14009 directs HHS,
and the heads of all other executive
departments and agencies with
authorities and responsibilities related
to Medicaid and the ACA, to review all
existing regulations, orders, guidance
documents, policies, and any other
similar agency actions to determine
whether they are inconsistent with
policy priorities described in section 1
of E.O. 14009, to include protecting and
strengthening the ACA and making
high-quality health care accessible and
affordable for all individuals.59 The
ACA is fundamentally ‘‘designed to
broaden access to healthcare and
insurance coverage.’’ 60 Further, the
Women’s Health Amendment was
designed to expand access to the
preventive care and screenings that
51 Ranji, U., Salganicoff, A., Sobel, L., & Gomez,
I. (2017). Financing family planning services for
low-income women: The role of public programs.
The Henry J. Kaiser Family Foundation. https://
www.kff.org/wp-content/uploads/2019/10/IssueBrief-Financing-Family-Planning-Services-for-Lowincome-Women-1.pdf
52 Sawhill, I. & Guyot, K. (2019). ‘‘Preventing
unplanned pregnancy: Lessons from the states.’’
Brookings. https://www.brookings.edu/research/
preventing-unplanned-pregnancy-lessons-from-thestates/.
53 Finer, L. & Zolna, M. (2016). ‘‘Declines in
Unintended Pregnancy in the United States, 2008–
2011.’’ N Engl J Med, 374(9):843–52 and Behn, M.,
Pace, LE. et al.(2019). ‘‘The Trump Administration’s
Final Regulations Limit Insurance Coverage of
Contraception.’’ Women’s Health Issues, 29(2): 103–
106.
54 Payne, C., & Fanarjian, N. (2014). Seeking
causes for race-related disparities in contraceptive
use. Virtual Mentor, 16(10), 805–809. https://
doi.org/10.1001/virtualmentor.2014.16.10.jdsc11410.
55 Sutton, M. Y., Anachebe, N. F. & Skanes H.
(2021). ‘‘Racial and Ethnic Disparities in
Reproductive Health Services and Outcomes,
2020.’’ Obstetrics and gynecology, 137(2), 225–233.
https://doi.org/10.1097/AOG.0000000000004224.
56 See The White House. (2022). White House
Blueprint for Addressing the Maternal Health
Crisis. https://www.whitehouse.gov/wp-content/
uploads/2022/06/Maternal-Health-Blueprint.pdf.
See also Schummers, L., Hutcheon, J.A.,
Hernandez-Diaz, S., Williams, P.L., Hacker, M.R.,
VanderWeele, T.J., & Norman, W.V. (2018).
Association of Short Interpregnancy Interval With
Pregnancy Outcomes According to Maternal Age.
JAMA Internal Medicine, 178(12), 1661–1670.
https://doi.org/10.1001/jamainternmed.2018.4696.
57 See Bernstein, Anna and Kelly M. Jones (2019).
‘‘The Economic Effects of Contraceptive Access: A
Review of the Evidence.’’ Institute for Women’s
Policy Research. Available at https://iwpr.org/wpcontent/uploads/2020/07/B381_ContraceptionAccess_Final.pdf.
58 86 FR 7793 (February 2, 2021).
59 E.O. 14009 also revoked Executive Order 13765
of January 20, 2017 (Minimizing the Economic
Burden of the Patient Protection and Affordable
Care Act Pending Repeal). The Departments
adopted the moral exemption and accommodation
in part to further this now revoked Executive Order
by relieving a regulatory burden imposed on
entities with moral convictions opposed to
providing certain contraceptive coverage.
60 Religious Sisters of Mercy v. Azar, 513 F. Supp.
3d 1113 (D.N.D. 2021).
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women require.61 HHS issued the
HRSA-Supported Guidelines pursuant
to the Women’s Health Amendment that
included contraceptives as a category of
preventive services recommended for
women. If finalized, these proposed
rules would better align the preventive
services regulations with the policy
priorities described in section 1 of E.O.
14009 by expanding access to
contraceptive services without cost
sharing to individuals whose health
plans currently do not or would not
offer such coverage due to a religious or
moral objection.
Also, on January 28, 2021, President
Biden issued a Memorandum on
‘‘Protecting Women’s Health at Home
and Abroad.’’ 62 Section 1 of the
Memorandum stated ‘‘[w]omen should
have access to the healthcare they need.
For too many women today, both at
home and abroad, that is not possible
. . . The Federal Government must take
action to ensure that women at home
and around the world are able to access
complete medical information,
including with respect to their
reproductive health.’’ These proposed
rules would, if finalized, help to support
women’s access to reproductive health
care services at home.
On April 5, 2022, President Biden
issued Executive Order 14070,
‘‘Continuing to Strengthen Americans’
Access to Affordable, Quality Health
Coverage’’ (E.O. 14070).63 Section 2 of
E.O. 14070 requires the heads of
appropriate agencies to, in addition to
taking the actions directed pursuant to
E.O. 14009, take several other actions,
including examine policies or practices
that make it easier for all consumers to
enroll in and retain coverage,
understand their coverage options, and
select appropriate coverage; that
strengthen benefits and improve access
to health care providers; that improve
the comprehensiveness of coverage and
protect consumers from low-quality
coverage; that expand eligibility and
lower costs for coverage in the ACA
Exchanges, Medicaid, Medicare, and
other programs; that help improve
linkages between the health care system
and other stakeholders to address
health-related needs; and that help
reduce the burden of medical debt on
61 To implement the Women’s Health
Amendment, HRSA commissioned the independent
Institute of Medicine, now known as the National
Academy of Medicine, to conduct a scientific
review and provide recommendations on specific
preventive measures that meet women’s health
needs.
62 86 FR 33077.
63 87 FR 20689.
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households. These proposed rules
would further the goals of E.O. 14070.
On July 8, 2022, President Biden
issued Executive Order 14076,
‘‘Protecting Access to Reproductive
Healthcare Services (E.O. 14076).’’ 64
Section 3 of E.O. 14076 requires the
Secretary of HHS to submit a report to
the President identifying potential
actions to ‘‘protect and expand access to
the full range of reproductive healthcare
services, including actions to enhance
family planning services such as access
to emergency contraception’’ and
‘‘identifying ways to increase outreach
and education about access to
reproductive healthcare services,
including by launching a public
awareness initiative to provide timely
and accurate information about such
access, which shall include promoting
awareness of and access to the full range
of contraceptive services.’’ These
proposed rules would take critical steps
to further the goals in E.O. 14076 by
expanding access to the full range of
contraceptive services for women
enrolled in coverage established or
maintained by an objecting entity, or in
health insurance coverage offered or
arranged by an objecting entity.
In addition to addressing the
directives in the Executive Orders
discussed above, these proposed rules
also address the concerns about limiting
access to contraception that have been
raised by litigants. The Supreme Court
remanded the Little Sisters cases to the
U.S. Courts of Appeals for the Third and
Ninth Circuits, respectively, to consider
whether the November 2018 final rules
adequately considered women’s health
and access to contraceptives or were
arbitrary and capricious. Under the
current exemptions, objectors are not
required to inform participants,
beneficiaries, or enrollees that the plan
or coverage does not cover contraceptive
services or invoke the optional
accommodation, and no alternative
mechanisms provide contraceptive
coverage for affected women—leaving
many women without coverage.65 Given
that the November 2018 final rules
allow, but do not require, objecting
entities to invoke the accommodation
process, many women in plans subject
to an exemption may be unable to
access contraceptive services due to
64 87
FR 42053.
the November 2018 final rules, the
Departments estimated that between 70,500 and
126,400 women may have lost contraceptive
coverage as a result of the November 2018 Religious
Exemption final rules, and that approximately 15
women may have incurred contraceptive costs due
to use of the November 2018 Moral Exemption final
rules by for-profit entities.
65 In
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financial, logistical, or administrative
barriers.
These proposed rules seek to ensure
that women who are enrolled in either
a group health plan established or
maintained by an objecting entity, or in
health insurance coverage offered or
arranged by an objecting entity,
including an employer, institution of
higher education, or health insurance
issuer, have access to cost-free
contraceptive coverage, even when the
objecting entity claims the regulatory
exemption without voluntarily using the
accommodation process. This proposed
approach would further the
government’s interest in protecting
women’s health and their right to make
reproductive decisions.
In light of these considerations, the
Departments are issuing these proposed
rules to further the government’s
interest in promoting coverage for
contraceptive services for all women,66
and in eliminating barriers to access,
while respecting the religious objections
of employers, health insurance issuers,
and institutions of higher education to
coverage of contraceptive services.
II. Overview of the Proposed Rules—
Departments of HHS, Labor, and the
Treasury
A. Introduction
As discussed in section I.B of this
preamble, the Departments have
engaged in several rounds of rulemaking
and other initiatives that solicited
public input in an effort to address the
claims of those religious employers,
institutions of higher education, and
health insurance issuers that object to
providing coverage for contraceptive
services while also ensuring women’s
access to seamless coverage for
contraceptive services. Previously,
under the July 2015 final rules, many of
the objecting entities that are now
covered by the November 2018
Religious Exemption final rules could
avoid the contraceptive coverage
requirement only by invoking an
accommodation. The accommodation
was designed so that these entities were
not required to contract, arrange, pay, or
provide a referral for contraceptive
coverage. At the same time, the
accommodation was intended to
generally ensure that women enrolled in
a health plan established, maintained,
or arranged by the eligible organization,
similar to women enrolled in health
plans maintained by other employers,
received contraceptive coverage
seamlessly—that is, through the same
issuers or third party administrators that
66 See Section VI.B.2. of this preamble, under the
Benefits heading.
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provided or administered the health
coverage furnished by the eligible
organization, and without financial,
logistical, or administrative obstacles.
As explained in section I.A of this
preamble, several employers challenged
the contraceptive coverage
accommodation under RFRA. These
religious-objector employers alleged that
the accommodation violated RFRA by
making them complicit in the provision
of contraceptive services and care.
These employers also asserted that the
public interest of ensuring women have
access to contraceptive coverage can be
accomplished in a way that complies
with RFRA, that is, in a less restrictive
way than the accommodation.
Ultimately, the Departments issued the
November 2018 final rules, which
significantly expanded the types of
entities eligible for a religious
exemption, created an exemption for
entities with a non-religious moral
objection, and made the aforementioned
accommodation optional.
As noted previously, a number of
states challenged the November 2018
final rules in court, arguing that these
rules are unlawfully arbitrary and
capricious. In light of this litigation, and
upon further consideration, the
Departments have determined that the
November 2018 final rules failed to
adequately account for women’s legal
entitlement to access preventive care,
critically including contraceptive
services, without cost sharing as
Congress intended; the impact on the
number of unintended pregnancies; the
costs to states and individuals of such
pregnancies; and the government’s
interest in ensuring women have access
to this coverage.
These proposed rules, if finalized,
seek to resolve the long-running
litigation with respect to religious
objections to providing contraceptive
coverage, by respecting the objecting
entities’ religious objections while also
ensuring that women enrolled in plans
or coverage sponsored, arranged, or
provided by objecting entities have the
opportunity to obtain contraceptive
services at no cost. These rules propose
to maintain the November 2018 final
rules’ religious exemption for entities
with sincerely held religious objections
to providing coverage for contraceptive
services, under the preventive services
guidelines pursuant to 26 CFR 54.9815–
2713(a)(1)(iv), 29 CFR 2590.715–
2713(a)(1)(iv), and 45 CFR
147.130(a)(1)(iv). Additionally, under
these proposed rules, entities that
sponsor insured or self-insured group
health plans or arrange student health
insurance coverage and that are exempt
based on their religious objections
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would continue to be able to choose to
invoke the optional accommodation set
forth in the November 2018 Religious
Exemption final rules at 26 CFR
54.9815–2713A, 29 CFR 2590.715–
2713A, and 45 CFR 147.131 (as
applicable). These proposed rules
would confirm that this optional
accommodation for exempt religiousobjector entities is available to entities
that are institutions of higher education.
While these proposed rules would
maintain the religious exemption rule,
they also would provide an independent
pathway through which women
enrolled in plans or coverage sponsored,
arranged, or provided by objecting
entities can access contraceptive
services at no cost. With respect to
participants and beneficiaries in insured
or self-insured group health plans
sponsored by an exempt entity, or
enrollees in individual health insurance
coverage (including student health
insurance coverage) arranged or
provided by an exempt entity, and that
does not invoke the optional
accommodation (if eligible), these
proposed rules would create a pathway,
independent from the employer, group
health plan, plan sponsor, or issuer,
through which individuals could obtain
at no cost from a willing provider of
contraceptive services 67 (that meets
certain requirements), contraceptive
services for which their plan or issuer
would otherwise be required to provide
coverage absent the religious exemption.
These proposed rules refer to this
pathway as the individual contraceptive
arrangement. This individual
contraceptive arrangement would be
available to the participant, beneficiary,
or enrollee without the plan sponsor or
issuer having to take any action that
would facilitate the coverage to which it
objects. Simply put, the action is
undertaken by the individual, for the
individual. Through the individual
contraceptive arrangement, a provider of
contraceptive services, who provides
these services at no cost to the women
receiving them, would be able to seek
reimbursement from an issuer with
whom it has a signed agreement for the
cost of providing contraceptive services
to women covered under these plans.
These proposed rules also would amend
45 CFR 156.50(d) so that a qualified
health plan (QHP) issuer that has agreed
to reimburse an eligible provider of
contraceptive services that participates
in the individual contraceptive
67 These proposed rules refer to providers,
consistent with the proposed definition of the term
‘‘provider of contraceptive services,’’ as including
both health care providers and facilities. This
definition is discussed later in this preamble.
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7243
arrangement would be eligible for an
adjustment to the issuer’s Federallyfacilitated Exchange (FFE) or State
Exchange on the Federal platform (SBE–
FP) fee through the same mechanism for
the user fee adjustment previously
established in 45 CFR 156.50(d).
Finally, as discussed in section II.C.2
of this preamble, this proposed rule
would eliminate the exemption and the
availability of the optional
accommodation for entities that object
to contraceptive coverage based on nonreligious moral beliefs. As more fully
explained in that section, there have not
been a large number of entities that have
expressed a desire for an exemption
based on a non-religious moral
objection, the Departments are under no
legal obligation to provide such an
exemption, and RFRA would never
apply to require such an exemption.
Additionally, in light of the Supreme
Court’s decision in Dobbs, the
Departments have concluded that it is
all the more critical now to ensure
women’s access to reproductive health
care and contraceptive services without
cost sharing, and have determined that
it is necessary to provide women
enrolled in plans with respect to which
the sponsor or issuer has non-religious
moral objections to contraceptive
coverage, with such coverage directly
through their plan.
The Departments are of the view that
these proposed rules would respect the
religious objections to contraceptive
coverage of employers, institutions of
higher education, and health insurance
issuers, by allowing them to continue to
rely upon the religious exemptions,
while also advancing the public interest
of ensuring that women enrolled in such
plans and coverage have access to
contraceptives with no cost.
B. Coverage of Preventive Health
Services (26 CFR 54.9815–2713, 29 CFR
2590.715–2713, and 45 CFR 147.130)
1. Background on Requirement To Cover
Contraceptive Services
Pursuant to 26 CFR 54.9815–
2713(a)(1)(iv), 29 CFR 2590.715–
2713(a)(1)(iv), and 45 CFR
147.130(a)(1)(iv), a group health plan, or
a health insurance issuer offering group
or individual health insurance coverage,
generally must provide coverage and
must not impose any cost-sharing
requirements (such as a copayment,
coinsurance, or a deductible) for, with
respect to women, such additional
preventive care and screenings not
described in 26 CFR 54.9815–
2713(a)(1)(i), 29 CFR 2590.715–
2713(a)(1)(i), and 45 CFR
147.130(a)(1)(i), as provided for in
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comprehensive guidelines supported by
HRSA for purposes of section 2713(a)(4)
of the PHS Act. The currently
applicable 68 HRSA-Supported
Guidelines, as updated on December 17,
2019, include a guideline that
adolescent and adult women have
access to the full range of femalecontrolled FDA-approved contraceptive
methods,69 effective family planning
practices, and sterilization procedures
to prevent unintended pregnancy and
improve birth outcomes.70 The
currently applicable HRSA-Supported
Guidelines state that contraceptive care
should include contraceptive
counseling, initiation of contraceptive
use, and follow-up care (for example,
management and evaluation as well as
changes to, and removal or
discontinuation of, the contraceptive
method), and that instruction in fertility
awareness-based methods, including the
lactation amenorrhea method, should be
provided for women desiring an
alternative method.
The Departments have clarified in
guidance the obligation of a plan or
issuer to provide coverage of
contraceptive services in accordance
with these HRSA-Supported Guidelines.
On February 20, 2013, the Departments
issued FAQs about Affordable Care Act
Implementation Part XII (FAQs Part XII)
stating that the HRSA-Supported
Guidelines ensure women’s access to
the full range of FDA-approved
contraceptive methods 71 including, but
not limited to, barrier methods,
hormonal methods, and implanted
devices, as well as patient education
and counseling, as prescribed by a
health care provider.72 The FAQs
further clarified that plans and issuers
may use reasonable medical
management techniques to control costs
and promote efficient delivery of care,
such as covering a generic drug without
cost sharing and imposing cost sharing
for equivalent branded drugs. However,
FAQs Part XII stated that, in these
68 As explained in FN 4, in December 2021, HRSA
approved updates to the contraception guidelines
that apply to plan years (in the individual market,
policy years) starting on and after December 30,
2022. See changes at https://www.hrsa.gov/womensguidelines.
69 The Departments note that the FDA approves,
clears, and grants contraceptive products and not
methods.
70 See https://www.hrsa.gov/womens-guidelines2019.
71 The FDA does not and never has approved,
granted, or cleared contraceptive methods, only
contraceptive products. See FN 4, supra.
72 See Q14, available at https://www.dol.gov/sites/
dolgov/files/EBSA/about-ebsa/our-activities/
resource-center/faqs/aca-part-xii.pdf and
www.cms.gov/CCIIO/Resources/Fact-Sheets-andFAQs/aca_implementation_faqs12.html. See also
FN 61.
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instances, a plan or issuer must
accommodate any individual for whom
a particular drug (generic or brand
name) would be medically
inappropriate, as determined by the
individual’s health care provider, by
having a mechanism for waiving the
otherwise applicable cost sharing for the
brand or non-preferred brand version.
The FAQs also clarified that
contraceptive products that are
generally available over-the-counter are
required to be covered only if they are
both FDA-approved, cleared, or granted
and prescribed by a health care
provider.73
On May 11, 2015, the Departments
issued FAQs about Affordable Care Act
Implementation Part XXVI (FAQs Part
XXVI) clarifying that plans and issuers
must cover, without cost sharing, at
least one form of contraception in each
category that is identified by the FDA in
its Birth Control Guide.74 The FAQs
further clarified that, to the extent plans
and issuers use reasonable medical
management techniques within a
73 Id.
at Q15.
Q2 and Q3, available at https://
www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/
our-activities/resource-center/faqs/aca-partxxvi.pdf and https://www.cms.gov/CCIIO/
Resources/Fact-Sheets-and-FAQs/Downloads/aca_
implementation_faqs26.pdf. In prior FAQs related
to contraceptive coverage such as FAQs Part XXVI,
the Departments referenced the FDA Birth Control
Guide as the source for categories of contraceptives
that must be covered without cost sharing. The
Departments now cite the HRSA-Supported
Guidelines for the list of contraceptive categories to
better align with the language of the Affordable Care
Act’s preventive service coverage requirements.
Despite the change in wording, there is no
substantive difference and the requirements for
plans and issuers remain the same. The range of
identified categories of contraception in the
currently applicable 2019 HRSA-Supported
Guidelines include: (1) sterilization surgery for
women; (2) surgical sterilization via implant for
women; (3) implantable rods; (4) copper
intrauterine devices; (5) intrauterine devices with
progestin (all durations and doses); (6) the shot or
injection; (7) oral contraceptives (combined pill); (8)
oral contraceptives (progestin only); (9) oral
contraceptives (extended or continuous use); (10)
the contraceptive patch; (11) vaginal contraceptive
rings; (12) diaphragms; (13) contraceptive sponges;
(14) cervical caps; (15) female condoms; (16)
spermicides; (17) emergency contraception
(levonorgestrel); and (18) emergency contraception
(ulipristal acetate), and additional methods as
identified by the FDA. The 2021 HRSA-Supported
Guidelines clarified that, in addition to the
enumerated categories, the full range of
contraceptives includes any additional
contraceptives approved, granted, or cleared by the
FDA. The 2021 HRSA-Supported Guidelines also
expanded the recommendation to encompass
contraceptives that are not female-controlled, such
as male condoms (which must be covered with a
prescription by plans and issuers for plan years (in
the individual market, policy years) that begin on
or after December 30, 2022). The 2021 HRSASupported Guidelines do not include male
sterilization. See https://www.hrsa.gov/womensguidelines. See also Preamble to Final Rules
regarding coverage of certain preventive services at
78 FR 39870 (July 2, 2013).
74 See
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specified category of contraception,
plans and issuers must have an easily
accessible, transparent, and sufficiently
expedient exceptions process that is not
unduly burdensome on the individual
or provider (or other individual acting
as a patient’s authorized representative)
to ensure coverage without cost sharing
of any service or FDA-approved item
within the specified category of
contraception. FAQs Part XXVI stated
that if an individual’s attending
provider recommends a particular
service or FDA-approved item based on
a determination of medical necessity
with respect to that individual, the plan
or issuer must cover that service or item
without cost sharing. The FAQs made
clear that a plan or issuer must defer to
the determination of the attending
provider. FAQs Part XXVI stated that
medical necessity may include
considerations such as severity of side
effects, differences in permanence and
reversibility of contraceptives, and
ability to adhere to the appropriate use
of the item or service, as determined by
the attending provider. The FAQs also
clarified that the exceptions process
must provide for making a
determination of the claim according to
a timeframe and in a manner that takes
into account the nature of the claim (for
example, pre-service or post-service)
and the medical exigencies involved for
a claim involving urgent care. FAQs Part
XXVI additionally clarified that a plan
or issuer cannot limit sex-specific
recommended preventive services based
on an individual’s sex assigned at birth,
gender identity, or recorded gender.75
On April 20, 2016, the Departments
issued FAQs about Affordable Care Act
Implementation Part 31, Mental Health
Parity Act Implementation, and
Women’s Health and Cancer Rights Act
Implementation (FAQs Part 31) stating
that if a plan or issuer utilizes
reasonable medical management
techniques within a specified method of
contraception, the plan or issuer may
develop and utilize a standard
exception form and instructions as part
of its steps to ensure that it provides an
easily accessible, transparent, and
sufficiently expedient exceptions
process that is not unduly burdensome
on the individual or a provider (or other
individual acting as a patient’s
authorized representative).76 The FAQs
suggested that the Medicare Part D
Coverage Determination Request Form
may serve as a model for plans and
75 Id.
at Q5.
Q2, available at https://www.dol.gov/sites/
dolgov/files/EBSA/about-ebsa/our-activities/
resource-center/faqs/aca-part-31.pdf and https://
www.cms.gov/CCIIO/Resources/Fact-Sheets-andFAQs/Downloads/FAQs-31_Final-4-20-16.pdf.
76 See
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issuers when developing a standard
exception form.77
On January 10, 2022, the Departments
issued FAQs about Affordable Care Act
Implementation Part 51, Families First
Coronavirus Response Act and
Coronavirus Aid, Relief, and Economic
Security Act Implementation (FAQs Part
51) that reiterated previously issued
guidance related to coverage of
contraceptive services and provided
examples of practices reported to the
Departments that denied contraceptive
coverage to participants, beneficiaries,
and enrollees.78 The FAQ also clarified
that if an individual’s attending
provider determines that a particular
service or FDA-approved, cleared, or
granted contraceptive product is
medically appropriate for such
individual, a plan or issuer must cover
that service or product without cost
sharing, whether or not the service or
product is in a category of contraception
specifically identified in the current
HRSA-Supported Guidelines.
On July 28, 2022, the Departments
issued FAQs about Affordable Care Act
Implementation Part 54 (FAQs Part 54)
on additional aspects of contraceptive
coverage, reiterating and clarifying the
types of items and services required to
be covered under PHS Act section 2713
and its implementing regulations.
Specifically, these FAQs explained that
plans and issuers are required to cover,
without any cost sharing, items and
services that are integral to the
furnishing of a recommended
preventive service, such as anesthesia
necessary for a tubal ligation procedure
or pregnancy tests needed before
provision of certain forms of
contraceptives, such as an intrauterine
device (also known as an IUD),
regardless of whether the item or service
is billed separately.79 FAQs Part 54 also
addressed contraceptive products and
services that are not included in a
category of contraception described in
the HRSA-Supported Guidelines,
reiterating that plans and issuers must
cover any contraceptive services and
FDA-approved, cleared, or granted
contraceptive products that an
individual and their attending provider
77 A copy of the Medicare Part D Coverage
Determination Request Form is available at https://
www.cms.gov/Medicare/Appeals-and-Grievances/
MedPrescriptDrugApplGriev/
CoverageDeterminations-.
78 See Q9, available at https://www.dol.gov/sites/
dolgov/files/EBSA/about-ebsa/our-activities/
resource-center/faqs/aca-part-51.pdf and https://
www.cms.gov/CCIIO/Resources/Fact-Sheets-andFAQs/Downloads/FAQs-Part-51.pdf.
79 See Q1, available at https://www.dol.gov/sites/
dolgov/files/EBSA/about-ebsa/our-activities/
resource-center/faqs/aca-part-54.pdf and at https://
www.cms.gov/files/document/faqs-part-54.pdf.
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have determined to be medically
appropriate for the individual, whether
or not those services or products are
specifically identified in the categories
listed in the HRSA-Supported
Guidelines.80 Additionally, the FAQs
reiterated the requirement to cover FDAapproved emergency contraception,
including emergency contraception that
is available over-the-counter (OTC),
when prescribed, and encouraged plans
and issuers to cover OTC emergency
contraceptive products with no cost
sharing when purchased without a
prescription. The FAQs also state that a
health savings account, health flexible
spending arrangement, or health
reimbursement arrangement can
reimburse expenses incurred for OTC
contraception obtained without a
prescription.81 Further, the FAQs
addressed instruction in fertility
awareness-based methods and
encouraged plans and issuers to cover
the dispensing of a 12-month supply of
contraception without cost sharing.82
FAQs Part 54 also addressed the use
of reasonable medical management
techniques as applied to contraceptive
products or services, including
explaining that plans and issuers may
use reasonable medical management
techniques for contraceptive products or
services not included in the categories
described in the HRSA-Supported
Guidelines only if multiple,
substantially similar services or
products that are not included in a
category are available and are medically
appropriate for an individual.83 For
contraceptive products or services
included in the categories described in
the HRSA-Supported Guidelines, the
FAQs reiterate that plans and issuers
may utilize reasonable medical
management techniques only within a
specified category of contraception and
only to the extent the HRSA-Supported
Guidelines do not specify the frequency,
method, treatment, or setting for the
provision of a recommended preventive
service that is a contraceptive service or
FDA-approved, cleared, or granted
product.84 The FAQs offered guidance
on how to determine whether a medical
management technique is reasonable for
purposes of the requirements under PHS
Act section 2713, including examples of
unreasonable medical management
techniques, such as imposing an age
limit on contraceptive coverage instead
of providing these benefits to all
individuals with reproductive
7245
capacity.85 In addition, FAQs Part 54
offered guidance on what constitutes an
easily accessible, transparent, and
sufficiently expedient exceptions
process that is not unduly burdensome
on the individual or their provider and
explained that the Departments will
consider an exceptions process to be
easily accessible if plan documentation
includes relevant information regarding
the exceptions process under the plan or
coverage, including how to access the
exceptions process without initiating an
appeal pursuant to the plan’s or issuer’s
internal claims and appeals procedures,
the types of information the plan or
issuer requires as part of a request for an
exception, and contact information for a
representative of the plan or issuer who
can answer questions related to the
exceptions process.86 The FAQs state
that a plan or issuer may not require a
participant, beneficiary, or enrollee to
appeal an adverse benefit determination
using the plan or issuer’s internal claims
and appeals process as the means for an
individual to obtain an exception.87
As explained in FAQs Part 51 and
FAQs Part 54, the Departments have
received a number of complaints and
reports regarding potential violations of
the contraceptive coverage requirement.
The Departments are committed to
ensuring consumers have access to the
contraceptive benefits, without cost
sharing, that they are entitled to under
the ACA and implementing regulations.
In addition to previously issued
clarifications, the Departments are
continuing to assess what changes to
existing regulations or guidance may be
needed to better ensure individuals
receive the coverage to which they are
entitled under the law and will issue
additional guidance, as warranted. The
Departments solicit comments regarding
whether any other clarifications or
additional guidance is needed in these
proposed rules to help ensure that
women covered under group health
plans or health insurance coverage have
access to contraceptive services at no
cost. Moreover, stakeholders who have
information regarding potential
noncompliance with these requirements
should contact the Departments as the
Departments continue to consider what
additional oversight and enforcement
actions could be taken to ensure health
plans and issuers are complying with
the contraceptive benefits guaranteed
under the ACA.88
85 Id.
80 Id.
at Q2.
81 Id. at Q5 and Q6.
82 Id. at Q4 and Q7.
83 Id. at Q3.
84 Id. at Q8.
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86 Id.
at Q9.
at Q10.
88 As stated in FAQs Part 54, Q14, consumers
who have fully-insured coverage and who have
87 Id.
Continued
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However, these proposed rules would
not alter these coverage standards
applicable to contraceptive services.
Rather, these proposed rules focus on
the religious and moral objections of
entities otherwise subject to those
coverage standards, and participants’,
beneficiaries’, and enrollees’ access to
contraceptive services without cost
sharing when their plan or coverage
excludes coverage for these services
based on religious objections and does
not adopt the existing optional
accommodation. No new Federal
processes, resources, data systems, or
reporting mechanisms are anticipated
for monitoring and tracking entities’
objections, or the identities of entities
availing themselves of these
exemptions. Therefore, the Departments
propose only minor changes to 26 CFR
54.9815–2713, 29 CFR 2590.715–2713,
and 45 CFR 147.130.
2. Addition of the Phrase ‘‘EvidenceInformed’’
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The Departments propose to add the
phrase ‘‘evidence-informed’’
immediately before ‘‘comprehensive’’ in
26 CFR 54.9815–2713(a)(1)(iv), 29 CFR
2590.715–2713(a)(1)(iv), and 45 CFR
147.130(a)(1)(iv), so that the reference in
the paragraph would be to evidenceinformed comprehensive guidelines
supported by HRSA.
Section 2713(a) of the PHS Act
specifies that the preventive services
that must be covered without cost
sharing are: (1) evidence-based items or
services that have in effect a rating of
‘‘A’’ or ‘‘B’’ in the current
recommendations of the United States
Preventive Services Task Force
(USPSTF) with respect to the individual
involved; (2) immunizations that have
in effect a recommendation from the
Advisory Committee on Immunization
Practices of the CDC with respect to the
individual involved; (3) with respect to
infants, children, and adolescents,
evidence-informed preventive care and
screenings provided for in the
concerns about their health insurance issuer’s
compliance with these requirements may contact
their State Department of Insurance (for more
information, visit https://content.naic.org/state_
web_map.htm). Consumers who are covered by a
private-sector, employer-sponsored group health
plan and have concerns about their plan’s
compliance with these requirements may contact
the Department of Labor at https://www.dol.gov/
agencies/ebsa/about-ebsa/ask-a-question/ask-ebsa
or by calling toll free at 1–866–444–3272.
Consumers who are covered by a non-Federal
public-sector employer-sponsored plan (such as a
State or local government employee plan) and have
concerns about their plan’s compliance with these
requirements may contact the Center for Consumer
Information and Insurance Oversight at (888) 393–
2789 or contraception_complaints@cms.hhs.gov for
further assistance with a question or issue.
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comprehensive guidelines supported by
HRSA; and (4) with respect to women,
such additional preventive care and
screenings not described in the
aforementioned recommendations by
USPSTF as provided for in
comprehensive guidelines supported by
HRSA for purposes of section 2713(a)(4)
of the PHS Act.89 The reference to
‘‘evidence-informed’’ preventive care
and screenings in comprehensive
HRSA-Supported Guidelines was
removed in the October 2017 Religious
Exemption interim final rules to align
with the statutory text.90 However,
because the statute requires that the
USPSTF recommendations relate to
‘‘evidence-based’’ items and services,
and because the statute also requires
that HRSA’s guidelines for infants,
children, and adolescents be ‘‘evidenceinformed,’’ the Departments are of the
view that it is consistent with the
general purpose of section 2713 of the
PHS Act that, with respect to women,
the additional preventive care and
screenings provided for in
comprehensive guidelines supported by
HRSA be evidence-informed.91
Furthermore, the Departments
recognize that section 2713 of the PHS
Act establishes special coverage
requirements for certain services that
have been shown by evidence to have
benefits as preventive services.92 Most
studies suggest that removing cost89 In addition, under section 3203 of the
Coronavirus Aid, Relief, and Economic Security
(CARES) Act and its implementing regulations,
plans and issuers must cover, without cost-sharing
requirements, any qualifying coronavirus
preventive service pursuant to section 2713(a) of
the PHS Act and its implementing regulations (or
any successor regulations). The term ‘‘qualifying
coronavirus preventive service’’ means an item,
service, or immunization that is intended to prevent
or mitigate coronavirus disease 2019 (COVID–19)
and that is, with respect to the individual involved
(1) an evidence-based item or service that has in
effect a rating of ‘‘A’’ or ‘‘B’’ in the current USPSTF
recommendations; or (2) an immunization that has
in effect a recommendation from ACIP (regardless
of whether the immunization is recommended for
routine use). On November 6, 2020, the
Departments published interim final rules with a
request for comment regarding this requirement,
Additional Policy and Regulatory Revisions in
Response to the COVID–19 Public Health
Emergency (85 FR 71142).
90 The explanation for why the reference to
‘‘evidence-informed’’ was removed, that is, to align
with the statutory text, was provided in the
November 2018 Religious Exemption final rules.
See 83 FR 57536, 57557 (November 15, 2018).
91 The Departments interpret ‘‘evidence-based’’ to
require that the standards be based solely on
scientific ‘‘evidence,’’ while, as discussed later in
this preamble, ‘‘evidence-informed’’ means that
they are informed by a consideration of scientific
evidence, but such evidence need not be the only
basis for its standards. As the Court held in Little
Sisters, HRSA is also authorized to consider the
propriety of including exemptions based upon
religious or moral objections. 140 S. Ct. at 2381.
92 See section 2713(a)(1) and (3) of the PHS Act.
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sharing barriers to these items and
services helps to increase access and
utilization by participants, beneficiaries,
and enrollees who might otherwise
delay or skip care due to financial
barriers.93 However, coverage, without
cost sharing, of recommended
preventive items and services and the
resulting increases in utilization can
increase costs to consumers in the form
of increased premiums, unless those
costs are offset by savings. By
reinstating the requirement that the
HRSA-Supported Guidelines be
evidence-informed, these proposed
rules would help ensure that plans and
issuers are required to cover
recommended preventive items and
services, without cost sharing, only
when evidence supports the items’ or
services’ value as preventive care. Thus,
this proposed amendment would help
to limit overutilization of services and
promote efficiencies in care delivery
while ensuring that participants,
beneficiaries, and enrollees have access
to critical women’s preventive services.
Additionally, this proposed change
would better reflect current practice.
HRSA’s process for developing clinical
guidelines for women’s preventive
services is, and has historically been,
evidence-based. In establishing the
HRSA-Supported Guidelines, HHS,
acting through HRSA, depends on the
work of the Women’s Preventive
Services Initiative (WPSI). According to
WPSI, its recommendations are
intended to guide clinical practice and
coverage of services for HRSA and other
stakeholders.94 The recommendation
development process of the WPSI is
based on adaptation of the eight criteria
for evidence-based clinical practice
guideline development as articulated in
the 2011 report, Clinical Practice
Guidelines We Can Trust from the
National Academy of Medicine
(formerly the Institute of Medicine
[IOM]).95 The WPSI clinical
recommendations are based on reaching
a threshold of supportive evidence,
similar to the 2011 IOM Panel.96 The
WPSI bases recommendations on
evidence of both benefits and harms of
an intervention or service and an
assessment of the balance between
93 Norris, HCH. C., Richardson, HM., et al. (2021).
‘‘H. M., Benoit, M. C., Shrosbree, B., Smith, J. E.,
& Fendrick, A. M. (2022). Utilization Impact of
Cost-Sharing Elimination for Preventive Care
Services: A Rapid Review.’’ Medical Care Research
and Review. Available at, 79(2), 175–197. https://
journals.sagepub.com/doi/pdf.org/10.1177/
10775587211027372.
94 See WPSI’s Methodology Summary at https://
www.womenspreventivehealth.org/wp-content/
uploads/WPSI-Methodology-1.pdf.
95 Id.
96 Id.
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them.97 As part of the WPSI process, an
evidence report on an approved topic is
presented to its multidisciplinary
steering committee (MSC), and is used
as the basis for recommendation
development.98 The MSC is then asked
to consider the evidence in depth and
to formulate a recommendation.99
Recommendations, which include this
evidence review, that are approved by
75 percent of the MSC are submitted to
HRSA by December 1 of the given
calendar year.100 If approved by HHS,
acting through the HRSA Administrator,
the WPSI Clinical Recommendation is
added to the HRSA-Supported
Guidelines.101 Thus, HRSA-Supported
Guidelines, as currently developed, are
evidence-informed. The proposed
addition of the term ‘‘evidenceinformed’’ in 26 CFR 54.9815–
2713(a)(1)(iv), 29 CFR 2590.715–
2713(a)(1)(iv), and 45 CFR
147.130(a)(1)(iv) would more precisely
describe the process through which the
HRSA-Supported Guidelines are
established and ensure the Guidelines
continue to be evidence-informed in the
future.
For these reasons, the Departments
propose to codify that standard. The
Departments do not anticipate that this
proposed amendment would alter the
existing processes through which the
HRSA-Supported Guidelines are
developed, as these processes, as stated
previously, already include a robust
consideration of evidence.
The Departments seek comment on
this proposal.
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3. Conforming Edits
As discussed in section II.C.2 of this
preamble, the Departments also propose
to eliminate the exemption for entities
with moral objections to contraceptive
coverage at 45 CFR 147.133, and
therefore to also make conforming edits
to remove references to 45 CFR 147.133
that appear in paragraph (a)(1) of 45
CFR 147.130 and paragraph (a)(1)(iv) of
26 CFR 54.9815–2713, 29 CFR
2590.715–2713 and 45 CFR 147.130.
Finally, HHS proposes to remove from
45 CFR 147.130(a)(1) references to 45
CFR 147.131 and 45 CFR 147.132. Those
references also appear in paragraph
(a)(1)(iv), for the same purpose, and
therefore are duplicative and
unnecessary in 45 CFR 147.130(a)(1).
97 Id.
98 Id.
99 Id.
100 Id.
101 Id.
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C. Exemptions in Connection With
Coverage of Contraceptive Services (45
CFR 147.132 and 147.133)
1. Religious Exemptions
This proposed rule would maintain
the religious exemption from the
November 2018 Religious Exemption
final rules. Each of the proposed
changes made to the regulations with
respect to religious objections is either
technical in nature or codifies the intent
specified in the preamble to the
November 2018 Religious Exemption
final rules. The proposed changes in no
way narrow the scope of the exemption
or further restrict the types of religious
entities that may use the exemption.
Under the regulations at 26 CFR
54.9815–2713(a)(1)(iv), 29 CFR
2590.715–2713(a)(1)(iv), and 45 CFR
147.130(a)(1)(iv), a non-grandfathered
group health plan, or a health insurance
issuer offering non-grandfathered group
or individual health insurance coverage,
must provide coverage for, and must not
impose any cost-sharing requirements
(such as a copayment, coinsurance, or a
deductible) for, with respect to women,
such additional preventive care and
screenings as provided for in
comprehensive guidelines supported by
HRSA, subject to the exemptions and
accommodations related to
contraceptive coverage. The November
2018 Religious Exemption final rules at
45 CFR 147.132(a)(1) state that
guidelines issued under 45 CFR
147.130(a)(1)(iv) by HRSA must not
provide for or support the requirement
of coverage or payments for
contraceptive services with respect to a
group health plan established or
maintained by an objecting entity, to the
extent of the objections specified in the
regulations.
The Departments note that the
regulations require HRSA to include an
exemption in its guidelines. Although
the Supreme Court held in Little Sisters
that the ACA ‘‘gives HRSA broad
discretion to define preventive care and
screenings and to create the religious
and moral exemptions,’’ it also
concluded that ‘‘the plain language of
the statute clearly allows the
Departments to create the preventive
care standards as well as the religious
and moral exemptions’’ 102 103 (emphasis
102 Little Sisters of the Poor Saints Peter and Paul
Home v. Pennsylvania, 140 S. Ct. 2367, 2382 (2020);
see also id. at 2374–75, 2377–78 (recounting the
Departments’ history of deciding what should be
included in the HRSA-Supported Guidelines).
103 Exempting the types of objecting entities listed
in the November 2018 final rules from any
guideline requirements that relate to the provision
of contraceptive services is consistent with the
Departments’ proposed requirement (discussed in
section II.B of this preamble) that the
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added). This is understandable because
the HRSA Administrator exercises
authority delegated from and subject to
the control of the Secretary of HHS.104
Paragraph (a)(1)(i) through (iv) of 45
CFR 147.132 lists the types of objecting
entities that are exempted from the
HRSA-Supported Guideline
requirements that relate to the provision
of contraceptive services. These
proposed rules would make minor
technical amendments to 45 CFR
147.132(a)(1)(i). That paragraph
currently reads as follows: ‘‘A group
health plan and health insurance
coverage provided in connection with a
group health plan to the extent the nongovernmental plan sponsor objects as
specified in paragraph (a)(2) of this
section. Such non-governmental plan
sponsors include, but are not limited to,
the following entities –.’’ These
proposed rules would add the phrase
‘‘of the plan or coverage’’ immediately
following ‘‘sponsor’’ solely for purposes
of precision and clarity. Additionally,
these proposed rules would delete the
phrase ‘‘, but are not limited to,’’. This
change is not intended to limit the types
of non-governmental plan sponsors that
may avail themselves of the religious
exemption as compared to the
November 2018 Religious Exemption
final rules, but is rather intended as a
stylistic, grammatical change that is
consistent with other regulations issued
by the Departments.
In addition, the proposed rules would
add language in 45 CFR
147.132(a)(1)(iv) clarifying that,
notwithstanding the guaranteed
availability requirements in 45 CFR
146.150 and 45 CFR 147.104, a health
insurance issuer may not offer coverage
that excludes some or all contraceptive
services to any entity or individual that
comprehensive guidelines supported by HRSA be
evidence-informed. The Departments interpret
‘‘evidence-informed’’ to mean that the Guidelines
must be informed by a consideration of scientific
evidence; however, the implementation of the
requirement with respect to group health plans or
group or individual health insurance coverage can
also take into account the Departments’ decisions
to provide religious exemptions.
104 See 42 U.S.C. 202 (‘‘The Public Health Service
in the Department of Health and Human Services
shall be administered by the Assistant Secretary for
Health under the supervision and direction of the
Secretary.’’); Reorganization Plan No. 3 of 1966 § 1,
5 U.S.C. app 1 (transferring to the Secretary ‘‘all
functions of the Public Health Service, of the
Surgeon General of the Public Health Service, and
of all other officers and employees of the Public
Health Service, and all functions of all agencies of
or in the Public Health Service.’’); Health Resources
and Services Administration; Statement of
Organization, Functions, and Delegations of
Authority, 47 F. R. 38,409 (Aug. 31, 1982). Note that
HHS is the successor of the U.S. Department of
Health, Education, and Welfare, the latter of which
is referenced in Reorganization Plan No. 3 of 1966
mentioned earlier in this footnote.
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is not an objecting entity or objecting
individual. The preamble to the
November 2018 final rules specified this
prohibition with respect to exempt
entities,105 but the provision was not
included in the regulatory text. This
prohibition would apply to all health
insurance issuers, whether or not the
issuer is an exempt or non-exempt
entity. The Departments have identified
no reason to treat exempt and nonexempt issuers differently in this regard.
This prohibition is important to ensure
that entities and individuals that are not
objecting entities or individuals are not
offered coverage that excludes some or
all contraceptive services from being
provided without cost sharing. In
addition, the Departments are of the
view that this prohibition properly
respects both the interests of ensuring
that women have the opportunity to
obtain coverage for contraceptive
services without cost sharing and the
interests of entities that have religious
objections to offering contraceptive
coverage. By allowing health insurance
issuers to offer coverage that excludes
some or all such contraceptive services
to entities or individuals that have
religious objections to involvement with
contraceptive services, the November
2018 final rules provided important
protections to objecting entities and
individuals. On the other hand, by
limiting the individuals and entities to
whom an objecting health insurance
issuer can offer the coverage, the
November 2018 final rules took critical
steps to ensure that women employed
by or who are students of entities that
do not have an objection to coverage of
contraceptive services (or women
purchasing coverage in the individual
market who do not have such an
objection) continue to have access to
contraceptive services as required under
26 CFR 54.9815–2713, 29 CFR
2590.715–2713, and 45 CFR 147.130.
These proposed regulations would
codify this limitation in regulatory text.
These proposed rules include
amendments to reorganize the
regulatory text of 45 CFR 147.132(b) for
clarity. These proposed amendments do
not affect the exemption in the HRSASupported Guidelines and in the
November 2018 Religious Exemption
final rules for individuals who have a
religious objection to contraception
coverage. Paragraph (b) of 45 CFR
147.132 of the November 2018 Religious
Exemption final rules provided that
HRSA-Supported Guidelines under 45
CFR 147.130(a)(1)(iv) must not provide
for or support the requirement of
coverage or payments for contraceptive
105 83
FR 57536, 57565.
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services with respect to individuals who
so object. The paragraph also states that
nothing in 26 CFR 54.9815–
2713(a)(1)(iv), 29 CFR 2590.715–
2713(a)(1)(iv), or 45 CFR
147.130(a)(1)(iv) may be construed to
prevent a willing health insurance
issuer offering group or individual
health insurance coverage and, as
applicable, a willing plan sponsor of a
group health plan, from offering a
separate policy, certificate or contract of
insurance, or a separate group health
plan or benefit-package option, to any
group health plan sponsor (with respect
to an individual) or individual, as
applicable, who objects to coverage or
payments for some or all contraceptive
services based on sincerely held
religious beliefs. Under this exemption,
if an individual objects to some but not
all contraceptive services, but the issuer
(and, as applicable, the plan sponsor) is
willing to provide the plan sponsor or
individual, as applicable, with a
separate policy, certificate or contract of
insurance or a separate group health
plan or benefit package option that
omits all contraceptives, and the
individual agrees, then the exemption
applies as if the individual objects to all
contraceptive services.
In addition to the proposed
amendments to reorganize the
regulatory text of 45 CFR 147.132(b) for
clarity, these proposed rules would also
make clear that the ability of a willing
issuer to offer a separate policy,
certificate, or contract of insurance that
omits some or all contraceptive services
to an objecting individual is permitted
under these proposed rules only to the
extent permitted by applicable State
law.
The Departments note that section
2713 of the PHS Act applies to a group
health plan and a health insurance
issuer offering group or individual
health insurance coverage. Because
group health plans and health insurance
issuers are separate legal entities, in the
case of an insured group health plan,
the requirements under section 2713 of
the PHS Act apply directly to both the
group health plan that provides benefits
through a group health insurance policy
and the health insurance issuer. In the
case of an insured student health plan,
although the institution of higher
education is not directly subject to
section 2713 of the PHS Act, the
institution arranges student health
insurance coverage for students and
their dependents, similar to the sponsor
of a group health plan purchasing
coverage in the group market. In
recognition of the statute’s applicability,
the November 2018 final rules exempt a
group health insurance issuer and an
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issuer of student health insurance
coverage from complying with the
requirement to cover contraceptive
services under section 2713 of the PHS
Act, if the sponsor of the plan or
institution of higher education that
arranges student health insurance
coverage is an exempt entity, even when
the issuer itself is not an exempt entity.
The Departments seek comment on
what challenges or concerns would exist
under an approach in which, if an entity
that is a group health plan sponsor,
group health plan, or institution of
higher education is an objecting entity
and sponsors or arranges for an insured
group health plan or student health
insurance coverage, the contraceptive
coverage requirement would continue to
apply directly to the health insurance
issuer (that is, whether the exemption
should no longer extend to the issuer).
Notwithstanding that the group health
plan sponsor, group health plan, or
institution of higher education is an
exempt entity, under this alternative
approach, the health insurance issuer
would still be required to fulfill its
separate and independent obligation to
provide contraceptive coverage, unless
the issuer itself has a religious objection
to contraceptive services. Requiring the
health insurance issuer to
independently provide coverage for
contraceptive services, unless it has its
own religious objection to doing so,
would ensure that women who are in
fully-insured plans sponsored or
arranged by objecting entities (and who
thus otherwise might not have access to
contraceptive services under the
existing optional accommodation or
might be limited in their ability to
access contraceptive services through
the individual contraceptive
arrangement proposed in these rules)
would have seamless access to
contraceptive coverage. Under the
current regulations, an issuer may
exclude coverage of contraceptive
services if the coverage is sponsored or
arranged for by an objecting entity. In
order for the issuer to instead provide
the coverage directly to participants,
beneficiaries, and enrollees, the
Departments expect that the objecting
entity would have to communicate its
religious objections to the issuer in
some manner.
The Departments seek comment on all
aspects of this alternative approach.
Specifically, the Departments seek
comment on whether and how an
objecting entity that is a group health
plan sponsor, group health plan, or
institution of higher education generally
communicates to the health insurance
issuer its religious objection to
providing contraceptive coverage, and
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whether this form of communication
would be sufficient for an issuer to
understand that it must fulfill its
separate and independent obligation to
provide coverage of contraceptive
services. The Departments also seek
comment on whether and how the
health insurance issuer, in instances in
which it does not have its own religious
objection to covering contraceptive
services, should be required to provide
the contraceptive coverage, and what
guardrails should be in place to separate
the issuer’s coverage of contraceptive
services from the coverage provided
under the insured group health plan or
student health insurance coverage.
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2. Moral Exemptions
Under 45 CFR 147.133, the HRSASupported Guidelines must not provide
for or support the requirement of
coverage or payments for contraceptive
services with respect to a group health
plan established or maintained by an
objecting organization, or health
insurance coverage offered or arranged
by an objecting organization, to the
extent of the entity’s objections, based
on its sincerely held moral convictions,
to its establishing, maintaining,
providing, offering, or arranging for (as
applicable) coverage or payments for
some or all contraceptive services; or a
plan, issuer, or third party administrator
that provides or arranges such coverage
or payments. Similarly, under 45 CFR
147.133, the HRSA-Supported
Guidelines must not provide for, or
support, the requirement of coverage or
payments for contraceptive services
with respect to individuals who object
to coverage or payments for some or all
contraceptive services based on
sincerely held moral convictions.
These proposed rules would remove
the ability of entities to claim an
exemption to establishing, maintaining,
providing, offering, or arranging for
contraceptive coverage based on a nonreligious moral objection, and would
remove the exemption on the basis of
moral convictions applicable to
objecting individuals.
As the Departments explained in the
November 2018 Moral Exemption final
rule, and as pointed out in section I.A
of this preamble, the Departments’
adoption of the moral exemptions was
not legally required but rather an
exercise of the Departments’ discretion
to protect moral convictions.106
Additionally, as noted in the November
2018 Moral Exemption final rules, the
moral exemption likely affects very few
106 83
FR 57592, 57598.
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individuals.107 In Little Sisters, the
Supreme Court concluded that it was
appropriate for HRSA to consider the
prevalence of RFRA claims, and the
possibility of required exemptions
under RFRA, as a reason for establishing
the religious exemption.108 The
Departments have done so, and these
proposed rules continue to provide
exemptions for religious organizations,
employers and institutions of higher
education, and health insurance issuers
with sincerely held religious objections
to providing, sponsoring, or arranging
coverage of contraceptive services.
However, there is no such
justification for treating non-religious
moral objectors in the same manner as
religious objectors. RFRA does not
require any exemption for non-religious
moral objections that do not result in a
substantial burden on someone’s
exercise of religion; therefore, there is
no prospect of successful RFRA claims
for those entities that might have only
non-religious moral objections to
contraception. Nor does the existence of
the religious exemption compel the
conferral of corresponding exemptions
based on non-religious moral objections.
The Supreme Court has held that where
‘‘government acts with the proper
purpose of lifting a regulation that
burdens the exercise of religion, we see
no reason to require that the exemption
come packaged with benefits to secular
entities.’’ 109
In considering whether to propose
removing the moral exemption, the
Departments considered past litigation
and settlements related to non-religious
moral objections to the requirement that
plans and issuers provide coverage of
certain preventive services. The
Departments are aware that one entity,
March for Life, has obtained a
permanent injunction preventing the
enforcement of the contraceptive
coverage requirement against it because
of its non-religious moral objections.
The District Court for the District of
Columbia in that case reasoned that
there was no rational basis for the
Departments to distinguish between
religious and moral objections.110 The
Departments respectfully disagree with
107 83 FR 57592, 57627. The November 2018
Moral Exemption final rules assumed that nine
nonprofit entities and nine for-profit entities would
avail themselves of the moral exemption, and
estimated that approximately 15 women may incur
contraceptive costs due to use of the moral
exemption by for-profit entities.
108 Little Sisters of the Poor Saints Peter and Paul
Home v. Pennsylvania, 140 S. Ct. 2367 (2020).
109 Corporation of Presiding Bishop of Jesus Christ
of Latter-Day Saints v. Amos, 483 U.S. 327, 339, 107
S. Ct. 2862 (1987).
110 March for Life v. Burwell, 128 F. Supp. 3d 116
(D.D.C. 2015).
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that conclusion: as noted previously, the
reason for the distinction is that the
Departments can account for the
prospect of numerous RFRA claims with
respect to a religious exemption, some
of which might be meritorious, but there
is no analogous need to heed the
possibility of successful claims to a nonreligious moral exemption, because
there is no moral-exemption statute
similar to RFRA.
The Departments are of the view that
few entities make use of the moral
exemption at this time. In the November
2018 Moral Exemption final rules,
without data available to estimate the
actual number of entities that would
make use of the exemption for entities
with sincere moral objections, the
Departments assumed that the moral
exemption would be used by nine
nonprofit entities and nine for-profit
entities.111 These assumptions were
made in the absence of data. Thus, the
Departments seek comment on how
many women lost contraceptive
coverage without cost sharing based on
the moral exemption rule, and how
many would regain access to such
coverage by rescinding the availability
of the moral exemption. The
Departments seek evidence of the
quantitative harms from the moral
exemption rule. The Departments note,
however, that eliminating the moral
exemption is likely justified even if
more entities than previously estimated
make use of the moral exemption.
In the November 2018 Moral
Exemption final rules, the Departments
noted that the organizations that have
sued seeking a moral exemption have
adopted longstanding moral tenets
opposed to certain FDA-approved
contraceptives and hire only employees
who share this view. Commenters on
the October 2017 Moral Exemption
interim final rules made similar points
and also suggested that therefore
requiring coverage of contraceptive
services by a group health plan or
coverage sponsored, arranged, or
provided by an objecting entity subject
to a moral exemption would yield no
benefits, because that entity’s employees
would neither want nor use
contraception. At the time, the
Departments concluded that employees
of these organizations would not benefit
from the requirement to provide
contraceptive services coverage.112 Yet,
although employees of these
organizations may typically share the
views of the organizations, it is not
necessarily true that all employees of
these organizations share all of these
111 83
112 83
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FR 57536, 57602.
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views, and employees may share these
views in general while wishing to make
personal benefits elections that arguably
conflict with certain organizational
views. This is true regardless of how
many, or how few, entities object to
covering contraceptives based on a
moral exemption. Furthermore,
dependents covered under plans
sponsored by these organizations may
not share the views of these
organizations and could not be required
to share these views as a condition of
employment, unless they are also
employees of the organizations. It is
now the Departments’ view that the
potential harm to these individuals was
not adequately considered when the
Departments adopted the November
2018 Moral Exemption final rules. The
Departments seek comment on the
potential impact to these individuals.
In the preamble to the November 2018
Moral Exemption final rules, the
Departments referred to a number of
Federal statutes demonstrating
Congress’ historical desire and intent to
protect non-religious moral objections to
abortion and other activities. For
example, the Departments referred at
length to the Church Amendments. The
preamble to the November 2018 Moral
Exemption final rules stated:
The Church Amendments specifically
provide conscience protections based on
sincerely held moral convictions, not just
religious beliefs. Among other things, the
amendments protect the recipients of certain
federal health funds [under the Public Health
Service Act (42 U.S.C.A. 201 et seq.), the
Community Mental Health Centers Act (42
U.S.C.A. 2689 et seq.), the Developmental
Disabilities Assistance, or the Bill of Rights
Act of 2000 (42 U.S.C.A. 15001 et seq.)] from
being required to perform, assist, or make
their facilities available for abortions or
sterilizations if they object ‘on the basis of
religious beliefs or moral convictions,’ and
they prohibit recipients of certain federal
health funds from discriminating against any
personnel ‘because he refused to perform or
assist in the performance of such a procedure
or abortion on the grounds that his
performance or assistance in the performance
of the procedure or abortion would be
contrary to his religious beliefs or moral
convictions.’ Later additions to the Church
Amendments protect other conscientious
objections, including some objections on the
basis of moral conviction to ‘any lawful
health service,’ or to ‘any part of a health
service program.’ In contexts covered by
those sections of the Church Amendments,
the provision or coverage of certain
contraceptives, depending on the
circumstances, could constitute ‘any lawful
health service’ or a ‘part of a health service
program.’ 113
113 83 FR 57592, 57599 (internal citations
removed).
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However, the Departments now find it
significant that Congress chose not to
apply those statutory provisions to
private entities that typically do not
accept funds from or do business with
the government, that is, entities that are,
in that respect, similar to sponsors of
private group health plans.114 The
Departments also note that the Church
Amendments primarily address the
imposition of employment
responsibilities or personal service
requirements that would infringe upon
an individual’s moral beliefs, which is
not directly relevant to an employer’s,
college’s or university’s, or health
insurance issuer’s moral objections to
contraceptive coverage. The
Departments also find it significant that
those statutory provisions were enacted
before the Supreme Court’s opinion in
Dobbs. Given that decision and the
consequent threat to women’s access to
abortion and their ability to exercise
control over their reproductive health
care decisions, it is now all the more
critical that women have access to
contraceptive coverage. In fact, the
Departments noted in the November
2018 Moral Exemption final rules that
‘‘[t]he Church Amendments were
enacted in the wake of the Supreme
Court’s decision in Roe v. Wade.’’ 115 At
that time, Congress was acting in an
environment in which there were, or
were about to be, fewer restrictions on
reproductive health.
The Departments are of the view that
non-religious moral objections to
contraceptives are outweighed by the
strong public interest in making
contraceptive coverage as accessible to
women as possible. As a result, and for
the reasons stated above, these proposed
rules would eliminate the moral
exemption from the requirement to
provide contraceptive coverage without
cost sharing.
The Departments considered
proposing to retain the moral
exemption, and apply the individual
contraceptive arrangement with respect
to women enrolled in plans or coverage
that are sponsored, arranged, or
provided by non-religious moral
objectors, in instances where the
sponsor of the coverage was eligible for
but did not avail itself of the optional
accommodation, but decided against
such a proposal. As explained more
fully in section VI.B.2 of this preamble,
it is possible that through the individual
contraceptive arrangement, an eligible
114 As noted, the Departments also observe that
the Church Amendments apply only to recipients
of certain types of Federal funds, further narrowing
the Church Amendments’ application.
115 Id.
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individual would need to seek care from
a provider of contraceptive services who
is not one of their regular providers,
which not only adds inconvenience, but
also could lead to disruptions in care.
Additionally, eligible individuals that
participate in the individual
contraceptive arrangement would have
to confirm eligibility to their provider of
contraceptive services. The Departments
are of the view that these additional
burdens are not justified when weighed
against a moral as opposed to a religious
objection.
However, given the larger number of
entities that have religious objections to
contraceptive coverage, and the fact that
RFRA in some circumstances could
require religious exemptions from such
coverage, the Departments are retaining
the religious exemption.
Correspondingly, the Departments
propose to make conforming edits to
remove references to 45 CFR 147.133
(which is where the moral exemption is
codified in the current rules) that appear
in paragraph (a)(1) of 45 CFR 147.130
and paragraph (a)(1)(iv) of 26 CFR
54.9815–2713, 29 CFR 2590.715–2713,
and 45 CFR 147.130. The Departments
seek comments on these proposals.
The Departments acknowledge that
some objecting entities have relied on
the moral exemption, and that removing
that exemption, if finalized, would
disrupt that reliance by requiring such
entities to begin covering contraceptive
services without cost sharing. However,
the Departments are of the view that
newly applying the contraceptive
coverage requirement on non-religious
moral objectors is no different from
requiring a plan or issuer to newly
provide coverage without cost sharing
for a preventive service after an
applicable recommendation or guideline
is first established. The Departments
seek comment on how, and the degree
to which, reliance on the moral
exemption would be disrupted by
requiring such entities to begin covering
contraceptive services without cost
sharing, and the type and magnitude of
burden that such disruption would
cause such entities.
Although the Departments are
proposing to eliminate the exemptions
for entities with non-religious moral
objections to providing coverage of
contraceptive services, the Departments
respect non-religious moral objections
and also seek comment on alternatives
to fully rescinding the moral exemption
that would balance the interests of
entities with non-religious moral
objections against the strong public
interest of ensuring women have access
to contraceptive services without cost
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sharing.116 The Departments also seek
comment on whether such an approach
would introduce unwarranted barriers
for women to access contraceptive
services, as compared to simply
eliminating the moral exemption.
D. Alternate Availability of Certain
Preventive Health Services (26 CFR
54.9815–2713A, 29 CFR 2590.715–
2713A, and 45 CFR 147.131)
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1. Optional Accommodation for Exempt
Entities
The Departments propose several
amendments to the existing regulatory
text in 26 CFR 54.9815–2713A, 29 CFR
2590.715–2713A, and 45 CFR 147.131
regarding the optional accommodation
for exempt entities. The Departments
propose to amend the language
describing which entities are eligible for
the optional accommodation to align
with the scope of entities eligible for an
exemption under these proposed rules.
The Departments also propose changes
to reflect needed updates and several
minor additional changes.
In the list of organizations eligible for
the optional accommodation (26 CFR
54.9815–2713A(a)(1), 29 CFR 2590.715–
2713A(a)(1), and 45 CFR
147.131(c)(1) 117), the Departments
propose to remove the cross-reference to
45 CFR 147.133(a)(1)(i) or (ii) because,
as discussed in section II.C.2 of this
preamble, these proposed rules would
eliminate the moral exemption and
entities that object to coverage of
contraceptive services based on nonreligious moral objections would no
longer be exempt entities. Thus, if
finalized, these proposed rules would
not allow these entities to avail
themselves of the optional
accommodation.
In the same paragraph, the
Departments propose to add a crossreference to 45 CFR 147.132(a)(1)(iii), in
addition to the existing cross-references
to 45 CFR 147.132(a)(1)(i) and (ii), to
clarify that the existing optional
accommodation for objecting entities is
available to objecting entities that are
institutions of higher education. The
preamble to the November 2018
Religious Exemption final rules stated
116 While no other Federal law may require the
Departments to provide for an across-the-board
moral exemption via regulation, Federal law
continues to protect the exercise of convictions in
certain specific contexts covered by the respective
statutory text. See, for example, the Church
Amendments at 42 U.S.C. 300a–7(c)(2) and (d)
(requiring certain covered entities to provide for
persons’ lawful exercise of conscience with respect
to certain services or programs, which may include
contraceptive services or coverage).
117 In 45 CFR 147.131, these proposed rules
would eliminate reserved paragraphs (a) and (b),
and redesignate paragraph (c) as paragraph (a).
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that the optional accommodation is
available to objecting entities that are
institutions of higher education,118 but
the text of the November 2018 Religious
Exemption final rules inadvertently did
not specify that the optional
accommodation is available to these
entities. These proposed rules would
also add a rule of construction to the
HHS regulation at 45 CFR 147.131 as
redesignated paragraph (f) to clarify that
in the case of student health insurance
coverage, 45 CFR 147.131 would be
applicable in the same manner as to
group health insurance coverage
provided in connection with a group
health plan established or maintained
by a plan sponsor that is an employer,
and references to ‘‘plan participants and
beneficiaries’’ would be interpreted as
references to student enrollees and their
covered dependents.
The Departments also propose
technical amendments to the regulatory
text to remove the transitional rule
provision, which was added in the
November 2018 Religious Exemption
final rules. In instances where an issuer
or third party administrator makes
separate payments for contraceptive
services through the optional
accommodation process on January 14,
2019, this transitional rule permitted the
eligible organization to give accelerated
notice of revocation of the
accommodation. The period during
which this accelerated notice process
was permitted has expired. In addition,
the Departments do not see a reason to
create a new opportunity for such an
accelerated notice, since all entities
currently availing themselves of the
optional accommodation are doing so
voluntarily. Therefore, the Departments
propose technical amendments to
remove the transitional rule. The
Departments do not propose to modify
the generally applicable rule of
revocation, which requires an eligible
organization’s revocation of use of the
optional accommodation process to be
effective no sooner than the first day of
the first plan year that begins on or after
30 days after the date of the revocation.
Additionally, the Departments
propose to replace the cross-reference to
section 2719A of the PHS Act with a
cross-reference to section 9822 of the
Code, section 722 of ERISA, and section
2799A–7 of the PHS Act, in 26 CFR
54.9815–2713A(c)(2)(ii), 29 CFR
118 See 83 FR 57536, 57564. (‘‘These rules treat
the plans of institutions of higher education that
arrange student health insurance coverage similarly
to the way in which the rules treat the plans of
employers. These rules do so by making such
student health plans eligible for the expanded
exemptions, and by permitting them the option of
electing to utilize the accommodation process.’’)
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2590.715–2713A(c)(2)(ii), and
redesignated 45 CFR 147.131(b)(2)(ii).
The current cross-reference establishes
that, when an insured group health plan
avails itself of the optional
accommodation, its health insurance
issuer must provide separate payments
for contraceptive services in a manner
that is consistent with, among others,
the patient protection requirements
under section 2719A of the PHS Act.
Section 2719A of the PHS Act provided
that if a plan or issuer requires or
provides for designation by a
participant, beneficiary, or enrollee of a
participating primary care provider,
individuals may designate any
participating primary care providers
available to accept them, including
pediatricians, and prohibits the plan or
issuer from requiring authorization or
referral for obstetrical or gynecological
care. Section 102 of title I of Division BB
of the Consolidated Appropriations Act,
2021 (CAA) 119 amended section 2719A
of the PHS Act to include a sunset
provision effective for plan years
beginning on or after January 1, 2022,
when the new protections under the No
Surprises Act took effect. Additionally,
the No Surprises Act recodified the
patient protections regarding choice of
health care professional from section
2719A(a), (c), and (d) of the PHS Act at
new section 9822 of the Code, section
722 of ERISA, and section 2799A–7 of
the PHS Act.120 The Departments are of
the view that it would be appropriate to
continue to require that, when making
separate payments for contraceptive
services through the optional
accommodation for insured plans, an
issuer must make those payments in a
manner that is consistent with these
patient protections. The Departments
seek comment on the circumstances
under which contraceptive services
would constitute emergency services,121
as well as whether to continue to apply
the protections for emergency services,
which were set forth under section
2719A of the PHS Act, and subsequent
to that provision sunsetting, are now set
119 Title I of Division BB of the CAA is also
known as the No Surprises Act.
120 Section 2719A(b) of the PHS Act and the
Departments’ implementing regulations established
requirements applicable to group health plans and
health insurance issuers offering group or
individual health insurance related to the coverage
of emergency services, which are also covered
under the CAA’s sunset provision. The No
Surprises Act added section 9816 of the Code,
section 716 of ERISA, and section 2799A–1 of the
PHS Act, which expand the patient protections
related to emergency services under section 2719A
of the PHS Act, in part, by providing additional
consumer protections related to balance billing.
121 The term emergency services is defined in
regulations at 26 CFR 54.9816–4T(c)(2), 29 CFR
2590.716–4(c)(2), and 45 CFR 149.110(c)(2).
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forth in section 2799A–1 of the PHS Act
but include different such protections,
to issuers making separate payments for
contraceptive services through the
optional accommodation for insured
plans.
Redesignated paragraphs 26 CFR
54.9815–2713A(d), 29 CFR 2590.715–
2713A(d), and 45 CFR 147.131(c) set
forth model language for the written
notice of the availability of separate
payments for contraceptive services
with respect to eligible organizations
exercising the optional accommodations
set forth in 26 CFR 54.9815–2713A(b)
and (c), 29 CFR 2590.715–2713A(b) and
(c), and 45 CFR 147.131(b). Under
current paragraphs 26 CFR 54.9815–
2713A(d), 29 CFR 2590.715–2713A(d),
and 45 CFR 147.131(e), the language
explains to a participant or beneficiary
that a plan sponsor has certified that the
plan or coverage qualifies for an
accommodation with respect to the
requirement to cover all FDA-approved
contraceptive services for women, as
prescribed by a health care provider,
without cost sharing. The Departments
propose to redesignate those paragraphs
and amend the language that refers to
FDA-approved contraceptive services to
refer to all FDA-approved, cleared, or
granted contraceptives. This proposed
change is consistent with the fact that
FDA does not approve contraceptive
‘‘services,’’ but rather contraceptive
products, which may be approved,
cleared, or granted, depending on the
product type.
The Departments also propose several
minor additional grammatical,
conforming, and technical changes. In
26 CFR 54.9815–2713A(b)(1)(ii)(B) and
(c)(1)(ii)(B), 29 CFR 2590.715–
2713A(b)(1)(ii)(B) and (c)(1)(ii)(B), and
45 CFR 147.131(d)(1)(ii)(B) of the
current rules, which are redesignated as
26 CFR 54.9815–2713A(b)(1)(ii)(B) and
(c)(1)(ii)(C), 29 CFR 2590.715–
2713A(b)(1)(ii)(B) and (c)(1)(ii)(C), and
45 CFR 147.131(b)(1)(ii)(B) in these
proposed rules, the Departments
propose to update the reference to a
student health insurance plan to refer to
student health insurance coverage, to be
consistent with the terminology used in
45 CFR 147.145(a). The Departments
also propose to add a reference to
section 414(e) of the Code when
referring to church plans, to fully
account for the fact that the Internal
Revenue Service and the Department of
the Treasury regulate such plans. In
addition, in what is proposed to be
redesignated as 26 CFR 54.9815–
2713A(f), 29 CFR 2590.715–2713A(f),
and 45 CFR 147.131(e) (which are
paragraphs 26 CFR 54.9815–2713A(e),
29 CFR 2590.715–2713A(e), and 45 CFR
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147.131(f) in current regulations), the
Departments propose non-substantive
amendments for clarity.
These proposed rules retain the
optional accommodation process for
self-insured group health plans under
26 CFR 54.9815–2713A(b) and 29 CFR
2590.715–2713A(b). Under that optional
accommodation, an eligible organization
is not required to contract, arrange, pay,
or provide a referral for the delivery of
contraceptive benefits in cases where
the organization objects to providing
contraception coverage, but does not
object to having third parties (such as a
third party administrator) provide for
the benefits. The Department of the
Treasury and DOL propose to make
minor amendments to the existing
regulatory text in 26 CFR 54.9815–
2713A(b) and 29 CFR 2590.715–
2713A(b) regarding the optional
accommodation for exempt entities that
provide benefits on a self-insured basis.
The proposed amendments make
conforming edits to paragraphs (b)(1)(ii)
and (b)(1)(ii)(B) that remove references
to 45 CFR 147.133 and add language to
paragraph (b)(1)(ii) noting that third
party administrators provide
administrative services in connection
with the plan consistent with the
parallel optional accommodation for
insured plans. The proposed rules
would also add a reference to State
Exchange on the Federal platform user
fees to paragraph (b)(3) to be consistent
with amendments made to the user fee
provisions in 45 CFR 156.50(d).122
The Departments seek comment on all
aspects of these proposed amendments.
2. Individual Contraceptive
Arrangement for Eligible Individuals
By making the accommodations in 26
CFR 54.9815–2713A, 29 CFR 2590.715–
2713A, and 45 CFR 147.131 optional in
the November 2018 final rules, the
Departments responded to litigants’
concerns that some objecting entities
believed the accommodations under the
prior rules left the objecting entity
complicit in contracting, arranging,
paying, or providing a referral for the
contraceptive coverage. Those rules left
the accommodation process intact as a
voluntary option that objecting entities
could avail themselves of if they did not
object to the accommodation. However,
the November 2018 final rules had the
adverse effect of failing to provide
122 In 2021, HHS amended 45 CFR 156.50(d) to
clarify that issuers participating through SBE–FPs
are eligible to receive adjustment to their Federal
user fee amounts that reflect the value of
contraceptive claims they have reimbursed to thirdparty administrators (TPAs) that have provided
contraceptive coverage on behalf of an eligible
employer. 86 FR 24140, 24229 (May 5, 2021).
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women enrolled in a health plan
established or maintained or arranged
by an objecting entity with an
alternative mechanism for obtaining
contraceptive services with no cost
sharing if the entity did not choose to
use the accommodation. Additionally,
the November 2018 final rules did not
require objecting entities or their health
plans to notify eligible individuals that
the coverage offered excludes
contraceptive services. The Departments
have determined that it is necessary to
provide these women with an
alternative pathway to obtaining
contraceptive services at no cost (other
than the premium or contribution paid
for health coverage) because of the
public health interest in ensuring
women’s access to reproductive health
care and contraceptive services without
cost sharing, particularly in light of the
Supreme Court’s opinion in Dobbs v.
Jackson Women’s Health Organization.
Specifically, the Departments propose to
amend 26 CFR 54.9815–2713A, 29 CFR
2590.715–2713A, and 45 CFR 147.131 to
create an individual contraceptive
arrangement for women enrolled in a
group health plan or health insurance
coverage sponsored, offered, or arranged
by an objecting entity that does not
provide contraceptive coverage and that
elects not to use the existing optional
accommodations with respect to some
or all contraceptive services. By
enabling individuals to directly receive
contraceptive services at no cost, this
proposal would provide them with
access to all contraceptive services the
plan or coverage would otherwise be
required to cover, absent the exemption.
Critically, this would be accomplished
independent of any action by the
objecting entity, which would not be
required to take any steps to facilitate
this provision of contraceptive services.
Under these proposed rules, an
eligible individual may voluntarily, and
independent of any actions by the
objecting entity, elect this individual
contraceptive arrangement. Under
proposed 26 CFR 54.9815–2713A(e), 29
CFR 2590.715–2713A(e), and 45 CFR
147.131(d), a provider of contraceptive
services would furnish contraceptive
services to the eligible individual
without imposing any fee or charge of
any kind, directly or indirectly, on the
eligible individual or any other entity
for the cost of the items and services or
any portion thereof.123 The provider of
123 Under these proposed rules, the provider of
contraceptive services would furnish contraceptive
services to the eligible individual in a manner that
is totally independent of any costs that are
associated with a group health plan or health
insurance coverage sponsored, arranged, or
provided by an objecting entity. The Departments
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contraceptive services would be
permitted to seek reimbursement from a
participating issuer as defined under 45
CFR 156.50,124 with which the provider
has a signed agreement for the costs of
providing these contraceptive services.
The Departments expect that
administrative costs incurred by
participating providers of contraceptive
services would be included in the
amounts they submit to issuers for
reimbursement. The issuer in turn
would be able to receive a reduction
equal to this amount (plus an
administrative allowance for costs and
margin) to the issuer’s FFE or SBE–FP
user fees pursuant to 45 CFR 156.50(d).
See section III of this preamble for a
discussion of how a provider of
contraceptive services would be
reimbursed through such an adjustment.
Participation in an individual
contraceptive arrangement would be
entirely voluntary for the provider of
contraceptive services. A willing
provider of contraceptive services
would also be reimbursed for items and
services that are integral to the
furnishing of the contraceptive service,
for an amount agreed to by the provider
and eligible issuer, regardless of
whether the provider would typically
bill for the item or service separately.
Reimbursing for the items and services
that are integral to the furnishing of the
contraceptive service, regardless of
whether the provider would typically
bill for the item or service separately, is
consistent with how the Departments
have interpreted section 2713 of the
PHS Act as applied to group health
plans and health insurance issuers
offering group or individual health
insurance coverage.125
For purposes of this individual
contraceptive arrangement, these
note that, because the individual contraceptive
arrangement would be completely separate from a
plan or coverage sponsored, arranged, or provided
by an objecting entity, the provision of the proposed
rules that would require a provider of contraceptive
services to furnish contraceptive services to eligible
individuals without imposing any fee or charge of
any kind would mean that the provider of
contraceptive services would not collect any
amounts that would typically be associated with an
eligible individual’s plan or coverage, such as any
premiums, cost-sharing requirements, or other
similar amounts.
124 45 CFR 156.50 defines participating issuer as
any issuer offering a plan that participates in the
specific function that is funded by user fees. This
term may include: health insurance issuers, QHP
issuers, issuers of multi-State plans (as defined in
45 CFR 155.1000(a), issuers of stand-alone dental
plans (as described in 45 CFR 155.1065), or other
issuers identified by an Exchange.
125 85 FR 71142, 71174. See also FAQs about
Affordable Care Act Implementation Part 54 (July
28, 2022), Q1, available at https://www.dol.gov/
sites/dolgov/files/EBSA/about-ebsa/our-activities/
resource-center/faqs/aca-part-54.pdf and https://
www.cms.gov/files/document/faqs-part-54.pdf.
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proposed rules would define an eligible
individual under 26 CFR 54.9815–
2713A(a)(3), 29 CFR 2590.715–
2713A(a)(3), and 45 CFR 147.131(a)(3)
as a participant or beneficiary enrolled
in a group health plan established or
maintained, or an enrollee in individual
health insurance coverage offered or
arranged, by an objecting entity
described in 45 CFR 147.132(a) that, to
the extent eligible, has not invoked the
accommodation, and who confirms to a
provider of contraceptive services (that
agrees to meet certain criteria) that the
individual is enrolled in a group health
plan or group or individual health
insurance coverage sponsored,
provided, or arranged by an objecting
entity that does not provide coverage for
all or a subset of contraceptive services
as generally required for non-objecting
entities under 26 CFR 54.9815–
2713(a)(1)(iv), 29 CFR 2590.715–
2713(a)(1)(iv), and 45 CFR
147.130(a)(1)(iv).
The individual may make this
confirmation by producing any
documentation that may include the
relevant information, such as a
summary of benefits (for example, a
summary of benefits and coverage (SBC)
that includes the relevant information),
or through other methods, such as by
providing an attestation.126 The
provider of contraceptive services
would have discretion on choosing what
confirmation method to accept. The
Departments seek comment on
additional sources of information that
participants, beneficiaries, and enrollees
could provide for this confirmation,
including what documentation plans
and issuers may already be providing to
participants, beneficiaries, and enrollees
independent of any Federal
requirements.
Excluded from the proposed
definition of eligible individual are a
participant or beneficiary enrolled in a
group health plan established or
maintained, or an enrollee in individual
health insurance coverage offered or
arranged, by an objecting entity that has
invoked the optional accommodation.
The Departments do not expect many
such participants, beneficiaries, or
enrollees would avail themselves of the
individual contraceptive arrangement,
even if they were eligible, as it would
likely be easier for them to obtain
contraceptive services through the
accommodation. However, the
Departments recognize that it may be
challenging for an individual or a
126 The Departments are proposing to add sample
attestation language for this purpose to the
regulations at 26 CFR 54.9815–2713A(e)(2), 29 CFR
2590.715–2713A(e)(2), and 45 CFR 147.131(d)(2).
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provider of contraceptive services to
distinguish between an eligible
individual, as defined under these
proposed rules, and a participant or
beneficiary enrolled in a group health
plan established or maintained, or an
enrollee in individual health insurance
coverage offered or arranged, by an
objecting entity that has invoked the
optional accommodation. Therefore, the
Departments seek comment on whether
these individuals should be included
within the definition of eligible
individual.
The Departments acknowledge that
grandfathered health plans are not
required to comply with section 2713 of
the PHS Act, including the
implementing regulations. However,
because there are relatively few
grandfathered plans and coverage still
in existence,127 and these plans and
issuers providing grandfathered
coverage may voluntarily, or as required
by State law, provide contraceptive
coverage, the Departments are not
proposing to apply the proposed
individual contraceptive arrangement to
women enrolled in grandfathered plans.
These proposed rules, if finalized,
would not place any additional
obligations on a plan or health
insurance issuer. Under this individual
contraceptive arrangement, an exempt
entity would not have to provide any
verbal or written documentation to an
eligible individual, a provider of
contraceptive services, a health
insurance issuer, a third party
administrator, a government agency, or
any other person or entity, that an
exempt entity would not already be
required to provide by virtue of
sponsoring, arranging, or offering health
coverage in general.128 Under these
127 In 2020, the Departments estimated that there
are 2.5 million ERISA-covered plans offered by
private employers that cover an estimated 136.2
million participants and beneficiaries in those
private employer-sponsored plans. Similarly, the
Departments estimated that there were 84,087 State
and local governments that offer health coverage to
their employees, with an estimated 32.8 million
participants and beneficiaries in those employersponsored plans. The Departments estimated that,
of firms offering health benefits, 400,000 sponsor
ERISA-covered plans that are grandfathered (or
include a grandfathered benefit package option) and
cover 19.1 million participants and beneficiaries.
The Departments further estimated there are 13,454
State and local governments offering at least one
grandfathered health plan and 4.6 million
participants and beneficiaries covered by a
grandfathered State or local government plan. See
85 FR 81097, 81108. The Departments expect that
those numbers are now somewhat lower.
128 However, these proposed rules would not
prohibit an eligible individual from requesting that
the plan or coverage provide documentation
showing the plan or coverage does not cover all or
a subset of contraceptive services as generally
required under 26 CFR 54.9815–2713(a)(1)(iv), 29
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receive women’s health care. As the
Departments have explained, however,
they have been unable to identify a
mechanism that would achieve seamless
coverage while addressing the religious
objections to the contraceptive coverage
requirement and the existing
accommodations as well as resolving
the long-running litigation.129
Nonetheless, the proposed individual
contraceptive arrangement would be
more effective than the existing
regulations at advancing the goals of the
Women’s Health Amendment, because
the current regulations provide no
pathway to obtain contraceptive
services at no cost for women whose
employers, institutions of higher
education, or health insurance issuers
exercise a religious exemption and
either opt not to or are not eligible to
invoke the accommodation.
The Departments propose to codify
the proposed individual contraceptive
arrangement in the same section of the
regulations as the existing optional
accommodation for exempt entities, as
both would operate to ensure that
women enrolled in coverage sponsored
or offered or arranged by an exempt
entity have access to contraceptive
services otherwise required to be
covered, without cost sharing.
Therefore, the Departments propose to
change the titles of 26 CFR 54.9815–
2713A, 29 CFR 2590.715–2713A, and 45
CFR 147.131 from ‘‘Accommodations in
connection with coverage of certain
preventive health services,’’ to
‘‘Alternate availability of certain
preventive health services.’’
The Departments seek comment on all
aspects of these proposed amendments.
proposed rules, an eligible individual
may voluntarily, without the objecting
entity’s knowledge, and independent of
any actions by the objecting entity, elect
this individual contraceptive
arrangement. The individual
contraceptive arrangement option
would therefore operate independently
of any health plan or health insurance
arrangement that involves or implicates
an objecting entity. The Departments
seek comment on adequate ways to
ensure individuals are aware of the
individual contraceptive arrangement,
can learn if they are eligible, and can
find participating providers to access
contraceptive services at no cost.
These proposed rules would also add
a definition of provider of contraceptive
services for purposes of 26 CFR
54.9815–2713A, 29 CFR 2590.715–
2713A, and 45 CFR 147.131 in new
paragraphs 26 CFR 54.9815–
2713A(g)(2), 29 CFR 2590.715–
2713A(g)(2), and 45 CFR 147.131(g)(2).
The term ‘‘provider of contraceptive
services’’ would mean any health care
provider (including a clinician,
pharmacy, or other facility) acting
within the scope of that provider’s
license, certification, or authority under
applicable law to provide contraceptive
services. This definition is intended to
be interpreted broadly to encompass any
provider or facility authorized to
provide any contraceptive services,
including when provided via telehealth
or mail. The Departments specifically
seek comment on whether there are any
entities that would be equipped to
facilitate the individual contraceptive
arrangement that would not be included
within this definition.
The Departments acknowledge that
this proposal would not achieve the
Women’s Health Amendment’s goal of
ensuring that women have seamless
cost-free coverage of contraceptives,
because the individual contraceptive
arrangement would require some
additional action by the affected women
and could require them to obtain
contraceptive care from providers other
than those from whom they typically
To facilitate the proposed individual
contraceptive arrangement, HHS
proposes to amend 45 CFR 156.50(d) to
allow a participating issuer 130 on the
FFE or an SBE–FP to receive an FFE or
SBE–FP user fee adjustment for
reimbursing a provider of contraceptive
services for the costs of providing
contraceptive services pursuant to the
individual contraceptive
arrangement.131 Additionally, for
purposes of 45 CFR 156.50(a), HHS
proposes that ‘‘provider of contraceptive
services’’ would have the same meaning
as ‘‘provider of contraceptive services’’
under proposed 45 CFR 147.131(g)(2).
Under this definition, a provider of
contraceptive services would not be
required to be located in an FFE or SBE–
FP State, but a participating issuer
would need to be subject to FFE or SBE–
FP user fees to be eligible to receive a
user fee adjustment. In other words, a
provider of contraceptive services
would be able to seek reimbursement
from a participating issuer in another
State.
To summarize, a provider of
contraceptive services that incurs costs
for furnishing contraceptive services
pursuant to the individual contraceptive
arrangement would be able to seek
reimbursement of these costs from a
participating issuer, with the issuer in
turn receiving a reduction equal to this
amount, plus an administrative
allowance for costs and margin, of the
issuer’s FFE or SBE–FFP user fees as
discussed in detail in this section of the
preamble:
• In order to receive reimbursement
for contraceptive services provided
pursuant to the individual contraceptive
arrangement, a provider of contraceptive
services would be required to enter into
a signed agreement with a participating
issuer to reimburse the provider for the
cost of furnishing contraceptive
services.
• For the participating issuer to
receive the user fee adjustment and for
the provider of contraceptive services to
receive reimbursement from the
participating issuer as a result of the
participating issuer’s user fee
adjustment, the participating issuer
would be required to submit to HHS: (1)
a copy of the signed agreement it
entered into with the provider of
CFR 2590.715–2713(a)(1)(iv), or 45 CFR
147.130(a)(1)(iv). The Departments note that a plan
or coverage would be required to comply with
generally applicable disclosure requirements. For
example, if an individual requests that the plan or
coverage provide them with a copy of their SBC, the
plan or coverage would be required to furnish the
SBC in accordance with existing regulations. See 26
CFR 54.9815–2715(a)(1), 29 CFR 2590.715–
2715(a)(1), and 45 CFR 147.200(a)(1). Additionally,
group health plans covered by ERISA are required
to provide a summary plan description to
participants and beneficiaries that describe, in
terms understandable to the average plan
participant, the rights, benefits, and responsibilities
of participants and beneficiaries. See ERISA section
102 and 29 CFR 2520.104b–2.
129 See FAQs Part 36, available at https://
www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/
our-activities/resource-center/faqs/aca-part-36.pdf
and https://www.cms.gov/CCIIO/Resources/FactSheets-and-FAQs/Downloads/ACA-FAQs-Part36_19-17-Final.pdf.
130 Under 45 CFR 156.50(a), a participating issuer
means any issuer offering a plan that participates
in the specific function that is funded by user fees.
This term may include: health insurance issuers,
QHP issuers, issuers of multi-State plans (as defined
in 45 CFR 155.1000(a)), issuers of stand-alone
dental plans (as described in 45 CFR 155.1065), or
other issuers identified by an Exchange. The
references to ‘‘participating issuer’’ in this section
would mean a participating issuer on the FFE or an
SBE–FP.
131 HHS notes it is not proposing to change the
substantive requirements on participating issuers
and third party administrators when participating
issuers make payments to third party
administrators, nor is HHS proposing to make
substantive changes related to information and
documentation requirements on third party
administrators and participating issuers that have
made arrangements with each other. To conform
with proposed changes for the individual
contraceptive arrangement, HHS would amend 45
CFR 156.50 to include references to the individual
contraceptive arrangement and re-designate
paragraphs to include references to the individual
contraceptive arrangement provisions. These
changes are discussed in more detail in the
following paragraphs.
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contraceptive services; (2) information
that identifies the provider of
contraceptive services it reimbursed or
will reimburse; and (3) the total dollar
amount of the payments it made or will
make to reimburse the provider of
contraceptive services for the costs of
furnishing contraceptive services to
eligible individuals pursuant to the
individual contraceptive arrangement.
• If the necessary conditions are met,
the participating issuer would receive
an adjustment to its user fee obligation
equal to the total amount of costs of
furnishing contraceptive services for
each provider of contraceptive services
in accordance with the individual
contraceptive arrangement, plus an
allowance for administrative costs and
margin.132 If the adjustment exceeds the
user fees owed in the month of the
initial adjustment or in any later month,
any excess adjustment would be carried
over to later months.
• Under these proposed rules and the
current regulation, the administrative
allowance—which would be at least 10
percent of the total dollar amount of the
costs of furnishing contraceptive
services pursuant to the individual
contraceptive arrangement 133—would
be specified by HHS in the annual HHS
notice of benefit and payment
parameters or other rulemaking. If the
administrative allowance for an
applicable year is not specified in that
year’s HHS notice of benefit and
payment parameters or other
rulemaking, then the administrative
allowance would be the amount last
specified in rulemaking.
• The participating issuer may pay
the provider of contraceptive services as
soon as the contraceptive services are
delivered pursuant to the individual
contraceptive arrangement, but the
participating issuer would be required
to pay the provider, no later than within
60 days of receipt of any adjustment of
a user fee. No payment would be
132 The allowance for administrative costs and
margin is intended to cover a participating issuer’s
administrative costs associated with reimbursing
providers of contraceptive services, such as the
costs associated with entering into arrangements
with such providers and submitting documentation
to seek a reduction in the user fee obligation, as
well as provide a margin to ensure that
participating issuers receive appropriate
compensation for providing such reimbursements.
See 78 FR 39870, 39884.
133 Pursuant to 45 CFR 156.50(d)(3)(ii), the
minimum administrative allowance permitted for
the existing third party administrator optional
accommodation is also at least 10 percent of the
total dollar amount of payments for contraceptive
services. See 78 FR 39870, 39885. Per the HHS
Notice of Benefit and Payment Parameters for 2015
(‘‘2015 Payment Notice’’), HHS set the
administrative allowance for the existing third party
administrator optional accommodation at 15
percent. See 79 FR 13743, 13809 (March 11, 2014).
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required with respect to the allowance
for administrative costs and margin.
This proposal sets the latest date on
which the participating issuer must
reimburse the provider of contraceptive
services. This proposal would not
preclude the participating issuer and
provider of contraceptive services from
agreeing that the participating issuer
would reimburse the provider at more
frequent intervals, such as on a monthly
or quarterly basis, or upfront for the full
cost of services provided during the
applicable benefit year rather than in
the following benefit year in which the
issuer receives the monthly user fee
adjustment.
Each of the items from the preceding
list laying out this proposed user fee
adjustment is discussed in more detail
in the following paragraphs.
HHS proposes to add paragraph
(d)(1)(iii) to 45 CFR 156.50 to require
that a provider of contraceptive services
and a participating issuer enter into an
agreement for that issuer to seek a user
fee adjustment as a result of reimbursing
the provider’s costs pursuant to the
individual contraceptive arrangement.
An agreement between the participating
issuer and the provider of contraceptive
services would be a condition of
participation in the individual
contraceptive arrangement and required
to receive reimbursement for the costs of
furnishing contraceptive services.
HHS proposes to amend 45 CFR
156.50(d)(2)(i) to establish the
information and documentation a
participating issuer that is eligible for a
user fee adjustment must provide to
HHS to receive a user fee adjustment as
a result of reimbursement of (or
intention to reimburse pursuant to
proposed 45 CFR 156.50(d)(5)) the cost
of furnishing contraceptive services
incurred by a provider of contraceptive
services. HHS proposes to amend 45
CFR 156.50(d)(2)(i)(A) to require that, to
receive a user fee adjustment under the
individual contraceptive arrangement, a
participating issuer must submit to HHS
identifying information on each
provider of contraceptive services it
reimbursed (or will reimburse pursuant
to proposed 45 CFR 156.50(d)(5)).
Additionally, HHS proposes to add 45
CFR 156.50(d)(2)(i)(D) and (E) to require
the participating issuer offering a plan
through the FFE or an SBE–FP to
submit: (1) documentation that
demonstrates that the participating
issuer and the provider of contraceptive
services have entered into an agreement
through which the participating issuer
would reimburse the provider for the
costs of contraceptive services furnished
under the individual contraceptive
arrangement; and (2) the total dollar
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amount of the payments the
participating issuer made (or will make)
to reimburse the provider for the costs
of furnishing those contraceptive
services already provided under the
individual contraceptive arrangement.
To facilitate the individual
contraceptive arrangement, HHS
proposes that providers of contraceptive
services and participating issuers, as a
condition for participating in this
individual contraceptive arrangement,
must enter into a signed agreement and
that the participating issuer must submit
a copy of this agreement to HHS to
satisfy the proposed submission
requirements at 45 CFR
156.50(d)(2)(i)(A) and (D). HHS
proposes that this signed agreement
must include identifying information of
the provider of contraceptive services,
such as the name and contact
information for the provider’s practice
or facility or, if applicable, the
provider’s National Provider
Identifier.134 In addition, the agreement
would need to include the signatures of
individuals with the authority to legally
and financially bind the provider of
contraceptive services and the
participating issuer. The agreement
would need to demonstrate that the
provider of contraceptive services and
participating issuer have entered into an
arrangement through which the
participating issuer will reimburse the
provider for the costs of furnishing
contraceptive services in accordance
with the individual contraceptive
arrangement at proposed 26 CFR
54.9815–2713A(e), 29 CFR 2590.715–
2713A(e), and 45 CFR 147.131(d), and
that the participating issuer will seek a
user fee adjustment for the amount of
those eligible costs (plus an
administrative allowance as specified at
proposed 45 CFR 156.50(d)(3)(iii)). HHS
notes that other terms of the agreement
between a provider of contraceptive
services and a participating issuer, such
as the period of time over which the
agreement is effective, are at the
discretion of the participating issuer and
provider. HHS also notes that, to
facilitate the individual contraceptive
arrangement, a single participating
issuer may enter into separate
agreements with more than one provider
of contraceptive services. Additionally,
providers of contraceptive services may
enter into separate agreements with
more than one participating issuer. HHS
recognizes that there may be additional
134 See ‘‘NPI: What You Need to Know’’ (March
2021), available at https://www.cms.gov/Outreachand-Education/Medicare-Learning-Network-MLN/
MLNProducts/Downloads/NPI-What-You-Need-ToKnow.pdf.
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forms of documentation that could
satisfy these proposed submission
requirements; thus, HHS seeks comment
on the types of documentation HHS
should accept. HHS also seeks comment
on the types of information participating
issuers must submit to adequately
identify the providers of contraceptive
services with which the participating
issuers have entered into such
arrangements.
HHS proposes to add 45 CFR
156.50(d)(2)(i)(E) to require a
participating issuer to submit the total
dollar amount of the provider’s costs of
furnishing contraceptive services under
the individual contraceptive
arrangement and for which a
participating issuer would be able to
receive a user fee adjustment (plus an
administrative allowance as specified at
proposed 45 CFR 156.50(d)(3)(iii)). HHS
recognizes that the costs of furnishing
contraceptive services under the
individual contraceptive arrangement
would vary based on the specific
contraceptive service provided and the
time it takes to provide that service.
Because of this cost variance, HHS
proposes to allow a provider of
contraceptive services to calculate its
actual costs of furnishing these
contraceptive services and to provide
that calculation of actual costs to the
participating issuer offering a plan
through the FFE or an SBE–FP with
which the provider has entered into an
arrangement for reimbursement of these
costs. Consistent with how the
Departments have interpreted section
2713 of the PHS Act as applied to group
health plans, and health insurance
issuers offering group or individual
health insurance coverage,135 HHS
proposes that the actual costs of the
provider of contraceptive services
would include items and services that
are integral to the furnishing of the
contraceptive service, for an amount
agreed to by the provider and eligible
issuer, regardless of whether the
provider would typically bill for the
item or service separately. This would
include the administrative costs
incurred by participating providers of
contraceptive services to deliver the
contraceptive services. HHS seeks
comment on the costs a provider of
contraceptive services could include in
its calculation of actual costs provided
to the participating issuer with which it
has entered into an arrangement for
reimbursement of these costs. In
135 85 FR 71142, 71174. See also FAQs Part 54,
Q1, available at https://www.dol.gov/sites/dolgov/
files/EBSA/about-ebsa/our-activities/resourcecenter/faqs/aca-part-54.pdf and https://
www.cms.gov/files/document/faqs-part-54.pdf.
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determining how a provider’s costs
should be calculated for reimbursement
under the individual contraceptive
arrangement, HHS considered whether
costs should be calculated using a
standard methodology. However, due to
the wide variation in costs depending
on the specific contraceptive services
provided and how the service is
delivered, HHS determined that
permitting a provider of contraceptive
services to calculate its actual costs
would allow the provider to receive a
more accurate cost reimbursement. HHS
seeks comment on whether the
reimbursement should be equal to the
provider’s actual costs of furnishing
contraceptive services to eligible
individuals or whether HHS should
instead establish a standard
methodology to calculate costs. HHS
seeks comment on benchmarks HHS
could use to establish a reimbursement
rate.
Additionally, HHS proposes to revise
45 CFR 156.50(d)(3)(ii) to permit a
participating issuer that satisfies the
requirements as proposed in 45 CFR
156.50(d)(2) to receive a user fee
adjustment equal to the total dollar
amount of a provider’s costs of
furnishing contraceptive services plus
the administrative allowance. HHS
proposes to re-designate the
administrative allowance provision at
existing 45 CFR 156.50(d)(3)(ii) to new
paragraph (d)(3)(iii), and amend it to
establish that the allowance should be
calculated as a percentage of the sum of
the total dollar amount of the payments
for contraceptive services provided to a
third party administrator as calculated
at 45 CFR 156.50(d)(3)(i) and the
provider’s costs of furnishing
contraceptive services as calculated at
proposed 45 CFR 156.50(d)(3)(ii). HHS
is of the view that it is appropriate to
provide an administrative allowance
because participating issuers will incur
additional administrative costs to
providers of contraceptive services for
the actual cost of furnishing
contraceptive services. As established in
the 2015 Payment Notice,136 the current
administrative allowance is 15 percent
for issuers that have entered into
agreements with third party
administrators to reimburse the cost of
contraceptive services with respect to
women getting non-contraceptive
coverage through eligible
organizations.137 Consistent with the
2015 Payment Notice administrative
allowance for third party administrators,
HHS proposes an administrative
allowance of at least 10 percent for
136 79
137 79
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FR 13743 at 13809.
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issuers that enter into agreements with
providers of contraceptive services
pursuant to the individual contraceptive
arrangement. HHS proposes a 15
percent administrative allowance for
this adjustment, similar to the
administrative allowance set in the 2015
Payment Notice for third party
administrators.
Additionally, for clarification and
consistency with current practice, HHS
proposes to clarify at 45 CFR
156.50(d)(3)(iii) that, unless a new
allowance for administrative costs and
margin is specified in the applicable
year’s HHS notice of benefit and
payment parameters or other
rulemaking, HHS will, for a particular
calendar year, maintain the allowance
that was last specified in rulemaking.
HHS believes this proposal makes clear
the allowance and the mechanism HHS
would use to propose any changes to the
allowance. While HHS is proposing to
maintain that the administrative
allowance must be at least 10 percent,
as set forth in the 2015 Payment Notice,
the current, applicable administrative
allowance is 15 percent.138 HHS is not
proposing making changes to this
percentage in this rulemaking.
HHS also proposes to amend 45 CFR
156.50(d)(5) to provide that a
participating issuer may provide
payments for contraceptive services as
soon as they are delivered, but must
provide payments within 60 days to a
third party administrator or a provider
of contraceptive services. Such
payments must be made within 60 days
of receipt of any adjustment of a user fee
in an amount that is no less than the
portion of the adjustment attributable to
the total dollar amount of the payments
for contraceptive services submitted by
the third party administrator or provider
of contraceptive services. This proposed
amendment to 45 CFR 156.50(d)(5) is
intended to clarify and codify in
regulation the current policy as applied
to the existing optional accommodation
with respect to a third party
administrator, as well as to extend this
policy to providers of contraceptive
services pursuant to the individual
contraceptive arrangement. The
adjustments to a participating issuer’s
user fee through the FFE or an SBE–FP
for a given year are based on data
submitted by third party administrators
to HHS regarding the prior benefit year,
and adjustments to a participating
issuer’s current user fee charges are
made on a monthly basis based on the
data received to date regarding the
payments for contraceptive services
from the prior year. For example, a
138 79
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participating issuer and a provider of
contraceptive services could agree that,
prior to and in anticipation of receiving
a user fee adjustment as specified at 45
CFR 156.50(d)(3), the participating
issuer would reimburse the provider on
a monthly or quarterly basis in an
amount equal to the provider’s costs of
furnishing contraceptive services in
accordance with the individual
contraceptive arrangement. However,
HHS notes that if any monthly user fee
adjustment that a participating issuer
receives does not cover the full costs of
contraceptive services provided by the
provider of contraceptive services or the
full payment for contraceptive services
made or arranged for by the third party
administrator for the applicable benefit
year, then the provider may not receive
full reimbursement for all contraceptive
services furnished during the applicable
calendar year within 60 days of when
the participating issuer has first
received an adjustment to its FFE or
SBE–FP user fee. Thus, HHS proposes
that the signed agreement between a
participating issuer and a provider of
contraceptive services must define the
terms for payment to the provider.
Next, HHS proposes to amend 45 CFR
156.50(d)(6) to establish that, for 10
years following the calendar year for
which the user fee adjustment is
received, a participating issuer must
retain documentation demonstrating
that it timely paid each provider of
contraceptive services for which it
received any user fee adjustment. These
proposals align with the existing
recordkeeping requirements for a
participating issuer under the third
party administrator contraceptive user
fee adjustment process.
In addition, HHS proposes to add 45
CFR 156.50(d)(8) to establish
recordkeeping requirements with which
providers must comply as a condition of
participating in the individual
contraceptive arrangement. HHS
proposes to require that, for 10 years
following the contraceptive service
being provided, providers of
contraceptive services must maintain
documentation showing the actual costs
of furnishing contraceptive services in
compliance with the requirements of the
individual contraceptive arrangement
and documentation supporting the total
dollar amount of those costs, and must
make this documentation available
upon request to HHS, the HHS Office of
the Inspector General, the Comptroller
General, and their designees. This
timeframe is similar to the standard
used for third party administrators
under the existing optional
accommodation and the standards used
for other Exchange programs. We solicit
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comment on this timeframe and
whether the timeframe should be tied to
the issuer payment instead of the
timeframe from when the contraceptive
service is being provided.
As explained previously, an eligible
individual would be able to access the
individual contraceptive arrangement
without the exempt entity providing any
documentation to an issuer, third party
administrator, or HHS. Nevertheless, a
provider of contraceptive services
seeking to furnish contraceptive services
pursuant to the individual contraceptive
arrangement would be required to
confirm an individual’s eligibility for
the individual contraceptive
arrangement. As explained earlier in
this preamble, the individual may make
this confirmation by producing a
summary of benefits, such as an SBC
that includes the relevant information or
through other methods, such as by
providing an attestation. The provider of
contraceptive services would have
discretion on choosing what
confirmation method to accept. HHS
expects that providers would choose to
document receiving this representation
in a variety of ways, such as by making
a notation in a specific eligible
individual’s medical chart. HHS is of
the view that allowing providers of
contraceptive services to choose how
they document an eligible individual’s
representation would decrease
operational barriers related to these
recordkeeping requirements and would
thereby allow a greater number of
interested providers to furnish
contraceptive services under the
individual contraceptive arrangement.
Recognizing the various types of
representations a provider of
contraceptive services could receive
from or on behalf of an individual to
demonstrate that individual’s eligibility
for the individual contraceptive
arrangement, HHS proposes to add 45
CFR 156.50(d)(9) and (10). These
proposals would preserve, if certain
reliance requirements are met, a
provider’s ability to receive
reimbursement for contraceptive
services furnished, as well as a
participating issuer’s ability to receive a
user fee adjustment, if the
representation as to the individual’s
eligibility for the individual
contraceptive arrangement is later
determined to be incorrect. Specifically,
proposed 45 CFR 156.50(d)(9) would
establish that if a provider of
contraceptive services relies reasonably
and in good faith on a representation
that the individual is eligible to receive
contraceptive services pursuant to the
individual contraceptive arrangement,
and the representation is later
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determined to be incorrect, then the
provider of contraceptive services
would be considered to have received a
representation by an eligible individual
for purposes of receiving a
reimbursement for contraceptive
services furnished by a participating
issuer, and would meet any
requirements related to maintaining
documentation of this representation.
Similarly, 45 CFR 156.50(d)(10), if
finalized, would establish that if a
participating issuer relies reasonably
and in good faith on the provider’s
representation that the provider of
contraceptive services furnished
contraceptive services for an eligible
individual, and the representation the
provider received from or on behalf of
the individual is later determined to be
incorrect, then the participating issuer
would meet any requirements that
involve the provider’s receipt of such
representation.
HHS also proposes to add 45 CFR
156.50(d)(11) to preserve, if certain
requirements are met, the ability of a
participating issuer to receive a user fee
adjustment if the provider’s
representation to the participating issuer
that the provider furnished
contraceptive services in accordance
with the individual contraceptive
arrangement is later determined to be
incorrect. First, proposed 45 CFR
156.50(d)(11) would establish that if a
participating issuer relies reasonably
and in good faith on a provider’s
representation that the provider
furnished contraceptive services in
accordance with the individual
contraceptive arrangement, and the
representation by the provider of
contraceptive services is later
determined to be incorrect, then the
participating issuer’s good faith reliance
on that incorrect representation would
meet any requirements that involve that
representation. Second, the proposal at
45 CFR 156.50(d)(11) would apply only
when a participating issuer has already
reimbursed a provider of contraceptive
services for any amount of its costs of
furnishing contraceptive services as
specified in proposed 45 CFR
156.50(d)(2)(i)(E). HHS is of the view
that it is appropriate to limit this
proposal to instances in which the
participating issuer has already paid the
provider of contraceptive services. If the
participating issuer has not yet paid the
provider of contraceptive services at the
time the provider’s representation is
determined to be incorrect, the
participating issuer will not have
incurred a financial loss by no longer
having the ability to receive a user fee
adjustment.
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To participate in the individual
contraceptive arrangement, proposed 45
CFR 147.131(d)(1) would require that a
provider of contraceptive services
furnish contraceptive services to the
eligible individual without imposing a
fee or charge of any kind, directly or
indirectly, on the eligible individual or
any other entity for the cost of the items
and services or any portion thereof.
Consistent with this requirement, HHS
proposes to include in new 45 CFR
156.50(d)(1)(iii), (d)(10), and (d)(11) that
a provider of contraceptive services
must furnish contraceptive services to
the eligible individual ‘‘without
imposing a fee or charge of any kind,
directly or indirectly, on the eligible
individual or any other entity for the
cost of the items and services or any
portion thereof.’’
Finally, HHS proposes technical
corrections to 45 CFR 156.50(d)(1)(ii),
(d)(2)(i)(A) and (B), (d)(2)(ii),
(d)(2)(iii)(B), and (d)(7)(i) to align with
these proposed changes. First, HHS
proposes a technical correction to 45
CFR 156.50(d)(1)(ii), (d)(2)(i)(A) and (B),
(d)(2)(ii), (d)(2)(iii)(B), and (d)(7)(i) to
update cross-references to 26 CFR
54.9815–2713A(a)(4) and 29 CFR
2590.715–2713A(a)(4), which have been
re-designated to 26 CFR 54.9815–
2713A(a)(1)(iii) and 29 CFR 2590.715–
2713A(a)(1)(iii), respectively. Second,
HHS proposes a technical correction to
45 CFR 156.50(d)(1)(ii) to clarify that a
participating issuer participating on an
SBE–FP is eligible to receive an
adjustment to its Federal user fee
amounts that reflect the value of
contraceptive services it has agreed to
reimburse to third party administrators
or has agreed to reimburse to providers
for the providers’ actual costs of
furnishing contraceptive services
consistent with this individual
contraceptive arrangement. In the HHS
Notice of Benefit and Payment
Parameters for 2022 and Pharmacy
Benefit Manager Standards final rule,139
HHS explained that issuers participating
through an SBE–FP have been able to
qualify for user fee adjustments as
provided for in the HHS Notice of
Benefit and Payment Parameters for
2017,140 and amended 45 CFR 156.50 to
make explicit that issuers are eligible to
receive SBE–FP user fee adjustments.141
Thus, HHS proposes to make a
conforming amendment to 45 CFR
156.50(d)(1)(ii).
HHS notes that it is not proposing to
raise the FFE or SBE–FP user fee rates
finalized in the HHS Notice of Benefit
139 86
FR 24140 at 24229 (May 5, 2021).
FR 12203 at 12293 (March 8, 2016).
141 86 FR 24229.
140 81
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and Payment Parameters for 2023 142 to
offset the FFE and SBE–FP user fee
adjustments, and HHS estimates
reimbursements for contraceptive
services will represent only a small
portion of total FFE user fees.
HHS is of the view that the proposed
amendment to 45 CFR 156.50(d)(2)(i)(A)
and the proposed addition of 45 CFR
156.50(d)(2)(i)(D), which would require
participating issuers, but not providers
of contraceptive services, to submit
documentation demonstrating the
agreement, would mitigate the
operational burden on providers of
providing contraceptive services
through the individual contraceptive
arrangement, without materially
increasing the burden for participating
issuers that are already familiar with the
process of submitting information to
HHS as part of the existing conditions
for receiving a user fee adjustment
through an arrangement with a third
party administrator, pursuant to the
requirements of 45 CFR 156.50(d). To
facilitate the individual contraceptive
arrangement, HHS proposes to make
available to providers of contraceptive
services a list of participating issuers
that have previously participated in the
third party administrator optional
contraceptive user fee adjustment
process under current 45 CFR 156.50(d).
HHS seeks comment on this proposal,
including whether prior participating
issuers or issuers that intend to
participate in these arrangements in
future years would have concerns with
HHS making this public disclosure.
HHS seeks comment on the proposed
amendments to 45 CFR 156.50(d).
As mentioned in section I.B of this
preamble, section 3 of E.O. 14009
directs HHS and other heads of agencies
to review all agency actions, such as the
FFE or SBE–FP user fees, to determine
whether they are inconsistent with
policy priorities described in section 1
of E.O. 14009, to include protecting and
strengthening the ACA and making
high-quality health care accessible and
affordable for all individuals.143
142 See 87 FR 27208 at 27288. In part 3 of the HHS
Notice of Benefit and Payment Parameters 2022
final rule, HHS finalized the repeal of the Exchange
Direct Enrollment (DE) option and the removal of
45 CFR 155.221(j). See 86 FR 53412 at 53429
(September 27, 2021). To align with these actions,
HHS finalized in the 2023 Payment Notice
conforming amendments to 45 CFR 156.50(c) and
(d) to remove references to 45 CFR 155.221(j) and
the Exchange DE option.
143 E.O. 14009 also revoked Executive Order
13765 of January 20, 2017 (Minimizing the
Economic Burden of the Patient Protection and
Affordable Care Act Pending Repeal). The
Departments adopted the moral exemption and
accommodation in part to further this now revoked
Executive Order by relieving a regulatory burden
imposed on entities with moral convictions
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Collectively, these proposed rules on
the user fee adjustment would further
the goals of E.O. 14009 by making highquality health care that is inclusive of
contraceptive services accessible and
affordable for more individuals. Under
the current rules, participants,
beneficiaries, and enrollees enrolled in
a group health plan or coverage
sponsored, arranged, or provided by an
objecting entity subject to a moral
exemption lack contraceptive coverage
and access to contraceptive services
without cost sharing. The Departments
lack the data to accurately estimate the
number of, or demographics of,
participants, beneficiaries, or enrollees
who have been affected by previous
rules, as objecting employers,
institutions of higher education, and
issuers are not required to notify HHS
of their objection. However, as
discussed earlier in this preamble, lowincome women face a disproportionate
burden of out-of-pocket spending on
contraceptive services.144
Also, as noted in section I.B, section
3 of E.O. 14076 requires the Secretary of
HHS to submit a report to the President
that is focused on, among other
priorities, ‘‘protect[ing] and expand[ing]
access to the full range of reproductive
healthcare services, including actions to
enhance family planning services such
as access to emergency contraception,’’
and ‘‘promoting awareness of and access
to the full range of contraceptive
services.’’ Collectively, these proposed
rules are consistent with the objectives
of E.O. 14076 by protecting and
expanding access to the full range of
reproductive health care services and
enhancing family planning services, and
promoting access to the full range of
contraceptive services.
IV. Severability
It is the Departments’ intent that if
any provision of these proposed rules, if
finalized, is held to be invalid or
unenforceable by its terms, or as applied
to any person or circumstance, the rules
shall be construed so as to continue to
give maximum effect to the rules as
permitted by law, unless the holding
shall be one of utter invalidity or
unenforceability. In the event a
provision is found to be utterly invalid
or unenforceable, the provision shall be
severable from these proposed rules as
finalized, as well as the final rules they
amend, and shall not affect the
remainder thereof or the application of
the provision to persons not similarly
situated or to dissimilar circumstances.
opposed to providing certain contraceptive
coverage.
144 See FN 54.
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V. Response to Comments
Because of the large number of public
comments that the Departments
normally receive on Federal Register
documents, the Departments are not
able to acknowledge or respond to them
individually. The Departments will
consider all comments received by the
date and time specified in the DATES
section of this preamble, and, when the
Departments proceed with a subsequent
document, the Departments will
respond to the comments in the
preamble to that document.
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VI. Economic Impact and Paperwork
Burden
A. Summary
These proposed rules would expand
access to contraceptive services without
cost sharing for women through the
provision of a new individual
contraceptive arrangement, whereby an
eligible individual would be able to
obtain contraceptive services from
willing providers of contraceptive
services at no cost to the individual, and
the providers of contraceptive services
would be reimbursed for the costs of
furnishing contraceptive services by a
participating issuer on the FFE or an
SBE–FP through an adjustment to the
FFE or SBE–FP user fee for the
participating issuer. These proposed
rules would maintain the existing
exemptions and optional
accommodations for eligible entities and
individuals claiming a religious
objection to providing contraceptive
coverage.
These proposed rules would also
expand access to contraceptive services
without cost sharing by eliminating the
exemption for entities and individuals
that object to contraceptive coverage
based on non-religious moral beliefs.
The Departments have examined the
effects of these proposed rules as
required by Executive Order 13563 (76
FR 3821, January 21, 2011, Improving
Regulation and Regulatory Review);
Executive Order 12866 (58 FR 51735,
October 4, 1993, Regulatory Planning
and Review); the Regulatory Flexibility
Act (September 19, 1980, Pub. L. 96–
354); section 1102(b) of the Social
Security Act (42 U.S.C. 1102(b)); section
202 of the Unfunded Mandates Reform
Act of 1995 (March 22, 1995, Pub. L.
104–4); Executive Order 13132 (64 FR
43255, August 10, 1999, Federalism);
and the Congressional Review Act (5
U.S.C. 804(2)).
B. Executive Orders 12866 and 13563
Executive Order 12866 directs
agencies to assess all costs and benefits
of available regulatory alternatives and,
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if regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563 is
supplemental to and reaffirms the
principles, structures, and definitions
governing regulatory review as
established in Executive Order 12866.
Section 3(f) of Executive Order 12866
defines a ‘‘significant regulatory action’’
as an action that is likely to result in a
rule: (1) having an annual effect on the
economy of $100 million or more in any
1 year, or adversely and materially
affecting a sector of the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local or Tribal governments or
communities (also referred to as
‘‘economically significant’’); (2) creating
a serious inconsistency or otherwise
interfering with an action taken or
planned by another agency; (3)
materially altering the budgetary
impacts of entitlement grants, user fees,
or loan programs or the rights and
obligations of recipients thereof; or (4)
raising novel legal or policy issues
arising out of legal mandates, the
President’s priorities, or the principles
set forth in the Executive Order.
A regulatory impact analysis (RIA)
must be prepared for major rules with
economically significant effects (for
example, $100 million or more in any
one year), and a ‘‘significant’’ regulatory
action is subject to review by the Office
of Management and Budget (OMB). The
Departments anticipate that this
regulatory action is not likely to have
economic impacts of $100 million or
more in at least 1 year and is therefore
not expected to be economically
significant under Executive Order
12866. OMB has determined, however,
that the actions are significant within
the meaning of section 3(f)(4) of the
Executive Order. Therefore, the
Departments have provided an
assessment of the potential costs,
benefits, and transfers associated with
these proposed rules. In accordance
with the provisions of Executive Order
12866, this regulation was reviewed by
OMB.
1. Need for Regulatory Action
Previous rules, regulations, and court
decisions have left many women
without contraceptive coverage and
access to contraceptive services without
cost sharing. These proposed rules, if
finalized, seek to resolve the longrunning litigation with respect to
religious objections to providing
contraceptive coverage, by honoring the
objecting entities’ religious objections,
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7259
while also ensuring that women
enrolled in a group health plan
established or maintained, or in health
insurance coverage offered or arranged,
by an objecting entity described in 45
CFR 147.132(a) have the opportunity to
obtain contraceptive services at no cost.
These proposed rules would also
eliminate the exemption for entities and
individuals that object to contraceptive
coverage based on non-religious moral
beliefs, which prevents access to
contraceptive services without cost
sharing.
2. Summary of Impacts
These proposed rules would expand
access to contraceptive services without
cost sharing and reduce out-of-pocket
spending on contraceptive services for
individuals eligible for the individual
contraceptive arrangement. Issuers that
reimburse providers of contraceptive
services for the costs of furnishing
contraceptive services for individuals
eligible for the individual contraceptive
arrangement and in turn seek an
adjustment to the FFE or SBE–FP user
fee would incur administrative costs,
which would be offset by Federal
payments in the form of user fee
adjustments. Providers of contraceptive
services would also incur administrative
costs associated with furnishing the
contraceptive services and entering into
a signed agreement with a participating
issuer on the FFE or an SBE–FP to
receive reimbursement for the
contraceptive services furnished, and
individuals might incur costs related to
finding providers of contraceptive
services willing to participate in the
program.
These proposed rules would also
expand access to contraceptive services
without cost sharing and reduce out-ofpocket spending on contraceptive
services for individuals by eliminating
the exemption for entities and
individuals that object to contraceptive
coverage based on non-religious moral
beliefs. However, as noted later in the
Transfers discussion of this section the
Departments do not have information on
the number of entities and individuals
that have claimed a moral exemption to
providing contraceptive coverage, and
are therefore uncertain of the amount of
the potential transfer from plans and
issuers to participants, beneficiaries,
and enrollees due to reduced out-ofpocket spending on contraceptive
services associated with the proposed
elimination of the exemption for entities
and individuals that object to
contraceptive coverage based on nonreligious moral beliefs.
In accordance with Executive Order
12866, the Departments are of the view
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that the benefits of this regulatory action
justify the costs. The expected benefits,
costs, and transfers associated with
these proposed rules are summarized in
Table 1 and discussed in detail later in
this section.
TABLE 1—ACCOUNTING TABLE
Benefits:
Qualitative:
• Expansion of access to contraceptive services without cost sharing for eligible individuals through the creation of a new individual contraceptive arrangement.
• Expansion of access to contraceptive services without cost sharing for participants, beneficiaries, and enrollees through the elimination of
the exemption for entities and individuals that object to contraceptive coverage based on non-religious moral beliefs.
• Potential increase in health equity, given the expected reduction in out-of-pocket spending on contraceptive services by individuals.
• Potential reduction in unintended pregnancies and improved health outcomes for individuals.
Costs:
Estimate
(million)
Year dollar
Discount rate
(percent)
Period
covered
$30.11
30.11
2022
2022
7
3
2023–2027
2023–2027
Annualized Monetized ($/year) ........................................................................
Quantitative:
• Administrative costs of approximately $4.7 million annually to participating providers of contraceptive services related to signing agreements with issuers. These costs would likely be included in the service charges of providers of contraceptive services and ultimately incurred by the Federal Government.
• Administrative costs of approximately $14.5 million annually to participating providers of contraceptive services associated with verifying
eligibility for the proposed individual contraceptive arrangement, submitting amounts to participating issuers on the FFE or an SBE–FP to
receive reimbursement for the contraceptive services furnished, and maintaining records. These costs would likely be included in the
service charges of providers of contraceptive services and ultimately incurred by the Federal Government.
• Administrative costs and margin of approximately $10.4 million annually to participating issuers associated with signing agreements with
participating providers of contraceptive services, processing amounts requested from participating providers of contraceptive services,
submitting required information to HHS, and maintaining records. These administrative costs would be offset by Federal payments in the
form of adjustments to FFE and SBE–FP user fees.
• Costs of approximately $590,077 annually to eligible individuals that participate in the individual contraceptive arrangement to confirm eligibility to their provider of contraceptive services.
Qualitative:
• Potential costs to eligible individuals associated with finding providers of contraceptive services that are willing to participate in the individual contraceptive arrangement.
• Potential reduction in health care costs due to a reduction in unintended pregnancies and improved health outcomes.
• Potential cost savings to states associated with reduced spending on State-funded programs that provide contraceptive services.
• Potential cost savings to states associated with a reduction in unintended pregnancies that would otherwise impose costs to states.
Transfers:
Estimate
(million)
Year dollar
Discount rate
(percent)
Period
covered
$49.9
49.9
2022
2022
7
3
2023–2027
2023–2027
Annualized Monetized ($/year) ........................................................................
Quantitative:
• Transfer of $49.9 million annually from the Federal Government to eligible individuals who would spend less out-of-pocket on contraceptive services, in the form of user fee adjustments to participating issuers who would reimburse providers of contraceptive services for the
costs of furnishing participants, beneficiaries, and enrollees with contraceptive services as a result of the individual contraceptive arrangement.
Qualitative:
• Potential transfer from plans and issuers to participants, beneficiaries, and enrollees who would gain access to contraceptive services
without cost sharing as a result of the elimination of the exemption for entities and individuals that object to contraceptive coverage
based on non-religious moral beliefs and who spend less out-of-pocket on contraceptive services as a result.
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Number of Affected Entities
The Departments lack the data to
accurately estimate the number of
eligible individuals who would
participate in the individual
contraceptive arrangement. In the
October 2017 Religious Exemption
interim final rules and the November
2018 Religious Exemption final rules,
the Departments noted that the 122
nonprofit entities that had filed
litigation challenging the
accommodation process and the 87
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closely held for-profit entities that had
filed suit challenging the contraceptive
coverage requirement in general could
have been affected by the November
2018 Religious Exemption final rules,
but were uncertain how many of these
organizations would use the expanded
exemption provided under the
November 2018 Religious Exemption
final rules and how many of these
entities would use the optional
accommodation process. The
Departments assumed that slightly more
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than half of these entities, or 109
organizations, would use the expanded
exemption.
The Departments previously
estimated that between 70,500 and
126,400 individuals would be affected
by the November 2018 Religious
Exemption final rules. Since the
implementation of the November 2018
Religious Exemption final rules,
additional entities may have claimed a
religious exemption to contraceptive
coverage without participating in the
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optional accommodation process. For
this reason, the Departments view the
estimate of 126,400 individuals to be the
lower bound estimate of the number of
eligible individuals and 109 health
plans to be the lower bound estimate of
the number of exempt entities. The
Departments seek comment on the
number of entities that have claimed a
religious exemption to providing
contraceptive coverage without using
the optional accommodation process
and the number of individuals who
might receive contraceptive coverage
through the provision of the individual
contraceptive arrangement.
Eligible individuals would need to
find providers of contraceptive services
that would be willing to participate in
the individual contraceptive
arrangement. The Departments lack
sufficient information to accurately
estimate the number of providers of
contraceptive services that would
participate. The Departments assume
that at least 10 pharmacy chains
(including mail order pharmacies)
would participate. The Departments
also assume that for each exempt entity,
the participants, beneficiaries, and
enrollees in its health plan or coverage
are located in the same geographical
area, and there would be, on average, 20
providers of contraceptive services (10
clinicians or facilities, and at least 10
retail pharmacies) in the area that would
participate in the individual
contraceptive arrangement.145 Based on
these assumptions, for the participants,
beneficiaries, and enrollees in the plans
for the 109 exempt entities, there would
be approximately 2,180 participating
providers of contraceptive services
(1,090 retail pharmacies and 1,090
clinicians and facilities) that would
participate in the individual
contraceptive arrangement. If these
providers of contraceptive services
already participate in the health plan’s
provider network, an eligible individual
would be able to receive contraceptive
services from one of their regular
providers of contraceptive services or
another in-network provider of
contraceptive services. However, it is
possible that an eligible individual
would need to find a provider of
contraceptive services other than the
provider or providers from whom the
individual typically receives care in
order to access contraceptive services at
no cost. The Departments seek comment
on the number of providers of
contraceptive services that would
145 Although pharmacies are generally licensed as
facilities, for purposes of this regulatory impact
analysis, the Departments treat them separately.
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participate in the individual
contraceptive arrangement.
These proposed rules would also
eliminate the exemption for entities and
individuals that object to contraceptive
coverage based on non-religious moral
beliefs. In the November 2018 Moral
Exemption final rules, without data
available to estimate the actual number
of entities that would make use of the
exemption for entities with sincere nonreligious moral objections, the
Departments assumed that the
exemption would be used by nine
nonprofit entities and nine for-profit
entities and that approximately 15
women may incur contraceptive costs
due to for-profit entities using the moral
exemption. The Departments do not
have any data on how many individuals
object to contraceptive coverage based
on non-religious moral beliefs.
Benefits
These proposed rules would increase
access to contraceptive services without
cost sharing through the individual
contraceptive arrangement for eligible
individuals and the elimination of the
exemption for entities and individuals
that object to contraceptive coverage
based on non-religious moral beliefs.
As stated in section I.B of this
preamble, studies report that 99 percent
of sexually-active women have used at
least one method of contraception at
some point during their lifetime,
regardless of religious affiliation. Prior
to the implementation of the ACA, outof-pocket expenses for contraceptive
services represented a significant
portion, estimated to range from 30
percent to 44 percent, of a woman’s total
out-of-pocket health care spending.146 It
has been estimated that the
implementation of the ACA
contraceptive coverage requirement led
to out-of-pocket savings to consumers
on contraceptive pills of approximately
$1.4 billion between 2012 and 2013.147
Additionally, several studies have found
that the ACA contraceptive coverage
requirement increased access to and
utilization of contraceptives.148 The
146 Nora B. & Polsky, D. (2015). ‘‘Women Saw
Large Decrease in Out-Of-Pocket Spending for
Contraceptives After ACA Mandate Removed Cost
Sharing.’’ Health Affairs; 34(7): 1204–1211.
147 Becker, N. & Polsky, D. (2015). ‘‘Women Saw
Large Decrease In Out-Of-Pocket Spending For
Contraceptives After ACA Mandate Removed Cost
Sharing.’’ Health Affairs, 34(7): 1204–1211. See also
Sobel, L., Salganicoff, A. et al. (2018). ‘‘New
Regulations Broadening Employer Exemptions to
Contraceptive Coverage: Impact on Women.’’ KFF
Issue Brief. Available at https://www.kff.org/healthreform/issue-brief/new-regulations-broadeningemployer-exemptions-to-contraceptive-coverageimpact-on-women/.
148 Becker, N. (2018). ‘‘The Impact of Insurance
Coverage on Utilization of Prescription
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7261
coverage of contraceptive services has
been shown to improve the consistent
use of the most effective short-acting
methods of contraception, and the
removal of cost sharing also increases
the use of more effective LARC
methods.149 One study found that
following the implementation of the
ACA contraceptive coverage
requirement, the discontinuation of use
of oral contraceptive pills fell and that
nonadherence to brand-name oral
contraceptive pills also declined.150
Another study reported that having no
copayment on contraceptive services
assisted 80 percent of women in
affording and using birth control,
helped 60 percent choose a better
method, and helped 71 percent use
contraceptive services more
consistently.151 These proposed rules
would have similar effects, as they
would increase access to contraceptive
services for eligible individuals who
currently do not have access to
contraceptive services without cost
sharing.
More than half of pregnancies in 2008
(51 percent or approximately 3.4
million) were estimated to be
unintended; by 2011 this number had
declined to 45 percent,152 and by 2020
it had declined further to an estimated
39.5 percent,153 which may be due to a
change in the frequency and type of
contraceptive use over time. Studies
indicate that some groups tend to have
higher rates of unintended pregnancies;
Contraceptives: Evidence from the Affordable Care
Act.’’ Journal of Policy Analysis and Management,
37(3): 571–601; Nora, B., Keating, N. et al. (2021).
‘‘ACA Mandate Led to Substantial Increase in
Contraceptive Use Among Women Enrolled in
High-Deductible Health Plans.’’ Health Affairs,
40(4): 579–586; Snyder, A., Weisman, C., et al.
(2018). ‘‘The Impact of the Affordable Care Act on
Contraceptive Use and Costs among Privately
Insured Women.’’ Women’s Health Issues, 28(3):
219–223; Weisman, C., Chuang, C., et al. (2019).
‘‘ACA’s Contraceptive Coverage Requirement:
Measuring Use and Out-of-Pocket Spending.’’
Health Affairs, 38(9): 1537–1541.
149 Behn, M., Pace, LE., et al. (2019). ‘‘The Trump
Administration’s Final Regulations Limit Insurance
Coverage of Contraception.’’ Women’s Health
Issues, 29(2): 103–106.
150 Pace, L., Dusetzina, S., et al. (2016). ‘‘Early
Impact of the Affordable Care Act on Oral
Contraceptive Cost Sharing, Discontinuation, and
Nonadherence.’’ Health Affairs, 35(9): 1616–1624.
151 Bearak, J.& Johns, R. (2017). ‘‘Did
Contraceptive Use Patterns Change after the
Affordable Care Act? A Descriptive Analysis.’’
Women’s Health Issues, 27(3): 316–321.
152 Finer, L. & Zolna, M. (2016) ‘‘Declines in
Unintended Pregnancy in the United States, 2008–
2011.’’ N Engl J Med, 374(9):843–52.
153 Permanency Risk Assessment Monitoring
System: Prevalence of Selected Maternal and Child
Health Indicators for all Pregnancy Risk Assessment
Monitoring System (PRAMS) Sites, 2016–2020.
Available at: https://www.cdc.gov/prams/pramsdata/mch-indicators/states/pdf/2020/All-SitesPRAMS-MCH-Indicators-508.pdf.
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for example, one study found that 75
percent of pregnancies among teens
aged 15 to 19 years of age were
unplanned,154 and another study
reported that nearly 70 percent of
pregnancies among unmarried women
aged 20 to 29 years of age were
unplanned.155 In 2008, unplanned
pregnancies of those covered by
Medicaid or the Children’s Health
Insurance Program (CHIP) were
estimated to have cost Federal and State
taxpayers between $9.6 billion and
$12.6 billion, and without publicly
funded family planning the costs would
have been an estimated $25 billion.156
In addition to the costs associated with
unintended pregnancies, unintended
pregnancies can pose increased health
risks to both mother and baby. Women
with unplanned pregnancies are less
likely to receive prenatal care and have
higher rates of postpartum depression
and mental health problems later in
life.157 Unplanned pregnancies have
also been associated with increases in
low birthweight and preterm births, and
children born due to an unplanned
pregnancy are more likely to fare worse
in school achievement, have social and
emotional disorders, and have less
success in the labor market later in
life.158 One study found evidence of a
decrease in births following the
elimination of cost sharing for
contraceptives under the ACA; further,
it showed a 22.2 percent reduction in
birth rates for women in the lowest
income group between 2014 and 2018
(from 8 to 6.2 per 100 women).159 These
proposed rules would reduce
154 See
FN 173.
E., & Thomas, A. (2011). ‘‘Unintended
Pregnancy and Taxpayer Spending.’’ Perspectives
on Sexual & Reproductive Health, 43(2), 88–93; and
Sonfield, A. and Kost, K. (2013). ‘‘Public Costs from
Unintended Pregnancies and the Role of Public
Insurance Programs in Paying for Pregnancy and
Infant Care: Estimates for 2008.’’ Guttmacher
Institute. Available at: https://www.guttmacher.org/
pubs/public-costs-of-UP.pdf.
Kaye, K., Gootman, J.A., Ng, A.S., & Finley, C.
(2014). ‘‘The Benefits of Birth Control in America:
Getting the Facts Straight.’’ The National Campaign
to Prevent Teen and Unplanned Pregnancy.
Available at: https://powertodecide.org/sites/
default/files/resources/primary-download/benefitsof-birth-control-in-america.pdf.
156 Sonfield, A. & Kost, K. (2013). ‘‘Public Costs
from Unintended Pregnancies and the Role of
Public Insurance Programs in Paying for Pregnancy
and Infant Care: Estimates for 2008.’’ Guttmacher
Institute. Available at: https://www.guttmacher.org/
pubs/public-costs-of-UP.pdf.
157 ‘‘Preventing Unplanned Pregnancy.’’ National
Conference of State Legislatures (2021). Available
at: https://www.ncsl.org/research/health/
preventing-unplanned-pregnancy.aspx.
158 Id.
159 Dalton, V., Moniz, M., et al. (2020). ‘‘Trends
in Birth Rates After Elimination of Cost Sharing for
Contraception by the Patient Protection and
Affordable Care Act.’’ JAMA Network Open, 3(11):
e2024398.
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155 Monea,
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unintended pregnancies and lead to
better health outcomes for eligible
individuals by increasing access to
contraceptive services.
Finally, these proposed rules would
increase health equity, given the
disproportionate burden of out-ofpocket spending on contraceptive
services currently faced by low-income
individuals (as those individuals with
lower incomes must spend a greater
percentage of their incomes on
contraceptive services). As discussed
earlier in this section, prior to the
implementation of the ACA, out-ofpocket expenses for contraceptives
represented a significant portion,
estimated to range from 30 percent to 44
percent, of a woman’s total out-ofpocket health care spending.160 A recent
study found that people of color (and
low-income people) are more likely to
live in areas in which the proportion of
reproductive-aged residents have a lack
of, or difficulty obtaining, reproductive
and contraceptive health care—referred
to as ‘‘contraception deserts.’’ 161 The
study found that the proportion of the
population living within these types of
areas ranges from approximately 17
percent in California to approximately
50 percent in Texas. One study has
shown that in 2011, women with
incomes below 100 percent of the
Federal poverty level had unplanned
pregnancies at a rate seven times higher
than those at or above 200 percent of the
Federal poverty level. Unplanned
pregnancies were also more common in
women who have low incomes or are
racial or ethnic minorities.162
The enactment of the ACA has been
shown to provide gains in coverage and
access to women’s reproductive health
services and accompanying reduced
costs for women who would otherwise
be without health coverage or face large
out-of-pocket costs. As noted in a recent
study, even in some cases where
‘‘medical insurance is available among
women in the same socioeconomic
strata, unexplained disparities persist
and suggest that racism and other social
and clinician-level issues are factors’’
that can still result in unequal access to
160 Becker,
N., & Polsky, D. (2015). ‘‘Women Saw
Large Decrease in Out-Of-Pocket Spending for
Contraceptives After ACA Mandate Removed Cost
Sharing.’’ Health Affairs; 34(7): 1204–1211.
161 Kreitzer, R.J., Watts Smith, C., et al. (2021).
‘‘Affordable but Inaccessible? Contraception Deserts
in the US States.’’ Journal of Health Politics, Policy
and Law 46(2): 277–304.
162 Finer, L. & Zolna, M. (2016) ‘‘Declines in
Unintended Pregnancy in the United States, 2008–
2011.’’ N Engl J Med, 374(9):843–52 and Behn, M.,
Pace, LE., et al. (2019). ‘‘The Trump
Administration’s Final Regulations Limit Insurance
Coverage of Contraception.’’ Women’s Health
Issues, 29(2): 103–106.
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health care and distrust of
physicians.163 Although it is believed
that these proposed rules would have
marginal effects on the overall level of
health inequity, the presence of barriers
to contraceptive coverage would be
more burdensome on insured women
with lower incomes and reducing those
barriers could have the potential to
reduce socioeconomic, racial, and
ethnic disparities in health outcomes.164
Costs
Participating providers of
contraceptive services and issuers
would need to enter into signed
agreements for reimbursement of costs
associated with the provision of
contraceptive services to eligible
individuals and would therefore incur
related administrative costs. In order to
estimate these costs, providers of
contraceptive services have been
divided into two broad categories—
clinicians or facilities, and pharmacies.
For each signed agreement between
clinicians or facilities and issuers, the
Departments estimate that, on average,
senior managers would spend 4 hours
(at $110.82 per hour 165), lawyers would
spend 40 hours (at $142.34 per hour),
legal secretaries would spend 40 hours
(at $50.52 per hour), a clinician would
spend 1 hour (at $284.82 per hour), and
a chief executive officer would spend 15
minutes (at $204.82 per hour). The total
burden for each signed agreement
would be 85.25 hours, with an
associated cost of approximately $8,494.
There would be an estimated 1,090
signed agreements between 1,090
participating clinicians or facilities and
issuers. The total estimated cost for all
signed agreements between clinicians or
facilities and issuers would be
approximately $9.3 million. The
number of signed agreements and
related costs could be lower if multiple
facilities are owned by the same entity.
For each signed agreement between
pharmacy chains and issuers, the
Departments estimate that senior
managers would spend 4 hours (at
$110.82 per hour), lawyers would spend
40 hours (at $142.34 per hour), legal
163 Sutton, M.Y., Anachebe, F., et al. (2021) Racial
and Ethnic Disparities in Reproductive Health
Services and Outcomes, 2020. Obstetrics &
Gynecology: 137(2): 225–233.
164 Behn, M., Pace, L.E., et al. (2019). The Trump
Administration’s Final Regulations Limit Insurance
Coverage of Contraception. Women’s Health Issues,
29(2): 103–106.
165 The Departments generally used data from the
Bureau of Labor Statistics to derive average labor
costs (including a 100 percent increase for fringe
benefits and other indirect costs). May 2021 Bureau
of Labor Statistics, Occupational Employment
Statistics, National Occupational Employment and
Wage Estimates, available from https://
www.bls.gov/oes/current/oes_nat.htm.
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secretaries would spend 40 hours (at
$50.52 per hour), and chief executive
officers would spend 30 minutes (at
$204.82 per hour). The total burden for
each signed agreement would be 84.5
hours, with an associated cost of
approximately $8,260. There would be
an estimated 10 signed agreements
between 10 participating pharmacy
chains and issuers. The total estimated
cost for all signed agreements between
pharmacy chains and issuers would be
approximately $82,601.
The total cost of 1,100 signed
agreements between all providers of
contraceptive services and issuers
would be approximately $9.3 million in
the first year. The Departments assume
that half of these costs would be
incurred by participating providers of
contraceptive services and half by
issuers (approximately $4.7 million
each). Providers of contraceptive
services are likely to incorporate these
costs into their fees for providing the
contraceptive services, while costs to
7263
issuers would be offset by Federal
payments in the form of user fee
adjustments. The annual costs of
renegotiating and signing agreements in
future years might be lower, unless
providers of contraceptive services enter
into new agreements with different
issuers. The Departments seek comment
on the number of signed agreements that
would be executed annually and the
magnitude of the potential
administrative costs to providers of
contraceptive services and issuers.
TABLE 2—ANNUAL COSTS RELATED TO SIGNED AGREEMENTS
Estimated
number of
signed
agreements
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Entities
Estimated
cost per
signed
agreement
Total
estimated
cost
Clinicians/Facilities and Issuers ...................................................................................................
Pharmacies and Issuers ..............................................................................................................
1,090
10
$8,494
8,260
$9,258,138
82,601
Total ......................................................................................................................................
1,100
........................
9,340,739
Participating providers of
contraceptive services would also incur
administrative costs related to eligibility
verification, submission of claims, and
document retention. These costs are
estimated to be approximately $14.5
million annually and are discussed in
detail later in the HHS Paperwork
Reduction Act section, section VI.D of
this preamble.
Participating issuers would also incur
administrative costs related to
processing of amounts received from
participating providers of contraceptive
services, and submission of required
information to HHS. As mentioned
previously in this preamble, HHS
proposes to reimburse participating
issuers an administrative allowance of
15 percent for administrative costs and
margin. Therefore, the estimated
administrative costs and margin to
issuers would be approximately $10.4
million,166 which would be offset by
Federal payments in the form of user fee
adjustments. This total includes the
estimated approximately $11,866 in
costs related to the submission of
required information to HHS as detailed
later in the HHS Paperwork Reduction
Act section, section VI.D of this
preamble, and approximately $4.7
million in costs related to signing
agreements discussed earlier in this
section.
Individuals would incur costs
associated with finding providers of
166 Estimated total amount = cost of contraceptive
services ($49.9 million) + administrative costs to
providers of contraceptive services (= $14.5 million
+ $4.7 million) = $69 million. 15 percent of $69
million = $10.4 million approximately.
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contraceptive services that would be
willing to participate in the individual
contraceptive arrangement. Some
individuals might have to switch
providers of contraceptive services if
their usual providers of contraceptive
services are not willing to participate in
the individual contraceptive
arrangement. The Departments seek
comment on ways to mitigate search
costs for eligible individuals and how
access to the individual contraceptive
arrangement can best be promoted. One
option could be to make a list of
participating providers publicly
available on a public website. The
Departments also seek comment on
whether making provider information
publicly available might deter provider
participation in the individual
contraceptive arrangement.
Additionally, as discussed previously,
people of color and low-income people
are more likely to live in areas
considered contraception deserts. If
eligible individuals live in
contraception deserts, they might have
to spend more time and money traveling
longer distances in order to meet with
a participating provider of contraceptive
services. The Departments seek
comment on the number of eligible
individuals without access to
contraceptive services without cost
sharing under their existing plan or
coverage or living in contraception
deserts and the potential search costs of
these proposed rules on such
individuals.
There would also be a reduction in
health care costs for individuals who
gain access to contraceptive services
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and for group health plans and coverage
sponsored, arranged, or provided by
exempt entities if these proposed rules
lead to a reduction in unintended
pregnancies or improved health
outcomes.
Individuals who do not currently
have contraceptive coverage through
group health plans and coverage
sponsored by exempt entities may turn
to State-funded programs to obtain
contraceptive services. States may also
currently incur costs related to
unintended pregnancies resulting from a
lack of access to contraceptive services
for these individuals. These proposed
rules may therefore lead to cost savings
for states, to the extent that states are
currently incurring costs to provide or
fund contraceptive services or birth and
maternity care for individuals who
would gain access to contraceptive
services as a result of these proposed
rules. The Departments seek comment
on the potential impacts of these
proposed rules on states and State
finances.
Transfers
These proposed rules would result in
a transfer from the Federal Government,
via the provision of user fee adjustments
to issuers that would then reimburse
providers of contraceptive services for
the costs of furnishing contraceptive
services, to individuals who would now
have access to contraceptive services
without cost sharing and no longer
incur out-of-pocket spending on
contraceptive services. As discussed
previously in the Number of Affected
Entities discussion of this section, it is
estimated that at least 126,400
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individuals would be eligible to
participate in the individual
contraceptive arrangement. Based on the
limited information available from the
2019 user fee adjustment data,167 the
Departments estimate that the average
annual cost of contraceptive services for
one individual is approximately $395.
Therefore, the Departments estimate
that the provision of the individual
contraceptive arrangement could lead to
a transfer from the Federal Government
to individuals (via issuers to providers
of contraceptive services) of
approximately $49.9 million
annually.168 This estimate is uncertain
due to the limited information available
in the 2019 user fee adjustment data,
and the Departments seek comment on
the estimated average annual cost of
contraceptive services per individual.
Assuming these proposed regulations
are finalized and become applicable
during 2023, transfers might be lower in
2023, since 2023 transfers would
include services furnished during only
part of the year.
In addition, a reduction in
unintended pregnancies or improved
health outcomes could lead to a
reduction in premiums.
The Departments also expect that the
proposed elimination of the exemption
for entities and individuals that object
to contraceptive coverage based on nonreligious moral beliefs could lead to a
transfer from plans and issuers to
participants, beneficiaries, and enrollees
due to reduced out-of-pocket spending
on contraceptive services. However, the
Departments do not have information on
the number of entities and individuals
that have claimed a moral exemption to
providing contraceptive coverage and
seek comment on the number of entities
and individuals that would be affected
by this proposed change.
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Uncertainty
Although the Departments expect that
these proposed rules would expand
access to contraceptive services without
cost sharing, as noted earlier in this
section, there are several areas of
uncertainty regarding the potential
impacts of these proposed rules.
The Departments are uncertain how
many providers of contraceptive
services, issuers, and eligible
individuals would participate in the
individual contraceptive arrangement.
The Departments seek comment on
potential barriers that might prevent
providers, issuers, and eligible
167 HHS used 2019 data for this estimate to better
reflect claims experience outside of the COVID–19
public health emergency.
168 126,400 × $395 = $49.9 million approximately.
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individuals from participating in the
individual contraceptive arrangement.
The Departments anticipate that the
administrative allowance—which
would be expected to cover
participating issuers’ administrative
costs and provide a margin to ensure
that participating issuers receive
appropriate compensation for providing
reimbursements—would incentivize
issuers to participate in the individual
contraceptive arrangement.
The Departments expect that
administrative costs incurred by
participating providers of contraceptive
services to deliver the services would be
included in the amounts they submit to
issuers for reimbursement (as noted
earlier in this section), and therefore
would not be a deterrent to participation
in the individual contraceptive
arrangement. The Departments are
unable to estimate these costs precisely
because these costs are expected to vary.
These costs might be lower for larger
providers, due to larger economies of
scale, and for providers that might
currently have contracts with
participating issuers. The Departments
are uncertain as to how the number of
participating providers might vary (for
example, across rural and urban areas)
and how this variation might affect
access to services under the individual
contraceptive arrangement.
Due to the lack of data, the
Departments are unable to develop a
precise estimate of the number of
eligible individuals who might
participate in the individual
contraceptive arrangement because the
Departments do not know how many
entities have claimed an exemption
under the November 2018 Religious
Exemption final rules. Further, take-up
of the individual contraceptive
arrangement by eligible individuals
would be affected by, among other
things, awareness of the individual
contraceptive arrangement, the number
of providers of contraceptive services
that participate in the individual
contraceptive arrangement, and the
amount of time and effort it would take
an individual to find a participating
provider.
The Departments are unable to
develop a more accurate estimate of the
transfers and cost to the Federal
Government (discussed earlier in this
section) as there is uncertainty regarding
the total amounts for contraceptive
services that would be submitted by
providers of contraceptive services to
issuers for reimbursement, and therefore
the total amount of the transfer from the
Federal Government to eligible
individuals, and the total amounts of
the administrative costs incurred by
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Sfmt 4702
participating providers and issuers.
Finally, this overall lack of data leads to
uncertainty regarding the magnitudes of
the total cost savings to eligible
individuals and any resulting potential
cost savings to states (associated with
reduced spending on State-funded
programs that provide contraceptive
services or a potential reduction in the
number of unintended pregnancies that
would otherwise impose costs to states).
The Departments seek comment on all
of these areas of uncertainty regarding
the impacts of these proposed rules.
C. Regulatory Alternatives
In developing these proposed rules,
the Departments considered various
alternative approaches.
The Departments considered
maintaining the exemption (along with
the existing accommodations and the
proposed individual contraceptive
arrangement) with respect to group
health plans, health insurance issuers,
and institutions of higher education that
have a non-religious moral objection to
contraceptive coverage. The
Departments, however, are of the view
that neither RFRA nor any other Federal
statute compels such an exemption, and
propose eliminating this exemption for
several reasons, especially given the
strong public interest in assuring
contraceptive coverage to women
enrolled in group health plans, or group
or individual (including student) health
insurance coverage.
With respect to individuals enrolled
in coverage through entities that have a
religious objection to contraceptive
coverage, the Departments considered
an approach under which contraceptive
coverage would be available through
separate individual insurance policies
that cover only contraceptives and in
which participants, beneficiaries, and
enrollees would have to separately
enroll if they desired contraceptive
coverage. Because separate
contraception-only coverage would not
comply with the individual market
reforms, it would be necessary for the
Departments to create, by regulation, a
new excepted benefit category for
individual contraceptive-only
coverage.169 Under this approach,
issuers of this coverage would receive
FFE or SBE–FP user fee reductions to
pay for this coverage, as the issuer
generally would not realize offsetting
savings in pregnancy-related costs when
providing coverage separate from the
plan or coverage offered by the objecting
entity. If the issuer of this coverage did
not participate in the FFE or an SBE–FP,
169 See, for example, section 2791(c)(2)(C) of the
PHS Act.
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it could partner with an FFE or SBE–FP
issuer to receive the user fee adjustment.
The Departments decided against this
option for a number of reasons. The
Departments are concerned that issuers
would not offer these products to a
sufficient extent to ensure access
nationwide, as commenters on the July
2016 RFI explained that it would be
costly and administratively burdensome
for issuers to develop and implement
new eligibility, enrollment, and claimsadjudication systems for contraceptiononly coverage, as they would differ from
their existing systems. Additionally,
some State regulators might not have
authority or capacity to approve singlebenefit insurance policies (other than
dental or vision or disease-specific
excepted benefits policies) within a
relatively short period of time after
Federal rules would permit these
policies. Cost-free contraception
policies would also not satisfy some
State laws conditioning policy approval
on a ‘‘reasonable premium’’ or the
existence of valid contracts because the
prospective policyholder would not
provide consideration in exchange for
the coverage.
The Departments also considered an
approach under which, if an objecting
entity designs or contracts for a health
plan without contraceptive coverage,
the contraceptive coverage requirement
would apply directly to the issuer, in
the case of a fully insured plan (that is,
the issuer would not be exempted from
the requirement on the basis of the
objecting entity’s objection), or the third
party administrator, in the case of a selfinsured plan. The issuer or third party
administrator would then be required to
fulfill its separate and independent
obligation to provide contraceptive
coverage, in the same manner as it is
required to do so with respect to a nonexempt entity. However, the
Departments are of the view that there
would not be legal authority for
imposing this obligation on a third party
administrator. With respect to issuers,
the Departments decided to solicit
comment on this approach, as further
described in section II.C.1 of this
preamble.
With respect to the proposed changes
to 45 CFR 156.50(d), in addition to the
proposed submission requirements on
the part of the participating issuer, HHS
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considered whether to condition a
provider of contraceptive services’
participation in the individual
contraceptive arrangement for eligible
individuals on the provider of
contraceptive services’ agreement to
submit to HHS identifying information
for itself and the participating issuer,
the total dollar amount of the cost of
furnishing contraceptive services
pursuant to the individual contraceptive
arrangement, and an attestation that the
costs for furnishing such services were
incurred in compliance with the
requirements of the individual
contraceptive arrangement. However,
HHS is of the view that conditioning
participation in the individual
contraceptive arrangement on
compliance with a separate submission
requirement for providers of
contraceptive services would create
significant additional burden on
providers of contraceptive services and
could deter participation in the
individual contraceptive arrangement,
reducing access to contraceptive
services for eligible individuals.
D. Paperwork Reduction Act—
Department of Health and Human
Services
In addition to an arrangement with a
participating issuer on the FFE or an
SBE–FP, HHS considered whether to
allow a provider of contraceptive
services to arrange with a third party
administrator to submit documentation
to HHS on their behalf under 45 CFR
156.50(d). Under this arrangement, a
third party administrator entering into
an agreement with a provider of
contraceptive services would partner
with an FFE or SBE–FP issuer to receive
reimbursement for its costs of furnishing
contraceptive services and then the
third party administrator would pay the
provider of contraceptive services.
Establishing a direct contractual
relationship between providers of
contraceptive services and third party
administrators was rejected as more
administratively complex because
providers and third party administrators
do not have the same existing
contractual agreements to deliver these
services as providers and issuers do. In
contrast, the proposed approach of
direct agreements between providers of
contraceptive services and participating
issuers on the FFE or an SBE–FP builds
upon existing relationships between
providers and issuers.
1. Wage Estimates
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7265
Under the Paperwork Reduction Act
of 1995 (PRA), HHS is required to
provide 60-days’ notice in the Federal
Register and solicit public comment
before a collection of information
requirement is submitted to OMB for
review and approval. To fairly evaluate
whether an information collection
should be approved by OMB, section
3506(c)(2)(A) of the PRA requires that
HHS solicit comment on the following
issues:
• The need for the information
collection and its usefulness in carrying
out the proper functions of the agency.
• The accuracy of HHS’ estimate of
the information collection burden.
• The quality, utility, and clarity of
the information to be collected.
• Recommendations to minimize the
information collection burden on the
affected public, including automated
collection techniques.
HHS generally uses data from the
Bureau of Labor Statistics to derive
average labor costs (including a 100
percent increase for the cost of fringe
benefits and other indirect costs) for
estimating the burden associated with
the information collection requirements
(ICRs).170 Table 3 presents the mean
hourly wage, the cost of fringe benefits
and other indirect costs, and the
adjusted hourly wage.
As indicated, employee hourly wage
estimates have been adjusted by a factor
of 100 percent. This is necessarily a
rough adjustment, both because the cost
of fringe benefits and other indirect
costs vary significantly across
employers, and because methods of
estimating these costs vary widely
across studies. Nonetheless, there is no
practical alternative, and HHS is of the
view that doubling the hourly wage to
estimate total cost is a reasonably
accurate estimation method.
170 See May 2021 Bureau of Labor Statistics,
Occupational Employment Statistics, National
Occupational Employment and Wage Estimates,
available at https://www.bls.gov/oes/current/oes_
nat.htm.
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TABLE 3—ADJUSTED HOURLY WAGES USED IN BURDEN ESTIMATES
Mean hourly
wage
($/hour)
Cost of fringe
benefits and
other indirect
costs
($/hour)
Adjusted
hourly wage
($/hour)
Occupation title
Occupational code
All Occupations ...............................................
Actuary ............................................................
Insurance Claims and Policy Processing
Clerks.
Medical Secretaries and Administrative Assistants.
00–0000 .........................................................
15–2011 .........................................................
43–9041 .........................................................
$28.01
60.24
22.02
$28.01
60.24
22.02
$56.02
120.48
44.04
43–6013 .........................................................
19.11
19.11
38.22
2. ICRs Regarding Adjustment of
Exchange User Fees—Participating
Issuers (45 CFR 156.50(d)(2))
The proposed provisions would
require a participating issuer on the FFE
or an SBE–FP seeking a user fee
adjustment to submit to HHS, in the
year following the calendar year in
which the contraceptive services for
which reimbursement pursuant to the
proposed individual contraceptive
arrangement were furnished, the
following: (A) identifying information
for the participating issuer and each
provider of contraceptive services with
respect to which the participating issuer
seeks an adjustment of any user fee; (B)
documentation, with respect to each
provider of contraceptive services,
demonstrating that the participating
issuer and provider of contraceptive
services have agreed that the
participating issuer will seek an
adjustment of the user fee to reimburse
the provider of contraceptive services
for the costs of furnishing contraceptive
services; and (C) for each provider of
contraceptive services, the total dollar
amount of the costs of the contraceptive
services that were furnished during the
applicable calendar year pursuant to the
proposed individual contraceptive
arrangement. The proposed
amendments also require that a
participating issuer on the FFE or an
SBE–FP receiving an adjustment to any
user fee under 45 CFR 156.50(d) for a
particular calendar year must maintain
documentation for 10 years
demonstrating that it timely paid each
provider of contraceptive services, with
respect to which it received such
adjustment, any amount required under
paragraph 45 CFR 156.50(d)(5).
Approximately 40 QHP issuers have
entered into arrangements with third
party administrators under the third
party administrator optional
accommodation.171 HHS anticipates that
all (or some subset) of those issuers that
have already entered into arrangements
with third party administrators would
be most likely to enter into
arrangements with providers of
contraceptive services because they
would already be familiar with the
process for seeking a user fee
adjustment related to payments for
contraceptive services. HHS anticipates
there would be an increase in burden
associated with these proposed data
submission requirements for those
issuers that participate in the individual
contraceptive arrangement.
HHS would collect the required data
elements for participating issuers on the
FFE or an SBE–FP to receive a user fee
adjustment under the proposed
individual contraceptive arrangement
through the same web form online tool
and at the same time as participating
issuers complete the data submission
process for the third party administrator
optional accommodation. HHS
previously estimated that for the issuers
that enter into arrangements with third
party administrators, each issuer needs
approximately 3 hours of actuarial
work, 5 hours of work by claims and
policy processing clerks, 2 hours for
legal counsel, and 1 hour for a top
executive.172 For issuers that would
participate in arrangements with
providers of contraceptive services,
HHS estimates that each issuer would
incur an additional burden of 1 hour of
work by an actuary (at $120.48 per
hour), and 4 hours of work by claims
and policy processing clerks (at $44.04
per hour) including time for
recordkeeping. The total additional
burden for each issuer would be 5 hours
annually, with an equivalent cost of
approximately $297. Therefore, if all 40
issuers enter into arrangements with
providers of contraceptive services, the
total annual burden associated with this
requirement would be approximately
200 hours, at a cost of approximately
$11,866. These costs would be offset by
Federal payments in the form of user fee
adjustments.
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TABLE 4—ANNUAL BURDEN AND COSTS FOR PARTICIPATING ISSUERS
Estimated number of
respondents
Estimated number of
responses
Estimated burden
per response
(hours)
Total annual burden
(hours)
Total estimated cost
40
40
5
200
$11,866
HHS will revise the information
collection currently approved under
OMB control number 0938–1285 (CMS–
10492), to account for this new burden.
3. ICRs Regarding Adjustment of
Exchange User Fees—Participating
Providers of Contraceptive Services (45
CFR 156.50(d)(8))
The proposed provisions require that,
as a condition of participation in the
171 See 78 FR 39870 at 39875 through 39886 for
additional background on the third party
administrator optional accommodation.
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172 This burden is currently approved under OMB
control number 0938–1285 (CMS–10492, Coverage
of Certain Preventive Services Under the Affordable
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proposed individual contraceptive
arrangement, providers of contraceptive
services would be required to maintain
documentation for 10 years
demonstrating that the costs of
furnishing contraceptive services were
Care Act: Data Submission Requirements to Receive
the Federally-facilitated Exchange User Fee
Adjustment).
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made in compliance with the individual
contraceptive arrangement, including a
representation by (or on behalf of) the
individual demonstrating the
individual’s eligibility for the individual
contraceptive arrangement, and the total
dollar amount of the costs of the
contraceptive services furnished. As
discussed previously in section VI.B.2
of this preamble, HHS estimates that at
least 2,180 providers of contraceptive
services (1,090 pharmacies, and 1,090
clinicians and facilities), and 126,400
individuals would participate in the
individual contraceptive arrangement.
Eligible individuals could receive
contraceptive services from more than
one provider of contraceptive services
(1,090 pharmacies, and 1,090 clinicians
or facilities). HHS anticipates that
eligible individuals would likely receive
contraceptive services from more than
one provider of contraceptive services
(for example, during a visit to a
clinician or facility and during a visit to
a pharmacy to fill a prescription) and
more than once a year. HHS therefore
estimates that each provider of
contraceptive services would furnish
contraceptive services to approximately
116 eligible individuals annually, on
average.
HHS assumes that a provider of
contraceptive services (for example,
clinician, facility, or pharmacy) would
confirm eligibility for each individual
only once annually and submit all
claims for all eligible individuals
together to the issuer. HHS estimates
that for each provider of contraceptive
services, a medical secretary would
need, on average, approximately 1.5
hours (at $38.22 per hour) to record
each representation demonstrating an
individual’s eligibility for the individual
contraceptive arrangement, calculate
and record the costs associated with the
contraceptive services furnished
throughout the year, submit the
amounts to the participating issuer on
the FFE or an SBE–FP, and maintain
records. The total burden for each
provider of contraceptive services
would be, on average, 1.5 hours for each
individual, with an associated cost of
$57.33. For 2,180 providers of
contraceptive services, the total burden
related to furnishing contraceptive
services to 126,400 individuals
(assuming each individual receives
contraceptive services from 2 providers
on average each year) would be 379,200
hours with an associated cost of
approximately $14.5 million. These
estimates constitute the lower bound, as
burden and costs would be higher if the
number of eligible individuals is higher,
or if eligible individuals see more than
two providers of contraceptive services
in a year. Providers of contraceptive
services would be likely to incorporate
these costs into their fees for providing
the contraceptive services.
TABLE 5—ANNUAL BURDEN AND COSTS FOR PARTICIPATING PROVIDERS OF CONTRACEPTIVE SERVICES
Estimated
number of
respondents
Provider or facility type
Estimated
burden per
response
(hours)
Estimated
number of
responses
Total annual
burden
(hours)
Total
estimated
cost
Clinicians or Facilities ..........................................................
Pharmacies ..........................................................................
1,090
1,090
126,400
126,400
1.5
1.5
189,600
189,600
$7,246,512
7,246,512
Total ..............................................................................
2,180
252,800
1.5
379,200
14,493,024
HHS will revise the information
collection currently approved under
OMB control number 0938–1285 (CMS–
10492), to account for this new burden.
4. ICRs Regarding Confirmation of
Eligibility for the Individual
Contraceptive Arrangement (45 CFR
147.131(a)(3)(ii))
Individuals could confirm their
eligibility for the individual
contraceptive arrangement with a
provider of contraceptive services by
providing a summary of benefits that
includes the relevant information
provided under the plan, or by
providing an attestation. These
proposed rules include, in 45 CFR
147.131(d)(2), an example of language
that could be used by participants,
beneficiaries and enrollees or their
authorized representatives to confirm
eligibility. The Departments estimate
that at least 126,400 individuals would
be eligible for the individual
contraceptive arrangement and would
need to confirm their eligibility, and
that each eligible individual would
need, on average, 5 minutes (at an
equivalent cost of $56.02 per hour) to do
so. The total burden for all individuals
to confirm their eligibility for the
individual contraceptive arrangement to
their provider of contraceptive services
would be approximately 10,533 hours
with an equivalent cost of
approximately $590,077. The
Departments consider these estimates to
be a lower bound, as the total burden
and costs would be higher if the number
of eligible individuals that take part in
the individual contraceptive
arrangement is higher. As HHS, DOL,
and the Department of the Treasury
share jurisdiction, HHS would account
for 50 percent of the burden, or
approximately 5,267 hours annually,
with an equivalent annual cost of
$295,039. DOL and the Department of
the Treasury would each account for 25
percent of the burden, as discussed in
section VI.E of this preamble.
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TABLE 6—ANNUAL BURDEN AND COSTS FOR INDIVIDUALS
Estimated number of
respondents
Estimated number of
responses
Estimated burden
per response
(hours)
Total annual burden
(hours)
Total estimated cost
63,200
63,200
0.08
5,267
$295,039
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HHS will revise the information
collection currently approved under
OMB control number 0938–1344 (CMS–
10653),173 to account for this new
burden.
5. ICRs Regarding the Existing Optional
Accommodation for Exempt Entities (45
CFR 147.131(b))
An entity seeking to be treated as an
eligible organization for the existing
optional accommodation may selfcertify (by using EBSA Form 700), prior
to the beginning of the first plan year to
which an accommodation is to apply,
that it meets the definition of an eligible
organization. An eligible organization
may submit a notification to HHS as an
alternative to submitting the EBSA Form
700 to the eligible organization’s health
insurance issuer or third party
administrator.
The burden related to this optional
accommodation is currently approved
under OMB Control Number: 0938–1344
(CMS–10653). HHS will revise this
information collection to update the
EBSA Form 700 and model notice to
HHS to reflect the proposal to remove
the moral exemption. However, the
burden estimates would not be affected
by the provisions in these proposed
rules as the Departments did not
previously expect any entities with nonreligious moral objections to use the
existing optional accommodation.
6. ICRs Regarding Notice of Availability
of Separate Payments for Contraceptive
Services (45 CFR 147.131(c))
A health insurance issuer or third
party administrator providing or
arranging separate payments for services
for participants and beneficiaries in
insured plans (or student enrollees and
covered dependents in student health
insurance coverage) of eligible
organizations exercising the existing
optional accommodation is required to
provide a written notice to the plan
participants and beneficiaries (or
student enrollees and covered
dependents) informing them of the
availability of these payments. As
discussed previously in section II.D.1 of
this preamble, the Departments propose
to amend the model language for this
notice. The burden related to this notice
is currently approved under OMB
Control Number: 0938–1344 (CMS–
10653). HHS will revise this information
collection to update the model notice to
reflect this proposed amendment. The
Departments previously estimated that
109 respondents will incur an annual
burden of 136.25 hours with an
equivalent cost of approximately $7,000,
and materials and mailing cost of
approximately $358,000 annually to
comply with this ICR. The burden and
cost estimates would not be affected by
the proposed change in model language
for the notice.
7. Summary of Annual Burden
Estimates for Proposed Information
Collection Requirements
TABLE 7—ANNUAL RECORDKEEPING AND REPORTING REQUIREMENTS
OMB
control No.
Regulation section
45 CFR § 156.50(d)(2) .............
45 CFR § 156.50(d)(8) .............
45 CFR § 147.131(a)(3)(ii) .......
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Total ..................................
Respondents
Responses
Burden per
response
(hours)
Total
annual
burden
(hours)
Total cost
40
2,180
63,200
40
252,800
63,200
5
1.5
0.08
200
379,200
5,267
$59.33
38.22
56.02
$11,866
14,493,024
295,039
$11,866
14,493,024
295,039
....................
65,420
63,200
..................
384,667
..................
14,799,928
14,799,928
ICR-related comments are due April 3,
2023.
HHS has submitted a copy of these
proposed rules to OMB for its review of
the rule’s information collection and
recordkeeping requirements. These
requirements are not effective until they
have been approved by the OMB.
To obtain copies of the supporting
statement and any related forms for the
proposed collections, please visit CMS’s
website at https://www.cms.gov/
Regulations-and-Guidance/Legislation/
PaperworkReductionActof1995/PRAListing. HHS invites public comments
on these potential information
collection requirements. If you wish to
comment, please submit your comments
electronically as specified in the
ADDRESSES section of these proposed
rules and identify the rule (CMS–9903–
P), the ICR’s CFR citation, CMS ID
number, and OMB control number.
E. Paperwork Reduction Act—
Department of Labor and Department of
the Treasury
173 OMB Control Number: 0938–1344 (CMS–
10653, Coverage of Certain Preventive Services
Under the Affordable Care Act).
18:46 Feb 01, 2023
Total labor
cost of
reporting
0938–1285
0938–1285
0938–1285
8. Submission of PRA-Related
Comments
VerDate Sep<11>2014
Average
hourly
labor
cost of
reporting
Jkt 259001
As part of their continuing effort to
reduce paperwork and respondent
burden, the Department of Labor and
the Department of the Treasury conduct
a preclearance consultation program to
allow the general public and Federal
agencies to comment on proposed and
continuing collections of information in
accordance with the PRA.174 This helps
to ensure that the public understands
the Departments’ collection
instructions, respondents can provide
the requested data in the desired format,
reporting burden (time and financial
resources) is minimized, collection
instruments are clearly understood, and
the Departments can properly assess the
174 44
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impact of collection requirements on
respondents.
Currently, the Department of Labor
and the Department of the Treasury are
soliciting comments concerning the
proposed information collection request
(ICR) included in the Coverage of
Certain Preventive Services under the
Affordable Care Act—Private Sector. To
obtain a copy of the ICR, contact the
PRA addressee shown below or go to
https://www.RegInfo.gov.
The Departments have submitted a
copy of these proposed rule to OMB in
accordance with 44 U.S.C. 3507(d) for
review of its information collections.
The Departments and OMB are
particularly interested in comments
that:
• Evaluate whether the collection of
information is necessary for the
functions of the agency, including
whether the information will have
practical utility;
U.S.C. 3506(c)(2)(A) (1995).
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• Evaluate the accuracy of the
agency’s estimate of the burden of the
collection of information, including the
validity of the methodology and
assumptions used;
• Enhance the quality, utility, and
clarity of the information to be collected
and minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology
(for example, permitting electronically
delivered responses).
Commenters may send their views on
the Departments’ PRA analysis in the
same way they send comments in
response to the proposed rule as a
whole (for example, through the
www.regulations.gov website), including
as part of a comment responding to the
broader proposed rule. Comments are
due by April 3, 2023 to ensure their
consideration.
PRA Addressee: Address requests for
copies of the ICR to James Butikofer,
Office of Research and Analysis, U.S.
Department of Labor, Employee Benefits
Security Administration, 200
Constitution Avenue NW, Room N–
5718, Washington, DC 20210; or send to
ebsa.opr@dol.gov.
1. ICRs Regarding Confirmation of
Eligibility for the Individual
Contraceptive Arrangement (26 CFR
54.9815–2713A(a)(3)(iii), 29 CFR
2590.715–2713A(a)(3)(iii))
Individuals could confirm their
eligibility for the individual
contraceptive arrangement with a
provider of contraceptive services by
providing a summary of benefits that
includes the relevant information
provided under the plan, or by
providing an attestation. The
Departments propose, in 26 CFR
54.9815–2713A(a)(3)(iii) and 29 CFR
2590.715–2713A(a)(3)(iii), an example
of language that could be used by
participants, beneficiaries, and enrollees
or their authorized representatives to
confirm eligibility. The Departments
estimate that at least 126,400
individuals would be eligible for the
individual contraceptive arrangement
and would need to confirm their
eligibility, and that each eligible
individual would need, on average, 5
minutes (at an equivalent cost of $68.96
per hour) to do so. The total burden for
all individuals to confirm their
eligibility for the individual
contraceptive arrangement to their
provider of contraceptive services
would be approximately 10,533 hours
with an equivalent cost of
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approximately $726,356. The
Departments consider these estimates to
be a lower bound, as the total burden
and costs would be higher if the number
of eligible individuals that take part in
the individual contraceptive
arrangement is higher. As HHS, DOL,
and the Department of the Treasury
share jurisdiction, HHS would account
for 50 percent of the burden, as
discussed in section VI.D of this
preamble and DOL and the Department
of the Treasury would each account for
25 percent of the burden, or
approximately 2,633 hours annually
with an equivalent annual cost of
$181,572.
The burden related to the
confirmation of eligibility for the
individual contraceptive arrangement
will be included under OMB Control
Number: 1210–0150 (Coverage of
Certain Preventive Services under the
Affordable Care Act—Private Sector).
The information collection has a current
expiration date of November 30, 2024.
2. ICRs Regarding the Existing Optional
Accommodation for Exempt Entities (26
CFR 54.9815–2713A, 29 CFR 2590.715–
2713A)
An entity seeking to be treated as an
eligible organization for the existing
optional accommodation may selfcertify (by using EBSA Form 700), prior
to the beginning of the first plan year to
which an accommodation is to apply,
that it meets the definition of an eligible
organization. An eligible organization
may submit a notification to HHS as an
alternative to submitting the EBSA Form
700 to the eligible organization’s health
insurance issuer or third party
administrator.
The burden related to this optional
accommodation is currently approved
under OMB Control Number: 1210–0150
(Coverage of Certain Preventive Services
under the Affordable Care Act—Private
Sector). The Departments will revise
this information collection to update the
EBSA Form 700 and model notice to
HHS to reflect the proposal to remove
the moral exemption. However, the
burden estimates would not be affected
by the provisions in these proposed
rules, as the Departments did not
previously expect entities with nonreligious moral objections to use the
existing optional accommodation. The
information collection has a current
expiration date of November 30, 2024.
3. ICRs Regarding Notice of Availability
of Separate Payments for Contraceptive
Services (26 CFR 54.9815–2713A, 29
CFR 2590.715–2713A)
A health insurance issuer or third
party administrator providing or
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7269
arranging separate payments for
contraceptive services for participants
and beneficiaries in insured plans (or
student enrollees and covered
dependents in student health insurance
coverage) of eligible organizations
exercising the existing optional
accommodation is required to provide a
written notice to such plan participants
and beneficiaries (or such student
enrollees and covered dependents)
informing them of the availability of
such payments. The Departments
propose to amend the model language
for this notice. The burden related to
this notice is currently approved under
OMB Control Number: 1210–0150
(Coverage of Certain Preventive Services
under the Affordable Care Act—Private
Sector). The Departments will revise
this information collection to update the
model notice to reflect this proposed
amendment. The Departments
previously estimated that 109
respondents will incur an annual
burden of 136.25 hours with an
equivalent cost of approximately $7,000,
and materials and mailing cost of
approximately $358,000 annually to
comply with this ICR. The burden and
cost estimates would not be affected by
the proposed change in model language
for the notice. The information
collection has a current expiration date
of November 30, 2024.
4. Summary of Annual Burden
Estimates for Proposed Information
Collection Requirements
A summary of paperwork burden
estimates follows:
Type of Review: Revision.
Agency: Employees Benefits Security
Administration, U.S. Department of
Labor.
Title: Coverage of Certain Preventive
Services under the Affordable Care
Act—Private Sector.
OMB Control Number: 1210–0150.
Affected Public: Individuals and
households, Businesses or other forprofits, Not-for-profit institutions.
Estimated Number of Respondents:
31,630.
Estimated Number of Annual
Responses: 329,255.
Frequency of Response: Annual.
Estimated Total Annual Burden
Hours: 2,669.
Estimated Total Annual Burden Cost:
$80,873.
Agency: Internal Revenue Service,
Department of the Treasury.
Title: Coverage of Certain Preventive
Services under the Affordable Care
Act—Private Sector.
OMB Control Number: 1545–NEW.
Affected Public: Individuals and
households, Businesses or other forprofits, Not-for-profit institutions.
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Estimated Number of Respondents:
31,630.
Estimated Number of Annual
Responses: 329,255.
Frequency of Response: Annual.
Estimated Total Annual Burden
Hours: 2,669.
Estimated Total Annual Burden Cost:
$80,873.
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F. Regulatory Flexibility Act
The Regulatory Flexibility Act, (5
U.S.C. 601, et seq.), requires agencies to
prepare an initial regulatory flexibility
analysis to describe the impact of
proposed rules on small entities, unless
the head of the agency can certify that
the rules will not have a significant
economic impact on a substantial
number of small entities. The RFA
generally defines a ‘‘small entity’’ as (1)
a proprietary firm meeting the size
standards of the Small Business
Administration (SBA), (2) a not-forprofit organization that is not dominant
in its field, or (3) a small government
jurisdiction with a population of less
than 50,000. States and individuals are
not included in the definition of ‘‘small
entity.’’ The Departments use a change
in revenues of more than 3 to 5 percent
as its measure of significant economic
impact on a substantial number of small
entities.
The provisions in these proposed
rules would affect health insurance
issuers and providers that furnish
contraceptive services (including
clinicians, facilities, and pharmacies).
Health insurance issuers would be
classified under the North American
Industry Classification System (NAICS)
code 524114 (Direct Health and Medical
Insurance Carriers). According to SBA
size standards, 175 entities with average
annual receipts of $41.5 million or less
are considered small entities for this
NAICS code. Issuers could possibly be
classified in 621491 (HMO Medical
Centers) and, if this is the case, the SBA
size standard would be $39 million or
less. The Departments expect that few,
if any, insurance companies
underwriting comprehensive health
insurance policies (in contrast, for
example, to travel insurance policies or
dental discount policies) fall below
these size thresholds. Based on data
from medical loss ratio (MLR) annual
report 176 submissions for the 2020 MLR
reporting year, approximately 78 out of
481 issuers of health insurance coverage
nationwide had total premium revenue
of $41.5 million or less. This estimate
175 https://www.sba.gov/document/support-table-size-standards, as of October 2022.
176 Available at https://www.cms.gov/CCIIO/
Resources/Data-Resources/mlr.html.
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18:46 Feb 01, 2023
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may overstate the actual number of
small health insurance companies that
may be affected, since over 72 percent
of these small companies belong to
larger holding groups, and many, if not
all, of these small companies are likely
to have non-health lines of business that
will result in their revenues exceeding
$41.5 million. In addition, costs
incurred by issuers would be offset by
Federal payments in the form of user fee
adjustments.
Clinicians and facilities would be
classified under either NAICS code
621111 (Offices of Physicians) with a
size standard of $14 million or less or
NAICS code 621399 (Offices of All
Other Miscellaneous Health
Practitioners) with a size standard of $9
million or less. Facilities could also be
classified under NAICS code 621410
(Family Planning Centers), with a size
standard of $16.5 million or less. The
Departments estimate that
approximately 1,090 clinicians and
facilities would participate in the
individual contraceptive arrangement
and would incur costs related to signing
agreements with participating issuers,
eligibility verification, and
recordkeeping. Most, if not all,
participating clinicians and facilities
might be considered small entities. As
discussed earlier in section VI.D of this
preamble, these costs per clinician or
facility are estimated to be
approximately $10,895 annually 177 and
would likely be accounted for in
amounts submitted to participating
issuers for reimbursement by the
Federal Government. The Departments
assume that clinicians or facilities
would not participate in the individual
contraceptive arrangement if it results in
a decline in their revenues or
profitability.
Pharmacies would be classified under
NAICS code 446110 (Pharmacies and
Drug Stores) with a size standard of $30
million or less. The Departments
assume that 10 pharmacy chains would
participate in the individual
contraceptive arrangement and would
incur costs related to signing agreements
with participating issuers, eligibility
verification, and recordkeeping. As
discussed earlier in section VI.D of this
preamble, these costs per pharmacy
chain are estimated to be approximately
$728,781 annually.178 These costs
177 Total administrative costs for 1,090 clinicians
and facilities = $4,629,069 in administrative costs
for signed agreements + $7,246,512 in
administrative costs related to providing
contraceptive services = $11,875,581. Average
administrative costs for each clinician or facility =
$10,895.
178 Total administrative costs for 10 pharmacy
chains = $41,300 in administrative costs for signed
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would likely be accounted for in
amounts submitted to participating
issuers for reimbursement by the
Federal Government. The major
pharmacy chains would not fall below
this size threshold. The Departments
assume that independent pharmacies or
small pharmacy chains would not
participate in the individual
contraceptive arrangement if it results in
a decline in their revenues or
profitability.
Therefore, the Departments do not
anticipate that participation in the
individual contraceptive arrangement
would have a significant effect on a
substantial number of small entities.
The Departments seek comment on this
analysis.
In addition, section 1102(b) of the
Social Security Act requires HHS to
prepare a regulatory impact analysis if
a rule may have a significant economic
impact on the operations of a substantial
number of small rural hospitals. This
analysis must conform to the provisions
of section 604 of the RFA. This rule is
not subject to section 1102 of the Social
Security Act, HHS does not expect that
these proposed rules would have a
significant economic impact on the
operations of a substantial number of
small rural hospitals. Some providers of
contraceptive services might be
affiliated with small rural hospitals, and
these providers might choose to
participate in the individual
contraceptive arrangement and therefore
incur related costs, which would
ultimately be reimbursed by the Federal
Government.
G. Unfunded Mandates Reform Act
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA)
requires that agencies assess anticipated
costs and benefits and take certain other
actions before issuing a proposed rule or
any final rule for which a general notice
of proposed rulemaking was published
that includes any Federal mandate that
may result in expenditures in any 1 year
by State, local, or Tribal governments, in
the aggregate, or by the private sector, of
$100 million in 1995 dollars, updated
annually for inflation. In 2022, that
threshold is approximately $165
million. As discussed earlier in section
VI of this preamble, providers of
contraceptive services and issuers that
choose to participate in the individual
contraceptive arrangement would incur
costs to comply with the proposed
provisions of these proposed rules,
agreements + $7,246,512 in administrative costs
related to providing contraceptive services =
$7,287,812. Average administrative costs for each
pharmacy chain = $728,781.
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which would likely be reimbursed and
ultimately incurred by the Federal
Government. The Departments estimate
the combined impact on State, local, or
Tribal governments and the private
sector would not be above the threshold.
H. Federalism
Executive Order 13132 outlines
fundamental principles of federalism. It
requires adherence to specific criteria by
Federal agencies in formulating and
implementing policies that have
‘‘substantial direct effects’’ on the states,
the relationship between the national
government and states, or on the
distribution of power and
responsibilities among the various
levels of government. Federal agencies
promulgating regulations that have
these federalism implications must
consult with State and local officials
and describe the extent of their
consultation and the nature of the
concerns of State and local officials in
the preamble to the proposed rules.
The Departments do not anticipate
that these proposed rules would have
any federalism implications or limit the
policy making discretion of the states, in
compliance with the requirement of
Executive Order 13132.
While developing this rule, the
Departments attempted to balance the
states’ interests in regulating health
insurance issuers with the need to
ensure market stability. By doing so, the
Departments complied with the
requirements of Executive Order 13132.
List of Subjects
26 CFR Part 54
Excise taxes, Health care, Health
insurance, Pensions, Reporting and
recordkeeping requirements.
khammond on DSKJM1Z7X2PROD with PROPOSALS2
29 CFR Part 2590
Continuation coverage, Disclosure,
Employee benefit plans, Group health
plans, Health care, Health insurance,
Medical child support, Reporting and
recordkeeping requirements.
45 CFR Part 147
Aged, Citizenship and naturalization,
Civil rights, Health care, Health
insurance, Individuals with disabilities,
Intergovernmental relations, Reporting
and recordkeeping requirements, Sex
discrimination.
45 CFR Part 156
Administrative practice and
procedure, Advertising, Advisory
committees, Aged, Alaska, Brokers,
Citizenship and naturalization, Civil
rights, Conflicts of interests, Consumer
protection, Grant programs-health,
Grants administration, Health care,
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Jkt 259001
Health insurance, Health maintenance
organizations (HMO), Health records,
Hospitals, Indians, Individuals with
disabilities, Intergovernmental relations,
Loan programs-health, Medicaid,
Organization and functions
(Government agencies), Prescription
drugs, Public assistance programs,
Reporting and recordkeeping
requirements, Sex discrimination, State
and local governments, Sunshine Act,
Technical assistance, Women, Youth.
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Accordingly, the Treasury Department
and the IRS propose to amend 26 CFR
part 54 as follows:
PART 54—PENSION EXCISE TAXES
Paragraph 1.The authority citation for
part 54 continues to read as follows:
■
Authority: 26 U.S.C. 7805 * * *
Par 2. Section 54.9815–2713 is
amended by revising paragraphs (a)(1)
introductory text and (a)(1)(iv) to read as
follows:
■
§ 54.9815–2713 Coverage of preventive
health services.
(a) * * *
(1) In general. Beginning at the time
described in paragraph (b) of this
section, a group health plan, or a health
insurance issuer offering group health
insurance coverage, must provide
coverage for and must not impose any
cost-sharing requirements (such as a
copayment, coinsurance, or a
deductible) for—
*
*
*
*
*
(iv) With respect to women, such
additional preventive care and
screenings not described in paragraph
(a)(1)(i) of this section as provided for in
evidence-informed comprehensive
guidelines supported by the Health
Resources and Services Administration
for purposes of section 2713(a)(4) of the
Public Health Service Act, subject to 45
CFR 147.131 and 147.132.
*
*
*
*
*
■ Par 3. Section 54.9815–2713A is
revised to read as follows:
§ 54.9815–2713A Alternate availability of
certain preventive health services.
(a) Organizations eligible for optional
accommodations and individuals
eligible for individual contraceptive
arrangements. (1) An eligible
organization is an organization that
meets the criteria of paragraphs (a)(1)(i)
through (iii) of this section.
(i) The organization is an objecting
entity described in 45 CFR
147.132(a)(1)(i) through (iii);
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7271
(ii) Notwithstanding its exempt status
under 45 CFR 147.132(a), the
organization voluntarily seeks to be
considered an eligible organization to
invoke the optional accommodation
under paragraph (b) or (c) of this
section; and
(iii) The organization self-certifies in
the form and manner specified by the
Secretary of Labor or provides notice to
the Secretary of Health and Human
Services as described in paragraph (b) or
(c) of this section. To qualify as an
eligible organization, the organization
must make such self-certification or
notice available for examination upon
request by the first day of the first plan
year to which the accommodation in
paragraph (b) or (c) of this section
applies. The self-certification or notice
must be executed by a person
authorized to make the certification or
provide the notice on behalf of the
organization and must be maintained in
a manner consistent with the record
retention requirements under section
107 of ERISA.
(2) An eligible organization may
revoke its use of the accommodation
under paragraph (b) or (c) of this
section, and its issuer or third party
administrator must provide participants
and beneficiaries written notice of the
revocation; the eligible organization’s
revocation of the accommodation will
be effective no sooner than the first day
of the first plan year that begins on or
after 30 days after the date of the
revocation.
(3) An eligible individual is an
individual who—
(i) Is a participant or beneficiary
enrolled in a group health plan
established or maintained by an
objecting entity described in 45 CFR
147.132(a) that, to the extent eligible,
has not invoked the optional
accommodation under paragraph (b) or
(c) of this section; and
(ii) Confirms (such as by making an
attestation) to a provider of
contraceptive services that agrees to
meet the conditions in paragraph (d)(1)
of this section that the individual is
enrolled in a group health plan or group
health insurance coverage that does not
provide coverage for all or a subset of
contraceptive services as generally
required under § 54.9815–2713(a)(1)(iv).
(b) Optional accommodation—selfinsured group health plans. (1) A group
health plan established or maintained
by an eligible organization that provides
benefits on a self-insured basis may
voluntarily elect an optional
accommodation under which its third
party administrator(s) will provide or
arrange payments for all or a subset of
contraceptive services for one or more
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Federal Register / Vol. 88, No. 22 / Thursday, February 2, 2023 / Proposed Rules
plan years. To invoke the optional
accommodation process:
(i) Except as provided in paragraph
(b)(5) of this section, the eligible
organization or its plan must contract
with one or more third party
administrators.
(ii) The eligible organization must
provide either a copy of the selfcertification to each third party
administrator it contracts with to
provide administrative services in
connection with the plan or a notice to
the Secretary of Health and Human
Services that it is an eligible
organization and of its objection as
described in 45 CFR 147.132 to coverage
of all or a subset of contraceptive
services.
(A) When a copy of the selfcertification is provided directly to a
third party administrator, the selfcertification must include a notice that
obligations of the third party
administrator are set forth in in 29 CFR
2510.3–16 and this section.
(B) When a notice is provided to the
Secretary of Health and Human
Services, the notice must include the
name of the eligible organization; a
statement that it objects as described in
45 CFR 147.132 to coverage of some or
all contraceptive services (including an
identification of the subset of
contraceptive services the eligible
organization objects to covering, if
applicable), but that it would like to
elect the optional accommodation
process; the plan name and type (that is,
whether it is student health insurance
coverage within the meaning of 45 CFR
147.145(a) or a church plan within the
meaning of section 414(e) or section
3(33) of ERISA); and the name and
contact information for any of the plan’s
third party administrators. If there is a
change in any of the information
required to be included in the notice,
the eligible organization must provide
updated information to the Secretary of
Health and Human Services for the
optional accommodation process to
remain in effect. The Department of
Labor (working with the Department of
Health and Human Services) will send
a separate notification to each of the
plan’s third party administrators
informing the third party administrator
that the Secretary of Health and Human
Services has received a notice under
paragraph (b)(1)(ii) of this section and
describing the obligations of the third
party administrator under 29 CFR
2510.3–16(c) and this section.
(2) If a third party administrator
receives a copy of the self-certification
from an eligible organization or a
notification from the Department of
Labor, as described in paragraph
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(b)(1)(ii) of this section and is willing to
enter into or remain in a contractual
relationship with the eligible
organization or its plan to provide
administrative services for the plan,
then the third party administrator will
provide or arrange payments for
contraceptive services, using one of the
following methods—
(i) Provide payments for the
contraceptive services for plan
participants and beneficiaries without
imposing any cost-sharing requirements
(such as a copayment, coinsurance, or a
deductible), premium, fee, or other
charge, or any portion thereof, directly
or indirectly, on the eligible
organization, the group health plan, or
plan participants or beneficiaries; or
(ii) Arrange for an issuer or other
entity to provide payments for
contraceptive services for plan
participants and beneficiaries without
imposing any cost-sharing requirements
(such as a copayment, coinsurance, or a
deductible), premium, fee, or other
charge, or any portion thereof, directly
or indirectly, on the eligible
organization, the group health plan, or
plan participants or beneficiaries.
(3) If a third party administrator
provides or arranges payments for
contraceptive services in accordance
with either paragraph (b)(2)(i) or (ii) of
this section, the costs of providing or
arranging such payments may be
reimbursed through an adjustment to
the Federally-facilitated Exchange or
State Exchange on the Federal platform
user fees for a participating issuer
pursuant to 45 CFR 156.50(d).
(4) A third party administrator may
not require any documentation other
than a copy of the self-certification from
the eligible organization or notification
from the Department of Labor described
in paragraph (b)(1)(ii) of this section.
(5) Where an otherwise eligible
organization does not contract with a
third party administrator and it files a
self-certification or notice under
paragraph (b)(1)(ii) of this section, the
obligations under paragraph (b)(2) of
this section do not apply, and the
otherwise eligible organization is not
required to provide coverage or
payments for contraceptive services to
which it objects. The plan administrator
for that otherwise eligible organization
may, if it and the otherwise eligible
organization choose, arrange for
payments for contraceptive services
from an issuer or other entity in
accordance with paragraph (b)(2)(ii) of
this section, and such issuer or other
entity may receive reimbursements in
accordance with paragraph (b)(3) of this
section.
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Sfmt 4702
(6) Where an otherwise eligible
organization is a church plan within the
meaning of section 3(33) of ERISA or
section 414(e) and it files a selfcertification or notice under paragraph
(b)(1)(ii) of this section, the obligations
under paragraph (b)(2) of this section do
not apply, and the otherwise eligible
organization is under no requirement to
provide coverage or payments for
contraceptive services to which it
objects. The third party administrator
for that otherwise eligible organization
may, if it and the otherwise eligible
organization choose, provide or arrange
payments for contraceptive services in
accordance with paragraph (b)(2)(i) or
(ii) of this section, and receive
reimbursements in accordance with
paragraph (b)(3) of this section.
(c) Optional accommodation—
insured group health plans—(1) A group
health plan established or maintained
by an eligible organization that provides
benefits through one or more group
health insurance issuers may
voluntarily elect an optional
accommodation under which its health
insurance issuer(s) will provide
payments for all or a subset of
contraceptive services for one or more
plan years. To invoke the optional
accommodation process:
(i) The eligible organization or its plan
must contract with one or more health
insurance issuers.
(ii) The eligible organization must
provide either a copy of the selfcertification to each issuer it contracts
with to provide coverage in connection
with the plan or a notice to the
Secretary of Health and Human Services
that it is an eligible organization and of
its objection as described in 45 CFR
147.132 to coverage for all or a subset
of contraceptive services.
(A) When a copy of the selfcertification is provided directly to an
issuer, the issuer has sole responsibility
for providing such coverage in
accordance with § 54.9815–
2713(a)(1)(iv).
(B) When a notice is provided to the
Secretary of Health and Human
Services, the notice must include the
name of the eligible organization; a
statement that it objects as described in
45 CFR 147.132 to coverage of some or
all contraceptive services (including an
identification of the subset of
contraceptive services to which
coverage the eligible organization
objects, if applicable), but that it would
like to elect the optional
accommodation process; the plan name
and type (that is, whether it is student
health insurance coverage within the
meaning of 45 CFR 147.145(a) or a
church plan within the meaning of
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Federal Register / Vol. 88, No. 22 / Thursday, February 2, 2023 / Proposed Rules
section 414(e) or section 3(33) of
ERISA); and the name and contact
information for any of the plan’s health
insurance issuers. If there is a change in
any of the information required to be
included in the notice, the eligible
organization must provide updated
information to the Secretary of Health
and Human Services for the optional
accommodation to remain in effect. The
Department of Health and Human
Services will send a separate
notification to each of the plan’s health
insurance issuers informing the issuer
that the Secretary of Health and Human
Services has received a notice under
paragraph (c)(1)(ii) of this section and
describing the obligations of the issuer
under this section.
(2) If an issuer receives a copy of the
self-certification from an eligible
organization or the notification from the
Department of Health and Human
Services as described in paragraph
(c)(1)(ii) of this section and does not
have an objection as described in 45
CFR 147.132 to providing the
contraceptive services identified in the
self-certification or the notification from
the Department of Health and Human
Services, the issuer will provide
payments for contraceptive services as
follows—
(i) The issuer must expressly exclude
contraceptive coverage from the group
health insurance coverage provided in
connection with the group health plan
and provide separate payments for any
contraceptive services required to be
covered under § 54.9815–2713(a)(1)(iv)
for plan participants and beneficiaries
for so long as they remain enrolled in
the plan.
(ii) With respect to payments for
contraceptive services, the issuer may
not impose any cost-sharing
requirements (such as a copayment,
coinsurance, or a deductible), premium,
fee, or other charge, or any portion
thereof, directly or indirectly, on the
eligible organization, the group health
plan, or plan participants or
beneficiaries. The issuer must segregate
premium revenue collected from the
eligible organization from the monies
used to provide payments for
contraceptive services. The issuer must
provide payments for contraceptive
services in a manner that is consistent
with the requirements under sections
2706, 2709, 2711, 2713, and 2719 of the
PHS Act, as incorporated into section
9815, and section 9822. If the group
health plan of the eligible organization
provides coverage for some but not all
of any contraceptive services required to
be covered under § 54.9815–
2713(a)(1)(iv), the issuer is required to
provide payments only for those
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18:46 Feb 01, 2023
Jkt 259001
contraceptive services for which the
group health plan does not provide
coverage. However, the issuer may
provide payments for all contraceptive
services at the issuer’s option.
(3) A health insurance issuer may not
require any documentation other than a
copy of the self-certification from the
eligible organization or the notification
from the Department of Health and
Human Services described in paragraph
(c)(1)(ii) of this section.
(d) Notice of availability of separate
payments for contraceptive services—
self-insured and insured group health
plans. For each plan year to which the
optional accommodation in paragraph
(b) or (c) of this section is to apply, a
third party administrator required to
provide or arrange payments for
contraceptive services pursuant to
paragraph (b) of this section, and an
issuer required to provide payments for
contraceptive services pursuant to
paragraph (c) of this section, must
provide to plan participants and
beneficiaries written notice of the
availability of separate payments for
contraceptive services contemporaneous
with (to the extent possible), but
separate from, any application materials
distributed in connection with
enrollment (or re-enrollment) in group
health coverage that is effective
beginning on the first day of each
applicable plan year. The notice must
specify that the eligible organization
does not administer or fund
contraceptive benefits, but that the third
party administrator or issuer, as
applicable, provides or arranges
separate payments for contraceptive
services, and must provide contact
information for questions and
complaints. The following model
language, or substantially similar
language, may be used to satisfy the
notice requirement of this paragraph (d):
‘‘Your employer has certified that your
group health plan qualifies for an
accommodation with respect to the
Federal requirement to cover
contraceptive services for women,
including all Food and Drug
Administration-approved, cleared, or
granted contraceptives, as prescribed by
a health care provider, without cost
sharing. This means that your employer
will not contract, arrange, pay, or refer
for contraceptive coverage. Instead,
[name of third party administrator/
health insurance issuer] will provide
separate payments for contraceptive
services that you use, without cost
sharing and at no other cost, for so long
as you are enrolled in your group health
plan. Your employer will not administer
or fund these payments. If you have any
questions about this notice, contact
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7273
[contact information for third party
administrator/health insurance issuer].’’
(e) Individual contraceptive
arrangements for eligible individuals.
(1) An eligible individual may elect an
individual contraceptive arrangement
under which a willing provider of
contraceptive services furnishes the
eligible individual with contraceptive
services that a group health plan or
health insurance issuer would have
been required to cover pursuant to
§ 54.9815–2713(a)(1)(iv), if not for the
plan’s or issuer’s exempt status under
45 CFR 147.132(a). Under this
individual contraceptive arrangement,
the willing provider of contraceptive
services must furnish contraceptive
services (including items and services
that are integral to the furnishing of the
contraceptive services) to the eligible
individual without imposing a fee or
charge of any kind, directly or
indirectly, on the eligible individual or
any other entity for the cost of the items
and services or any portion thereof,
except that the provider of contraceptive
services may seek payment from, and be
reimbursed by, an issuer for the costs of
providing the items and services
through an adjustment to the issuer’s
Federally-facilitated Exchange or State
Exchange on the Federal platform user
fees pursuant to 45 CFR 156.50(d).
(2) The following language may, but is
not required to, be used by a participant
or beneficiary (or an authorized
representative of a participant or
beneficiary) to confirm to a provider of
contraceptive services that the plan or
coverage is sponsored, provided, or
arranged by an objecting entity and does
not provide coverage for all or a subset
of contraceptive services as generally
required under § 54.9815–2713(a)(1)(iv):
‘‘I certify that I am enrolled (or am an
authorized representative of a person
who is enrolled) in an employersponsored health plan or health
insurance coverage that does not
provide coverage for all or a subset of
contraceptive services as generally
required under the Affordable Care
Act.’’ A participant or beneficiary (or an
authorized representative of a
participant or beneficiary) may use
other means to confirm to a provider of
contraceptive services that the plan or
coverage is sponsored, provided, or
arranged by an objecting entity and does
not provide coverage for all or a subset
of contraceptive services.
(f) Reliance—insured group health
plans. (1) If an issuer reasonably and in
good faith relies on a representation by
an eligible organization indicating that
the organization is eligible for the
accommodation in paragraph (c) of this
section, and the representation is later
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Federal Register / Vol. 88, No. 22 / Thursday, February 2, 2023 / Proposed Rules
determined to be incorrect, the issuer is
considered to comply with any
applicable requirement under
§ 54.9815–2713(a)(1)(iv) to provide
contraceptive coverage if the issuer
complies with the obligations under this
section applicable to such issuer.
(2) A group health plan is considered
to comply with any applicable
requirement under § 54.9815–
2713(a)(1)(iv) to provide contraceptive
coverage if the plan complies with its
obligations under paragraph (c) of this
section, without regard to whether the
issuer complies with the obligations
under this section applicable to such
issuer.
(g) Definitions. (1) For the purposes of
this section, reference to
‘‘contraceptive’’ services, benefits, or
coverage includes contraceptive or
sterilization items, procedures, or
services, or related patient education or
counseling, to the extent specified for
purposes of § 54.9815–2713(a)(1)(iv).
(2) For the purposes of this section,
the term ‘‘provider of contraceptive
services’’ means any health care
provider (including a clinician,
pharmacy, or other facility) acting
within the scope of that provider’s
license, certification, or authority under
applicable law to provide contraceptive
services (as defined in paragraph (g)(1)
of this section).
(h) Severability. Any provision of this
section held to be invalid or
unenforceable by its terms, or as applied
to any person or circumstance, shall be
construed so as to continue to give
maximum effect to the provision
permitted by law, unless such holding
shall be one of utter invalidity or
unenforceability, in which event the
provision shall be severable from this
section and shall not affect the
remainder thereof or the application of
the provision to persons not similarly
situated or to dissimilar circumstances.
DEPARTMENT OF LABOR
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Employee Benefits Security
Administration
For the reasons stated in the
preamble, the Department of Labor
proposes to amend 29 CFR part 2590 as
set forth below:
PART 2590—RULES AND
REGULATIONS FOR GROUP HEALTH
PLANS
4. The authority citation for part 2590
continues to read as follows:
■
Authority: 29 U.S.C. 1027, 1059, 1135,
1161–1168, 1169, 1181–1183, 1181 note,
1185, 1185a–n, 1191, 1191a, 1191b, and
1191c; sec. 101(g), Pub. L.104–191, 110 Stat.
1936; sec. 401(b), Pub. L. 105–200, 112 Stat.
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18:46 Feb 01, 2023
Jkt 259001
645 (42 U.S.C. 651 note); sec. 512(d), Pub. L.
110–343, 122 Stat. 3881; sec. 1001, 1201, and
1562(e), Pub. L. 111–148, 124 Stat. 119, as
amended by Pub. L. 111–152, 124 Stat. 1029;
Division M, Pub. L. 113–235, 128 Stat. 2130;
Pub. L. 116–260 134 Stat. 1182; Secretary of
Labor’s Order 1–2011, 77 FR 1088 (Jan. 9,
2012).
5. Section 2590.715–2713 is amended
by revising paragraphs (a)(1)
introductory text and (a)(1)(iv) to read as
follows:
■
§ 2590.715–2713
health services.
Coverage of preventive
(a) * * *
(1) In general. Beginning at the time
described in paragraph (b) of this
section, a group health plan, or a health
insurance issuer offering group health
insurance coverage, must provide
coverage for and must not impose any
cost-sharing requirements (such as a
copayment, coinsurance, or a
deductible) for—
*
*
*
*
*
(iv) With respect to women, such
additional preventive care and
screenings not described in paragraph
(a)(1)(i) of this section as provided for in
evidence-informed comprehensive
guidelines supported by the Health
Resources and Services Administration
for purposes of section 2713(a)(4) of the
Public Health Service Act, subject to 45
CFR 147.131 and 147.132; and
*
*
*
*
*
■ 6. Section 2590.715–2713A is revised
to read as follows:
§ 2590.715–2713A Alternate availability of
certain preventive health services.
(a) Organizations eligible for optional
accommodations and individuals
eligible for individual contraceptive
arrangements.
(1) An eligible organization is an
organization that meets the criteria of
paragraphs (a)(1)(i) through (iii) of this
section.
(i) The organization is an objecting
entity described in 45 CFR
147.132(a)(1)(i) through (iii);
(ii) Notwithstanding its exempt status
under 45 CFR 147.132(a), the
organization voluntarily seeks to be
considered an eligible organization to
invoke the optional accommodation
under paragraph (b) or (c) of this
section; and
(iii) The organization self-certifies in
the form and manner specified by the
Secretary or provides notice to the
Secretary of Health and Human Services
as described in paragraph (b) or (c) of
this section. To qualify as an eligible
organization, the organization must
make such self-certification or notice
available for examination upon request
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Sfmt 4702
by the first day of the first plan year to
which the accommodation in paragraph
(b) or (c) of this section applies. The
self-certification or notice must be
executed by a person authorized to
make the certification or provide the
notice on behalf of the organization and
must be maintained in a manner
consistent with the record retention
requirements under section 107 of
ERISA.
(2) An eligible organization may
revoke its use of the accommodation
under paragraph (b) or (c) of this
section, and its issuer or third party
administrator must provide participants
and beneficiaries written notice of the
revocation; the eligible organization’s
revocation of the accommodation will
be effective no sooner than the first day
of the first plan year that begins on or
after 30 days after the date of the
revocation.
(3) An eligible individual is an
individual who—
(i) Is a participant or beneficiary
enrolled in a group health plan
established or maintained by an
objecting entity described in 45 CFR
147.132(a) that, to the extent eligible,
has not invoked the optional
accommodation under paragraph (b) or
(c) of this section; and
(ii) Confirms (such as by making an
attestation) to a provider of
contraceptive services that agrees to
meet the conditions in paragraph (d)(1)
of this section that the individual is
enrolled in a group health plan or group
health insurance coverage that does not
provide coverage for all or a subset of
contraceptive services as generally
required under § 2590.715–
2713(a)(1)(iv).
(b) Optional accommodation—selfinsured group health plans. (1) A group
health plan established or maintained
by an eligible organization that provides
benefits on a self-insured basis may
voluntarily elect an optional
accommodation under which its third
party administrator(s) will provide or
arrange payments for all or a subset of
contraceptive services for one or more
plan years. To invoke the optional
accommodation process:
(i) Except as provided in paragraph
(b)(5) of this section, the eligible
organization or its plan must contract
with one or more third party
administrators.
(ii) The eligible organization must
provide either a copy of the selfcertification to each third party
administrator it contracts with to
provide administrative services in
connection with the plan or a notice to
the Secretary of Health and Human
Services that it is an eligible
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organization and of its objection as
described in 45 CFR 147.132 to coverage
of all or a subset of contraceptive
services.
(A) When a copy of the selfcertification is provided directly to a
third party administrator, the selfcertification must include a notice that
obligations of the third party
administrator are set forth in § 2510.3–
16 of this chapter and this section.
(B) When a notice is provided to the
Secretary of Health and Human
Services, the notice must include the
name of the eligible organization; a
statement that it objects as described in
45 CFR 147.132 to coverage of some or
all contraceptive services (including an
identification of the subset of
contraceptive services the eligible
organization objects to covering, if
applicable), but that it would like to
elect the optional accommodation
process; the plan name and type (that is,
whether it is student health insurance
coverage within the meaning of 45 CFR
147.145(a) or a church plan within the
meaning of section 414(e) of the Internal
Revenue Code or section 3(33) of
ERISA); and the name and contact
information for any of the plan’s third
party administrators. If there is a change
in any of the information required to be
included in the notice, the eligible
organization must provide updated
information to the Secretary of Health
and Human Services for the optional
accommodation process to remain in
effect. The Department of Labor
(working with the Department of Health
and Human Services) will send a
separate notification to each of the
plan’s third party administrators
informing the third party administrator
that the Secretary of Health and Human
Services has received a notice under
paragraph (b)(1)(ii) of this section and
describing the obligations of the third
party administrator under § 2510.3–
16(c) of this chapter and this section.
(2) If a third party administrator
receives a copy of the self-certification
from an eligible organization or a
notification from the Department of
Labor, as described in paragraph
(b)(1)(ii) of this section and is willing to
enter into or remain in a contractual
relationship with the eligible
organization or its plan to provide
administrative services for the plan,
then the third party administrator will
provide or arrange payments for
contraceptive services, using one of the
following methods—
(i) Provide payments for the
contraceptive services for plan
participants and beneficiaries without
imposing any cost-sharing requirements
(such as a copayment, coinsurance, or a
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deductible), premium, fee, or other
charge, or any portion thereof, directly
or indirectly, on the eligible
organization, the group health plan, or
plan participants or beneficiaries; or
(ii) Arrange for an issuer or other
entity to provide payments for
contraceptive services for plan
participants and beneficiaries without
imposing any cost-sharing requirements
(such as a copayment, coinsurance, or a
deductible), premium, fee, or other
charge, or any portion thereof, directly
or indirectly, on the eligible
organization, the group health plan, or
plan participants or beneficiaries.
(3) If a third party administrator
provides or arranges payments for
contraceptive services in accordance
with either paragraph (b)(2)(i) or (ii) of
this section, the costs of providing or
arranging such payments may be
reimbursed through an adjustment to
the Federally-facilitated Exchange or
State Exchange on the Federal platform
user fees for a participating issuer
pursuant to 45 CFR 156.50(d).
(4) A third party administrator may
not require any documentation other
than a copy of the self-certification from
the eligible organization or notification
from the Department of Labor described
in paragraph (b)(1)(ii) of this section.
(5) Where an otherwise eligible
organization does not contract with a
third party administrator and it files a
self-certification or notice under
paragraph (b)(1)(ii) of this section, the
obligations under paragraph (b)(2) of
this section do not apply, and the
otherwise eligible organization is not
required to provide coverage or
payments for contraceptive services to
which it objects. The plan administrator
for that otherwise eligible organization
may, if it and the otherwise eligible
organization choose, arrange for
payments for contraceptive services
from an issuer or other entity in
accordance with paragraph (b)(2)(ii) of
this section, and such issuer or other
entity may receive reimbursements in
accordance with paragraph (b)(3) of this
section.
(c) Optional accommodation—
insured group health plans. (1) A group
health plan established or maintained
by an eligible organization that provides
benefits through one or more group
health insurance issuers may
voluntarily elect an optional
accommodation under which its health
insurance issuer(s) will provide
payments for all or a subset of
contraceptive services for one or more
plan years. To invoke the optional
accommodation process:
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7275
(i) The eligible organization or its plan
must contract with one or more health
insurance issuers.
(ii) The eligible organization must
provide either a copy of the selfcertification to each issuer it contracts
with to provide coverage in connection
with the plan or a notice to the
Secretary of Health and Human Services
that it is an eligible organization and of
its objection as described in 45 CFR
147.132 to coverage for all or a subset
of contraceptive services.
(A) When a copy of the selfcertification is provided directly to an
issuer, the issuer has sole responsibility
for providing such coverage in
accordance with § 2590.715–
2713(a)(1)(iv).
(B) When a notice is provided to the
Secretary of Health and Human
Services, the notice must include the
name of the eligible organization; a
statement that it objects as described in
45 CFR 147.132 to coverage of some or
all contraceptive services (including an
identification of the subset of
contraceptive services to which
coverage the eligible organization
objects, if applicable), but that it would
like to elect the optional
accommodation process; the plan name
and type (that is, whether it is student
health insurance coverage within the
meaning of 45 CFR 147.145(a) or a
church plan within the meaning of
section 414(e) of the Internal Revenue
Code or section 3(33) of ERISA); and the
name and contact information for any of
the plan’s health insurance issuers. If
there is a change in any of the
information required to be included in
the notice, the eligible organization
must provide updated information to
the Secretary of Health and Human
Services for the optional
accommodation to remain in effect. The
Department of Health and Human
Services will send a separate
notification to each of the plan’s health
insurance issuers informing the issuer
that the Secretary of Health and Human
Services has received a notice under
paragraph (c)(1)(ii) of this section and
describing the obligations of the issuer
under this section.
(2) If an issuer receives a copy of the
self-certification from an eligible
organization or the notification from the
Department of Health and Human
Services as described in paragraph
(c)(1)(ii) of this section and does not
have an objection as described in 45
CFR 147.132 to providing the
contraceptive services identified in the
self-certification or the notification from
the Department of Health and Human
Services, the issuer will provide
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payments for contraceptive services as
follows—
(i) The issuer must expressly exclude
contraceptive coverage from the group
health insurance coverage provided in
connection with the group health plan
and provide separate payments for any
contraceptive services required to be
covered under § 2590.715–2713(a)(1)(iv)
for plan participants and beneficiaries
for so long as they remain enrolled in
the plan.
(ii) With respect to payments for
contraceptive services, the issuer may
not impose any cost-sharing
requirements (such as a copayment,
coinsurance, or a deductible), premium,
fee, or other charge, or any portion
thereof, directly or indirectly, on the
eligible organization, the group health
plan, or plan participants or
beneficiaries. The issuer must segregate
premium revenue collected from the
eligible organization from the monies
used to provide payments for
contraceptive services. The issuer must
provide payments for contraceptive
services in a manner that is consistent
with the requirements under sections
2706, 2709, 2711, 2713, and 2719 of the
PHS Act, as incorporated into section
715 of ERISA, and section 722 of ERISA.
If the group health plan of the eligible
organization provides coverage for some
but not all of any contraceptive services
required to be covered under
§ 2590.715–2713(a)(1)(iv), the issuer is
required to provide payments only for
those contraceptive services for which
the group health plan does not provide
coverage. However, the issuer may
provide payments for all contraceptive
services at the issuer’s option.
(3) A health insurance issuer may not
require any documentation other than a
copy of the self-certification from the
eligible organization or the notification
from the Department of Health and
Human Services described in paragraph
(c)(1)(ii) of this section.
(d) Notice of availability of separate
payments for contraceptive services—
self-insured and insured group health
plans. For each plan year to which the
optional accommodation in paragraph
(b) or (c) of this section is to apply, a
third party administrator required to
provide or arrange payments for
contraceptive services pursuant to
paragraph (b) of this section, and an
issuer required to provide payments for
contraceptive services pursuant to
paragraph (c) of this section, must
provide to plan participants and
beneficiaries written notice of the
availability of separate payments for
contraceptive services contemporaneous
with (to the extent possible), but
separate from, any application materials
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Jkt 259001
distributed in connection with
enrollment (or re-enrollment) in group
health coverage that is effective
beginning on the first day of each
applicable plan year. The notice must
specify that the eligible organization
does not administer or fund
contraceptive benefits, but that the third
party administrator or issuer, as
applicable, provides or arranges
separate payments for contraceptive
services, and must provide contact
information for questions and
complaints. The following model
language, or substantially similar
language, may be used to satisfy the
notice requirement of this paragraph (d):
‘‘Your employer has certified that your
group health plan qualifies for an
accommodation with respect to the
Federal requirement to cover
contraceptive services for women,
including all Food and Drug
Administration-approved, cleared, or
granted contraceptives, as prescribed by
a health care provider, without cost
sharing. This means that your employer
will not contract, arrange, pay, or refer
for contraceptive coverage. Instead,
[name of third party administrator/
health insurance issuer] will provide
separate payments for contraceptive
services that you use, without cost
sharing and at no other cost, for so long
as you are enrolled in your group health
plan. Your employer will not administer
or fund these payments. If you have any
questions about this notice, contact
[contact information for third party
administrator/health insurance issuer].’’
(e) Individual contraceptive
arrangements for eligible individuals.
(1) An eligible individual may elect an
individual contraceptive arrangement
under which a willing provider of
contraceptive services furnishes the
eligible individual with contraceptive
services that a group health plan or
health insurance issuer would have
been required to cover pursuant to
§ 2590.715–2713(a)(1)(iv), if not for the
plan’s or issuer’s exempt status under
45 CFR 147.132(a). Under this
individual contraceptive arrangement,
the willing provider of contraceptive
services must furnish contraceptive
services (including items and services
that are integral to the furnishing of the
contraceptive services) to the eligible
individual without imposing a fee or
charge of any kind, directly or
indirectly, on the eligible individual or
any other entity for the cost of the items
and services or any portion thereof,
except that the provider of contraceptive
services may seek payment from, and be
reimbursed by, an issuer for the costs of
providing the items and services
PO 00000
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Sfmt 4702
through an adjustment to the issuer’s
Federally-facilitated Exchange or State
Exchange on the Federal platform user
fees pursuant to 45 CFR 156.50(d).
(2) The following language may, but is
not required to, be used by a participant
or beneficiary (or an authorized
representative of a participant or
beneficiary) to confirm to a provider of
contraceptive services that the plan or
coverage is sponsored, provided, or
arranged by an objecting entity and does
not provide coverage for all or a subset
of contraceptive services as generally
required under § 2590.715–
2713(a)(1)(iv): ‘‘I certify that I am
enrolled (or am an authorized
representative of a person who is
enrolled) in an employer-sponsored
health plan or health insurance coverage
that does not provide coverage for all or
a subset of contraceptive services as
generally required under the Affordable
Care Act.’’ A participant or beneficiary
(or an authorized representative of a
participant or beneficiary) may use
other means to confirm to a provider of
contraceptive services that the plan or
coverage is sponsored, provided, or
arranged by an objecting entity and does
not provide coverage for all or a subset
of contraceptive services.
(f) Reliance—insured group health
plans. (1) If an issuer reasonably and in
good faith relies on a representation by
an eligible organization indicating that
the organization is eligible for the
accommodation in paragraph (c) of this
section, and the representation is later
determined to be incorrect, the issuer is
considered to comply with any
applicable requirement under
§ 2590.715–2713(a)(1)(iv) to provide
contraceptive coverage if the issuer
complies with the obligations under this
section applicable to such issuer.
(2) A group health plan is considered
to comply with any applicable
requirement under § 2590.715–
2713(a)(1)(iv) to provide contraceptive
coverage if the plan complies with its
obligations under paragraph (c) of this
section, without regard to whether the
issuer complies with the obligations
under this section applicable to such
issuer.
(g) Definitions. (1) For the purposes of
this section, reference to
‘‘contraceptive’’ services, benefits, or
coverage includes contraceptive or
sterilization items, procedures, or
services, or related patient education or
counseling, to the extent specified for
purposes of § 2590.715–2713(a)(1)(iv).
(2) For the purposes of this section,
the term ‘‘provider of contraceptive
services’’ means any health care
provider (including a clinician,
pharmacy, or other facility) acting
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within the scope of that provider’s
license, certification, or authority under
applicable law to provide contraceptive
services (as defined in paragraph (g)(1)
of this section).
(h) Severability. Any provision of this
section held to be invalid or
unenforceable by its terms, or as applied
to any person or circumstance, shall be
construed so as to continue to give
maximum effect to the provision
permitted by law, unless such holding
shall be one of utter invalidity or
unenforceability, in which event the
provision shall be severable from this
section and shall not affect the
remainder thereof or the application of
the provision to persons not similarly
situated or to dissimilar circumstances.
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
For the reasons stated in the
preamble, the Department of Health and
Human Services proposes to amend 45
CFR parts 147 and 156 as set forth
below:
PART 147—HEALTH INSURANCE
REFORM REQUIREMENTS FOR THE
GROUP AND INDIVIDUAL HEALTH
INSURANCE MARKETS
7. The authority citation for part 147
continues to read as follows:
■
Authority: 42 U.S.C. 300gg through 300gg–
63, 300gg–91, 300gg–92, and 300gg–111
through 300gg–139, as amended, and section
3203, Pub. L. 116–136, 134 Stat. 281.
8. Section 147.130 is amended by
revising paragraphs (a)(1) introductory
text and (a)(1)(iv) to read as follows:
■
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§ 147.130
services.
Coverage of preventive health
(a) * * *
(1) In general. Beginning at the time
described in paragraph (b) of this
section, a group health plan, or a health
insurance issuer offering group or
individual health insurance coverage,
must provide coverage for and must not
impose any cost-sharing requirements
(such as a copayment, coinsurance, or a
deductible) for—
*
*
*
*
*
(iv) With respect to women, such
additional preventive care and
screenings not described in paragraph
(a)(1)(i) of this section as provided for in
evidence-informed comprehensive
guidelines supported by the Health
Resources and Services Administration
for purposes of section 2713(a)(4) of the
Public Health Service Act, subject to
§§ 147.131 and 147.132; and
*
*
*
*
*
■ 9. Section 147.131 is revised to read
as follows:
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Jkt 259001
§ 147.131 Alternate availability of certain
preventive health services.
(a) Organizations eligible for optional
accommodations and individuals
eligible for individual contraceptive
arrangements. (1) An eligible
organization is an organization that
meets the criteria of paragraphs (a)(1)(i)
through (iii) of this section.
(i) The organization is an objecting
entity described in § 147.132(a)(1)(i)
through (iii);
(ii) Notwithstanding its exempt status
under § 147.132(a), the organization
voluntarily seeks to be considered an
eligible organization to invoke the
optional accommodation under
paragraph (b) of this section; and
(iii) The organization self-certifies in
the form and manner specified by the
Secretary of Health and Human Services
or provides notice to the Secretary of
Health and Human Services as
described in paragraph (b) of this
section. To qualify as an eligible
organization, the organization must
make such self-certification or notice
available for examination upon request
by the first day of the first plan year to
which the accommodation in paragraph
(b) of this section applies. The selfcertification or notice must be executed
by a person authorized to make the
certification or provide the notice on
behalf of the organization and must be
maintained in a manner consistent with
the record retention requirements under
section 107 of ERISA.
(2) An eligible organization may
revoke its use of the accommodation
under paragraph (b) of this section, and
its issuer must provide participants and
beneficiaries written notice of the
revocation; the eligible organization’s
revocation of the accommodation will
be effective no sooner than the first day
of the first plan year that begins on or
after 30 days after the date of the
revocation.
(3) An eligible individual is an
individual who—
(i) Is a participant or beneficiary
enrolled in a group health plan
established or maintained, or an
enrollee in individual health insurance
coverage offered or arranged, by an
objecting entity described in
§ 147.132(a) that, to the extent eligible,
has not invoked the optional
accommodation under paragraph (b) of
this section; and
(ii) Confirms (such as by making an
attestation) to a provider of
contraceptive services that agrees to
meet the conditions in paragraph (d)(1)
of this section that the individual is
enrolled in a group health plan or group
or individual health insurance coverage
that does not provide coverage for all or
PO 00000
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7277
a subset of contraceptive services as
generally required under
§ 147.130(a)(1)(iv).
(b) Optional accommodation—
insured group health plans. (1) A group
health plan established or maintained
by an eligible organization that provides
benefits through one or more group
health insurance issuers may
voluntarily elect an optional
accommodation under which its health
insurance issuer(s) will provide
payments for all or a subset of
contraceptive services for one or more
plan years. To invoke the optional
accommodation process:
(i) The eligible organization or its plan
must contract with one or more health
insurance issuers.
(ii) The eligible organization must
provide either a copy of the selfcertification to each issuer it contracts
with to provide coverage in connection
with the plan or a notice to the
Secretary of Health and Human Services
that it is an eligible organization and of
its objection as described in § 147.132 to
coverage for all or a subset of
contraceptive services.
(A) When a copy of the selfcertification is provided directly to an
issuer, the issuer has sole responsibility
for providing such coverage in
accordance with § 147.130(a)(1)(iv).
(B) When a notice is provided to the
Secretary of Health and Human
Services, the notice must include the
name of the eligible organization; a
statement that it objects as described in
§ 147.132 to coverage of some or all
contraceptive services (including an
identification of the subset of
contraceptive services to which
coverage the eligible organization
objects, if applicable), but that it would
like to elect the optional
accommodation process; the plan name
and type (that is, whether it is student
health insurance coverage within the
meaning of § 147.145(a) or a church
plan within the meaning of section 3(33)
of ERISA or section 414(e) of the
Internal Revenue Code); and the name
and contact information for any of the
plan’s health insurance issuers. If there
is a change in any of the information
required to be included in the notice,
the eligible organization must provide
updated information to the Secretary of
Health and Human Services for the
optional accommodation to remain in
effect. The Department of Health and
Human Services will send a separate
notification to each of the plan’s health
insurance issuers informing the issuer
that the Secretary of Health and Human
Services has received a notice under
paragraph (b)(1)(ii) of this section and
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describing the obligations of the issuer
under this section.
(2) If an issuer receives a copy of the
self-certification from an eligible
organization or the notification from the
Department of Health and Human
Services as described in paragraph
(b)(1)(ii) of this section and does not
have an objection as described in
§ 147.132 to providing the contraceptive
services identified in the selfcertification or the notification from the
Department of Health and Human
Services, the issuer will provide
payments for contraceptive services as
follows—
(i) The issuer must expressly exclude
contraceptive coverage from the group
health insurance coverage provided in
connection with the group health plan
and provide separate payments for any
contraceptive services required to be
covered under § 147.130(a)(1)(iv) for
plan participants and beneficiaries for
so long as they remain enrolled in the
plan.
(ii) With respect to payments for
contraceptive services, the issuer may
not impose any cost-sharing
requirements (such as a copayment,
coinsurance, or a deductible), premium,
fee, or other charge, or any portion
thereof, directly or indirectly, on the
eligible organization, the group health
plan, or plan participants or
beneficiaries. The issuer must segregate
premium revenue collected from the
eligible organization from the monies
used to provide payments for
contraceptive services. The issuer must
provide payments for contraceptive
services in a manner that is consistent
with the requirements under sections
2706, 2709, 2711, 2713, 2719, and
2799A–7 of the PHS Act. If the group
health plan of the eligible organization
provides coverage for some but not all
of any contraceptive services required to
be covered under § 147.130(a)(1)(iv), the
issuer is required to provide payments
only for those contraceptive services for
which the group health plan does not
provide coverage. However, the issuer
may provide payments for all
contraceptive services at the issuer’s
option.
(3) A health insurance issuer may not
require any documentation other than a
copy of the self-certification from the
eligible organization or the notification
from the Department of Health and
Human Services described in paragraph
(b)(1)(ii) of this section.
(c) Notice of availability of separate
payments for contraceptive services—
insured group health plans and student
health insurance coverage. For each
plan year to which the optional
accommodation in paragraph (b) of this
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18:46 Feb 01, 2023
Jkt 259001
section is to apply, an issuer required to
provide payments for contraceptive
services pursuant to paragraph (b) of
this section must provide to plan
participants and beneficiaries written
notice of the availability of separate
payments for contraceptive services
contemporaneous with (to the extent
possible), but separate from, any
application materials distributed in
connection with enrollment (or reenrollment) in group health coverage
that is effective beginning on the first
day of each applicable plan year. The
notice must specify that the eligible
organization does not administer or
fund contraceptive benefits, but that the
issuer provides separate payments for
contraceptive services, and must
provide contact information for
questions and complaints. The
following model language, or
substantially similar language, may be
used to satisfy the notice requirement of
this paragraph (c): ‘‘Your [employer/
institution of higher education] has
certified that your [group health plan/
student health insurance coverage]
qualifies for an accommodation with
respect to the Federal requirement to
cover contraceptive services for women,
including all Food and Drug
Administration-approved, cleared, or
granted contraceptives, as prescribed by
a health care provider, without cost
sharing. This means that your
[employer/institution of higher
education] will not contract, arrange,
pay, or refer for contraceptive coverage.
Instead, [name of health insurance
issuer] will provide separate payments
for contraceptive services that you use,
without cost sharing and at no other
cost, for so long as you are enrolled in
your [group health plan/student health
insurance coverage]. Your [employer/
institution of higher education] will not
administer or fund these payments. If
you have any questions about this
notice, contact [contact information for
health insurance issuer].’’
(d) Individual contraceptive
arrangements for eligible individuals.
(1) An eligible individual may elect an
individual contraceptive arrangement
under which a willing provider of
contraceptive services furnishes the
eligible individual with contraceptive
services that a group health plan or
health insurance issuer would have
been required to cover pursuant to
§ 147.130(a)(1)(iv), if not for the plan’s
or issuer’s exempt status under
§ 147.132(a). Under this individual
contraceptive arrangement, the willing
provider of contraceptive services must
furnish contraceptive services
(including items and services that are
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integral to the furnishing of the
contraceptive services) to the eligible
individual without imposing a fee or
charge of any kind, directly or
indirectly, on the eligible individual or
any other entity for the cost of the items
and services or any portion thereof,
except that the provider of contraceptive
services may seek payment from, and be
reimbursed by, an issuer for the costs of
providing the items and services
through an adjustment to the issuer’s
federally-facilitated Exchange or State
Exchange on the Federal platform user
fees pursuant to § 156.50(d) of this
subchapter.
(2) The following language may, but is
not required to, be used by a participant,
beneficiary, or enrollee (or an
authorized representative of a
participant, beneficiary, or enrollee) to
confirm to a provider of contraceptive
services that the plan or coverage is
sponsored, provided, or arranged by an
objecting entity and does not provide
coverage for all or a subset of
contraceptive services as generally
required under § 147.130(a)(1)(iv): ‘‘I
certify that I am enrolled (or am an
authorized representative of a person
who is enrolled) in an employersponsored health plan or individual
health insurance coverage that does not
provide coverage for all or a subset of
contraceptive services as generally
required under the Affordable Care
Act.’’ A participant, beneficiary, or
enrollee (or an authorized representative
of a participant, beneficiary, or enrollee)
may use other means to confirm to a
provider of contraceptive services that
the plan or coverage is sponsored,
provided, or arranged by an objecting
entity and does not provide coverage for
all or a subset of contraceptive services.
(e) Reliance. (1) If an issuer
reasonably and in good faith relies on a
representation by an eligible
organization indicating that the
organization is eligible for the
accommodation in paragraph (b) of this
section, and the representation is later
determined to be incorrect, the issuer is
considered to comply with any
applicable requirement under
§ 147.130(a)(1)(iv) to provide
contraceptive coverage if the issuer
complies with the obligations under this
section applicable to such issuer.
(2) A group health plan is considered
to comply with any applicable
requirement under § 147.130(a)(1)(iv) to
provide contraceptive coverage if the
plan complies with its obligations under
paragraph (b) of this section, without
regard to whether the issuer complies
with the obligations under this section
applicable to such issuer.
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(f) Rule of construction. In the case of
student health insurance coverage, this
section is applicable in the same
manner as it is applicable to group
health insurance coverage provided in
connection with a group health plan
established or maintained by a plan
sponsor that is an employer, and
references to ‘‘plan participants and
beneficiaries’’ will be interpreted as
references to student enrollees and their
covered dependents.
(g) Definitions. (1) For the purposes of
this section, reference to
‘‘contraceptive’’ services, benefits, or
coverage includes contraceptive or
sterilization items, procedures, or
services, or related patient education or
counseling, to the extent specified for
purposes of § 147.130(a)(1)(iv).
(2) For the purposes of this section,
the term ‘‘provider of contraceptive
services’’ means any health care
provider (including a clinician,
pharmacy, or other facility) acting
within the scope of that provider’s
license, certification, or authority under
applicable law to provide contraceptive
services (as defined in paragraph (g)(1)
of this section).
(h) Severability. Any provision of this
section held to be invalid or
unenforceable by its terms, or as applied
to any person or circumstance, shall be
construed so as to continue to give
maximum effect to the provision
permitted by law, unless such holding
shall be one of utter invalidity or
unenforceability, in which event the
provision shall be severable from this
section and shall not affect the
remainder thereof or the application of
the provision to persons not similarly
situated or to dissimilar circumstances.
■ 10. Section 147.132 is amended by
revising paragraphs (a)(1)(i)
introductory text, (a)(1)(iv), and (b) to
read as follows:
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§ 147.132 Religious exemptions in
connection with coverage of certain
preventive health services.
(a) * * *
(1) * * *
(i) A group health plan and health
insurance coverage provided in
connection with a group health plan, to
the extent the non-governmental
sponsor of the plan or coverage objects
as specified in paragraph (a)(2) of this
section. Such non-governmental plan
sponsors include the following
entities—
*
*
*
*
*
(iv) A health insurance issuer offering
group or individual health insurance
coverage to the extent the issuer objects
as specified in paragraph (a)(2) of this
section. Where a health insurance issuer
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18:46 Feb 01, 2023
Jkt 259001
providing group health insurance
coverage is exempt under this paragraph
(a)(1)(iv), the group health plan
established or maintained by the plan
sponsor with which the health
insurance issuer contracts remains
subject to any requirement to provide
coverage for contraceptive services
under guidelines issued under
§ 147.130(a)(1)(iv) unless it is also
exempt from that requirement.
Notwithstanding §§ 146.150 of this
subchapter and 147.104, a health
insurance issuer may not offer coverage
that excludes some or all contraceptive
services to any entity or individual that
is not an objecting entity or objecting
individual under paragraph (a) or (b) of
this section, respectively.
*
*
*
*
*
(b) Objecting individuals. (1)
Guidelines issued under
§ 147.130(a)(1)(iv) by the Health
Resources and Services Administration
must not provide for or support the
requirement of coverage or payments for
contraceptive services with respect to an
individual who objects to coverage or
payments for some or all contraceptive
services based on sincerely held
religious beliefs. Thus, the following
entities will be exempt from any Health
Resources and Services Administration
guidelines requirements that relate to
the provision of contraceptive services
with respect to such an individual:
(i) A health insurance issuer offering
group or individual health insurance
coverage willing to provide the plan
sponsor (with respect to the individual)
or individual, as applicable, with a
separate policy, certificate, or contract
of insurance; or
(ii) A group health plan willing to
provide the individual a separate group
health plan or benefit package option.
(2) For purposes of this paragraph (b),
if an individual objects to some but not
all contraceptive services and the issuer,
to the extent permitted by applicable
State law, and the plan sponsor, as
applicable, are willing to provide the
plan sponsor or individual, as
applicable, with a separate policy,
certificate or contract of insurance or a
separate group health plan or benefit
package option that omits all
contraceptives, and the individual
agrees, then the exemption applies as if
the individual objects to all
contraceptive services.
*
*
*
*
*
§ 147.133
■
[Removed]
11. Section 147.133 is removed.
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7279
PART 156—HEALTH INSURANCE
ISSUER STANDARDS UNDER THE
AFFORDABLE CARE ACT, INCLUDING
STANDARDS RELATED TO
EXCHANGES
12. The authority citation for part 156
continues to read as follows:
■
Authority: 42 U.S.C. 18021–18024, 18031–
18032, 18041–18042, 18044, 18054, 18061,
18063, 18071, 18082, and 26 U.S.C. 36B.
13. Section 156.50 is amended in
paragraph (a) by adding the definition of
‘‘provider of contraceptive services’’ in
alphabetical order and revising
paragraph (d) to read as follows:
■
§ 156.50
Financial support.
(a) * * *
Provider of contraceptive services has
the meaning given to the term in
§ 147.131(g)(2) of this subchapter.
*
*
*
*
*
(d) Adjustment of Exchange user fees.
(1) A participating issuer offering a plan
through a Federally-facilitated Exchange
or State Exchange on the Federal
platform may qualify for an adjustment
of the federally-facilitated Exchange
user fee specified in paragraph (c)(1) of
this section or the State Exchange on the
Federal platform user fee specified in
paragraph (c)(2) of this section, to the
extent that the participating issuer—
(i) Made payments for contraceptive
services on behalf of a third party
administrator pursuant to 26 CFR
54.9815–2713A(b)(2)(ii) or 29 CFR
2590.715–2713A(b)(2)(ii);
(ii) Seeks an adjustment in the
Federally-facilitated Exchange user fee
or State Exchange on the Federal
platform user fee with respect to a third
party administrator that, following
receipt of a copy of the self-certification
referenced in 26 CFR 54.9815–
2713A(a)(1)(iii) or 29 CFR 2590.715–
2713A(a)(1)(iii), made or arranged for
payments for contraceptive services
pursuant to 26 CFR 54.9815–
2713A(b)(2)(i) or (ii) or 29 CFR
2590.715–2713A(b)(2)(i) or (ii); or
(iii) Seeks an adjustment in the
federally-facilitated Exchange user fee
or State Exchange on the Federal
platform user fee with respect to a
provider of contraceptive services that,
following receipt of a representation by
or on behalf of an individual that the
individual is an eligible individual (as
defined in 26 CFR 54.9815–2713A(a)(3),
29 CFR 2590.715–2713A(a)(3), or
§ 147.131(a)(3) of this subchapter),
furnished contraceptive services to the
eligible individual, without imposing a
fee or charge of any kind, directly or
indirectly, on the eligible individual or
any other entity for the cost of the items
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Federal Register / Vol. 88, No. 22 / Thursday, February 2, 2023 / Proposed Rules
and services or any portion thereof
pursuant to 26 CFR 54.9815–2713A(e),
29 CFR 2590.715–2713A(e), or
§ 147.131(d) of this subchapter.
(2) For a participating issuer
described in paragraph (d)(1) of this
section to receive an adjustment of a
user fee under this section—
(i) The participating issuer must
submit to HHS, in the manner and
timeframe specified by HHS, in the year
immediately following the calendar year
in which the contraceptive services for
which payments pursuant to 26 CFR
54.9815–2713A(b)(2) or (e), 29 CFR
2590.715–2713A(b)(2) or (e), or
§ 147.131(d) of this subchapter were
provided—
(A) Identifying information for the
participating issuer and each third party
administrator that received a copy of the
self-certification referenced in 26 CFR
54.9815–2713A(a)(1)(iii) or 29 CFR
2590.715–2713A(a)(1)(iii), whether or
not the participating issuer was the
entity that made the payments for
contraceptive services, and each
provider of contraceptive services that
furnished contraceptive services in
compliance with 26 CFR 54.9815–
2713A(e), 29 CFR 2590.715–2713A(e),
or 45 CFR 147.131(d) to an eligible
individual (as defined in 26 CFR
54.9815–2713A(a)(3), 29 CFR 2590.715–
2713A(a)(3), or § 147.131(a)(3) of this
subchapter), with respect to which the
participating issuer seeks an adjustment
of the user fee specified in paragraph
(c)(1) or (2) of this section, as applicable;
(B) Identifying information for each
self-insured group health plan with
respect to which a copy of the selfcertification referenced in 26 CFR
54.9815–2713A(a)(1)(iii) or 29 CFR
2590.715–2713A(a)(1)(iii) was received
by a third party administrator, and with
respect to which the participating issuer
seeks an adjustment of the user fee
specified in paragraph (c)(1) or (2) of
this section, as applicable;
(C) For each such self-insured group
health plan, the total dollar amount of
the payments that were made pursuant
to 26 CFR 54.9815–2713A(b)(2) or 29
CFR 2590.715–2713A(b)(2) for
contraceptive services that were
provided during the applicable calendar
year. If such payments were made by
the participating issuer directly as
described in paragraph (d)(1)(i) of this
section, the total dollar amount should
reflect the amount of the payments
made by the participating issuer; if the
third party administrator made or
arranged for such payments, as
described in paragraph (d)(1)(ii) of this
section, the total dollar amount should
reflect the amount reported to the
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18:46 Feb 01, 2023
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participating issuer by the third party
administrator;
(D) Documentation, with respect to
each provider of contraceptive services,
demonstrating that the participating
issuer and the provider of contraceptive
services have a signed written
agreement providing that the
participating issuer will reimburse (or
has reimbursed) the provider of
contraceptive services for the costs of
furnishing contraceptive services during
the applicable calendar year in
compliance with 26 CFR 54.9815–
2713A(e), 29 CFR 2590.715–2713A(e),
or § 147.131(d) of this subchapter, and
will seek an adjustment of the user fee
specified in paragraph (c)(1) or (2) of
this section as a result of the agreement
to reimburse the provider’s costs under
26 CFR 54.9815–2713A(e), 29 CFR
2590.715–2713A(e), or § 147.131(d) of
this subchapter; and
(E) For each provider of contraceptive
services as specified in paragraph
(d)(2)(i)(A) of this section, the total
dollar amount of the costs of furnishing
contraceptive services during the
applicable calendar year pursuant to 26
CFR 54.9815–2713A(e), 29 CFR
2590.715–2713A(e), or § 147.131(d) of
this subchapter.
(ii) Each third party administrator that
intends to seek an adjustment on behalf
of a participating issuer of the Federallyfacilitated Exchange user fee or the
State-based Exchange on the Federal
platform user fee based on payments for
contraceptive services, must submit to
HHS a notification of such intent, in a
manner specified by HHS, by the 60th
calendar day following the date on
which the third party administrator
receives the applicable copy of the selfcertification referenced in 26 CFR
54.9815–2713A(a)(1)(iii) or 29 CFR
2590.715–2713A(a)(1)(iii).
(iii) Each third party administrator
identified in paragraph (d)(2)(i)(A) of
this section must submit to HHS, in the
manner and timeframe specified by
HHS, in the year following the calendar
year in which the contraceptive services
for which payments were made
pursuant to 26 CFR 54.9815–
2713A(b)(2) or 29 CFR 2590.715–
2713A(b)(2) were provided—
(A) Identifying information for the
third party administrator and the
participating issuer;
(B) Identifying information for each
self-insured group health plan with
respect to which a copy of the selfcertification referenced in 26 CFR
54.9815–2713A(a)(1)(iii) or 29 CFR
2590.715–2713A(a)(1)(iii) was received
by the third party administrator and
with respect to which the participating
issuer seeks an adjustment of the user
PO 00000
Frm 00046
Fmt 4701
Sfmt 4702
fee specified in paragraph (c)(1) or (2) of
this section, as applicable;
(C) The total number of participants
and beneficiaries in each such selfinsured group health plan during the
applicable calendar year; and
(D) For each such self-insured group
health plan with respect to which the
third party administrator made
payments pursuant to 26 CFR 54.9815–
2713A(b)(2) or 29 CFR 2590.715–
2713A(b)(2) for contraceptive services,
the total dollar amount of such
payments that were provided during the
applicable calendar year. If such
payments were made by the
participating issuer directly as described
in paragraph (d)(1)(i) of this section, the
total dollar amount should reflect the
amount reported to the third party
administrator by the participating
issuer; if the third party administrator
made or arranged for such payments, as
described in paragraph (d)(1)(ii) of this
section, the total dollar amount should
reflect the amount of the payments
made by or on behalf of the third party
administrator.
(E) An attestation that the payments
for contraceptive services were made in
compliance with 26 CFR 54.9815–
2713A(b)(2) or 29 CFR 2590.715–
2713A(b)(2).
(3) If the requirements set forth in
paragraph (d)(2) of this section are met,
the participating issuer will be provided
a reduction in its obligation to pay the
user fee specified in paragraph (c)(1) or
(2) of this section, as applicable, equal
in value to the sum of the following:
(i) The total dollar amount of the
payments for contraceptive services
submitted by the applicable third party
administrators, as described in
paragraph (d)(2)(iii)(D) of this section;
(ii) The total dollar amount of the
costs of furnishing contraceptive
services submitted by the participating
issuer on behalf of applicable providers
of contraceptive services, described in
paragraph (d)(2)(i)(E) of this section; and
(iii) An allowance for administrative
costs and margin. The allowance will be
no less than 10 percent of the total
dollar amount of the payments for
contraceptive services and the costs of
furnishing contraceptive services
specified in paragraphs (d)(3)(i) and
(d)(3)(ii) of this section. Unless a new
allowance is specified for an applicable
year in the HHS notice of benefit and
payment parameters or other
rulemaking, HHS will maintain the
allowance that was last specified in
rulemaking.
(4) If the amount of the adjustment
under paragraph (d)(3) of this section is
greater than the amount of the
participating issuer’s obligation to pay
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the user fee specified in paragraph (c)(1)
or (2) of this section, as applicable, in
a particular month, the participating
issuer will be provided a credit in
succeeding months in the amount of the
excess.
(5) The participating issuer may
reimburse each third party
administrator and provider of
contraceptive services for payments for
contraceptive services submitted by the
third party administrator or the provider
of contraceptive services’ costs of
furnishing contraceptive services, as
described in paragraphs (d)(2)(iii)(D)
and (d)(2)(i)(E) of this section, as soon
as the services are delivered. The
participating issuer must pay, within 60
days of receipt of any adjustment of a
user fee under this section, each third
party administrator and provider of
contraceptive services with respect to
which it received any portion of such
adjustment an amount that is no less
than the portion of the adjustment
attributable to the total dollar amount of
the payments for services submitted by
the third party administrator or the
provider of contraceptive services’ costs
of furnishing contraceptive services, as
described in paragraphs (d)(2)(iii)(D)
and (d)(2)(i)(E) of this section. No
payment to a third administrator or
provider of contraceptive services is
required with respect to the allowance
for administrative costs and margin
described in paragraph (d)(3)(iii) of this
section. This paragraph does not apply
if the participating issuer made the
payments for contraceptive services on
behalf of the third party administrator,
as described in paragraph (d)(1)(i) of
this section, or is in the same issuer
group as the third party administrator.
(6) A participating issuer that receives
an adjustment in the user fee specified
in paragraph (c)(1) or (2) of this section
for a particular calendar year must
maintain for 10 years following that
year, and make available upon request
to HHS, the Office of the Inspector
General, the Comptroller General, and
their designees, documentation
demonstrating that it timely paid each
third party administrator and provider
with respect to which it received any
such adjustment any amount required to
be paid to the third party administrator
or provider under paragraph (d)(5) of
this section.
(7) A third party administrator of a
plan with respect to which an
adjustment of the user fee specified in
paragraph (c)(1) or (2) of this section is
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18:46 Feb 01, 2023
Jkt 259001
received under this section for a
particular calendar year must maintain
for 10 years following that year, and
make available upon request to HHS,
the Office of the Inspector General, the
Comptroller General, and their
designees, all of the following
documentation:
(i) A copy of the self-certification
referenced in 26 CFR 54.9815–
2713A(a)(1)(iii) or 29 CFR 2590.715–
2713A(a)(1)(iii) for each self-insured
plan with respect to which an
adjustment is received.
(ii) Documentation demonstrating that
the payments for contraceptive services
were made in compliance with 26 CFR
54.9815–2713A(b)(2) or 29 CFR
2590.715–2713A(b)(2).
(iii) Documentation supporting the
total dollar amount of the payments for
contraceptive services submitted by the
third party administrator, as described
in paragraph (d)(2)(iii)(D) of this section.
(8) A provider of contraceptive
services that has furnished
contraceptive services in compliance
with the individual contraceptive
arrangement, with respect to which a
participating issuer received an
adjustment of the user fee specified in
paragraph (c)(1) or (2) of this section for
a particular calendar year must, as a
condition of participating in the
individual contraceptive arrangement,
maintain for 10 years following the
contraceptive service being provided,
and make available upon request to
HHS, the Office of the Inspector
General, the Comptroller General, and
their designees, all of the following
documentation:
(i) Documentation demonstrating that
the provider of contraceptive services
furnished contraceptive services in
compliance with 26 CFR 54.9815–
2713A(e), 29 CFR 2590.715–2713A(e),
or § 147.131(d) of this subchapter.
(ii) Documentation supporting the
total dollar amount of the costs of
furnishing contraceptive services
submitted by the provider of
contraceptive services under paragraph
(d)(2)(i)(E) of this section.
(9) If a provider of contraceptive
services relies reasonably and in good
faith on a representation by or on behalf
of an individual that the individual is
an eligible individual (as defined in 26
CFR 54.9815–2713A(a)(3), 29 CFR
2590.715–2713A(a)(3), or § 147.131(a)(3)
of this subchapter), and the
representation is later determined to be
incorrect, the provider of contraceptive
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Fmt 4701
Sfmt 9990
7281
services is considered to comply with
the applicable requirements under
paragraphs (d)(1)(iii), (d)(2)(i)(A), and
(d)(8)(i) of this section.
(10) If a participating issuer relies
reasonably and in good faith on a
representation by a provider of
contraceptive services that the provider
of contraceptive services furnished
contraceptive services to an eligible
individual (as defined in 26 CFR
54.9815–2713A(a)(3), 29 CFR 2590.715–
2713A(a)(3), or § 147.131(a)(3) of this
subchapter), without imposing a fee or
charge of any kind, directly or
indirectly, on the eligible individual or
any other entity for the cost of the items
and services or any portion thereof, and
the representation that the provider of
contraceptive services received from or
on behalf of the individual is later
determined to be incorrect, the
participating issuer is considered to
comply with the applicable
requirements under paragraphs
(d)(1)(iii) and (d)(2)(i)(A) of this section.
(11) If a participating issuer relies
reasonably and in good faith on a
representation by a provider of
contraceptive services that the provider
of contraceptive services furnished
contraceptive services to an eligible
individual (as defined in 26 CFR
54.9815–2713A(a)(3), 29 CFR 2590.715–
2713A(a)(3), or § 147.131(a)(3) of this
subchapter), without imposing a fee or
charge of any kind, directly or
indirectly, on the eligible individual or
any other entity for the cost of the items
and services or any portion thereof, and
the representation by the provider of
contraceptive services is determined to
be incorrect after the participating issuer
has paid the provider of contraceptive
services the amount described in
(d)(2)(i)(E) of this section, the
participating issuer is considered to
comply with the applicable
requirements under paragraphs
(d)(1)(iii) and (d)(2)(i)(A) of this section.
Melanie R. Krause,
Acting Deputy Commissioner for Services and
Enforcement, Internal Revenue Service.
Lisa M. Gomez,
Assistant Secretary, Employee Benefits
Security Administration, Department of
Labor.
Xavier Becerra,
Secretary, Department of Health and Human
Services.
[FR Doc. 2023–01981 Filed 1–30–23; 11:15 am]
BILLING CODE 4150–28–P
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Agencies
[Federal Register Volume 88, Number 22 (Thursday, February 2, 2023)]
[Proposed Rules]
[Pages 7236-7281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01981]
[[Page 7235]]
Vol. 88
Thursday,
No. 22
February 2, 2023
Part IV
Department of the Treasury
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Internal Revenue Service
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26 CFR Part 54
Department of Labor
-----------------------------------------------------------------------
Employee Benefits Security Administration
-----------------------------------------------------------------------
29 CFR Part 2590
Department of Health and Human Services
-----------------------------------------------------------------------
45 CFR Parts 147 and 156
Coverage of Certain Preventive Services Under the Affordable Care Act;
Proposed Rule
Federal Register / Vol. 88, No. 22 / Thursday, February 2, 2023 /
Proposed Rules
[[Page 7236]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 54
[REG 124930-21]
RIN 1545-BQ35
DEPARTMENT OF LABOR
Employee Benefits Security Administration
29 CFR Part 2590
RIN 1210-AC13
DEPARTMENT OF HEALTH AND HUMAN SERVICES
45 CFR Parts 147 and 156
[CMS-9903-P]
RIN 0938-AU94
Coverage of Certain Preventive Services Under the Affordable Care
Act
AGENCY: Internal Revenue Service, Department of the Treasury; Employee
Benefits Security Administration, Department of Labor; Centers for
Medicare & Medicaid Services, Department of Health and Human Services.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: These proposed rules would amend regulations regarding
coverage of certain preventive services under the Patient Protection
and Affordable Care Act, which requires non-grandfathered group health
plans and non-grandfathered group or individual health insurance
coverage to cover certain contraceptive services without cost sharing.
Current regulations include exemptions and optional accommodations for
entities and individuals with religious or moral objections to coverage
of contraceptive services. These rules propose rescinding the moral
exemption rule. These proposed rules also would establish a new
individual contraceptive arrangement that individuals enrolled in plans
or coverage sponsored, arranged, or provided by objecting entities may
use to obtain contraceptive services at no cost directly from a
provider or facility that furnishes contraceptive services.
Contraceptive services would be available through the proposed
individual contraceptive arrangement without any involvement on the
part of an objecting entity. Under these proposed rules, a provider or
facility that furnishes contraceptive services in accordance with the
individual contraceptive arrangement for eligible individuals would be
able to be reimbursed for its costs by entering into an arrangement
with an issuer on a Federally-facilitated Exchange or State Exchange on
the Federal platform, which in turn may seek a user fee adjustment.
DATES: To be assured consideration, comments must be received at one of
the addresses provided below, by April 3, 2023.
ADDRESSES: In commenting, please refer to file code CMS-9903-P.
Comments, including mass comment submissions, must be submitted in
one of the following three ways (please choose only one of the ways
listed):
1. Electronically. You may submit electronic comments on this
regulation to https://www.regulations.gov. Follow the ``Submit a
comment'' instructions.
2. By regular mail. You may mail written comments to the following
address ONLY: Centers for Medicare & Medicaid Services, Department of
Health and Human Services, Attention: CMS-9903-P, P.O. Box 8016,
Baltimore, MD 21244-8016.
Please allow sufficient time for mailed comments to be received
before the close of the comment period.
3. By express or overnight mail. You may send written comments to
the following address ONLY: Centers for Medicare & Medicaid Services,
Department of Health and Human Services, Attention: CMS-9903-P, Mail
Stop C4-26-05, 7500 Security Boulevard, Baltimore, MD 21244-1850.
For information on viewing public comments, see the beginning of
the SUPPLEMENTARY INFORMATION section.
FOR FURTHER INFORMATION CONTACT: Jason Sandoval, Internal Revenue
Service, Department of the Treasury, at (202) 317-5500; Beth Baum or
Matthew Meidell, Employee Benefits Security Administration, Department
of Labor, at (202) 693-8335; David Mlawsky, Centers for Medicare &
Medicaid Services, Department of Health and Human Services, at (410)
786-6851; for matters related to financial support, Allison Yadsko,
Centers for Medicare & Medicaid Services, Department of Health and
Human Services, at (410) 786-1740.
Customer Service Information: Individuals interested in obtaining
information from the Department of Labor (DOL) concerning employment-
based health coverage laws may call the Employee Benefits Security
Administration (EBSA) Toll-Free Hotline at 1-866-444-EBSA (3272) or
visit the DOL's website (www.dol.gov/ebsa). In addition, information
from the Department of Health and Human Services (HHS) on private
health insurance coverage and coverage provided by non-Federal
Governmental group health plans can be found on the Centers for
Medicare & Medicaid Services (CMS) website (www.cms.gov/cciio), and
information on health care reform can be found at www.HealthCare.gov.
SUPPLEMENTARY INFORMATION:
Inspection of Public Comments: Comments received before the close
of the comment period are available for viewing by the public,
including any personally identifiable or confidential business
information that is included in a comment. We post comments received
before the close of the comment period on the following website as soon
as possible after they have been received: https://www.regulations.gov.
Follow the search instructions on that website to view public comments.
CMS will not post on regulations.gov public comments that make threats
to individuals or institutions or suggest that the commenter will take
actions to harm another individual. CMS continues to encourage
individuals not to submit duplicative comments. We will post acceptable
comments from multiple unique commenters even if the content is
identical or nearly identical to other comments.
I. Background
A. Legislative, Regulatory and Judicial History
The Patient Protection and Affordable Care Act (Pub. L. 111-148)
was enacted on March 23, 2010. The Health Care and Education
Reconciliation Act of 2010 (Pub. L. 111-152) was enacted on March 30,
2010. These statutes are collectively known as the Affordable Care Act
(ACA). The ACA reorganized, amended, and added to the provisions of
part A of title XXVII of the Public Health Service Act (PHS Act)
relating to group health plans and health insurance issuers in the
group and individual markets. The ACA added section 715(a)(1) to the
Employee Retirement Income Security Act of 1974 (ERISA) and section
9815(a)(1) to the Internal Revenue Code (Code) to incorporate the
provisions of part A of title XXVII of the PHS Act into ERISA and the
Code, and to make them applicable to group health plans and health
insurance issuers providing health insurance coverage in connection
with group health plans. The sections of the PHS Act incorporated into
ERISA and the Code are sections 2701 through 2728.
[[Page 7237]]
Section 2713 of the PHS Act, as added by the ACA and incorporated
into ERISA and the Code, requires non-grandfathered group health plans
and health insurance issuers offering non-grandfathered group or
individual health insurance coverage to provide coverage of certain
specified preventive services without cost sharing, including, under
section 2713(a)(4) of the PHS Act, benefits for certain women's
preventive health services as provided for in comprehensive guidelines
supported by the Health Resources and Services Administration
(HRSA).1 2 On August 1, 2011, HRSA adopted guidelines for
women's preventive health services (2011 HRSA-Supported Guidelines)
based on recommendations of the independent Institute of Medicine
(IOM), now known as the National Academy of Medicine.\3\ As relevant
here, the 2011 HRSA-Supported Guidelines included sterilization
procedures, patient education and counseling for women with
reproductive capacity, and all Food and Drug Administration (FDA)-
approved, cleared, or granted contraceptives, as prescribed by a health
care provider (collectively, contraceptive services).\4\ Except as
discussed later in this section, non-grandfathered group health plans
and health insurance issuers offering non-grandfathered group or
individual health insurance coverage were required to provide coverage
consistent with the 2011 HRSA-Supported Guidelines, without cost
sharing, for plan years (or, in the individual market, policy years)
beginning on or after August 1, 2012. As fully discussed in footnote 4
of this preamble, the 2011 HRSA-Supported Guidelines have been updated
several times; plans and issuers are currently required to provide
coverage without cost sharing consistent with the HRSA-Supported
Guidelines as amended in 2019.
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\1\ In addition to the specified preventive services addressed
in section 2713 of the PHS Act, section 3203 of the Coronavirus Aid,
Relief, and Economic Security Act (CARES Act), enacted on March 27,
2020, requires non-grandfathered group health plans and health
insurance issuers offering non-grandfathered group or individual
health insurance to cover any qualifying coronavirus preventive
service without cost sharing, pursuant to section 2713(a) of the PHS
Act (including the regulations under 26 CFR 54.9815-2713, 29 CFR
2590.715-2713, and 45 CFR 147.130 (or any successor regulations)).
\2\ The final regulations generally provide that plans and
issuers must cover a preventive service pursuant to a new or changed
recommendation starting with the first plan year (or, in the
individual market, policy year) that begins on or after the date
that is one year after the date on which the new recommendation is
issued. 26 CFR 54.9815-2713(b)(1); 29 CFR 2590.715-2713(b)(1); 45
CFR 147.130(b)(1). Coverage of qualifying coronavirus preventive
services must begin on an expedited timeline. Public Law 116-136,
3203, 134 Stat. 367 (2020); 26 CFR 54.9815-2713T(b)(3); 29 CFR
2590.715-2713(b)(3); 45 CFR 147.130(b)(3).
\3\ The references to ``women'' in these proposed rules should
be considered to include any individual potentially capable of
becoming pregnant, including cisgender women, transgender men, and
non-binary individuals. Plans and issuers are required to cover
contraceptive services for all such individuals consistent with the
requirements in 26 CFR 54.9815-2713, 29 CFR 2590.715-2713, and 45
CFR 147.130. See FAQs About Affordable Care Act Implementation (Part
XXVI) (May 11, 2015), Q5, available at https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/faqs/aca-part-xxvi.pdf and https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/aca_implementation_faqs26.pdf.
\4\ The references in this document to ``contraception,''
``contraceptive,'' ``contraceptive coverage,'' or ``contraceptive
services'' generally include all contraceptives, sterilization, and
related patient education and counseling recommended by the HRSA-
Supported Women's Preventive Services Guidelines, unless otherwise
indicated. The Guidelines issued in 2011 referred to ``Contraceptive
Methods and Counseling'' as ``[a]ll Food and Drug Administration
approved contraceptive methods, sterilization procedures, and
patient education and counseling for all women with reproductive
capacity.'' The Guidelines, as amended in December 2016 refer, under
the header ``Contraception,'' to: ``the full range of female-
controlled U.S. Food and Drug Administration-approved contraceptive
methods, effective family planning practices, and sterilization
procedures,'' ``contraceptive counseling, initiation of
contraceptive use, and follow-up care (e.g., management, and
evaluation as well as changes to and removal or discontinuation of
the contraceptive method),'' and ``instruction in fertility
awareness-based methods, including the lactation amenorrhea
method.'' See https://www.hrsa.gov/womens-guidelines-2016/
index.html. The Guidelines as amended in 2019 maintain the
contraception guideline, and note, under the header
``Contraception'', the applicability of the Religious Exemptions and
Accommodations for Coverage of Certain Preventive Services. See
https://www.hrsa.gov/womens-guidelines-2019. The Guidelines as
amended in December 2021, which are effective for plan years and
policy years beginning on or after December 30, 2022, refer, under
the header ``Contraception,'' to ``the full range of contraceptives
and contraceptive care to prevent unintended pregnancies and improve
birth outcomes.'' Unlike in previous versions of the Guidelines, the
term ``methods'' no longer appears in that phrase, as the FDA does
not and never has approved, granted, or cleared contraceptive
methods, only contraceptive products. With the removal of the phrase
``female-controlled'', all condoms are included in the December 2021
guidelines, which include ``screening, education, counseling, and
provision of contraceptives (including in the immediate postpartum
period)'' including ``follow-up care (e.g., management, evaluation
and changes, including the removal, continuation, and
discontinuation of contraceptives).'' The 2021 Guidelines include
``the full range of U.S. Food and Drug Administration (FDA)-
approved, -granted, or -cleared contraceptives, effective family
planning practices, and sterilization procedures be available as
part of contraceptive care.'' The 2021 Guidelines do not include
sterilization surgery for men. See https://www.hrsa.gov/womens-guidelines/. The following sentence appears in the
December 2016 Guidelines: ``Additionally, instruction in fertility
awareness-based methods, including the lactation amenorrhea method,
although less effective, should be provided for women desiring an
alternative method.'' Although that specific sentence does not
appear in the December 2021 Guidelines, HRSA maintains that other
language in the December 2021 Guidelines establishes that such
instruction is included in those Guidelines. Additionally, the U.S.
District Court for the Eastern District of Texas has issued a
temporary restraining order and preliminary injunction that the
effective date of the deletion of that sentence from the December
2021 Guidelines is delayed until further order of the Court, and as
a consequence the sentence remains in those Guidelines. The Court
enjoined HRSA and all persons in active concert or participation
with them from using or applying the December 2021 Guidelines to
delete the above language, thereby maintaining that current language
unless and until it is changed through a final rule issued after
notice to the public and an opportunity to comment. Tice-Harouff v.
Johnson, 6:22-cv-201-JDK (E.D. Tex. Aug. 12, 2022).
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HHS, DOL, and the Department of the Treasury (collectively, the
Departments) previously issued rules and guidance implementing section
2713 of the PHS Act, including guidance specific to coverage of
contraceptive services.\5\ The Departments also previously issued rules
providing exemptions from the contraceptive coverage requirement for
entities and individuals with moral or religious objections to
contraceptive coverage, and accommodations through which objecting
entities are not required to contract, arrange, pay, or provide a
referral for contraceptive coverage while at the same time ensuring
that participants, beneficiaries, and enrollees enrolled in coverage
sponsored or arranged by an objecting entity could separately obtain
contraceptive services at no cost. Specifically, the Departments have
issued:
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\5\ See section II.B of the preamble for a description of the
applicable guidance.
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Interim final rules on July 19, 2010, at 75 FR 41726 (July
2010 interim final rules), which implemented the preventive services
requirements of section 2713 of the PHS Act;
Interim final rules amending the July 2010 interim final
rules on August 3, 2011, at 76 FR 46621 (August 2011 interim final
rules), which provided HRSA with the authority to exempt group health
plans established or maintained by certain religious employers (and
group health insurance coverage provided in connection with those
plans) from the requirement to cover contraceptive services consistent
with the HRSA-Supported Guidelines;
Final rules on February 15, 2012, at 77 FR 8725 (February
2012 final rules), which finalized the definition of ``religious
employer'' in the August 2011 interim final rules without modification;
An advanced notice of proposed rulemaking on March 21,
2012, at 77 FR 16501 (March 2012 ANPRM), soliciting comments on how to
provide for coverage of recommended preventive services, including
contraceptive services, without cost sharing, while
[[Page 7238]]
simultaneously ensuring that certain nonprofit organizations with
religious objections to contraceptive coverage would not be required to
contract, arrange, pay, or provide a referral for that coverage;
Proposed rules on February 6, 2013, at 78 FR 8456
(February 2013 proposed rules), which proposed to simplify and clarify
the definition of ``religious employer'' for purposes of the religious
employer exemption, and proposed accommodations for group health plans
established or maintained by certain nonprofit religious organizations
with religious objections to contraceptive coverage (and group health
insurance coverage provided in connection with those plans) and for
insured student health plans arranged by certain nonprofit religious
organizations that are institutions of higher education with religious
objections to contraceptive coverage;
Final rules on July 2, 2013, at 78 FR 39870 (July 2013
final rules), which simplified and clarified the definition of
``religious employer'' for purposes of the religious employer
exemption, established an accommodation process for health coverage
established or maintained or arranged by eligible organizations,\6\ and
established the process for participating issuers to seek a user fee
adjustment under the applicable accommodations;
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\6\ That accommodation process, which was the only process by
which certain employers could avoid the contraceptive coverage
requirement under the July 2013 final rules, now forms the basis for
what is instead an optional accommodation process under final rules
published on November 15, 2018, at 83 FR 57536 (November 2018
Religious Exemption final rules).
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Interim final rules on August 27, 2014, at 79 FR 51092
(August 2014 interim final rules), which amended the July 2013 final
rules in light of the United States Supreme Court's interim order in
connection with an application for an injunction in Wheaton College v.
Burwell \7\ (Wheaton interim order), and provided an alternative
process that an eligible organization may use to provide notice of its
religious objection to the coverage of contraceptive services;
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\7\ Wheaton College v. Burwell, 134 S. Ct. 2806, 573 U.S. 958,
189 L. Ed. 2d 856 (2014).
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Proposed rules on August 27, 2014, at 79 FR 51118 (August
2014 proposed rules), which proposed potential changes to the
definition of ``eligible organization'' for purposes of the
accommodation process in light of the Supreme Court's decision in
Burwell v. Hobby Lobby Stores, Inc.; \8\
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\8\ Burwell v. Hobby Lobby Stores, Inc., 134 S. Ct. 2751, 573
U.S. 682, 189 L. Ed. 2d 675 (2014).
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Final rules on July 14, 2015, at 80 FR 41317 (July 2015
final rules), which finalized the July 2010 interim final rules, the
August 2014 interim final rules related to the process an eligible
organization uses to provide notice of its religious objection to the
coverage of contraceptive services, as well as the August 2014 proposed
rules, which had proposed expanding the definition of ``eligible
organization'' to allow closely held for-profit entities to access an
accommodation with respect to the coverage of contraceptive services;
A request for information on July 26, 2016, at 81 FR 47741
(July 2016 RFI), which requested public comments on alternative ways
for objecting organizations to obtain an accommodation in light of the
Supreme Court's decision in Zubik v. Burwell; \9\
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\9\ Zubik v. Burwell, 136 S. Ct. 1557 (2016).
---------------------------------------------------------------------------
Frequently Asked Questions on January 9, 2017 (FAQs Part
36), which summarized alternative potential accommodations and stated
that the Departments were not modifying the existing accommodations
because the Departments continued to be of the view that the existing
accommodations were consistent with the Religious Freedom Restoration
Act (RFRA) \10\ and that alternative accommodations were not feasible;
\11\
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\10\ 42 U.S.C. 2000bb-1, et seq.
\11\ FAQs About Affordable Care Act Implementation Part 36 (Jan.
17, 2017), available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-36.pdf and
https://www.cms.gov/cciio/resources/fact-sheets-and-faqs/downloads/aca-faqs-part36_1-9-17-final.pdf.
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Interim final rules on October 13, 2017, at 82 FR 47792
(October 2017 Religious Exemption interim final rules), which expanded
existing religious exemptions from the contraceptive coverage
requirement to objecting entities and individuals and made the existing
accommodation process optional;
Interim final rules on October 13, 2017, at 82 FR 47838
(October 2017 Moral Exemption interim final rules), which created
exemptions for entities and individuals that object to the
contraceptive coverage requirement based on moral convictions, and
provided objecting entities access to the optional accommodation
process;
Final rules on November 15, 2018, at 83 FR 57536 (November
2018 Religious Exemption final rules), which finalized the expanded
religious exemptions and optional accommodation process in the October
2017 Religious Exemption interim final rules;
Final rules on November 15, 2018, at 83 FR 57592 (November
2018 Moral Exemption final rules), which finalized the new moral
exemptions and optional accommodation process in the October 2017 Moral
Exemption interim final rules;
Frequently Asked Questions on August 16, 2021 (FAQs Part
48), which announced the Departments would initiate rulemaking to amend
the November 2018 Religious and Moral Exemption final rules in light of
recent litigation; \12\
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\12\ FAQs About Affordable Care Act Implementation Part 48 (Aug.
16, 2021), available at https://www.cms.gov/files/document/faqs-part-48.pdf and https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-48.pdf.
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Frequently Asked Questions on January 10, 2022 (FAQs Part
51), which acknowledged complaints received about compliance with the
contraceptive coverage requirement and clarified currently applicable
guidance; \13\ and
---------------------------------------------------------------------------
\13\ FAQs About Affordable Care Act Implementation Part 51,
Families First Coronavirus Response Act and Coronavirus Aid, Relief,
and Economic Security Act Implementations (Jan. 10, 2022), available
at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-51.pdf and https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/FAQs-Part-51.pdf.
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Frequently Asked Questions on July 28, 2022 (FAQs Part
54), which further clarified the contraceptive coverage requirement and
currently applicable guidance.\14\
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\14\ FAQs About Affordable Care Act Implementation Part 54 (July
28, 2022), available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-54.pdf and
https://www.cms.gov/files/document/faqs-part-54.pdf.
---------------------------------------------------------------------------
During the period in which the Departments issued these rules and
guidance, organizations and individuals filed lawsuits challenging the
contraceptive coverage requirement and regulations as being
inconsistent with various legal protections, including RFRA. Plaintiffs
included religious nonprofit organizations, for-profit businesses
controlled by religious individuals, and others, including several non-
religious organizations that opposed the required coverage of certain
contraceptives on the basis of non-religious moral convictions. These
lawsuits first led to the Supreme Court's ruling in Burwell v. Hobby
Lobby Stores, Inc.\15\ The Supreme Court ruled in Hobby Lobby that,
under RFRA, the contraceptive coverage requirement could not be applied
to closely held for-profit corporations because doing so imposed a
substantial burden on the owners' exercise of religion and was not the
least restrictive means of advancing
[[Page 7239]]
a compelling governmental interest.\16\ In response to Hobby Lobby, the
July 2015 final rules allowed closely held for-profit companies to
access the existing accommodation process.
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\15\ Burwell v. Hobby Lobby Stores, Inc, 134 S. Ct. 2751 (2014).
\16\ Id. at 2775-79.
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Later, a second series of legal challenges were filed by religious
nonprofit organizations that argued that the accommodation itself
impermissibly burdened their religious beliefs. On May 16, 2016, the
Supreme Court issued a per curiam decision in Zubik v. Burwell,
vacating the judgments of the Courts of Appeals--most of which had
ruled in the Departments' favor--and remanding the cases ``in light of
the substantial clarification and refinement in the positions of the
parties'' that had been supplied in supplemental briefs.\17\ The Court
anticipated that, on remand, the Courts of Appeals would ``allow the
parties sufficient time to resolve any outstanding issues between
them.'' \18\ The Departments issued the July 2016 RFI to gather public
comments in response to the Zubik decision.
---------------------------------------------------------------------------
\17\ Zubik v. Burwell, 136 S. Ct. 1557, 1560 (2016).
\18\ Id.
---------------------------------------------------------------------------
FAQs Part 36 summarized the public comments and suggestions
regarding the accommodation process. In Zubik, the Court suggested that
the parties submit to the court information about whether cost-free
contraceptive coverage could be provided to employees, through the
objecting employers' health insurance issuers, without the employers
having to provide any notice to the issuers or the Government.\19\ Some
comments received in response to the July 2016 RFI suggested that such
an accommodation process would not be acceptable to some employers with
religious objections, and some comments suggested that it would create
significant administrative and operational challenges that would
potentially undermine individuals' seamless access to full and equal
health coverage, including contraceptive coverage. Commenters also
noted that the process would not work for self-insured plans for which
there is no issuer with a duty to provide coverage. The Zubik
plaintiffs alternatively suggested creating contraceptive-only
insurance policies in which women would affirmatively enroll. Comments
received in response to the July 2016 RFI expressed, among other
concerns, that these policies might not be authorized under State
contract and insurance law.
---------------------------------------------------------------------------
\19\ 578 U.S. 901.
---------------------------------------------------------------------------
Beginning in 2015, lawsuits challenging the contraceptive coverage
requirement were also filed by non-religious organizations with moral
objections to contraceptive coverage. In one case, March for Life v.
Burwell, a nonprofit, non-religious organization and two of the
organization's individual employees filed a complaint claiming that the
contraceptive coverage requirement (1) violated the equal protection
component of the Due Process Clause of the Fifth Amendment, (2)
violated the individual employees' rights under RFRA, (3) violated the
individuals' rights under the First Amendment's Free Exercise Clause,
and (4) was arbitrary and capricious under the Administrative Procedure
Act (APA).\20\ Challenges by non-religious, nonprofit organizations led
to conflicting opinions among Federal courts. On August 31, 2015, the
District Court for the District of Columbia agreed with the March for
Life plaintiffs on the organization's equal protection claim and the
employees' RFRA claims, and while not ruling on the APA claim, issued a
permanent injunction against the Departments.\21\ That injunction
remains in place. Conversely, in another case, the U.S. Court of
Appeals for the Third Circuit (Third Circuit) on August 4, 2017 held
that Real Alternatives--a non-religious section 501(c)(3) nonprofit
organization and a moral objector--was not similarly situated to a
religious organization and was therefore not entitled to an
exemption.\22\ The Third Circuit concluded that ``a secular
antiabortion group mirrors a single-issue interest group and not a
religious organization that takes advantage of the Exemption.'' \23\ In
refusing to extend the exemption to a secular nonprofit organization,
the Third Circuit recognized the ``vast history of legislative
protections that single out and safeguard religious freedom but not
moral philosophy.'' \24\
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\20\ March for Life v. Burwell, 128 F. Supp. 3d 116 (D.D.C.
2015).
\21\ Id. at 134.
\22\ Real Alternatives v. Sec'y of HHS, 150 F. Supp. 3d 419,
affirmed 867 F. 3d 338 (3d Cir. 2017).
\23\ Id. at 349.
\24\ Id. at 350.
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In October 2017, the Departments issued the October 2017 Moral
Exemption interim final rules and the October 2017 Religious Exemption
interim final rules (together, the October 2017 interim final rules),
each of which went into effect immediately upon release. Those rules
expanded exemptions and accommodations to include employers that object
to contraceptive coverage on nonreligious moral grounds, along with
expanding the available religious exemptions. As stated in the October
2017 Moral Exemption interim final rules, with respect to the new
exemption for non-religious nonprofit organizations, the Departments
were aware of two small nonprofit organizations that had filed lawsuits
raising non-religious moral objections to coverage of some
contraceptives. HHS noted in the 2017 Moral Exemption interim final
rules that both of those entities had fewer than five employees
enrolled in health coverage, and both required all of their employees
to agree with their opposition to the coverage as a condition of
employment.\25\ In the November 2018 Moral Exemption final rules,
without data available to estimate the actual number of entities that
would make use of the expanded exemption for for-profit entities
without publicly traded ownership interests and that object to the
contraceptive coverage requirement based on sincerely held moral
convictions, the Departments estimated that fewer than 10 entities, if
any, would do so.\26\
---------------------------------------------------------------------------
\25\ 82 FR 47856-47857.
\26\ 83 FR 57627.
---------------------------------------------------------------------------
Numerous states filed lawsuits challenging the October 2017 interim
final rules, contending that the October 2017 interim final rules were
both procedurally invalid and arbitrary and capricious, and thus
violated the APA. Pennsylvania and New Jersey sued in the Eastern
District of Pennsylvania, while Massachusetts sued in the District of
Massachusetts, and California, Delaware, Maryland, New York, and
Virginia sued in the Northern District of California.\27\ They all
asked the courts to enjoin the interim final rules.
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\27\ Nine other states later joined the California litigation:
Connecticut, Hawaii, Illinois, Minnesota, North Carolina, Rhode
Island, Vermont, Washington, and Oregon, along with the District of
Columbia, and an additional three states (Colorado, Michigan, and
Nevada) moved to intervene in June 2019.
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Two Federal district courts issued preliminary injunctions blocking
the October 2017 interim final rules nationwide. The Northern District
of California did so based on the states' likelihood of success on
their procedural APA claim--that the interim final rules were invalid
for failing to follow notice and comment rulemaking.\28\ On appeal, the
Ninth Circuit affirmed the district court decision though it limited
the geographic scope of the injunction to the five states that were
then plaintiffs in the case. The Eastern District of Pennsylvania
enjoined the interim final rules nationwide, holding that plaintiffs
were likely to succeed on their claims
[[Page 7240]]
that the Departments did not follow proper procedures in issuing the
interim final rules, and that the interim final rules contradict the
statute.\29\ While the preliminary injunctions were on appeal, the
Departments issued the November 2018 Religious Exemption final rules
and the November 2018 Moral Exemption final rules (together, the
November 2018 final rules). The district courts in California and
Pennsylvania both enjoined enforcement of the November 2018 final
rules, and the courts of appeals upheld those injunctions.\30\
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\28\ California v. Azar, 281 F. Supp. 3d 806 (N.D. Cal. 2017),
affirmed, 911 F.3d 558 (9th Cir. 2018).
\29\ See Pennsylvania v. Trump, 281 F. Supp. 3d 553 (E.D. Pa.
2017), affirmed, 930 F.3d 543 (3d Cir. 2019).
\30\ See Pennsylvania v. Trump, 351 F. Supp. 3d 791 (E.D. Pa.
2019), affirmed, 930 F.3d 543 (3d Cir. 2019); and California v.
Azar, 351 F. Supp. 3d 1267 (N.D. Cal. 2019) (enjoining the final
rules with respect to 14 plaintiff states and the District of
Columbia); affirmed, 941 F.3d 410 (9th Cir. 2019).
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The November 2018 Religious Exemption final rules ultimately
expanded existing exemptions for individuals and entities with
religious objections to coverage of contraceptive services. All
nonprofit and for-profit employers with sincerely held religious
objections to contraceptive coverage became eligible for religious
exemptions, as did private universities and colleges with religious
objections with respect to student health insurance coverage. Those
rules retained the existing accommodation process but made it
optional.\31\
---------------------------------------------------------------------------
\31\ 83 FR 57536, 57537-38.
---------------------------------------------------------------------------
In January 2020, the Supreme Court granted petitions for writ of
certiorari in the Trump v. Pennsylvania and Little Sisters of the Poor
Saints Peter and Paul Home v. Pennsylvania cases and consolidated them,
to review whether the Departments had the authority to promulgate rules
exempting employers with religious or moral objections from the
requirement to cover contraceptive services.\32\ The Court held that
the Departments have broad authority to identify and create both moral
and religious exemptions and that the final rules were not procedurally
invalid.\33\ The Court indicated that it was proper for the Departments
to take RFRA into account when considering religious exemptions, but
the Court did not decide whether the rules violated the APA's
arbitrary-and-capricious standard.\34\ In litigation following the
Supreme Court's decision, some plaintiffs continue to argue that the
Departments did not sufficiently weigh the benefits of expanded
employer exemptions against the harms of depriving more women of
contraceptive coverage.\35\
---------------------------------------------------------------------------
\32\ Little Sisters of the Poor Saints Peter & Paul Home v.
Pennsylvania, 140 S. Ct. 918 (2020).
\33\ Little Sisters of the Poor Saints Peter & Paul Home v.
Pennsylvania, 140 S. Ct. 2367, 2386 (2020).
\34\ Id. at 2383-84.
\35\ See appellees supplemental brief, State of California v.
Azar, Nos. 19-15072, 19-15118, 19-15150 (9th Cir., Aug. 28, 2020).
(``For example, the court will have to determine . . . whether
defendants' justifications are implausible because the Exemption
Rules are not tailored to address the purported problems that the
Rules identify . . .'')
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Individuals also filed lawsuits claiming that the contraceptive
coverage requirement forced them to choose between (1) purchasing
health insurance that forces them to subsidize abortion or (2) forgoing
health insurance. The District Court for the Northern District of Texas
agreed with the plaintiffs in a class action lawsuit, DeOtte v. Azar,
and issued a permanent injunction covering a class of individuals and a
class of employers, which was ultimately vacated by the Fifth
Circuit.\36\
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\36\ DeOtte v. Azar, 393 F. Supp. 3d 490 (N.D. Tex. 2019),
DeOtte v. Nevada, No. 19-10754 (5th Cir. Dec. 17, 2021).
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The states continue to challenge the November 2018 final rules as
arbitrary and capricious in three lawsuits. In Massachusetts v. Dept.
of Health & Human Services, Massachusetts argued that the moral
exemption is overbroad, and that the Departments failed to consider the
reliance interests of women who stand to lose contraceptive coverage
due to either of the exemptions.\37\ The U.S. District Court for the
District of Massachusetts ruled that the November 2018 final rules were
neither arbitrary and capricious nor unconstitutional.\38\ The
Massachusetts litigation (now on appeal) is currently being held in
abeyance, while California v. Becerra and Pennsylvania v. Biden are
stayed.\39\
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\37\ See Mem. & Order (Op.), Massachusetts v. Dept. of Health &
Human Services, No. 17-cv-11930 (D. Mass. Jan. 15, 2021), ECF No.
139.
\38\ Id.
\39\ See Stay Order, Massachusetts v. Dept. of Health & Human
Services, No. 21-1076 (1st Cir. Mar. 12, 2021); Joint Status Report,
California v. Becerra, No. 4:17 cv 5783-HSG (N.D. Cal. Oct. 29,
2021); and Stay Order, Pennsylvania v. Biden, No. 2:17-cv-04540-WB
(E.D. Pa. March 8, 2021).
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B. Basis for Rulemaking
Section 2713(a)(4) of the PHS Act, also known as the Women's Health
Amendment, was enacted as part of the ACA to ensure that plans and
health insurance issuers cover women's preventive health needs. Access
to contraception is an essential component of women's health care in
part because contraception is effective at reducing unintended
pregnancy. Studies report that 99 percent of sexually-active women have
used at least one method of contraception at some point during their
lifetime,\40\ regardless of religious affiliation.\41\ The Centers for
Disease Control and Prevention (CDC) found that 65.3 percent of
American women aged 15 to 49 years were using contraception from 2017
to 2019.\42\ The contraceptive coverage requirement has resulted in
more women using contraception, especially long-acting reversible
contraceptives (LARCs), such as intrauterine devices (IUDs) and
implants.\43\ Without health insurance or other health coverage,
contraception can be prohibitively expensive,\44\ and the cost may
deter women from obtaining needed care.\45\ Unintended pregnancies have
negative health consequences for both women and children.\46\ Poor and
low-income women are most likely to have an unintended pregnancy \47\
and are also more likely to be unable to afford contraception. Further,
the U.S. Supreme Court's decision in Dobbs v. Jackson Women's Health
Organization, \48\ which allows for Federal and State laws that
significantly limit access to abortion and thus removes one key option
for women in making health care decisions, has placed a heightened
importance on access to contraceptive services nationwide. Ensuring
access to
[[Page 7241]]
contraception at no cost (other than the premium or contribution paid
for health coverage \49\) is a national public health imperative, as it
is a means to prevent unintended pregnancies and help provide better
health and economic outcomes for women, so that they can exercise
control over their reproductive health and family planning decisions,
particularly in states with prohibitions or tight restrictions on
abortion.
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\40\ Daniels, K., Mosher, W., & Jones, J. (2013). Contraceptive
Methods Women Have Ever Used: United States, 1982-2010. National
Health Statistics Reports, 62: 1-15.
\41\ Jones, R.K. (2020). People of all Religions Use Birth
Control and Have Abortions. Guttmacher Institute. https://www.guttmacher.org/print/article/2020/10/people-all-religions-use-birth-control-and-have-abortions.
\42\ National Center for Health Statistics, Current
Contraceptive Status Among Women Aged 15-49: United States, 2017-
2019. Daniels, K., & Abma, J.C. (2020) Current contraceptive status
among women aged 15-49: United States, 2017-2019. NCHS Data Brief,
no 388. Hyattsville, MD: National Center for Health Statistics.
Available at https://www.cdc.gov/nchs/products/databriefs/db388.htm.
\43\ Snyder, A. H., Weisman, C. S., Liu, G., Leslie, D., &
Chuang, C. H. (2018). The Impact of the Affordable Care Act on
Contraceptive Use and Costs among Privately Insured Women. Women's
health issues: official publication of the Jacobs Institute of
Women's Health, 28(3), 219-223. https://doi.org/10.1016/j.whi.2018.01.005.
\44\ Becker, N.V. & Polsky, D. (2015). Women Saw Large Decrease
in Out-Of-Pocket Spending for Contraceptives After ACA Mandate
Removed Cost Sharing. Health Affairs, 34(7): 1204-1208. Available at
https://www.healthaffairs.org/doi/10.1377/hlthaff.2015.0127.
\45\ Sonfield, A. (2011). ``The Case for Insurance Coverage of
Contraceptive Services and Supplies Without Cost-Sharing.''
Guttmacher Policy Review, 14(1): 7-15.
\46\ ``Preventing Unplanned Pregnancy.'' National Conference of
State Legislatures (2021). Available at: https://www.ncsl.org/research/health/preventing-unplanned-pregnancy.aspx.
\47\ Guttmacher Institute (2019). ``Unintended Pregnancy in the
United States.'' Available at https://www.guttmacher.org/sites/default/files/factsheet/fb-unintended-pregnancy-us.pdf.
\48\ Dobbs v. Jackson Women's Health Organization, No. 19-1392,
597 U.S. __(2022).
\49\ For ease of reference, this preamble describes the proposed
individual contraceptive arrangement as providing access to
contraceptive services ``at no cost.'' However, individuals eligible
for the individual contraceptive arrangement would typically have to
pay a premium or contribution to enroll in the group health plan or
health insurance coverage sponsored, arranged, or provided by an
objecting entity.
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In previous rulemakings, the Departments established exemptions and
accommodations for a variety of entities. Although the November 2018
final rules expanded religious exemptions, the Departments have
concluded that these rulemakings did not give sufficient consideration
to women's significant interests in access to contraceptive services.
Requiring individuals with low incomes to pay out-of-pocket for
contraceptive services creates a disproportionate financial burden and
unnecessary barrier to care for those individuals who must spend a
greater percentage of their income on contraceptive services.\50\ The
exemptions also ignore the government interest in promoting coverage
for contraceptive services and assuring access to contraception.
Furthermore, section 1 of Executive Order 13985, ``Executive Order on
Advancing Racial Equity and Support for Underserved Communities Through
the Federal Government'' (E.O. 13985), instructs the Federal Government
to consider ways to affirmatively advance equity, civil rights, racial
justice, and equal opportunity, with an emphasis on including
historically marginalized communities and individuals. As noted
previously, requiring individuals to pay out-of-pocket for
contraceptive services will disproportionately burden low-wage workers.
A considerable percentage of low-income women in the U.S. already rely
on safety-net clinics for contraception services.\51\ Low-income women
also have the least access to contraception through employer-sponsored
health insurance.\52\ Given that non-white women are overrepresented
among low-wage workers, exemptions for employers of low-wage workers
from requiring coverage for contraceptive services could further
disproportionately burden non-white women by limiting their access to
contraceptive coverage and reproductive care through employer-sponsored
coverage. This decrease in access to health care has also resulted in
an increase in the prevalence of unplanned pregnancies for non-white
and low-income individuals.\53\ In addition, historically marginalized
communities and individuals are disproportionately affected by racial
biases in health care. Racial bias has led to more skepticism about the
safety of women's health care and less knowledge about the efficacy of
various forms of birth control for family planning among non-white
women.\54\
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\50\ Although many women try and use multiple contraceptive
methods for various reasons, nearly one in five women (18 percent)
say they are not currently using their preferred method of birth
control. The primary reason women say they are not using their
preferred method of contraception is because they cannot afford it.
See Frederiksen, B., Ranji, U., Salganikoff, A., & Long, M., (2021),
Women's Sexual and Reproductive Health Services: Key Findings from
the 2020 KFF Women's Health Survey. https://www.kff.org/womens-health-policy/issue-brief/womens-sexual-and-reproductive-health-services-key-findings-from-the-2020-kff-womens-health-survey/.
\51\ Ranji, U., Salganicoff, A., Sobel, L., & Gomez, I. (2017).
Financing family planning services for low-income women: The role of
public programs. The Henry J. Kaiser Family Foundation. https://www.kff.org/wp-content/uploads/2019/10/Issue-Brief-Financing-Family-Planning-Services-for-Low-income-Women-1.pdf
\52\ Sawhill, I. & Guyot, K. (2019). ``Preventing unplanned
pregnancy: Lessons from the states.'' Brookings. https://www.brookings.edu/research/preventing-unplanned-pregnancy-lessons-from-the-states/.
\53\ Finer, L. & Zolna, M. (2016). ``Declines in Unintended
Pregnancy in the United States, 2008-2011.'' N Engl J Med,
374(9):843-52 and Behn, M., Pace, LE. et al.(2019). ``The Trump
Administration's Final Regulations Limit Insurance Coverage of
Contraception.'' Women's Health Issues, 29(2): 103-106.
\54\ Payne, C., & Fanarjian, N. (2014). Seeking causes for race-
related disparities in contraceptive use. Virtual Mentor, 16(10),
805-809. https://doi.org/10.1001/virtualmentor.2014.16.10.jdsc1-1410.
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The disparities in maternal health among women of different races
can be addressed in part by removing financial barriers to accessing
contraceptive services. Racial-ethnic disparities in access to
reproductive health care, including contraceptive services, are
widespread.\55\ Improving access to contraceptive services is critical
to narrowing disparities in reproductive health access and outcomes, as
well as longer-term outcomes. Access to postpartum contraception is
important to increase spacing between pregnancies, as short intervals
between pregnancies can be associated with adverse health outcomes.\56\
Access to contraceptive services without cost sharing increases
knowledge about safe and effective forms of birth control planning and
decreases financial constraints that prevent continuation of
appropriate contraception use for women in marginalized communities.
Additionally, access to contraceptive services has wide-ranging
economic effects for women, from increased educational attainment to
increases in labor force participation and lifetime earnings.\57\
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\55\ Sutton, M. Y., Anachebe, N. F. & Skanes H. (2021). ``Racial
and Ethnic Disparities in Reproductive Health Services and Outcomes,
2020.'' Obstetrics and gynecology, 137(2), 225-233. https://doi.org/10.1097/AOG.0000000000004224.
\56\ See The White House. (2022). White House Blueprint for
Addressing the Maternal Health Crisis. https://www.whitehouse.gov/wp-content/uploads/2022/06/Maternal-Health-Blueprint.pdf. See also
Schummers, L., Hutcheon, J.A., Hernandez-Diaz, S., Williams, P.L.,
Hacker, M.R., VanderWeele, T.J., & Norman, W.V. (2018). Association
of Short Interpregnancy Interval With Pregnancy Outcomes According
to Maternal Age. JAMA Internal Medicine, 178(12), 1661-1670. https://doi.org/10.1001/jamainternmed.2018.4696.
\57\ See Bernstein, Anna and Kelly M. Jones (2019). ``The
Economic Effects of Contraceptive Access: A Review of the
Evidence.'' Institute for Women's Policy Research. Available at
https://iwpr.org/wp-content/uploads/2020/07/B381_Contraception-Access_Final.pdf.
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In addition to addressing the policy objectives discussed
previously, these proposed rules are consistent with meeting the
objectives of several Executive Orders and a Presidential Memorandum
issued by President Biden. On January 28, 2021, President Biden issued
Executive Order 14009, ``Strengthening Medicaid and the Affordable Care
Act'' (E.O. 14009).\58\ Section 3 of E.O. 14009 directs HHS, and the
heads of all other executive departments and agencies with authorities
and responsibilities related to Medicaid and the ACA, to review all
existing regulations, orders, guidance documents, policies, and any
other similar agency actions to determine whether they are inconsistent
with policy priorities described in section 1 of E.O. 14009, to include
protecting and strengthening the ACA and making high-quality health
care accessible and affordable for all individuals.\59\ The ACA is
fundamentally ``designed to broaden access to healthcare and insurance
coverage.'' \60\ Further, the Women's Health Amendment was designed to
expand access to the preventive care and screenings that
[[Page 7242]]
women require.\61\ HHS issued the HRSA-Supported Guidelines pursuant to
the Women's Health Amendment that included contraceptives as a category
of preventive services recommended for women. If finalized, these
proposed rules would better align the preventive services regulations
with the policy priorities described in section 1 of E.O. 14009 by
expanding access to contraceptive services without cost sharing to
individuals whose health plans currently do not or would not offer such
coverage due to a religious or moral objection.
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\58\ 86 FR 7793 (February 2, 2021).
\59\ E.O. 14009 also revoked Executive Order 13765 of January
20, 2017 (Minimizing the Economic Burden of the Patient Protection
and Affordable Care Act Pending Repeal). The Departments adopted the
moral exemption and accommodation in part to further this now
revoked Executive Order by relieving a regulatory burden imposed on
entities with moral convictions opposed to providing certain
contraceptive coverage.
\60\ Religious Sisters of Mercy v. Azar, 513 F. Supp. 3d 1113
(D.N.D. 2021).
\61\ To implement the Women's Health Amendment, HRSA
commissioned the independent Institute of Medicine, now known as the
National Academy of Medicine, to conduct a scientific review and
provide recommendations on specific preventive measures that meet
women's health needs.
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Also, on January 28, 2021, President Biden issued a Memorandum on
``Protecting Women's Health at Home and Abroad.'' \62\ Section 1 of the
Memorandum stated ``[w]omen should have access to the healthcare they
need. For too many women today, both at home and abroad, that is not
possible . . . The Federal Government must take action to ensure that
women at home and around the world are able to access complete medical
information, including with respect to their reproductive health.''
These proposed rules would, if finalized, help to support women's
access to reproductive health care services at home.
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\62\ 86 FR 33077.
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On April 5, 2022, President Biden issued Executive Order 14070,
``Continuing to Strengthen Americans' Access to Affordable, Quality
Health Coverage'' (E.O. 14070).\63\ Section 2 of E.O. 14070 requires
the heads of appropriate agencies to, in addition to taking the actions
directed pursuant to E.O. 14009, take several other actions, including
examine policies or practices that make it easier for all consumers to
enroll in and retain coverage, understand their coverage options, and
select appropriate coverage; that strengthen benefits and improve
access to health care providers; that improve the comprehensiveness of
coverage and protect consumers from low-quality coverage; that expand
eligibility and lower costs for coverage in the ACA Exchanges,
Medicaid, Medicare, and other programs; that help improve linkages
between the health care system and other stakeholders to address
health-related needs; and that help reduce the burden of medical debt
on households. These proposed rules would further the goals of E.O.
14070.
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\63\ 87 FR 20689.
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On July 8, 2022, President Biden issued Executive Order 14076,
``Protecting Access to Reproductive Healthcare Services (E.O. 14076).''
\64\ Section 3 of E.O. 14076 requires the Secretary of HHS to submit a
report to the President identifying potential actions to ``protect and
expand access to the full range of reproductive healthcare services,
including actions to enhance family planning services such as access to
emergency contraception'' and ``identifying ways to increase outreach
and education about access to reproductive healthcare services,
including by launching a public awareness initiative to provide timely
and accurate information about such access, which shall include
promoting awareness of and access to the full range of contraceptive
services.'' These proposed rules would take critical steps to further
the goals in E.O. 14076 by expanding access to the full range of
contraceptive services for women enrolled in coverage established or
maintained by an objecting entity, or in health insurance coverage
offered or arranged by an objecting entity.
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\64\ 87 FR 42053.
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In addition to addressing the directives in the Executive Orders
discussed above, these proposed rules also address the concerns about
limiting access to contraception that have been raised by litigants.
The Supreme Court remanded the Little Sisters cases to the U.S. Courts
of Appeals for the Third and Ninth Circuits, respectively, to consider
whether the November 2018 final rules adequately considered women's
health and access to contraceptives or were arbitrary and capricious.
Under the current exemptions, objectors are not required to inform
participants, beneficiaries, or enrollees that the plan or coverage
does not cover contraceptive services or invoke the optional
accommodation, and no alternative mechanisms provide contraceptive
coverage for affected women--leaving many women without coverage.\65\
Given that the November 2018 final rules allow, but do not require,
objecting entities to invoke the accommodation process, many women in
plans subject to an exemption may be unable to access contraceptive
services due to financial, logistical, or administrative barriers.
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\65\ In the November 2018 final rules, the Departments estimated
that between 70,500 and 126,400 women may have lost contraceptive
coverage as a result of the November 2018 Religious Exemption final
rules, and that approximately 15 women may have incurred
contraceptive costs due to use of the November 2018 Moral Exemption
final rules by for-profit entities.
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These proposed rules seek to ensure that women who are enrolled in
either a group health plan established or maintained by an objecting
entity, or in health insurance coverage offered or arranged by an
objecting entity, including an employer, institution of higher
education, or health insurance issuer, have access to cost-free
contraceptive coverage, even when the objecting entity claims the
regulatory exemption without voluntarily using the accommodation
process. This proposed approach would further the government's interest
in protecting women's health and their right to make reproductive
decisions.
In light of these considerations, the Departments are issuing these
proposed rules to further the government's interest in promoting
coverage for contraceptive services for all women,\66\ and in
eliminating barriers to access, while respecting the religious
objections of employers, health insurance issuers, and institutions of
higher education to coverage of contraceptive services.
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\66\ See Section VI.B.2. of this preamble, under the Benefits
heading.
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II. Overview of the Proposed Rules--Departments of HHS, Labor, and the
Treasury
A. Introduction
As discussed in section I.B of this preamble, the Departments have
engaged in several rounds of rulemaking and other initiatives that
solicited public input in an effort to address the claims of those
religious employers, institutions of higher education, and health
insurance issuers that object to providing coverage for contraceptive
services while also ensuring women's access to seamless coverage for
contraceptive services. Previously, under the July 2015 final rules,
many of the objecting entities that are now covered by the November
2018 Religious Exemption final rules could avoid the contraceptive
coverage requirement only by invoking an accommodation. The
accommodation was designed so that these entities were not required to
contract, arrange, pay, or provide a referral for contraceptive
coverage. At the same time, the accommodation was intended to generally
ensure that women enrolled in a health plan established, maintained, or
arranged by the eligible organization, similar to women enrolled in
health plans maintained by other employers, received contraceptive
coverage seamlessly--that is, through the same issuers or third party
administrators that
[[Page 7243]]
provided or administered the health coverage furnished by the eligible
organization, and without financial, logistical, or administrative
obstacles.
As explained in section I.A of this preamble, several employers
challenged the contraceptive coverage accommodation under RFRA. These
religious-objector employers alleged that the accommodation violated
RFRA by making them complicit in the provision of contraceptive
services and care. These employers also asserted that the public
interest of ensuring women have access to contraceptive coverage can be
accomplished in a way that complies with RFRA, that is, in a less
restrictive way than the accommodation. Ultimately, the Departments
issued the November 2018 final rules, which significantly expanded the
types of entities eligible for a religious exemption, created an
exemption for entities with a non-religious moral objection, and made
the aforementioned accommodation optional.
As noted previously, a number of states challenged the November
2018 final rules in court, arguing that these rules are unlawfully
arbitrary and capricious. In light of this litigation, and upon further
consideration, the Departments have determined that the November 2018
final rules failed to adequately account for women's legal entitlement
to access preventive care, critically including contraceptive services,
without cost sharing as Congress intended; the impact on the number of
unintended pregnancies; the costs to states and individuals of such
pregnancies; and the government's interest in ensuring women have
access to this coverage.
These proposed rules, if finalized, seek to resolve the long-
running litigation with respect to religious objections to providing
contraceptive coverage, by respecting the objecting entities' religious
objections while also ensuring that women enrolled in plans or coverage
sponsored, arranged, or provided by objecting entities have the
opportunity to obtain contraceptive services at no cost. These rules
propose to maintain the November 2018 final rules' religious exemption
for entities with sincerely held religious objections to providing
coverage for contraceptive services, under the preventive services
guidelines pursuant to 26 CFR 54.9815-2713(a)(1)(iv), 29 CFR 2590.715-
2713(a)(1)(iv), and 45 CFR 147.130(a)(1)(iv). Additionally, under these
proposed rules, entities that sponsor insured or self-insured group
health plans or arrange student health insurance coverage and that are
exempt based on their religious objections would continue to be able to
choose to invoke the optional accommodation set forth in the November
2018 Religious Exemption final rules at 26 CFR 54.9815-2713A, 29 CFR
2590.715-2713A, and 45 CFR 147.131 (as applicable). These proposed
rules would confirm that this optional accommodation for exempt
religious-objector entities is available to entities that are
institutions of higher education.
While these proposed rules would maintain the religious exemption
rule, they also would provide an independent pathway through which
women enrolled in plans or coverage sponsored, arranged, or provided by
objecting entities can access contraceptive services at no cost. With
respect to participants and beneficiaries in insured or self-insured
group health plans sponsored by an exempt entity, or enrollees in
individual health insurance coverage (including student health
insurance coverage) arranged or provided by an exempt entity, and that
does not invoke the optional accommodation (if eligible), these
proposed rules would create a pathway, independent from the employer,
group health plan, plan sponsor, or issuer, through which individuals
could obtain at no cost from a willing provider of contraceptive
services \67\ (that meets certain requirements), contraceptive services
for which their plan or issuer would otherwise be required to provide
coverage absent the religious exemption. These proposed rules refer to
this pathway as the individual contraceptive arrangement. This
individual contraceptive arrangement would be available to the
participant, beneficiary, or enrollee without the plan sponsor or
issuer having to take any action that would facilitate the coverage to
which it objects. Simply put, the action is undertaken by the
individual, for the individual. Through the individual contraceptive
arrangement, a provider of contraceptive services, who provides these
services at no cost to the women receiving them, would be able to seek
reimbursement from an issuer with whom it has a signed agreement for
the cost of providing contraceptive services to women covered under
these plans. These proposed rules also would amend 45 CFR 156.50(d) so
that a qualified health plan (QHP) issuer that has agreed to reimburse
an eligible provider of contraceptive services that participates in the
individual contraceptive arrangement would be eligible for an
adjustment to the issuer's Federally-facilitated Exchange (FFE) or
State Exchange on the Federal platform (SBE-FP) fee through the same
mechanism for the user fee adjustment previously established in 45 CFR
156.50(d).
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\67\ These proposed rules refer to providers, consistent with
the proposed definition of the term ``provider of contraceptive
services,'' as including both health care providers and facilities.
This definition is discussed later in this preamble.
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Finally, as discussed in section II.C.2 of this preamble, this
proposed rule would eliminate the exemption and the availability of the
optional accommodation for entities that object to contraceptive
coverage based on non-religious moral beliefs. As more fully explained
in that section, there have not been a large number of entities that
have expressed a desire for an exemption based on a non-religious moral
objection, the Departments are under no legal obligation to provide
such an exemption, and RFRA would never apply to require such an
exemption. Additionally, in light of the Supreme Court's decision in
Dobbs, the Departments have concluded that it is all the more critical
now to ensure women's access to reproductive health care and
contraceptive services without cost sharing, and have determined that
it is necessary to provide women enrolled in plans with respect to
which the sponsor or issuer has non-religious moral objections to
contraceptive coverage, with such coverage directly through their plan.
The Departments are of the view that these proposed rules would
respect the religious objections to contraceptive coverage of
employers, institutions of higher education, and health insurance
issuers, by allowing them to continue to rely upon the religious
exemptions, while also advancing the public interest of ensuring that
women enrolled in such plans and coverage have access to contraceptives
with no cost.
B. Coverage of Preventive Health Services (26 CFR 54.9815-2713, 29 CFR
2590.715-2713, and 45 CFR 147.130)
1. Background on Requirement To Cover Contraceptive Services
Pursuant to 26 CFR 54.9815-2713(a)(1)(iv), 29 CFR 2590.715-
2713(a)(1)(iv), and 45 CFR 147.130(a)(1)(iv), a group health plan, or a
health insurance issuer offering group or individual health insurance
coverage, generally must provide coverage and must not impose any cost-
sharing requirements (such as a copayment, coinsurance, or a
deductible) for, with respect to women, such additional preventive care
and screenings not described in 26 CFR 54.9815-2713(a)(1)(i), 29 CFR
2590.715-2713(a)(1)(i), and 45 CFR 147.130(a)(1)(i), as provided for in
[[Page 7244]]
comprehensive guidelines supported by HRSA for purposes of section
2713(a)(4) of the PHS Act. The currently applicable \68\ HRSA-Supported
Guidelines, as updated on December 17, 2019, include a guideline that
adolescent and adult women have access to the full range of female-
controlled FDA-approved contraceptive methods,\69\ effective family
planning practices, and sterilization procedures to prevent unintended
pregnancy and improve birth outcomes.\70\ The currently applicable
HRSA-Supported Guidelines state that contraceptive care should include
contraceptive counseling, initiation of contraceptive use, and follow-
up care (for example, management and evaluation as well as changes to,
and removal or discontinuation of, the contraceptive method), and that
instruction in fertility awareness-based methods, including the
lactation amenorrhea method, should be provided for women desiring an
alternative method.
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\68\ As explained in FN 4, in December 2021, HRSA approved
updates to the contraception guidelines that apply to plan years (in
the individual market, policy years) starting on and after December
30, 2022. See changes at https://www.hrsa.gov/womens-guidelines.
\69\ The Departments note that the FDA approves, clears, and
grants contraceptive products and not methods.
\70\ See https://www.hrsa.gov/womens-guidelines-2019.
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The Departments have clarified in guidance the obligation of a plan
or issuer to provide coverage of contraceptive services in accordance
with these HRSA-Supported Guidelines. On February 20, 2013, the
Departments issued FAQs about Affordable Care Act Implementation Part
XII (FAQs Part XII) stating that the HRSA-Supported Guidelines ensure
women's access to the full range of FDA-approved contraceptive methods
\71\ including, but not limited to, barrier methods, hormonal methods,
and implanted devices, as well as patient education and counseling, as
prescribed by a health care provider.\72\ The FAQs further clarified
that plans and issuers may use reasonable medical management techniques
to control costs and promote efficient delivery of care, such as
covering a generic drug without cost sharing and imposing cost sharing
for equivalent branded drugs. However, FAQs Part XII stated that, in
these instances, a plan or issuer must accommodate any individual for
whom a particular drug (generic or brand name) would be medically
inappropriate, as determined by the individual's health care provider,
by having a mechanism for waiving the otherwise applicable cost sharing
for the brand or non-preferred brand version. The FAQs also clarified
that contraceptive products that are generally available over-the-
counter are required to be covered only if they are both FDA-approved,
cleared, or granted and prescribed by a health care provider.\73\
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\71\ The FDA does not and never has approved, granted, or
cleared contraceptive methods, only contraceptive products. See FN
4, supra.
\72\ See Q14, available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-xii.pdf and www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/aca_implementation_faqs12.html. See also FN 61.
\73\ Id. at Q15.
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On May 11, 2015, the Departments issued FAQs about Affordable Care
Act Implementation Part XXVI (FAQs Part XXVI) clarifying that plans and
issuers must cover, without cost sharing, at least one form of
contraception in each category that is identified by the FDA in its
Birth Control Guide.\74\ The FAQs further clarified that, to the extent
plans and issuers use reasonable medical management techniques within a
specified category of contraception, plans and issuers must have an
easily accessible, transparent, and sufficiently expedient exceptions
process that is not unduly burdensome on the individual or provider (or
other individual acting as a patient's authorized representative) to
ensure coverage without cost sharing of any service or FDA-approved
item within the specified category of contraception. FAQs Part XXVI
stated that if an individual's attending provider recommends a
particular service or FDA-approved item based on a determination of
medical necessity with respect to that individual, the plan or issuer
must cover that service or item without cost sharing. The FAQs made
clear that a plan or issuer must defer to the determination of the
attending provider. FAQs Part XXVI stated that medical necessity may
include considerations such as severity of side effects, differences in
permanence and reversibility of contraceptives, and ability to adhere
to the appropriate use of the item or service, as determined by the
attending provider. The FAQs also clarified that the exceptions process
must provide for making a determination of the claim according to a
timeframe and in a manner that takes into account the nature of the
claim (for example, pre-service or post-service) and the medical
exigencies involved for a claim involving urgent care. FAQs Part XXVI
additionally clarified that a plan or issuer cannot limit sex-specific
recommended preventive services based on an individual's sex assigned
at birth, gender identity, or recorded gender.\75\
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\74\ See Q2 and Q3, available at https://www.dol.gov/sites/
dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/
aca-part-xxvi.pdf and https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/aca_implementation_faqs26.pdf. In prior
FAQs related to contraceptive coverage such as FAQs Part XXVI, the
Departments referenced the FDA Birth Control Guide as the source for
categories of contraceptives that must be covered without cost
sharing. The Departments now cite the HRSA-Supported Guidelines for
the list of contraceptive categories to better align with the
language of the Affordable Care Act's preventive service coverage
requirements. Despite the change in wording, there is no substantive
difference and the requirements for plans and issuers remain the
same. The range of identified categories of contraception in the
currently applicable 2019 HRSA-Supported Guidelines include: (1)
sterilization surgery for women; (2) surgical sterilization via
implant for women; (3) implantable rods; (4) copper intrauterine
devices; (5) intrauterine devices with progestin (all durations and
doses); (6) the shot or injection; (7) oral contraceptives (combined
pill); (8) oral contraceptives (progestin only); (9) oral
contraceptives (extended or continuous use); (10) the contraceptive
patch; (11) vaginal contraceptive rings; (12) diaphragms; (13)
contraceptive sponges; (14) cervical caps; (15) female condoms; (16)
spermicides; (17) emergency contraception (levonorgestrel); and (18)
emergency contraception (ulipristal acetate), and additional methods
as identified by the FDA. The 2021 HRSA-Supported Guidelines
clarified that, in addition to the enumerated categories, the full
range of contraceptives includes any additional contraceptives
approved, granted, or cleared by the FDA. The 2021 HRSA-Supported
Guidelines also expanded the recommendation to encompass
contraceptives that are not female-controlled, such as male condoms
(which must be covered with a prescription by plans and issuers for
plan years (in the individual market, policy years) that begin on or
after December 30, 2022). The 2021 HRSA-Supported Guidelines do not
include male sterilization. See https://www.hrsa.gov/womens-guidelines. See also Preamble to Final Rules regarding coverage of
certain preventive services at 78 FR 39870 (July 2, 2013).
\75\ Id. at Q5.
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On April 20, 2016, the Departments issued FAQs about Affordable
Care Act Implementation Part 31, Mental Health Parity Act
Implementation, and Women's Health and Cancer Rights Act Implementation
(FAQs Part 31) stating that if a plan or issuer utilizes reasonable
medical management techniques within a specified method of
contraception, the plan or issuer may develop and utilize a standard
exception form and instructions as part of its steps to ensure that it
provides an easily accessible, transparent, and sufficiently expedient
exceptions process that is not unduly burdensome on the individual or a
provider (or other individual acting as a patient's authorized
representative).\76\ The FAQs suggested that the Medicare Part D
Coverage Determination Request Form may serve as a model for plans and
[[Page 7245]]
issuers when developing a standard exception form.\77\
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\76\ See Q2, available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-31.pdf and https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/FAQs-31_Final-4-20-16.pdf.
\77\ A copy of the Medicare Part D Coverage Determination
Request Form is available at https://www.cms.gov/Medicare/Appeals-and-Grievances/MedPrescriptDrugApplGriev/CoverageDeterminations-.
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On January 10, 2022, the Departments issued FAQs about Affordable
Care Act Implementation Part 51, Families First Coronavirus Response
Act and Coronavirus Aid, Relief, and Economic Security Act
Implementation (FAQs Part 51) that reiterated previously issued
guidance related to coverage of contraceptive services and provided
examples of practices reported to the Departments that denied
contraceptive coverage to participants, beneficiaries, and
enrollees.\78\ The FAQ also clarified that if an individual's attending
provider determines that a particular service or FDA-approved, cleared,
or granted contraceptive product is medically appropriate for such
individual, a plan or issuer must cover that service or product without
cost sharing, whether or not the service or product is in a category of
contraception specifically identified in the current HRSA-Supported
Guidelines.
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\78\ See Q9, available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-51.pdf and https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/FAQs-Part-51.pdf.
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On July 28, 2022, the Departments issued FAQs about Affordable Care
Act Implementation Part 54 (FAQs Part 54) on additional aspects of
contraceptive coverage, reiterating and clarifying the types of items
and services required to be covered under PHS Act section 2713 and its
implementing regulations. Specifically, these FAQs explained that plans
and issuers are required to cover, without any cost sharing, items and
services that are integral to the furnishing of a recommended
preventive service, such as anesthesia necessary for a tubal ligation
procedure or pregnancy tests needed before provision of certain forms
of contraceptives, such as an intrauterine device (also known as an
IUD), regardless of whether the item or service is billed
separately.\79\ FAQs Part 54 also addressed contraceptive products and
services that are not included in a category of contraception described
in the HRSA-Supported Guidelines, reiterating that plans and issuers
must cover any contraceptive services and FDA-approved, cleared, or
granted contraceptive products that an individual and their attending
provider have determined to be medically appropriate for the
individual, whether or not those services or products are specifically
identified in the categories listed in the HRSA-Supported
Guidelines.\80\ Additionally, the FAQs reiterated the requirement to
cover FDA-approved emergency contraception, including emergency
contraception that is available over-the-counter (OTC), when
prescribed, and encouraged plans and issuers to cover OTC emergency
contraceptive products with no cost sharing when purchased without a
prescription. The FAQs also state that a health savings account, health
flexible spending arrangement, or health reimbursement arrangement can
reimburse expenses incurred for OTC contraception obtained without a
prescription.\81\ Further, the FAQs addressed instruction in fertility
awareness-based methods and encouraged plans and issuers to cover the
dispensing of a 12-month supply of contraception without cost
sharing.\82\
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\79\ See Q1, available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-54.pdf and at https://www.cms.gov/files/document/faqs-part-54.pdf.
\80\ Id. at Q2.
\81\ Id. at Q5 and Q6.
\82\ Id. at Q4 and Q7.
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FAQs Part 54 also addressed the use of reasonable medical
management techniques as applied to contraceptive products or services,
including explaining that plans and issuers may use reasonable medical
management techniques for contraceptive products or services not
included in the categories described in the HRSA-Supported Guidelines
only if multiple, substantially similar services or products that are
not included in a category are available and are medically appropriate
for an individual.\83\ For contraceptive products or services included
in the categories described in the HRSA-Supported Guidelines, the FAQs
reiterate that plans and issuers may utilize reasonable medical
management techniques only within a specified category of contraception
and only to the extent the HRSA-Supported Guidelines do not specify the
frequency, method, treatment, or setting for the provision of a
recommended preventive service that is a contraceptive service or FDA-
approved, cleared, or granted product.\84\ The FAQs offered guidance on
how to determine whether a medical management technique is reasonable
for purposes of the requirements under PHS Act section 2713, including
examples of unreasonable medical management techniques, such as
imposing an age limit on contraceptive coverage instead of providing
these benefits to all individuals with reproductive capacity.\85\ In
addition, FAQs Part 54 offered guidance on what constitutes an easily
accessible, transparent, and sufficiently expedient exceptions process
that is not unduly burdensome on the individual or their provider and
explained that the Departments will consider an exceptions process to
be easily accessible if plan documentation includes relevant
information regarding the exceptions process under the plan or
coverage, including how to access the exceptions process without
initiating an appeal pursuant to the plan's or issuer's internal claims
and appeals procedures, the types of information the plan or issuer
requires as part of a request for an exception, and contact information
for a representative of the plan or issuer who can answer questions
related to the exceptions process.\86\ The FAQs state that a plan or
issuer may not require a participant, beneficiary, or enrollee to
appeal an adverse benefit determination using the plan or issuer's
internal claims and appeals process as the means for an individual to
obtain an exception.\87\
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\83\ Id. at Q3.
\84\ Id. at Q8.
\85\ Id.
\86\ Id. at Q9.
\87\ Id. at Q10.
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As explained in FAQs Part 51 and FAQs Part 54, the Departments have
received a number of complaints and reports regarding potential
violations of the contraceptive coverage requirement. The Departments
are committed to ensuring consumers have access to the contraceptive
benefits, without cost sharing, that they are entitled to under the ACA
and implementing regulations. In addition to previously issued
clarifications, the Departments are continuing to assess what changes
to existing regulations or guidance may be needed to better ensure
individuals receive the coverage to which they are entitled under the
law and will issue additional guidance, as warranted. The Departments
solicit comments regarding whether any other clarifications or
additional guidance is needed in these proposed rules to help ensure
that women covered under group health plans or health insurance
coverage have access to contraceptive services at no cost. Moreover,
stakeholders who have information regarding potential noncompliance
with these requirements should contact the Departments as the
Departments continue to consider what additional oversight and
enforcement actions could be taken to ensure health plans and issuers
are complying with the contraceptive benefits guaranteed under the
ACA.\88\
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\88\ As stated in FAQs Part 54, Q14, consumers who have fully-
insured coverage and who have concerns about their health insurance
issuer's compliance with these requirements may contact their State
Department of Insurance (for more information, visit https://content.naic.org/state_web_map.htm). Consumers who are covered by a
private-sector, employer-sponsored group health plan and have
concerns about their plan's compliance with these requirements may
contact the Department of Labor at https://www.dol.gov/agencies/ebsa/about-ebsa/ask-a-question/ask-ebsa or by calling toll free at
1-866-444-3272. Consumers who are covered by a non-Federal public-
sector employer-sponsored plan (such as a State or local government
employee plan) and have concerns about their plan's compliance with
these requirements may contact the Center for Consumer Information
and Insurance Oversight at (888) 393-2789 or
[email protected] for further assistance with a
question or issue.
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[[Page 7246]]
However, these proposed rules would not alter these coverage
standards applicable to contraceptive services. Rather, these proposed
rules focus on the religious and moral objections of entities otherwise
subject to those coverage standards, and participants', beneficiaries',
and enrollees' access to contraceptive services without cost sharing
when their plan or coverage excludes coverage for these services based
on religious objections and does not adopt the existing optional
accommodation. No new Federal processes, resources, data systems, or
reporting mechanisms are anticipated for monitoring and tracking
entities' objections, or the identities of entities availing themselves
of these exemptions. Therefore, the Departments propose only minor
changes to 26 CFR 54.9815-2713, 29 CFR 2590.715-2713, and 45 CFR
147.130.
2. Addition of the Phrase ``Evidence-Informed''
The Departments propose to add the phrase ``evidence-informed''
immediately before ``comprehensive'' in 26 CFR 54.9815-2713(a)(1)(iv),
29 CFR 2590.715-2713(a)(1)(iv), and 45 CFR 147.130(a)(1)(iv), so that
the reference in the paragraph would be to evidence-informed
comprehensive guidelines supported by HRSA.
Section 2713(a) of the PHS Act specifies that the preventive
services that must be covered without cost sharing are: (1) evidence-
based items or services that have in effect a rating of ``A'' or ``B''
in the current recommendations of the United States Preventive Services
Task Force (USPSTF) with respect to the individual involved; (2)
immunizations that have in effect a recommendation from the Advisory
Committee on Immunization Practices of the CDC with respect to the
individual involved; (3) with respect to infants, children, and
adolescents, evidence-informed preventive care and screenings provided
for in the comprehensive guidelines supported by HRSA; and (4) with
respect to women, such additional preventive care and screenings not
described in the aforementioned recommendations by USPSTF as provided
for in comprehensive guidelines supported by HRSA for purposes of
section 2713(a)(4) of the PHS Act.\89\ The reference to ``evidence-
informed'' preventive care and screenings in comprehensive HRSA-
Supported Guidelines was removed in the October 2017 Religious
Exemption interim final rules to align with the statutory text.\90\
However, because the statute requires that the USPSTF recommendations
relate to ``evidence-based'' items and services, and because the
statute also requires that HRSA's guidelines for infants, children, and
adolescents be ``evidence-informed,'' the Departments are of the view
that it is consistent with the general purpose of section 2713 of the
PHS Act that, with respect to women, the additional preventive care and
screenings provided for in comprehensive guidelines supported by HRSA
be evidence-informed.\91\
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\89\ In addition, under section 3203 of the Coronavirus Aid,
Relief, and Economic Security (CARES) Act and its implementing
regulations, plans and issuers must cover, without cost-sharing
requirements, any qualifying coronavirus preventive service pursuant
to section 2713(a) of the PHS Act and its implementing regulations
(or any successor regulations). The term ``qualifying coronavirus
preventive service'' means an item, service, or immunization that is
intended to prevent or mitigate coronavirus disease 2019 (COVID-19)
and that is, with respect to the individual involved (1) an
evidence-based item or service that has in effect a rating of ``A''
or ``B'' in the current USPSTF recommendations; or (2) an
immunization that has in effect a recommendation from ACIP
(regardless of whether the immunization is recommended for routine
use). On November 6, 2020, the Departments published interim final
rules with a request for comment regarding this requirement,
Additional Policy and Regulatory Revisions in Response to the COVID-
19 Public Health Emergency (85 FR 71142).
\90\ The explanation for why the reference to ``evidence-
informed'' was removed, that is, to align with the statutory text,
was provided in the November 2018 Religious Exemption final rules.
See 83 FR 57536, 57557 (November 15, 2018).
\91\ The Departments interpret ``evidence-based'' to require
that the standards be based solely on scientific ``evidence,''
while, as discussed later in this preamble, ``evidence-informed''
means that they are informed by a consideration of scientific
evidence, but such evidence need not be the only basis for its
standards. As the Court held in Little Sisters, HRSA is also
authorized to consider the propriety of including exemptions based
upon religious or moral objections. 140 S. Ct. at 2381.
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Furthermore, the Departments recognize that section 2713 of the PHS
Act establishes special coverage requirements for certain services that
have been shown by evidence to have benefits as preventive
services.\92\ Most studies suggest that removing cost-sharing barriers
to these items and services helps to increase access and utilization by
participants, beneficiaries, and enrollees who might otherwise delay or
skip care due to financial barriers.\93\ However, coverage, without
cost sharing, of recommended preventive items and services and the
resulting increases in utilization can increase costs to consumers in
the form of increased premiums, unless those costs are offset by
savings. By reinstating the requirement that the HRSA-Supported
Guidelines be evidence-informed, these proposed rules would help ensure
that plans and issuers are required to cover recommended preventive
items and services, without cost sharing, only when evidence supports
the items' or services' value as preventive care. Thus, this proposed
amendment would help to limit overutilization of services and promote
efficiencies in care delivery while ensuring that participants,
beneficiaries, and enrollees have access to critical women's preventive
services.
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\92\ See section 2713(a)(1) and (3) of the PHS Act.
\93\ Norris, HCH. C., Richardson, HM., et al. (2021). ``H. M.,
Benoit, M. C., Shrosbree, B., Smith, J. E., & Fendrick, A. M.
(2022). Utilization Impact of Cost-Sharing Elimination for
Preventive Care Services: A Rapid Review.'' Medical Care Research
and Review. Available at, 79(2), 175-197. https://journals.sagepub.com/doi/pdf.org/10.1177/10775587211027372.
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Additionally, this proposed change would better reflect current
practice. HRSA's process for developing clinical guidelines for women's
preventive services is, and has historically been, evidence-based. In
establishing the HRSA-Supported Guidelines, HHS, acting through HRSA,
depends on the work of the Women's Preventive Services Initiative
(WPSI). According to WPSI, its recommendations are intended to guide
clinical practice and coverage of services for HRSA and other
stakeholders.\94\ The recommendation development process of the WPSI is
based on adaptation of the eight criteria for evidence-based clinical
practice guideline development as articulated in the 2011 report,
Clinical Practice Guidelines We Can Trust from the National Academy of
Medicine (formerly the Institute of Medicine [IOM]).\95\ The WPSI
clinical recommendations are based on reaching a threshold of
supportive evidence, similar to the 2011 IOM Panel.\96\ The WPSI bases
recommendations on evidence of both benefits and harms of an
intervention or service and an assessment of the balance between
[[Page 7247]]
them.\97\ As part of the WPSI process, an evidence report on an
approved topic is presented to its multidisciplinary steering committee
(MSC), and is used as the basis for recommendation development.\98\ The
MSC is then asked to consider the evidence in depth and to formulate a
recommendation.\99\ Recommendations, which include this evidence
review, that are approved by 75 percent of the MSC are submitted to
HRSA by December 1 of the given calendar year.\100\ If approved by HHS,
acting through the HRSA Administrator, the WPSI Clinical Recommendation
is added to the HRSA-Supported Guidelines.\101\ Thus, HRSA-Supported
Guidelines, as currently developed, are evidence-informed. The proposed
addition of the term ``evidence-informed'' in 26 CFR 54.9815-
2713(a)(1)(iv), 29 CFR 2590.715-2713(a)(1)(iv), and 45 CFR
147.130(a)(1)(iv) would more precisely describe the process through
which the HRSA-Supported Guidelines are established and ensure the
Guidelines continue to be evidence-informed in the future.
---------------------------------------------------------------------------
\94\ See WPSI's Methodology Summary at https://www.womenspreventivehealth.org/wp-content/uploads/WPSI-Methodology-1.pdf.
\95\ Id.
\96\ Id.
\97\ Id.
\98\ Id.
\99\ Id.
\100\ Id.
\101\ Id.
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For these reasons, the Departments propose to codify that standard.
The Departments do not anticipate that this proposed amendment would
alter the existing processes through which the HRSA-Supported
Guidelines are developed, as these processes, as stated previously,
already include a robust consideration of evidence.
The Departments seek comment on this proposal.
3. Conforming Edits
As discussed in section II.C.2 of this preamble, the Departments
also propose to eliminate the exemption for entities with moral
objections to contraceptive coverage at 45 CFR 147.133, and therefore
to also make conforming edits to remove references to 45 CFR 147.133
that appear in paragraph (a)(1) of 45 CFR 147.130 and paragraph
(a)(1)(iv) of 26 CFR 54.9815-2713, 29 CFR 2590.715-2713 and 45 CFR
147.130. Finally, HHS proposes to remove from 45 CFR 147.130(a)(1)
references to 45 CFR 147.131 and 45 CFR 147.132. Those references also
appear in paragraph (a)(1)(iv), for the same purpose, and therefore are
duplicative and unnecessary in 45 CFR 147.130(a)(1).
C. Exemptions in Connection With Coverage of Contraceptive Services (45
CFR 147.132 and 147.133)
1. Religious Exemptions
This proposed rule would maintain the religious exemption from the
November 2018 Religious Exemption final rules. Each of the proposed
changes made to the regulations with respect to religious objections is
either technical in nature or codifies the intent specified in the
preamble to the November 2018 Religious Exemption final rules. The
proposed changes in no way narrow the scope of the exemption or further
restrict the types of religious entities that may use the exemption.
Under the regulations at 26 CFR 54.9815-2713(a)(1)(iv), 29 CFR
2590.715-2713(a)(1)(iv), and 45 CFR 147.130(a)(1)(iv), a non-
grandfathered group health plan, or a health insurance issuer offering
non-grandfathered group or individual health insurance coverage, must
provide coverage for, and must not impose any cost-sharing requirements
(such as a copayment, coinsurance, or a deductible) for, with respect
to women, such additional preventive care and screenings as provided
for in comprehensive guidelines supported by HRSA, subject to the
exemptions and accommodations related to contraceptive coverage. The
November 2018 Religious Exemption final rules at 45 CFR 147.132(a)(1)
state that guidelines issued under 45 CFR 147.130(a)(1)(iv) by HRSA
must not provide for or support the requirement of coverage or payments
for contraceptive services with respect to a group health plan
established or maintained by an objecting entity, to the extent of the
objections specified in the regulations.
The Departments note that the regulations require HRSA to include
an exemption in its guidelines. Although the Supreme Court held in
Little Sisters that the ACA ``gives HRSA broad discretion to define
preventive care and screenings and to create the religious and moral
exemptions,'' it also concluded that ``the plain language of the
statute clearly allows the Departments to create the preventive care
standards as well as the religious and moral exemptions''
102 103 (emphasis added). This is understandable because the
HRSA Administrator exercises authority delegated from and subject to
the control of the Secretary of HHS.\104\
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\102\ Little Sisters of the Poor Saints Peter and Paul Home v.
Pennsylvania, 140 S. Ct. 2367, 2382 (2020); see also id. at 2374-75,
2377-78 (recounting the Departments' history of deciding what should
be included in the HRSA-Supported Guidelines).
\103\ Exempting the types of objecting entities listed in the
November 2018 final rules from any guideline requirements that
relate to the provision of contraceptive services is consistent with
the Departments' proposed requirement (discussed in section II.B of
this preamble) that the comprehensive guidelines supported by HRSA
be evidence-informed. The Departments interpret ``evidence-
informed'' to mean that the Guidelines must be informed by a
consideration of scientific evidence; however, the implementation of
the requirement with respect to group health plans or group or
individual health insurance coverage can also take into account the
Departments' decisions to provide religious exemptions.
\104\ See 42 U.S.C. 202 (``The Public Health Service in the
Department of Health and Human Services shall be administered by the
Assistant Secretary for Health under the supervision and direction
of the Secretary.''); Reorganization Plan No. 3 of 1966 Sec. 1, 5
U.S.C. app 1 (transferring to the Secretary ``all functions of the
Public Health Service, of the Surgeon General of the Public Health
Service, and of all other officers and employees of the Public
Health Service, and all functions of all agencies of or in the
Public Health Service.''); Health Resources and Services
Administration; Statement of Organization, Functions, and
Delegations of Authority, 47 F. R. 38,409 (Aug. 31, 1982). Note that
HHS is the successor of the U.S. Department of Health, Education,
and Welfare, the latter of which is referenced in Reorganization
Plan No. 3 of 1966 mentioned earlier in this footnote.
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Paragraph (a)(1)(i) through (iv) of 45 CFR 147.132 lists the types
of objecting entities that are exempted from the HRSA-Supported
Guideline requirements that relate to the provision of contraceptive
services. These proposed rules would make minor technical amendments to
45 CFR 147.132(a)(1)(i). That paragraph currently reads as follows: ``A
group health plan and health insurance coverage provided in connection
with a group health plan to the extent the non-governmental plan
sponsor objects as specified in paragraph (a)(2) of this section. Such
non-governmental plan sponsors include, but are not limited to, the
following entities -.'' These proposed rules would add the phrase ``of
the plan or coverage'' immediately following ``sponsor'' solely for
purposes of precision and clarity. Additionally, these proposed rules
would delete the phrase ``, but are not limited to,''. This change is
not intended to limit the types of non-governmental plan sponsors that
may avail themselves of the religious exemption as compared to the
November 2018 Religious Exemption final rules, but is rather intended
as a stylistic, grammatical change that is consistent with other
regulations issued by the Departments.
In addition, the proposed rules would add language in 45 CFR
147.132(a)(1)(iv) clarifying that, notwithstanding the guaranteed
availability requirements in 45 CFR 146.150 and 45 CFR 147.104, a
health insurance issuer may not offer coverage that excludes some or
all contraceptive services to any entity or individual that
[[Page 7248]]
is not an objecting entity or objecting individual. The preamble to the
November 2018 final rules specified this prohibition with respect to
exempt entities,\105\ but the provision was not included in the
regulatory text. This prohibition would apply to all health insurance
issuers, whether or not the issuer is an exempt or non-exempt entity.
The Departments have identified no reason to treat exempt and non-
exempt issuers differently in this regard. This prohibition is
important to ensure that entities and individuals that are not
objecting entities or individuals are not offered coverage that
excludes some or all contraceptive services from being provided without
cost sharing. In addition, the Departments are of the view that this
prohibition properly respects both the interests of ensuring that women
have the opportunity to obtain coverage for contraceptive services
without cost sharing and the interests of entities that have religious
objections to offering contraceptive coverage. By allowing health
insurance issuers to offer coverage that excludes some or all such
contraceptive services to entities or individuals that have religious
objections to involvement with contraceptive services, the November
2018 final rules provided important protections to objecting entities
and individuals. On the other hand, by limiting the individuals and
entities to whom an objecting health insurance issuer can offer the
coverage, the November 2018 final rules took critical steps to ensure
that women employed by or who are students of entities that do not have
an objection to coverage of contraceptive services (or women purchasing
coverage in the individual market who do not have such an objection)
continue to have access to contraceptive services as required under 26
CFR 54.9815-2713, 29 CFR 2590.715-2713, and 45 CFR 147.130. These
proposed regulations would codify this limitation in regulatory text.
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\105\ 83 FR 57536, 57565.
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These proposed rules include amendments to reorganize the
regulatory text of 45 CFR 147.132(b) for clarity. These proposed
amendments do not affect the exemption in the HRSA-Supported Guidelines
and in the November 2018 Religious Exemption final rules for
individuals who have a religious objection to contraception coverage.
Paragraph (b) of 45 CFR 147.132 of the November 2018 Religious
Exemption final rules provided that HRSA-Supported Guidelines under 45
CFR 147.130(a)(1)(iv) must not provide for or support the requirement
of coverage or payments for contraceptive services with respect to
individuals who so object. The paragraph also states that nothing in 26
CFR 54.9815-2713(a)(1)(iv), 29 CFR 2590.715-2713(a)(1)(iv), or 45 CFR
147.130(a)(1)(iv) may be construed to prevent a willing health
insurance issuer offering group or individual health insurance coverage
and, as applicable, a willing plan sponsor of a group health plan, from
offering a separate policy, certificate or contract of insurance, or a
separate group health plan or benefit-package option, to any group
health plan sponsor (with respect to an individual) or individual, as
applicable, who objects to coverage or payments for some or all
contraceptive services based on sincerely held religious beliefs. Under
this exemption, if an individual objects to some but not all
contraceptive services, but the issuer (and, as applicable, the plan
sponsor) is willing to provide the plan sponsor or individual, as
applicable, with a separate policy, certificate or contract of
insurance or a separate group health plan or benefit package option
that omits all contraceptives, and the individual agrees, then the
exemption applies as if the individual objects to all contraceptive
services.
In addition to the proposed amendments to reorganize the regulatory
text of 45 CFR 147.132(b) for clarity, these proposed rules would also
make clear that the ability of a willing issuer to offer a separate
policy, certificate, or contract of insurance that omits some or all
contraceptive services to an objecting individual is permitted under
these proposed rules only to the extent permitted by applicable State
law.
The Departments note that section 2713 of the PHS Act applies to a
group health plan and a health insurance issuer offering group or
individual health insurance coverage. Because group health plans and
health insurance issuers are separate legal entities, in the case of an
insured group health plan, the requirements under section 2713 of the
PHS Act apply directly to both the group health plan that provides
benefits through a group health insurance policy and the health
insurance issuer. In the case of an insured student health plan,
although the institution of higher education is not directly subject to
section 2713 of the PHS Act, the institution arranges student health
insurance coverage for students and their dependents, similar to the
sponsor of a group health plan purchasing coverage in the group market.
In recognition of the statute's applicability, the November 2018 final
rules exempt a group health insurance issuer and an issuer of student
health insurance coverage from complying with the requirement to cover
contraceptive services under section 2713 of the PHS Act, if the
sponsor of the plan or institution of higher education that arranges
student health insurance coverage is an exempt entity, even when the
issuer itself is not an exempt entity. The Departments seek comment on
what challenges or concerns would exist under an approach in which, if
an entity that is a group health plan sponsor, group health plan, or
institution of higher education is an objecting entity and sponsors or
arranges for an insured group health plan or student health insurance
coverage, the contraceptive coverage requirement would continue to
apply directly to the health insurance issuer (that is, whether the
exemption should no longer extend to the issuer).
Notwithstanding that the group health plan sponsor, group health
plan, or institution of higher education is an exempt entity, under
this alternative approach, the health insurance issuer would still be
required to fulfill its separate and independent obligation to provide
contraceptive coverage, unless the issuer itself has a religious
objection to contraceptive services. Requiring the health insurance
issuer to independently provide coverage for contraceptive services,
unless it has its own religious objection to doing so, would ensure
that women who are in fully-insured plans sponsored or arranged by
objecting entities (and who thus otherwise might not have access to
contraceptive services under the existing optional accommodation or
might be limited in their ability to access contraceptive services
through the individual contraceptive arrangement proposed in these
rules) would have seamless access to contraceptive coverage. Under the
current regulations, an issuer may exclude coverage of contraceptive
services if the coverage is sponsored or arranged for by an objecting
entity. In order for the issuer to instead provide the coverage
directly to participants, beneficiaries, and enrollees, the Departments
expect that the objecting entity would have to communicate its
religious objections to the issuer in some manner.
The Departments seek comment on all aspects of this alternative
approach. Specifically, the Departments seek comment on whether and how
an objecting entity that is a group health plan sponsor, group health
plan, or institution of higher education generally communicates to the
health insurance issuer its religious objection to providing
contraceptive coverage, and
[[Page 7249]]
whether this form of communication would be sufficient for an issuer to
understand that it must fulfill its separate and independent obligation
to provide coverage of contraceptive services. The Departments also
seek comment on whether and how the health insurance issuer, in
instances in which it does not have its own religious objection to
covering contraceptive services, should be required to provide the
contraceptive coverage, and what guardrails should be in place to
separate the issuer's coverage of contraceptive services from the
coverage provided under the insured group health plan or student health
insurance coverage.
2. Moral Exemptions
Under 45 CFR 147.133, the HRSA-Supported Guidelines must not
provide for or support the requirement of coverage or payments for
contraceptive services with respect to a group health plan established
or maintained by an objecting organization, or health insurance
coverage offered or arranged by an objecting organization, to the
extent of the entity's objections, based on its sincerely held moral
convictions, to its establishing, maintaining, providing, offering, or
arranging for (as applicable) coverage or payments for some or all
contraceptive services; or a plan, issuer, or third party administrator
that provides or arranges such coverage or payments. Similarly, under
45 CFR 147.133, the HRSA-Supported Guidelines must not provide for, or
support, the requirement of coverage or payments for contraceptive
services with respect to individuals who object to coverage or payments
for some or all contraceptive services based on sincerely held moral
convictions.
These proposed rules would remove the ability of entities to claim
an exemption to establishing, maintaining, providing, offering, or
arranging for contraceptive coverage based on a non-religious moral
objection, and would remove the exemption on the basis of moral
convictions applicable to objecting individuals.
As the Departments explained in the November 2018 Moral Exemption
final rule, and as pointed out in section I.A of this preamble, the
Departments' adoption of the moral exemptions was not legally required
but rather an exercise of the Departments' discretion to protect moral
convictions.\106\ Additionally, as noted in the November 2018 Moral
Exemption final rules, the moral exemption likely affects very few
individuals.\107\ In Little Sisters, the Supreme Court concluded that
it was appropriate for HRSA to consider the prevalence of RFRA claims,
and the possibility of required exemptions under RFRA, as a reason for
establishing the religious exemption.\108\ The Departments have done
so, and these proposed rules continue to provide exemptions for
religious organizations, employers and institutions of higher
education, and health insurance issuers with sincerely held religious
objections to providing, sponsoring, or arranging coverage of
contraceptive services.
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\106\ 83 FR 57592, 57598.
\107\ 83 FR 57592, 57627. The November 2018 Moral Exemption
final rules assumed that nine nonprofit entities and nine for-profit
entities would avail themselves of the moral exemption, and
estimated that approximately 15 women may incur contraceptive costs
due to use of the moral exemption by for-profit entities.
\108\ Little Sisters of the Poor Saints Peter and Paul Home v.
Pennsylvania, 140 S. Ct. 2367 (2020).
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However, there is no such justification for treating non-religious
moral objectors in the same manner as religious objectors. RFRA does
not require any exemption for non-religious moral objections that do
not result in a substantial burden on someone's exercise of religion;
therefore, there is no prospect of successful RFRA claims for those
entities that might have only non-religious moral objections to
contraception. Nor does the existence of the religious exemption compel
the conferral of corresponding exemptions based on non-religious moral
objections. The Supreme Court has held that where ``government acts
with the proper purpose of lifting a regulation that burdens the
exercise of religion, we see no reason to require that the exemption
come packaged with benefits to secular entities.'' \109\
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\109\ Corporation of Presiding Bishop of Jesus Christ of Latter-
Day Saints v. Amos, 483 U.S. 327, 339, 107 S. Ct. 2862 (1987).
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In considering whether to propose removing the moral exemption, the
Departments considered past litigation and settlements related to non-
religious moral objections to the requirement that plans and issuers
provide coverage of certain preventive services. The Departments are
aware that one entity, March for Life, has obtained a permanent
injunction preventing the enforcement of the contraceptive coverage
requirement against it because of its non-religious moral objections.
The District Court for the District of Columbia in that case reasoned
that there was no rational basis for the Departments to distinguish
between religious and moral objections.\110\ The Departments
respectfully disagree with that conclusion: as noted previously, the
reason for the distinction is that the Departments can account for the
prospect of numerous RFRA claims with respect to a religious exemption,
some of which might be meritorious, but there is no analogous need to
heed the possibility of successful claims to a non-religious moral
exemption, because there is no moral-exemption statute similar to RFRA.
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\110\ March for Life v. Burwell, 128 F. Supp. 3d 116 (D.D.C.
2015).
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The Departments are of the view that few entities make use of the
moral exemption at this time. In the November 2018 Moral Exemption
final rules, without data available to estimate the actual number of
entities that would make use of the exemption for entities with sincere
moral objections, the Departments assumed that the moral exemption
would be used by nine nonprofit entities and nine for-profit
entities.\111\ These assumptions were made in the absence of data.
Thus, the Departments seek comment on how many women lost contraceptive
coverage without cost sharing based on the moral exemption rule, and
how many would regain access to such coverage by rescinding the
availability of the moral exemption. The Departments seek evidence of
the quantitative harms from the moral exemption rule. The Departments
note, however, that eliminating the moral exemption is likely justified
even if more entities than previously estimated make use of the moral
exemption.
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\111\ 83 FR 57592, 57625 (November 15, 2018).
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In the November 2018 Moral Exemption final rules, the Departments
noted that the organizations that have sued seeking a moral exemption
have adopted longstanding moral tenets opposed to certain FDA-approved
contraceptives and hire only employees who share this view. Commenters
on the October 2017 Moral Exemption interim final rules made similar
points and also suggested that therefore requiring coverage of
contraceptive services by a group health plan or coverage sponsored,
arranged, or provided by an objecting entity subject to a moral
exemption would yield no benefits, because that entity's employees
would neither want nor use contraception. At the time, the Departments
concluded that employees of these organizations would not benefit from
the requirement to provide contraceptive services coverage.\112\ Yet,
although employees of these organizations may typically share the views
of the organizations, it is not necessarily true that all employees of
these organizations share all of these
[[Page 7250]]
views, and employees may share these views in general while wishing to
make personal benefits elections that arguably conflict with certain
organizational views. This is true regardless of how many, or how few,
entities object to covering contraceptives based on a moral exemption.
Furthermore, dependents covered under plans sponsored by these
organizations may not share the views of these organizations and could
not be required to share these views as a condition of employment,
unless they are also employees of the organizations. It is now the
Departments' view that the potential harm to these individuals was not
adequately considered when the Departments adopted the November 2018
Moral Exemption final rules. The Departments seek comment on the
potential impact to these individuals.
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\112\ 83 FR 57536, 57602.
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In the preamble to the November 2018 Moral Exemption final rules,
the Departments referred to a number of Federal statutes demonstrating
Congress' historical desire and intent to protect non-religious moral
objections to abortion and other activities. For example, the
Departments referred at length to the Church Amendments. The preamble
to the November 2018 Moral Exemption final rules stated:
The Church Amendments specifically provide conscience
protections based on sincerely held moral convictions, not just
religious beliefs. Among other things, the amendments protect the
recipients of certain federal health funds [under the Public Health
Service Act (42 U.S.C.A. 201 et seq.), the Community Mental Health
Centers Act (42 U.S.C.A. 2689 et seq.), the Developmental
Disabilities Assistance, or the Bill of Rights Act of 2000 (42
U.S.C.A. 15001 et seq.)] from being required to perform, assist, or
make their facilities available for abortions or sterilizations if
they object `on the basis of religious beliefs or moral
convictions,' and they prohibit recipients of certain federal health
funds from discriminating against any personnel `because he refused
to perform or assist in the performance of such a procedure or
abortion on the grounds that his performance or assistance in the
performance of the procedure or abortion would be contrary to his
religious beliefs or moral convictions.' Later additions to the
Church Amendments protect other conscientious objections, including
some objections on the basis of moral conviction to `any lawful
health service,' or to `any part of a health service program.' In
contexts covered by those sections of the Church Amendments, the
provision or coverage of certain contraceptives, depending on the
circumstances, could constitute `any lawful health service' or a
`part of a health service program.' \113\
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\113\ 83 FR 57592, 57599 (internal citations removed).
However, the Departments now find it significant that Congress
chose not to apply those statutory provisions to private entities that
typically do not accept funds from or do business with the government,
that is, entities that are, in that respect, similar to sponsors of
private group health plans.\114\ The Departments also note that the
Church Amendments primarily address the imposition of employment
responsibilities or personal service requirements that would infringe
upon an individual's moral beliefs, which is not directly relevant to
an employer's, college's or university's, or health insurance issuer's
moral objections to contraceptive coverage. The Departments also find
it significant that those statutory provisions were enacted before the
Supreme Court's opinion in Dobbs. Given that decision and the
consequent threat to women's access to abortion and their ability to
exercise control over their reproductive health care decisions, it is
now all the more critical that women have access to contraceptive
coverage. In fact, the Departments noted in the November 2018 Moral
Exemption final rules that ``[t]he Church Amendments were enacted in
the wake of the Supreme Court's decision in Roe v. Wade.'' \115\ At
that time, Congress was acting in an environment in which there were,
or were about to be, fewer restrictions on reproductive health.
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\114\ As noted, the Departments also observe that the Church
Amendments apply only to recipients of certain types of Federal
funds, further narrowing the Church Amendments' application.
\115\ Id.
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The Departments are of the view that non-religious moral objections
to contraceptives are outweighed by the strong public interest in
making contraceptive coverage as accessible to women as possible. As a
result, and for the reasons stated above, these proposed rules would
eliminate the moral exemption from the requirement to provide
contraceptive coverage without cost sharing.
The Departments considered proposing to retain the moral exemption,
and apply the individual contraceptive arrangement with respect to
women enrolled in plans or coverage that are sponsored, arranged, or
provided by non-religious moral objectors, in instances where the
sponsor of the coverage was eligible for but did not avail itself of
the optional accommodation, but decided against such a proposal. As
explained more fully in section VI.B.2 of this preamble, it is possible
that through the individual contraceptive arrangement, an eligible
individual would need to seek care from a provider of contraceptive
services who is not one of their regular providers, which not only adds
inconvenience, but also could lead to disruptions in care.
Additionally, eligible individuals that participate in the individual
contraceptive arrangement would have to confirm eligibility to their
provider of contraceptive services. The Departments are of the view
that these additional burdens are not justified when weighed against a
moral as opposed to a religious objection.
However, given the larger number of entities that have religious
objections to contraceptive coverage, and the fact that RFRA in some
circumstances could require religious exemptions from such coverage,
the Departments are retaining the religious exemption.
Correspondingly, the Departments propose to make conforming edits
to remove references to 45 CFR 147.133 (which is where the moral
exemption is codified in the current rules) that appear in paragraph
(a)(1) of 45 CFR 147.130 and paragraph (a)(1)(iv) of 26 CFR 54.9815-
2713, 29 CFR 2590.715-2713, and 45 CFR 147.130. The Departments seek
comments on these proposals.
The Departments acknowledge that some objecting entities have
relied on the moral exemption, and that removing that exemption, if
finalized, would disrupt that reliance by requiring such entities to
begin covering contraceptive services without cost sharing. However,
the Departments are of the view that newly applying the contraceptive
coverage requirement on non-religious moral objectors is no different
from requiring a plan or issuer to newly provide coverage without cost
sharing for a preventive service after an applicable recommendation or
guideline is first established. The Departments seek comment on how,
and the degree to which, reliance on the moral exemption would be
disrupted by requiring such entities to begin covering contraceptive
services without cost sharing, and the type and magnitude of burden
that such disruption would cause such entities.
Although the Departments are proposing to eliminate the exemptions
for entities with non-religious moral objections to providing coverage
of contraceptive services, the Departments respect non-religious moral
objections and also seek comment on alternatives to fully rescinding
the moral exemption that would balance the interests of entities with
non-religious moral objections against the strong public interest of
ensuring women have access to contraceptive services without cost
[[Page 7251]]
sharing.\116\ The Departments also seek comment on whether such an
approach would introduce unwarranted barriers for women to access
contraceptive services, as compared to simply eliminating the moral
exemption.
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\116\ While no other Federal law may require the Departments to
provide for an across-the-board moral exemption via regulation,
Federal law continues to protect the exercise of convictions in
certain specific contexts covered by the respective statutory text.
See, for example, the Church Amendments at 42 U.S.C. 300a-7(c)(2)
and (d) (requiring certain covered entities to provide for persons'
lawful exercise of conscience with respect to certain services or
programs, which may include contraceptive services or coverage).
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D. Alternate Availability of Certain Preventive Health Services (26 CFR
54.9815-2713A, 29 CFR 2590.715-2713A, and 45 CFR 147.131)
1. Optional Accommodation for Exempt Entities
The Departments propose several amendments to the existing
regulatory text in 26 CFR 54.9815-2713A, 29 CFR 2590.715-2713A, and 45
CFR 147.131 regarding the optional accommodation for exempt entities.
The Departments propose to amend the language describing which entities
are eligible for the optional accommodation to align with the scope of
entities eligible for an exemption under these proposed rules. The
Departments also propose changes to reflect needed updates and several
minor additional changes.
In the list of organizations eligible for the optional
accommodation (26 CFR 54.9815-2713A(a)(1), 29 CFR 2590.715-2713A(a)(1),
and 45 CFR 147.131(c)(1) \117\), the Departments propose to remove the
cross-reference to 45 CFR 147.133(a)(1)(i) or (ii) because, as
discussed in section II.C.2 of this preamble, these proposed rules
would eliminate the moral exemption and entities that object to
coverage of contraceptive services based on non-religious moral
objections would no longer be exempt entities. Thus, if finalized,
these proposed rules would not allow these entities to avail themselves
of the optional accommodation.
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\117\ In 45 CFR 147.131, these proposed rules would eliminate
reserved paragraphs (a) and (b), and redesignate paragraph (c) as
paragraph (a).
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In the same paragraph, the Departments propose to add a cross-
reference to 45 CFR 147.132(a)(1)(iii), in addition to the existing
cross-references to 45 CFR 147.132(a)(1)(i) and (ii), to clarify that
the existing optional accommodation for objecting entities is available
to objecting entities that are institutions of higher education. The
preamble to the November 2018 Religious Exemption final rules stated
that the optional accommodation is available to objecting entities that
are institutions of higher education,\118\ but the text of the November
2018 Religious Exemption final rules inadvertently did not specify that
the optional accommodation is available to these entities. These
proposed rules would also add a rule of construction to the HHS
regulation at 45 CFR 147.131 as redesignated paragraph (f) to clarify
that in the case of student health insurance coverage, 45 CFR 147.131
would be applicable in the same manner as to group health insurance
coverage provided in connection with a group health plan established or
maintained by a plan sponsor that is an employer, and references to
``plan participants and beneficiaries'' would be interpreted as
references to student enrollees and their covered dependents.
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\118\ See 83 FR 57536, 57564. (``These rules treat the plans of
institutions of higher education that arrange student health
insurance coverage similarly to the way in which the rules treat the
plans of employers. These rules do so by making such student health
plans eligible for the expanded exemptions, and by permitting them
the option of electing to utilize the accommodation process.'')
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The Departments also propose technical amendments to the regulatory
text to remove the transitional rule provision, which was added in the
November 2018 Religious Exemption final rules. In instances where an
issuer or third party administrator makes separate payments for
contraceptive services through the optional accommodation process on
January 14, 2019, this transitional rule permitted the eligible
organization to give accelerated notice of revocation of the
accommodation. The period during which this accelerated notice process
was permitted has expired. In addition, the Departments do not see a
reason to create a new opportunity for such an accelerated notice,
since all entities currently availing themselves of the optional
accommodation are doing so voluntarily. Therefore, the Departments
propose technical amendments to remove the transitional rule. The
Departments do not propose to modify the generally applicable rule of
revocation, which requires an eligible organization's revocation of use
of the optional accommodation process to be effective no sooner than
the first day of the first plan year that begins on or after 30 days
after the date of the revocation.
Additionally, the Departments propose to replace the cross-
reference to section 2719A of the PHS Act with a cross-reference to
section 9822 of the Code, section 722 of ERISA, and section 2799A-7 of
the PHS Act, in 26 CFR 54.9815-2713A(c)(2)(ii), 29 CFR 2590.715-
2713A(c)(2)(ii), and redesignated 45 CFR 147.131(b)(2)(ii). The current
cross-reference establishes that, when an insured group health plan
avails itself of the optional accommodation, its health insurance
issuer must provide separate payments for contraceptive services in a
manner that is consistent with, among others, the patient protection
requirements under section 2719A of the PHS Act. Section 2719A of the
PHS Act provided that if a plan or issuer requires or provides for
designation by a participant, beneficiary, or enrollee of a
participating primary care provider, individuals may designate any
participating primary care providers available to accept them,
including pediatricians, and prohibits the plan or issuer from
requiring authorization or referral for obstetrical or gynecological
care. Section 102 of title I of Division BB of the Consolidated
Appropriations Act, 2021 (CAA) \119\ amended section 2719A of the PHS
Act to include a sunset provision effective for plan years beginning on
or after January 1, 2022, when the new protections under the No
Surprises Act took effect. Additionally, the No Surprises Act
recodified the patient protections regarding choice of health care
professional from section 2719A(a), (c), and (d) of the PHS Act at new
section 9822 of the Code, section 722 of ERISA, and section 2799A-7 of
the PHS Act.\120\ The Departments are of the view that it would be
appropriate to continue to require that, when making separate payments
for contraceptive services through the optional accommodation for
insured plans, an issuer must make those payments in a manner that is
consistent with these patient protections. The Departments seek comment
on the circumstances under which contraceptive services would
constitute emergency services,\121\ as well as whether to continue to
apply the protections for emergency services, which were set forth
under section 2719A of the PHS Act, and subsequent to that provision
sunsetting, are now set
[[Page 7252]]
forth in section 2799A-1 of the PHS Act but include different such
protections, to issuers making separate payments for contraceptive
services through the optional accommodation for insured plans.
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\119\ Title I of Division BB of the CAA is also known as the No
Surprises Act.
\120\ Section 2719A(b) of the PHS Act and the Departments'
implementing regulations established requirements applicable to
group health plans and health insurance issuers offering group or
individual health insurance related to the coverage of emergency
services, which are also covered under the CAA's sunset provision.
The No Surprises Act added section 9816 of the Code, section 716 of
ERISA, and section 2799A-1 of the PHS Act, which expand the patient
protections related to emergency services under section 2719A of the
PHS Act, in part, by providing additional consumer protections
related to balance billing.
\121\ The term emergency services is defined in regulations at
26 CFR 54.9816-4T(c)(2), 29 CFR 2590.716-4(c)(2), and 45 CFR
149.110(c)(2).
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Redesignated paragraphs 26 CFR 54.9815-2713A(d), 29 CFR 2590.715-
2713A(d), and 45 CFR 147.131(c) set forth model language for the
written notice of the availability of separate payments for
contraceptive services with respect to eligible organizations
exercising the optional accommodations set forth in 26 CFR 54.9815-
2713A(b) and (c), 29 CFR 2590.715-2713A(b) and (c), and 45 CFR
147.131(b). Under current paragraphs 26 CFR 54.9815-2713A(d), 29 CFR
2590.715-2713A(d), and 45 CFR 147.131(e), the language explains to a
participant or beneficiary that a plan sponsor has certified that the
plan or coverage qualifies for an accommodation with respect to the
requirement to cover all FDA-approved contraceptive services for women,
as prescribed by a health care provider, without cost sharing. The
Departments propose to redesignate those paragraphs and amend the
language that refers to FDA-approved contraceptive services to refer to
all FDA-approved, cleared, or granted contraceptives. This proposed
change is consistent with the fact that FDA does not approve
contraceptive ``services,'' but rather contraceptive products, which
may be approved, cleared, or granted, depending on the product type.
The Departments also propose several minor additional grammatical,
conforming, and technical changes. In 26 CFR 54.9815-2713A(b)(1)(ii)(B)
and (c)(1)(ii)(B), 29 CFR 2590.715-2713A(b)(1)(ii)(B) and
(c)(1)(ii)(B), and 45 CFR 147.131(d)(1)(ii)(B) of the current rules,
which are redesignated as 26 CFR 54.9815-2713A(b)(1)(ii)(B) and
(c)(1)(ii)(C), 29 CFR 2590.715-2713A(b)(1)(ii)(B) and (c)(1)(ii)(C),
and 45 CFR 147.131(b)(1)(ii)(B) in these proposed rules, the
Departments propose to update the reference to a student health
insurance plan to refer to student health insurance coverage, to be
consistent with the terminology used in 45 CFR 147.145(a). The
Departments also propose to add a reference to section 414(e) of the
Code when referring to church plans, to fully account for the fact that
the Internal Revenue Service and the Department of the Treasury
regulate such plans. In addition, in what is proposed to be
redesignated as 26 CFR 54.9815-2713A(f), 29 CFR 2590.715-2713A(f), and
45 CFR 147.131(e) (which are paragraphs 26 CFR 54.9815-2713A(e), 29 CFR
2590.715-2713A(e), and 45 CFR 147.131(f) in current regulations), the
Departments propose non-substantive amendments for clarity.
These proposed rules retain the optional accommodation process for
self-insured group health plans under 26 CFR 54.9815-2713A(b) and 29
CFR 2590.715-2713A(b). Under that optional accommodation, an eligible
organization is not required to contract, arrange, pay, or provide a
referral for the delivery of contraceptive benefits in cases where the
organization objects to providing contraception coverage, but does not
object to having third parties (such as a third party administrator)
provide for the benefits. The Department of the Treasury and DOL
propose to make minor amendments to the existing regulatory text in 26
CFR 54.9815-2713A(b) and 29 CFR 2590.715-2713A(b) regarding the
optional accommodation for exempt entities that provide benefits on a
self-insured basis. The proposed amendments make conforming edits to
paragraphs (b)(1)(ii) and (b)(1)(ii)(B) that remove references to 45
CFR 147.133 and add language to paragraph (b)(1)(ii) noting that third
party administrators provide administrative services in connection with
the plan consistent with the parallel optional accommodation for
insured plans. The proposed rules would also add a reference to State
Exchange on the Federal platform user fees to paragraph (b)(3) to be
consistent with amendments made to the user fee provisions in 45 CFR
156.50(d).\122\
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\122\ In 2021, HHS amended 45 CFR 156.50(d) to clarify that
issuers participating through SBE-FPs are eligible to receive
adjustment to their Federal user fee amounts that reflect the value
of contraceptive claims they have reimbursed to third-party
administrators (TPAs) that have provided contraceptive coverage on
behalf of an eligible employer. 86 FR 24140, 24229 (May 5, 2021).
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The Departments seek comment on all aspects of these proposed
amendments.
2. Individual Contraceptive Arrangement for Eligible Individuals
By making the accommodations in 26 CFR 54.9815-2713A, 29 CFR
2590.715-2713A, and 45 CFR 147.131 optional in the November 2018 final
rules, the Departments responded to litigants' concerns that some
objecting entities believed the accommodations under the prior rules
left the objecting entity complicit in contracting, arranging, paying,
or providing a referral for the contraceptive coverage. Those rules
left the accommodation process intact as a voluntary option that
objecting entities could avail themselves of if they did not object to
the accommodation. However, the November 2018 final rules had the
adverse effect of failing to provide women enrolled in a health plan
established or maintained or arranged by an objecting entity with an
alternative mechanism for obtaining contraceptive services with no cost
sharing if the entity did not choose to use the accommodation.
Additionally, the November 2018 final rules did not require objecting
entities or their health plans to notify eligible individuals that the
coverage offered excludes contraceptive services. The Departments have
determined that it is necessary to provide these women with an
alternative pathway to obtaining contraceptive services at no cost
(other than the premium or contribution paid for health coverage)
because of the public health interest in ensuring women's access to
reproductive health care and contraceptive services without cost
sharing, particularly in light of the Supreme Court's opinion in Dobbs
v. Jackson Women's Health Organization. Specifically, the Departments
propose to amend 26 CFR 54.9815-2713A, 29 CFR 2590.715-2713A, and 45
CFR 147.131 to create an individual contraceptive arrangement for women
enrolled in a group health plan or health insurance coverage sponsored,
offered, or arranged by an objecting entity that does not provide
contraceptive coverage and that elects not to use the existing optional
accommodations with respect to some or all contraceptive services. By
enabling individuals to directly receive contraceptive services at no
cost, this proposal would provide them with access to all contraceptive
services the plan or coverage would otherwise be required to cover,
absent the exemption. Critically, this would be accomplished
independent of any action by the objecting entity, which would not be
required to take any steps to facilitate this provision of
contraceptive services.
Under these proposed rules, an eligible individual may voluntarily,
and independent of any actions by the objecting entity, elect this
individual contraceptive arrangement. Under proposed 26 CFR 54.9815-
2713A(e), 29 CFR 2590.715-2713A(e), and 45 CFR 147.131(d), a provider
of contraceptive services would furnish contraceptive services to the
eligible individual without imposing any fee or charge of any kind,
directly or indirectly, on the eligible individual or any other entity
for the cost of the items and services or any portion thereof.\123\ The
provider of
[[Page 7253]]
contraceptive services would be permitted to seek reimbursement from a
participating issuer as defined under 45 CFR 156.50,\124\ with which
the provider has a signed agreement for the costs of providing these
contraceptive services. The Departments expect that administrative
costs incurred by participating providers of contraceptive services
would be included in the amounts they submit to issuers for
reimbursement. The issuer in turn would be able to receive a reduction
equal to this amount (plus an administrative allowance for costs and
margin) to the issuer's FFE or SBE-FP user fees pursuant to 45 CFR
156.50(d). See section III of this preamble for a discussion of how a
provider of contraceptive services would be reimbursed through such an
adjustment.
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\123\ Under these proposed rules, the provider of contraceptive
services would furnish contraceptive services to the eligible
individual in a manner that is totally independent of any costs that
are associated with a group health plan or health insurance coverage
sponsored, arranged, or provided by an objecting entity. The
Departments note that, because the individual contraceptive
arrangement would be completely separate from a plan or coverage
sponsored, arranged, or provided by an objecting entity, the
provision of the proposed rules that would require a provider of
contraceptive services to furnish contraceptive services to eligible
individuals without imposing any fee or charge of any kind would
mean that the provider of contraceptive services would not collect
any amounts that would typically be associated with an eligible
individual's plan or coverage, such as any premiums, cost-sharing
requirements, or other similar amounts.
\124\ 45 CFR 156.50 defines participating issuer as any issuer
offering a plan that participates in the specific function that is
funded by user fees. This term may include: health insurance
issuers, QHP issuers, issuers of multi-State plans (as defined in 45
CFR 155.1000(a), issuers of stand-alone dental plans (as described
in 45 CFR 155.1065), or other issuers identified by an Exchange.
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Participation in an individual contraceptive arrangement would be
entirely voluntary for the provider of contraceptive services. A
willing provider of contraceptive services would also be reimbursed for
items and services that are integral to the furnishing of the
contraceptive service, for an amount agreed to by the provider and
eligible issuer, regardless of whether the provider would typically
bill for the item or service separately. Reimbursing for the items and
services that are integral to the furnishing of the contraceptive
service, regardless of whether the provider would typically bill for
the item or service separately, is consistent with how the Departments
have interpreted section 2713 of the PHS Act as applied to group health
plans and health insurance issuers offering group or individual health
insurance coverage.\125\
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\125\ 85 FR 71142, 71174. See also FAQs about Affordable Care
Act Implementation Part 54 (July 28, 2022), Q1, available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-54.pdf and https://www.cms.gov/files/document/faqs-part-54.pdf.
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For purposes of this individual contraceptive arrangement, these
proposed rules would define an eligible individual under 26 CFR
54.9815-2713A(a)(3), 29 CFR 2590.715-2713A(a)(3), and 45 CFR
147.131(a)(3) as a participant or beneficiary enrolled in a group
health plan established or maintained, or an enrollee in individual
health insurance coverage offered or arranged, by an objecting entity
described in 45 CFR 147.132(a) that, to the extent eligible, has not
invoked the accommodation, and who confirms to a provider of
contraceptive services (that agrees to meet certain criteria) that the
individual is enrolled in a group health plan or group or individual
health insurance coverage sponsored, provided, or arranged by an
objecting entity that does not provide coverage for all or a subset of
contraceptive services as generally required for non-objecting entities
under 26 CFR 54.9815-2713(a)(1)(iv), 29 CFR 2590.715-2713(a)(1)(iv),
and 45 CFR 147.130(a)(1)(iv).
The individual may make this confirmation by producing any
documentation that may include the relevant information, such as a
summary of benefits (for example, a summary of benefits and coverage
(SBC) that includes the relevant information), or through other
methods, such as by providing an attestation.\126\ The provider of
contraceptive services would have discretion on choosing what
confirmation method to accept. The Departments seek comment on
additional sources of information that participants, beneficiaries, and
enrollees could provide for this confirmation, including what
documentation plans and issuers may already be providing to
participants, beneficiaries, and enrollees independent of any Federal
requirements.
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\126\ The Departments are proposing to add sample attestation
language for this purpose to the regulations at 26 CFR 54.9815-
2713A(e)(2), 29 CFR 2590.715-2713A(e)(2), and 45 CFR 147.131(d)(2).
---------------------------------------------------------------------------
Excluded from the proposed definition of eligible individual are a
participant or beneficiary enrolled in a group health plan established
or maintained, or an enrollee in individual health insurance coverage
offered or arranged, by an objecting entity that has invoked the
optional accommodation. The Departments do not expect many such
participants, beneficiaries, or enrollees would avail themselves of the
individual contraceptive arrangement, even if they were eligible, as it
would likely be easier for them to obtain contraceptive services
through the accommodation. However, the Departments recognize that it
may be challenging for an individual or a provider of contraceptive
services to distinguish between an eligible individual, as defined
under these proposed rules, and a participant or beneficiary enrolled
in a group health plan established or maintained, or an enrollee in
individual health insurance coverage offered or arranged, by an
objecting entity that has invoked the optional accommodation.
Therefore, the Departments seek comment on whether these individuals
should be included within the definition of eligible individual.
The Departments acknowledge that grandfathered health plans are not
required to comply with section 2713 of the PHS Act, including the
implementing regulations. However, because there are relatively few
grandfathered plans and coverage still in existence,\127\ and these
plans and issuers providing grandfathered coverage may voluntarily, or
as required by State law, provide contraceptive coverage, the
Departments are not proposing to apply the proposed individual
contraceptive arrangement to women enrolled in grandfathered plans.
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\127\ In 2020, the Departments estimated that there are 2.5
million ERISA-covered plans offered by private employers that cover
an estimated 136.2 million participants and beneficiaries in those
private employer-sponsored plans. Similarly, the Departments
estimated that there were 84,087 State and local governments that
offer health coverage to their employees, with an estimated 32.8
million participants and beneficiaries in those employer-sponsored
plans. The Departments estimated that, of firms offering health
benefits, 400,000 sponsor ERISA-covered plans that are grandfathered
(or include a grandfathered benefit package option) and cover 19.1
million participants and beneficiaries. The Departments further
estimated there are 13,454 State and local governments offering at
least one grandfathered health plan and 4.6 million participants and
beneficiaries covered by a grandfathered State or local government
plan. See 85 FR 81097, 81108. The Departments expect that those
numbers are now somewhat lower.
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These proposed rules, if finalized, would not place any additional
obligations on a plan or health insurance issuer. Under this individual
contraceptive arrangement, an exempt entity would not have to provide
any verbal or written documentation to an eligible individual, a
provider of contraceptive services, a health insurance issuer, a third
party administrator, a government agency, or any other person or
entity, that an exempt entity would not already be required to provide
by virtue of sponsoring, arranging, or offering health coverage in
general.\128\ Under these
[[Page 7254]]
proposed rules, an eligible individual may voluntarily, without the
objecting entity's knowledge, and independent of any actions by the
objecting entity, elect this individual contraceptive arrangement. The
individual contraceptive arrangement option would therefore operate
independently of any health plan or health insurance arrangement that
involves or implicates an objecting entity. The Departments seek
comment on adequate ways to ensure individuals are aware of the
individual contraceptive arrangement, can learn if they are eligible,
and can find participating providers to access contraceptive services
at no cost.
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\128\ However, these proposed rules would not prohibit an
eligible individual from requesting that the plan or coverage
provide documentation showing the plan or coverage does not cover
all or a subset of contraceptive services as generally required
under 26 CFR 54.9815-2713(a)(1)(iv), 29 CFR 2590.715-2713(a)(1)(iv),
or 45 CFR 147.130(a)(1)(iv). The Departments note that a plan or
coverage would be required to comply with generally applicable
disclosure requirements. For example, if an individual requests that
the plan or coverage provide them with a copy of their SBC, the plan
or coverage would be required to furnish the SBC in accordance with
existing regulations. See 26 CFR 54.9815-2715(a)(1), 29 CFR
2590.715-2715(a)(1), and 45 CFR 147.200(a)(1). Additionally, group
health plans covered by ERISA are required to provide a summary plan
description to participants and beneficiaries that describe, in
terms understandable to the average plan participant, the rights,
benefits, and responsibilities of participants and beneficiaries.
See ERISA section 102 and 29 CFR 2520.104b-2.
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These proposed rules would also add a definition of provider of
contraceptive services for purposes of 26 CFR 54.9815-2713A, 29 CFR
2590.715-2713A, and 45 CFR 147.131 in new paragraphs 26 CFR 54.9815-
2713A(g)(2), 29 CFR 2590.715-2713A(g)(2), and 45 CFR 147.131(g)(2). The
term ``provider of contraceptive services'' would mean any health care
provider (including a clinician, pharmacy, or other facility) acting
within the scope of that provider's license, certification, or
authority under applicable law to provide contraceptive services. This
definition is intended to be interpreted broadly to encompass any
provider or facility authorized to provide any contraceptive services,
including when provided via telehealth or mail. The Departments
specifically seek comment on whether there are any entities that would
be equipped to facilitate the individual contraceptive arrangement that
would not be included within this definition.
The Departments acknowledge that this proposal would not achieve
the Women's Health Amendment's goal of ensuring that women have
seamless cost-free coverage of contraceptives, because the individual
contraceptive arrangement would require some additional action by the
affected women and could require them to obtain contraceptive care from
providers other than those from whom they typically receive women's
health care. As the Departments have explained, however, they have been
unable to identify a mechanism that would achieve seamless coverage
while addressing the religious objections to the contraceptive coverage
requirement and the existing accommodations as well as resolving the
long-running litigation.\129\ Nonetheless, the proposed individual
contraceptive arrangement would be more effective than the existing
regulations at advancing the goals of the Women's Health Amendment,
because the current regulations provide no pathway to obtain
contraceptive services at no cost for women whose employers,
institutions of higher education, or health insurance issuers exercise
a religious exemption and either opt not to or are not eligible to
invoke the accommodation.
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\129\ See FAQs Part 36, available at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-36.pdf and https://www.cms.gov/CCIIO/Resources/Fact-Sheets-
and-FAQs/Downloads/ACA-FAQs-Part36_1-9-17-Final.pdf.
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The Departments propose to codify the proposed individual
contraceptive arrangement in the same section of the regulations as the
existing optional accommodation for exempt entities, as both would
operate to ensure that women enrolled in coverage sponsored or offered
or arranged by an exempt entity have access to contraceptive services
otherwise required to be covered, without cost sharing. Therefore, the
Departments propose to change the titles of 26 CFR 54.9815-2713A, 29
CFR 2590.715-2713A, and 45 CFR 147.131 from ``Accommodations in
connection with coverage of certain preventive health services,'' to
``Alternate availability of certain preventive health services.''
The Departments seek comment on all aspects of these proposed
amendments.
III. Overview of Proposed Rules--Department of Health and Human
Services
Financial Support (45 CFR 156.50)
To facilitate the proposed individual contraceptive arrangement,
HHS proposes to amend 45 CFR 156.50(d) to allow a participating issuer
\130\ on the FFE or an SBE-FP to receive an FFE or SBE-FP user fee
adjustment for reimbursing a provider of contraceptive services for the
costs of providing contraceptive services pursuant to the individual
contraceptive arrangement.\131\ Additionally, for purposes of 45 CFR
156.50(a), HHS proposes that ``provider of contraceptive services''
would have the same meaning as ``provider of contraceptive services''
under proposed 45 CFR 147.131(g)(2). Under this definition, a provider
of contraceptive services would not be required to be located in an FFE
or SBE-FP State, but a participating issuer would need to be subject to
FFE or SBE-FP user fees to be eligible to receive a user fee
adjustment. In other words, a provider of contraceptive services would
be able to seek reimbursement from a participating issuer in another
State.
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\130\ Under 45 CFR 156.50(a), a participating issuer means any
issuer offering a plan that participates in the specific function
that is funded by user fees. This term may include: health insurance
issuers, QHP issuers, issuers of multi-State plans (as defined in 45
CFR 155.1000(a)), issuers of stand-alone dental plans (as described
in 45 CFR 155.1065), or other issuers identified by an Exchange. The
references to ``participating issuer'' in this section would mean a
participating issuer on the FFE or an SBE-FP.
\131\ HHS notes it is not proposing to change the substantive
requirements on participating issuers and third party administrators
when participating issuers make payments to third party
administrators, nor is HHS proposing to make substantive changes
related to information and documentation requirements on third party
administrators and participating issuers that have made arrangements
with each other. To conform with proposed changes for the individual
contraceptive arrangement, HHS would amend 45 CFR 156.50 to include
references to the individual contraceptive arrangement and re-
designate paragraphs to include references to the individual
contraceptive arrangement provisions. These changes are discussed in
more detail in the following paragraphs.
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To summarize, a provider of contraceptive services that incurs
costs for furnishing contraceptive services pursuant to the individual
contraceptive arrangement would be able to seek reimbursement of these
costs from a participating issuer, with the issuer in turn receiving a
reduction equal to this amount, plus an administrative allowance for
costs and margin, of the issuer's FFE or SBE-FFP user fees as discussed
in detail in this section of the preamble:
In order to receive reimbursement for contraceptive
services provided pursuant to the individual contraceptive arrangement,
a provider of contraceptive services would be required to enter into a
signed agreement with a participating issuer to reimburse the provider
for the cost of furnishing contraceptive services.
For the participating issuer to receive the user fee
adjustment and for the provider of contraceptive services to receive
reimbursement from the participating issuer as a result of the
participating issuer's user fee adjustment, the participating issuer
would be required to submit to HHS: (1) a copy of the signed agreement
it entered into with the provider of
[[Page 7255]]
contraceptive services; (2) information that identifies the provider of
contraceptive services it reimbursed or will reimburse; and (3) the
total dollar amount of the payments it made or will make to reimburse
the provider of contraceptive services for the costs of furnishing
contraceptive services to eligible individuals pursuant to the
individual contraceptive arrangement.
If the necessary conditions are met, the participating
issuer would receive an adjustment to its user fee obligation equal to
the total amount of costs of furnishing contraceptive services for each
provider of contraceptive services in accordance with the individual
contraceptive arrangement, plus an allowance for administrative costs
and margin.\132\ If the adjustment exceeds the user fees owed in the
month of the initial adjustment or in any later month, any excess
adjustment would be carried over to later months.
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\132\ The allowance for administrative costs and margin is
intended to cover a participating issuer's administrative costs
associated with reimbursing providers of contraceptive services,
such as the costs associated with entering into arrangements with
such providers and submitting documentation to seek a reduction in
the user fee obligation, as well as provide a margin to ensure that
participating issuers receive appropriate compensation for providing
such reimbursements. See 78 FR 39870, 39884.
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Under these proposed rules and the current regulation, the
administrative allowance--which would be at least 10 percent of the
total dollar amount of the costs of furnishing contraceptive services
pursuant to the individual contraceptive arrangement \133\--would be
specified by HHS in the annual HHS notice of benefit and payment
parameters or other rulemaking. If the administrative allowance for an
applicable year is not specified in that year's HHS notice of benefit
and payment parameters or other rulemaking, then the administrative
allowance would be the amount last specified in rulemaking.
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\133\ Pursuant to 45 CFR 156.50(d)(3)(ii), the minimum
administrative allowance permitted for the existing third party
administrator optional accommodation is also at least 10 percent of
the total dollar amount of payments for contraceptive services. See
78 FR 39870, 39885. Per the HHS Notice of Benefit and Payment
Parameters for 2015 (``2015 Payment Notice''), HHS set the
administrative allowance for the existing third party administrator
optional accommodation at 15 percent. See 79 FR 13743, 13809 (March
11, 2014).
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The participating issuer may pay the provider of
contraceptive services as soon as the contraceptive services are
delivered pursuant to the individual contraceptive arrangement, but the
participating issuer would be required to pay the provider, no later
than within 60 days of receipt of any adjustment of a user fee. No
payment would be required with respect to the allowance for
administrative costs and margin. This proposal sets the latest date on
which the participating issuer must reimburse the provider of
contraceptive services. This proposal would not preclude the
participating issuer and provider of contraceptive services from
agreeing that the participating issuer would reimburse the provider at
more frequent intervals, such as on a monthly or quarterly basis, or
upfront for the full cost of services provided during the applicable
benefit year rather than in the following benefit year in which the
issuer receives the monthly user fee adjustment.
Each of the items from the preceding list laying out this proposed
user fee adjustment is discussed in more detail in the following
paragraphs.
HHS proposes to add paragraph (d)(1)(iii) to 45 CFR 156.50 to
require that a provider of contraceptive services and a participating
issuer enter into an agreement for that issuer to seek a user fee
adjustment as a result of reimbursing the provider's costs pursuant to
the individual contraceptive arrangement. An agreement between the
participating issuer and the provider of contraceptive services would
be a condition of participation in the individual contraceptive
arrangement and required to receive reimbursement for the costs of
furnishing contraceptive services.
HHS proposes to amend 45 CFR 156.50(d)(2)(i) to establish the
information and documentation a participating issuer that is eligible
for a user fee adjustment must provide to HHS to receive a user fee
adjustment as a result of reimbursement of (or intention to reimburse
pursuant to proposed 45 CFR 156.50(d)(5)) the cost of furnishing
contraceptive services incurred by a provider of contraceptive
services. HHS proposes to amend 45 CFR 156.50(d)(2)(i)(A) to require
that, to receive a user fee adjustment under the individual
contraceptive arrangement, a participating issuer must submit to HHS
identifying information on each provider of contraceptive services it
reimbursed (or will reimburse pursuant to proposed 45 CFR
156.50(d)(5)). Additionally, HHS proposes to add 45 CFR
156.50(d)(2)(i)(D) and (E) to require the participating issuer offering
a plan through the FFE or an SBE-FP to submit: (1) documentation that
demonstrates that the participating issuer and the provider of
contraceptive services have entered into an agreement through which the
participating issuer would reimburse the provider for the costs of
contraceptive services furnished under the individual contraceptive
arrangement; and (2) the total dollar amount of the payments the
participating issuer made (or will make) to reimburse the provider for
the costs of furnishing those contraceptive services already provided
under the individual contraceptive arrangement.
To facilitate the individual contraceptive arrangement, HHS
proposes that providers of contraceptive services and participating
issuers, as a condition for participating in this individual
contraceptive arrangement, must enter into a signed agreement and that
the participating issuer must submit a copy of this agreement to HHS to
satisfy the proposed submission requirements at 45 CFR
156.50(d)(2)(i)(A) and (D). HHS proposes that this signed agreement
must include identifying information of the provider of contraceptive
services, such as the name and contact information for the provider's
practice or facility or, if applicable, the provider's National
Provider Identifier.\134\ In addition, the agreement would need to
include the signatures of individuals with the authority to legally and
financially bind the provider of contraceptive services and the
participating issuer. The agreement would need to demonstrate that the
provider of contraceptive services and participating issuer have
entered into an arrangement through which the participating issuer will
reimburse the provider for the costs of furnishing contraceptive
services in accordance with the individual contraceptive arrangement at
proposed 26 CFR 54.9815-2713A(e), 29 CFR 2590.715-2713A(e), and 45 CFR
147.131(d), and that the participating issuer will seek a user fee
adjustment for the amount of those eligible costs (plus an
administrative allowance as specified at proposed 45 CFR
156.50(d)(3)(iii)). HHS notes that other terms of the agreement between
a provider of contraceptive services and a participating issuer, such
as the period of time over which the agreement is effective, are at the
discretion of the participating issuer and provider. HHS also notes
that, to facilitate the individual contraceptive arrangement, a single
participating issuer may enter into separate agreements with more than
one provider of contraceptive services. Additionally, providers of
contraceptive services may enter into separate agreements with more
than one participating issuer. HHS recognizes that there may be
additional
[[Page 7256]]
forms of documentation that could satisfy these proposed submission
requirements; thus, HHS seeks comment on the types of documentation HHS
should accept. HHS also seeks comment on the types of information
participating issuers must submit to adequately identify the providers
of contraceptive services with which the participating issuers have
entered into such arrangements.
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\134\ See ``NPI: What You Need to Know'' (March 2021), available
at https://www.cms.gov/Outreach-and-Education/Medicare-Learning-Network-MLN/MLNProducts/Downloads/NPI-What-You-Need-To-Know.pdf.
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HHS proposes to add 45 CFR 156.50(d)(2)(i)(E) to require a
participating issuer to submit the total dollar amount of the
provider's costs of furnishing contraceptive services under the
individual contraceptive arrangement and for which a participating
issuer would be able to receive a user fee adjustment (plus an
administrative allowance as specified at proposed 45 CFR
156.50(d)(3)(iii)). HHS recognizes that the costs of furnishing
contraceptive services under the individual contraceptive arrangement
would vary based on the specific contraceptive service provided and the
time it takes to provide that service. Because of this cost variance,
HHS proposes to allow a provider of contraceptive services to calculate
its actual costs of furnishing these contraceptive services and to
provide that calculation of actual costs to the participating issuer
offering a plan through the FFE or an SBE-FP with which the provider
has entered into an arrangement for reimbursement of these costs.
Consistent with how the Departments have interpreted section 2713 of
the PHS Act as applied to group health plans, and health insurance
issuers offering group or individual health insurance coverage,\135\
HHS proposes that the actual costs of the provider of contraceptive
services would include items and services that are integral to the
furnishing of the contraceptive service, for an amount agreed to by the
provider and eligible issuer, regardless of whether the provider would
typically bill for the item or service separately. This would include
the administrative costs incurred by participating providers of
contraceptive services to deliver the contraceptive services. HHS seeks
comment on the costs a provider of contraceptive services could include
in its calculation of actual costs provided to the participating issuer
with which it has entered into an arrangement for reimbursement of
these costs. In determining how a provider's costs should be calculated
for reimbursement under the individual contraceptive arrangement, HHS
considered whether costs should be calculated using a standard
methodology. However, due to the wide variation in costs depending on
the specific contraceptive services provided and how the service is
delivered, HHS determined that permitting a provider of contraceptive
services to calculate its actual costs would allow the provider to
receive a more accurate cost reimbursement. HHS seeks comment on
whether the reimbursement should be equal to the provider's actual
costs of furnishing contraceptive services to eligible individuals or
whether HHS should instead establish a standard methodology to
calculate costs. HHS seeks comment on benchmarks HHS could use to
establish a reimbursement rate.
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\135\ 85 FR 71142, 71174. See also FAQs Part 54, Q1, available
at https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/aca-part-54.pdf and https://www.cms.gov/files/document/faqs-part-54.pdf.
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Additionally, HHS proposes to revise 45 CFR 156.50(d)(3)(ii) to
permit a participating issuer that satisfies the requirements as
proposed in 45 CFR 156.50(d)(2) to receive a user fee adjustment equal
to the total dollar amount of a provider's costs of furnishing
contraceptive services plus the administrative allowance. HHS proposes
to re-designate the administrative allowance provision at existing 45
CFR 156.50(d)(3)(ii) to new paragraph (d)(3)(iii), and amend it to
establish that the allowance should be calculated as a percentage of
the sum of the total dollar amount of the payments for contraceptive
services provided to a third party administrator as calculated at 45
CFR 156.50(d)(3)(i) and the provider's costs of furnishing
contraceptive services as calculated at proposed 45 CFR
156.50(d)(3)(ii). HHS is of the view that it is appropriate to provide
an administrative allowance because participating issuers will incur
additional administrative costs to providers of contraceptive services
for the actual cost of furnishing contraceptive services. As
established in the 2015 Payment Notice,\136\ the current administrative
allowance is 15 percent for issuers that have entered into agreements
with third party administrators to reimburse the cost of contraceptive
services with respect to women getting non-contraceptive coverage
through eligible organizations.\137\ Consistent with the 2015 Payment
Notice administrative allowance for third party administrators, HHS
proposes an administrative allowance of at least 10 percent for issuers
that enter into agreements with providers of contraceptive services
pursuant to the individual contraceptive arrangement. HHS proposes a 15
percent administrative allowance for this adjustment, similar to the
administrative allowance set in the 2015 Payment Notice for third party
administrators.
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\136\ 79 FR 13743.
\137\ 79 FR 13743 at 13809.
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Additionally, for clarification and consistency with current
practice, HHS proposes to clarify at 45 CFR 156.50(d)(3)(iii) that,
unless a new allowance for administrative costs and margin is specified
in the applicable year's HHS notice of benefit and payment parameters
or other rulemaking, HHS will, for a particular calendar year, maintain
the allowance that was last specified in rulemaking. HHS believes this
proposal makes clear the allowance and the mechanism HHS would use to
propose any changes to the allowance. While HHS is proposing to
maintain that the administrative allowance must be at least 10 percent,
as set forth in the 2015 Payment Notice, the current, applicable
administrative allowance is 15 percent.\138\ HHS is not proposing
making changes to this percentage in this rulemaking.
---------------------------------------------------------------------------
\138\ 79 FR 13743 at 13809.
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HHS also proposes to amend 45 CFR 156.50(d)(5) to provide that a
participating issuer may provide payments for contraceptive services as
soon as they are delivered, but must provide payments within 60 days to
a third party administrator or a provider of contraceptive services.
Such payments must be made within 60 days of receipt of any adjustment
of a user fee in an amount that is no less than the portion of the
adjustment attributable to the total dollar amount of the payments for
contraceptive services submitted by the third party administrator or
provider of contraceptive services. This proposed amendment to 45 CFR
156.50(d)(5) is intended to clarify and codify in regulation the
current policy as applied to the existing optional accommodation with
respect to a third party administrator, as well as to extend this
policy to providers of contraceptive services pursuant to the
individual contraceptive arrangement. The adjustments to a
participating issuer's user fee through the FFE or an SBE-FP for a
given year are based on data submitted by third party administrators to
HHS regarding the prior benefit year, and adjustments to a
participating issuer's current user fee charges are made on a monthly
basis based on the data received to date regarding the payments for
contraceptive services from the prior year. For example, a
[[Page 7257]]
participating issuer and a provider of contraceptive services could
agree that, prior to and in anticipation of receiving a user fee
adjustment as specified at 45 CFR 156.50(d)(3), the participating
issuer would reimburse the provider on a monthly or quarterly basis in
an amount equal to the provider's costs of furnishing contraceptive
services in accordance with the individual contraceptive arrangement.
However, HHS notes that if any monthly user fee adjustment that a
participating issuer receives does not cover the full costs of
contraceptive services provided by the provider of contraceptive
services or the full payment for contraceptive services made or
arranged for by the third party administrator for the applicable
benefit year, then the provider may not receive full reimbursement for
all contraceptive services furnished during the applicable calendar
year within 60 days of when the participating issuer has first received
an adjustment to its FFE or SBE-FP user fee. Thus, HHS proposes that
the signed agreement between a participating issuer and a provider of
contraceptive services must define the terms for payment to the
provider.
Next, HHS proposes to amend 45 CFR 156.50(d)(6) to establish that,
for 10 years following the calendar year for which the user fee
adjustment is received, a participating issuer must retain
documentation demonstrating that it timely paid each provider of
contraceptive services for which it received any user fee adjustment.
These proposals align with the existing recordkeeping requirements for
a participating issuer under the third party administrator
contraceptive user fee adjustment process.
In addition, HHS proposes to add 45 CFR 156.50(d)(8) to establish
recordkeeping requirements with which providers must comply as a
condition of participating in the individual contraceptive arrangement.
HHS proposes to require that, for 10 years following the contraceptive
service being provided, providers of contraceptive services must
maintain documentation showing the actual costs of furnishing
contraceptive services in compliance with the requirements of the
individual contraceptive arrangement and documentation supporting the
total dollar amount of those costs, and must make this documentation
available upon request to HHS, the HHS Office of the Inspector General,
the Comptroller General, and their designees. This timeframe is similar
to the standard used for third party administrators under the existing
optional accommodation and the standards used for other Exchange
programs. We solicit comment on this timeframe and whether the
timeframe should be tied to the issuer payment instead of the timeframe
from when the contraceptive service is being provided.
As explained previously, an eligible individual would be able to
access the individual contraceptive arrangement without the exempt
entity providing any documentation to an issuer, third party
administrator, or HHS. Nevertheless, a provider of contraceptive
services seeking to furnish contraceptive services pursuant to the
individual contraceptive arrangement would be required to confirm an
individual's eligibility for the individual contraceptive arrangement.
As explained earlier in this preamble, the individual may make this
confirmation by producing a summary of benefits, such as an SBC that
includes the relevant information or through other methods, such as by
providing an attestation. The provider of contraceptive services would
have discretion on choosing what confirmation method to accept. HHS
expects that providers would choose to document receiving this
representation in a variety of ways, such as by making a notation in a
specific eligible individual's medical chart. HHS is of the view that
allowing providers of contraceptive services to choose how they
document an eligible individual's representation would decrease
operational barriers related to these recordkeeping requirements and
would thereby allow a greater number of interested providers to furnish
contraceptive services under the individual contraceptive arrangement.
Recognizing the various types of representations a provider of
contraceptive services could receive from or on behalf of an individual
to demonstrate that individual's eligibility for the individual
contraceptive arrangement, HHS proposes to add 45 CFR 156.50(d)(9) and
(10). These proposals would preserve, if certain reliance requirements
are met, a provider's ability to receive reimbursement for
contraceptive services furnished, as well as a participating issuer's
ability to receive a user fee adjustment, if the representation as to
the individual's eligibility for the individual contraceptive
arrangement is later determined to be incorrect. Specifically, proposed
45 CFR 156.50(d)(9) would establish that if a provider of contraceptive
services relies reasonably and in good faith on a representation that
the individual is eligible to receive contraceptive services pursuant
to the individual contraceptive arrangement, and the representation is
later determined to be incorrect, then the provider of contraceptive
services would be considered to have received a representation by an
eligible individual for purposes of receiving a reimbursement for
contraceptive services furnished by a participating issuer, and would
meet any requirements related to maintaining documentation of this
representation. Similarly, 45 CFR 156.50(d)(10), if finalized, would
establish that if a participating issuer relies reasonably and in good
faith on the provider's representation that the provider of
contraceptive services furnished contraceptive services for an eligible
individual, and the representation the provider received from or on
behalf of the individual is later determined to be incorrect, then the
participating issuer would meet any requirements that involve the
provider's receipt of such representation.
HHS also proposes to add 45 CFR 156.50(d)(11) to preserve, if
certain requirements are met, the ability of a participating issuer to
receive a user fee adjustment if the provider's representation to the
participating issuer that the provider furnished contraceptive services
in accordance with the individual contraceptive arrangement is later
determined to be incorrect. First, proposed 45 CFR 156.50(d)(11) would
establish that if a participating issuer relies reasonably and in good
faith on a provider's representation that the provider furnished
contraceptive services in accordance with the individual contraceptive
arrangement, and the representation by the provider of contraceptive
services is later determined to be incorrect, then the participating
issuer's good faith reliance on that incorrect representation would
meet any requirements that involve that representation. Second, the
proposal at 45 CFR 156.50(d)(11) would apply only when a participating
issuer has already reimbursed a provider of contraceptive services for
any amount of its costs of furnishing contraceptive services as
specified in proposed 45 CFR 156.50(d)(2)(i)(E). HHS is of the view
that it is appropriate to limit this proposal to instances in which the
participating issuer has already paid the provider of contraceptive
services. If the participating issuer has not yet paid the provider of
contraceptive services at the time the provider's representation is
determined to be incorrect, the participating issuer will not have
incurred a financial loss by no longer having the ability to receive a
user fee adjustment.
[[Page 7258]]
To participate in the individual contraceptive arrangement,
proposed 45 CFR 147.131(d)(1) would require that a provider of
contraceptive services furnish contraceptive services to the eligible
individual without imposing a fee or charge of any kind, directly or
indirectly, on the eligible individual or any other entity for the cost
of the items and services or any portion thereof. Consistent with this
requirement, HHS proposes to include in new 45 CFR 156.50(d)(1)(iii),
(d)(10), and (d)(11) that a provider of contraceptive services must
furnish contraceptive services to the eligible individual ``without
imposing a fee or charge of any kind, directly or indirectly, on the
eligible individual or any other entity for the cost of the items and
services or any portion thereof.''
Finally, HHS proposes technical corrections to 45 CFR
156.50(d)(1)(ii), (d)(2)(i)(A) and (B), (d)(2)(ii), (d)(2)(iii)(B), and
(d)(7)(i) to align with these proposed changes. First, HHS proposes a
technical correction to 45 CFR 156.50(d)(1)(ii), (d)(2)(i)(A) and (B),
(d)(2)(ii), (d)(2)(iii)(B), and (d)(7)(i) to update cross-references to
26 CFR 54.9815-2713A(a)(4) and 29 CFR 2590.715-2713A(a)(4), which have
been re-designated to 26 CFR 54.9815-2713A(a)(1)(iii) and 29 CFR
2590.715-2713A(a)(1)(iii), respectively. Second, HHS proposes a
technical correction to 45 CFR 156.50(d)(1)(ii) to clarify that a
participating issuer participating on an SBE-FP is eligible to receive
an adjustment to its Federal user fee amounts that reflect the value of
contraceptive services it has agreed to reimburse to third party
administrators or has agreed to reimburse to providers for the
providers' actual costs of furnishing contraceptive services consistent
with this individual contraceptive arrangement. In the HHS Notice of
Benefit and Payment Parameters for 2022 and Pharmacy Benefit Manager
Standards final rule,\139\ HHS explained that issuers participating
through an SBE-FP have been able to qualify for user fee adjustments as
provided for in the HHS Notice of Benefit and Payment Parameters for
2017,\140\ and amended 45 CFR 156.50 to make explicit that issuers are
eligible to receive SBE-FP user fee adjustments.\141\ Thus, HHS
proposes to make a conforming amendment to 45 CFR 156.50(d)(1)(ii).
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\139\ 86 FR 24140 at 24229 (May 5, 2021).
\140\ 81 FR 12203 at 12293 (March 8, 2016).
\141\ 86 FR 24229.
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HHS notes that it is not proposing to raise the FFE or SBE-FP user
fee rates finalized in the HHS Notice of Benefit and Payment Parameters
for 2023 \142\ to offset the FFE and SBE-FP user fee adjustments, and
HHS estimates reimbursements for contraceptive services will represent
only a small portion of total FFE user fees.
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\142\ See 87 FR 27208 at 27288. In part 3 of the HHS Notice of
Benefit and Payment Parameters 2022 final rule, HHS finalized the
repeal of the Exchange Direct Enrollment (DE) option and the removal
of 45 CFR 155.221(j). See 86 FR 53412 at 53429 (September 27, 2021).
To align with these actions, HHS finalized in the 2023 Payment
Notice conforming amendments to 45 CFR 156.50(c) and (d) to remove
references to 45 CFR 155.221(j) and the Exchange DE option.
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HHS is of the view that the proposed amendment to 45 CFR
156.50(d)(2)(i)(A) and the proposed addition of 45 CFR
156.50(d)(2)(i)(D), which would require participating issuers, but not
providers of contraceptive services, to submit documentation
demonstrating the agreement, would mitigate the operational burden on
providers of providing contraceptive services through the individual
contraceptive arrangement, without materially increasing the burden for
participating issuers that are already familiar with the process of
submitting information to HHS as part of the existing conditions for
receiving a user fee adjustment through an arrangement with a third
party administrator, pursuant to the requirements of 45 CFR 156.50(d).
To facilitate the individual contraceptive arrangement, HHS proposes to
make available to providers of contraceptive services a list of
participating issuers that have previously participated in the third
party administrator optional contraceptive user fee adjustment process
under current 45 CFR 156.50(d). HHS seeks comment on this proposal,
including whether prior participating issuers or issuers that intend to
participate in these arrangements in future years would have concerns
with HHS making this public disclosure. HHS seeks comment on the
proposed amendments to 45 CFR 156.50(d).
As mentioned in section I.B of this preamble, section 3 of E.O.
14009 directs HHS and other heads of agencies to review all agency
actions, such as the FFE or SBE-FP user fees, to determine whether they
are inconsistent with policy priorities described in section 1 of E.O.
14009, to include protecting and strengthening the ACA and making high-
quality health care accessible and affordable for all individuals.\143\
Collectively, these proposed rules on the user fee adjustment would
further the goals of E.O. 14009 by making high-quality health care that
is inclusive of contraceptive services accessible and affordable for
more individuals. Under the current rules, participants, beneficiaries,
and enrollees enrolled in a group health plan or coverage sponsored,
arranged, or provided by an objecting entity subject to a moral
exemption lack contraceptive coverage and access to contraceptive
services without cost sharing. The Departments lack the data to
accurately estimate the number of, or demographics of, participants,
beneficiaries, or enrollees who have been affected by previous rules,
as objecting employers, institutions of higher education, and issuers
are not required to notify HHS of their objection. However, as
discussed earlier in this preamble, low-income women face a
disproportionate burden of out-of-pocket spending on contraceptive
services.\144\
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\143\ E.O. 14009 also revoked Executive Order 13765 of January
20, 2017 (Minimizing the Economic Burden of the Patient Protection
and Affordable Care Act Pending Repeal). The Departments adopted the
moral exemption and accommodation in part to further this now
revoked Executive Order by relieving a regulatory burden imposed on
entities with moral convictions opposed to providing certain
contraceptive coverage.
\144\ See FN 54.
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Also, as noted in section I.B, section 3 of E.O. 14076 requires the
Secretary of HHS to submit a report to the President that is focused
on, among other priorities, ``protect[ing] and expand[ing] access to
the full range of reproductive healthcare services, including actions
to enhance family planning services such as access to emergency
contraception,'' and ``promoting awareness of and access to the full
range of contraceptive services.'' Collectively, these proposed rules
are consistent with the objectives of E.O. 14076 by protecting and
expanding access to the full range of reproductive health care services
and enhancing family planning services, and promoting access to the
full range of contraceptive services.
IV. Severability
It is the Departments' intent that if any provision of these
proposed rules, if finalized, is held to be invalid or unenforceable by
its terms, or as applied to any person or circumstance, the rules shall
be construed so as to continue to give maximum effect to the rules as
permitted by law, unless the holding shall be one of utter invalidity
or unenforceability. In the event a provision is found to be utterly
invalid or unenforceable, the provision shall be severable from these
proposed rules as finalized, as well as the final rules they amend, and
shall not affect the remainder thereof or the application of the
provision to persons not similarly situated or to dissimilar
circumstances.
[[Page 7259]]
V. Response to Comments
Because of the large number of public comments that the Departments
normally receive on Federal Register documents, the Departments are not
able to acknowledge or respond to them individually. The Departments
will consider all comments received by the date and time specified in
the DATES section of this preamble, and, when the Departments proceed
with a subsequent document, the Departments will respond to the
comments in the preamble to that document.
VI. Economic Impact and Paperwork Burden
A. Summary
These proposed rules would expand access to contraceptive services
without cost sharing for women through the provision of a new
individual contraceptive arrangement, whereby an eligible individual
would be able to obtain contraceptive services from willing providers
of contraceptive services at no cost to the individual, and the
providers of contraceptive services would be reimbursed for the costs
of furnishing contraceptive services by a participating issuer on the
FFE or an SBE-FP through an adjustment to the FFE or SBE-FP user fee
for the participating issuer. These proposed rules would maintain the
existing exemptions and optional accommodations for eligible entities
and individuals claiming a religious objection to providing
contraceptive coverage.
These proposed rules would also expand access to contraceptive
services without cost sharing by eliminating the exemption for entities
and individuals that object to contraceptive coverage based on non-
religious moral beliefs.
The Departments have examined the effects of these proposed rules
as required by Executive Order 13563 (76 FR 3821, January 21, 2011,
Improving Regulation and Regulatory Review); Executive Order 12866 (58
FR 51735, October 4, 1993, Regulatory Planning and Review); the
Regulatory Flexibility Act (September 19, 1980, Pub. L. 96-354);
section 1102(b) of the Social Security Act (42 U.S.C. 1102(b)); section
202 of the Unfunded Mandates Reform Act of 1995 (March 22, 1995, Pub.
L. 104-4); Executive Order 13132 (64 FR 43255, August 10, 1999,
Federalism); and the Congressional Review Act (5 U.S.C. 804(2)).
B. Executive Orders 12866 and 13563
Executive Order 12866 directs agencies to assess all costs and
benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). Executive Order 13563 is
supplemental to and reaffirms the principles, structures, and
definitions governing regulatory review as established in Executive
Order 12866.
Section 3(f) of Executive Order 12866 defines a ``significant
regulatory action'' as an action that is likely to result in a rule:
(1) having an annual effect on the economy of $100 million or more in
any 1 year, or adversely and materially affecting a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local or Tribal governments or communities
(also referred to as ``economically significant''); (2) creating a
serious inconsistency or otherwise interfering with an action taken or
planned by another agency; (3) materially altering the budgetary
impacts of entitlement grants, user fees, or loan programs or the
rights and obligations of recipients thereof; or (4) raising novel
legal or policy issues arising out of legal mandates, the President's
priorities, or the principles set forth in the Executive Order.
A regulatory impact analysis (RIA) must be prepared for major rules
with economically significant effects (for example, $100 million or
more in any one year), and a ``significant'' regulatory action is
subject to review by the Office of Management and Budget (OMB). The
Departments anticipate that this regulatory action is not likely to
have economic impacts of $100 million or more in at least 1 year and is
therefore not expected to be economically significant under Executive
Order 12866. OMB has determined, however, that the actions are
significant within the meaning of section 3(f)(4) of the Executive
Order. Therefore, the Departments have provided an assessment of the
potential costs, benefits, and transfers associated with these proposed
rules. In accordance with the provisions of Executive Order 12866, this
regulation was reviewed by OMB.
1. Need for Regulatory Action
Previous rules, regulations, and court decisions have left many
women without contraceptive coverage and access to contraceptive
services without cost sharing. These proposed rules, if finalized, seek
to resolve the long-running litigation with respect to religious
objections to providing contraceptive coverage, by honoring the
objecting entities' religious objections, while also ensuring that
women enrolled in a group health plan established or maintained, or in
health insurance coverage offered or arranged, by an objecting entity
described in 45 CFR 147.132(a) have the opportunity to obtain
contraceptive services at no cost. These proposed rules would also
eliminate the exemption for entities and individuals that object to
contraceptive coverage based on non-religious moral beliefs, which
prevents access to contraceptive services without cost sharing.
2. Summary of Impacts
These proposed rules would expand access to contraceptive services
without cost sharing and reduce out-of-pocket spending on contraceptive
services for individuals eligible for the individual contraceptive
arrangement. Issuers that reimburse providers of contraceptive services
for the costs of furnishing contraceptive services for individuals
eligible for the individual contraceptive arrangement and in turn seek
an adjustment to the FFE or SBE-FP user fee would incur administrative
costs, which would be offset by Federal payments in the form of user
fee adjustments. Providers of contraceptive services would also incur
administrative costs associated with furnishing the contraceptive
services and entering into a signed agreement with a participating
issuer on the FFE or an SBE-FP to receive reimbursement for the
contraceptive services furnished, and individuals might incur costs
related to finding providers of contraceptive services willing to
participate in the program.
These proposed rules would also expand access to contraceptive
services without cost sharing and reduce out-of-pocket spending on
contraceptive services for individuals by eliminating the exemption for
entities and individuals that object to contraceptive coverage based on
non-religious moral beliefs. However, as noted later in the Transfers
discussion of this section the Departments do not have information on
the number of entities and individuals that have claimed a moral
exemption to providing contraceptive coverage, and are therefore
uncertain of the amount of the potential transfer from plans and
issuers to participants, beneficiaries, and enrollees due to reduced
out-of-pocket spending on contraceptive services associated with the
proposed elimination of the exemption for entities and individuals that
object to contraceptive coverage based on non-religious moral beliefs.
In accordance with Executive Order 12866, the Departments are of
the view
[[Page 7260]]
that the benefits of this regulatory action justify the costs. The
expected benefits, costs, and transfers associated with these proposed
rules are summarized in Table 1 and discussed in detail later in this
section.
Table 1--Accounting Table
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Benefits:
Qualitative:
Expansion of access to contraceptive services without cost sharing for eligible individuals through
the creation of a new individual contraceptive arrangement.................................................
Expansion of access to contraceptive services without cost sharing for participants, beneficiaries,
and enrollees through the elimination of the exemption for entities and individuals that object to
contraceptive coverage based on non-religious moral beliefs................................................
Potential increase in health equity, given the expected reduction in out-of-pocket spending on
contraceptive services by individuals......................................................................
Potential reduction in unintended pregnancies and improved health outcomes for individuals.........
----------------------------------------------------------------------------------------------------------------
Costs: Estimate Year dollar Discount rate Period covered
(million) (percent)
----------------------------------------------------------------------------------------------------------------
Annualized Monetized ($/year)............... $30.11 2022 7 2023-2027
30.11 2022 3 2023-2027
----------------------------------------------------------------------------------------------------------------
Quantitative:
Administrative costs of approximately $4.7 million annually to participating providers of
contraceptive services related to signing agreements with issuers. These costs would likely be included in
the service charges of providers of contraceptive services and ultimately incurred by the Federal
Government.................................................................................................
Administrative costs of approximately $14.5 million annually to participating providers of
contraceptive services associated with verifying eligibility for the proposed individual contraceptive
arrangement, submitting amounts to participating issuers on the FFE or an SBE-FP to receive reimbursement
for the contraceptive services furnished, and maintaining records. These costs would likely be included in
the service charges of providers of contraceptive services and ultimately incurred by the Federal
Government.................................................................................................
Administrative costs and margin of approximately $10.4 million annually to participating issuers
associated with signing agreements with participating providers of contraceptive services, processing
amounts requested from participating providers of contraceptive services, submitting required information
to HHS, and maintaining records. These administrative costs would be offset by Federal payments in the form
of adjustments to FFE and SBE-FP user fees.................................................................
Costs of approximately $590,077 annually to eligible individuals that participate in the individual
contraceptive arrangement to confirm eligibility to their provider of contraceptive services...............
----------------------------------------------------------------------------------------------------------------
Qualitative:
Potential costs to eligible individuals associated with finding providers of contraceptive services
that are willing to participate in the individual contraceptive arrangement................................
Potential reduction in health care costs due to a reduction in unintended pregnancies and improved
health outcomes............................................................................................
Potential cost savings to states associated with reduced spending on State-funded programs that
provide contraceptive services.............................................................................
Potential cost savings to states associated with a reduction in unintended pregnancies that would
otherwise impose costs to states...........................................................................
----------------------------------------------------------------------------------------------------------------
Transfers: Estimate Year dollar Discount rate Period covered
(million) (percent)
----------------------------------------------------------------------------------------------------------------
Annualized Monetized ($/year)............... $49.9 2022 7 2023-2027
49.9 2022 3 2023-2027
----------------------------------------------------------------------------------------------------------------
Quantitative:
Transfer of $49.9 million annually from the Federal Government to eligible individuals who would
spend less out-of-pocket on contraceptive services, in the form of user fee adjustments to participating
issuers who would reimburse providers of contraceptive services for the costs of furnishing participants,
beneficiaries, and enrollees with contraceptive services as a result of the individual contraceptive
arrangement................................................................................................
----------------------------------------------------------------------------------------------------------------
Qualitative:
Potential transfer from plans and issuers to participants, beneficiaries, and enrollees who would
gain access to contraceptive services without cost sharing as a result of the elimination of the exemption
for entities and individuals that object to contraceptive coverage based on non-religious moral beliefs and
who spend less out-of-pocket on contraceptive services as a result.........................................
----------------------------------------------------------------------------------------------------------------
Number of Affected Entities
The Departments lack the data to accurately estimate the number of
eligible individuals who would participate in the individual
contraceptive arrangement. In the October 2017 Religious Exemption
interim final rules and the November 2018 Religious Exemption final
rules, the Departments noted that the 122 nonprofit entities that had
filed litigation challenging the accommodation process and the 87
closely held for-profit entities that had filed suit challenging the
contraceptive coverage requirement in general could have been affected
by the November 2018 Religious Exemption final rules, but were
uncertain how many of these organizations would use the expanded
exemption provided under the November 2018 Religious Exemption final
rules and how many of these entities would use the optional
accommodation process. The Departments assumed that slightly more than
half of these entities, or 109 organizations, would use the expanded
exemption.
The Departments previously estimated that between 70,500 and
126,400 individuals would be affected by the November 2018 Religious
Exemption final rules. Since the implementation of the November 2018
Religious Exemption final rules, additional entities may have claimed a
religious exemption to contraceptive coverage without participating in
the
[[Page 7261]]
optional accommodation process. For this reason, the Departments view
the estimate of 126,400 individuals to be the lower bound estimate of
the number of eligible individuals and 109 health plans to be the lower
bound estimate of the number of exempt entities. The Departments seek
comment on the number of entities that have claimed a religious
exemption to providing contraceptive coverage without using the
optional accommodation process and the number of individuals who might
receive contraceptive coverage through the provision of the individual
contraceptive arrangement.
Eligible individuals would need to find providers of contraceptive
services that would be willing to participate in the individual
contraceptive arrangement. The Departments lack sufficient information
to accurately estimate the number of providers of contraceptive
services that would participate. The Departments assume that at least
10 pharmacy chains (including mail order pharmacies) would participate.
The Departments also assume that for each exempt entity, the
participants, beneficiaries, and enrollees in its health plan or
coverage are located in the same geographical area, and there would be,
on average, 20 providers of contraceptive services (10 clinicians or
facilities, and at least 10 retail pharmacies) in the area that would
participate in the individual contraceptive arrangement.\145\ Based on
these assumptions, for the participants, beneficiaries, and enrollees
in the plans for the 109 exempt entities, there would be approximately
2,180 participating providers of contraceptive services (1,090 retail
pharmacies and 1,090 clinicians and facilities) that would participate
in the individual contraceptive arrangement. If these providers of
contraceptive services already participate in the health plan's
provider network, an eligible individual would be able to receive
contraceptive services from one of their regular providers of
contraceptive services or another in-network provider of contraceptive
services. However, it is possible that an eligible individual would
need to find a provider of contraceptive services other than the
provider or providers from whom the individual typically receives care
in order to access contraceptive services at no cost. The Departments
seek comment on the number of providers of contraceptive services that
would participate in the individual contraceptive arrangement.
---------------------------------------------------------------------------
\145\ Although pharmacies are generally licensed as facilities,
for purposes of this regulatory impact analysis, the Departments
treat them separately.
---------------------------------------------------------------------------
These proposed rules would also eliminate the exemption for
entities and individuals that object to contraceptive coverage based on
non-religious moral beliefs. In the November 2018 Moral Exemption final
rules, without data available to estimate the actual number of entities
that would make use of the exemption for entities with sincere non-
religious moral objections, the Departments assumed that the exemption
would be used by nine nonprofit entities and nine for-profit entities
and that approximately 15 women may incur contraceptive costs due to
for-profit entities using the moral exemption. The Departments do not
have any data on how many individuals object to contraceptive coverage
based on non-religious moral beliefs.
Benefits
These proposed rules would increase access to contraceptive
services without cost sharing through the individual contraceptive
arrangement for eligible individuals and the elimination of the
exemption for entities and individuals that object to contraceptive
coverage based on non-religious moral beliefs.
As stated in section I.B of this preamble, studies report that 99
percent of sexually-active women have used at least one method of
contraception at some point during their lifetime, regardless of
religious affiliation. Prior to the implementation of the ACA, out-of-
pocket expenses for contraceptive services represented a significant
portion, estimated to range from 30 percent to 44 percent, of a woman's
total out-of-pocket health care spending.\146\ It has been estimated
that the implementation of the ACA contraceptive coverage requirement
led to out-of-pocket savings to consumers on contraceptive pills of
approximately $1.4 billion between 2012 and 2013.\147\ Additionally,
several studies have found that the ACA contraceptive coverage
requirement increased access to and utilization of contraceptives.\148\
The coverage of contraceptive services has been shown to improve the
consistent use of the most effective short-acting methods of
contraception, and the removal of cost sharing also increases the use
of more effective LARC methods.\149\ One study found that following the
implementation of the ACA contraceptive coverage requirement, the
discontinuation of use of oral contraceptive pills fell and that
nonadherence to brand-name oral contraceptive pills also declined.\150\
Another study reported that having no copayment on contraceptive
services assisted 80 percent of women in affording and using birth
control, helped 60 percent choose a better method, and helped 71
percent use contraceptive services more consistently.\151\ These
proposed rules would have similar effects, as they would increase
access to contraceptive services for eligible individuals who currently
do not have access to contraceptive services without cost sharing.
---------------------------------------------------------------------------
\146\ Nora B. & Polsky, D. (2015). ``Women Saw Large Decrease in
Out-Of-Pocket Spending for Contraceptives After ACA Mandate Removed
Cost Sharing.'' Health Affairs; 34(7): 1204-1211.
\147\ Becker, N. & Polsky, D. (2015). ``Women Saw Large Decrease
In Out-Of-Pocket Spending For Contraceptives After ACA Mandate
Removed Cost Sharing.'' Health Affairs, 34(7): 1204-1211. See also
Sobel, L., Salganicoff, A. et al. (2018). ``New Regulations
Broadening Employer Exemptions to Contraceptive Coverage: Impact on
Women.'' KFF Issue Brief. Available at https://www.kff.org/health-reform/issue-brief/new-regulations-broadening-employer-exemptions-to-contraceptive-coverage-impact-on-women/.
\148\ Becker, N. (2018). ``The Impact of Insurance Coverage on
Utilization of Prescription Contraceptives: Evidence from the
Affordable Care Act.'' Journal of Policy Analysis and Management,
37(3): 571-601; Nora, B., Keating, N. et al. (2021). ``ACA Mandate
Led to Substantial Increase in Contraceptive Use Among Women
Enrolled in High-Deductible Health Plans.'' Health Affairs, 40(4):
579-586; Snyder, A., Weisman, C., et al. (2018). ``The Impact of the
Affordable Care Act on Contraceptive Use and Costs among Privately
Insured Women.'' Women's Health Issues, 28(3): 219-223; Weisman, C.,
Chuang, C., et al. (2019). ``ACA's Contraceptive Coverage
Requirement: Measuring Use and Out-of-Pocket Spending.'' Health
Affairs, 38(9): 1537-1541.
\149\ Behn, M., Pace, LE., et al. (2019). ``The Trump
Administration's Final Regulations Limit Insurance Coverage of
Contraception.'' Women's Health Issues, 29(2): 103-106.
\150\ Pace, L., Dusetzina, S., et al. (2016). ``Early Impact of
the Affordable Care Act on Oral Contraceptive Cost Sharing,
Discontinuation, and Nonadherence.'' Health Affairs, 35(9): 1616-
1624.
\151\ Bearak, J.& Johns, R. (2017). ``Did Contraceptive Use
Patterns Change after the Affordable Care Act? A Descriptive
Analysis.'' Women's Health Issues, 27(3): 316-321.
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More than half of pregnancies in 2008 (51 percent or approximately
3.4 million) were estimated to be unintended; by 2011 this number had
declined to 45 percent,\152\ and by 2020 it had declined further to an
estimated 39.5 percent,\153\ which may be due to a change in the
frequency and type of contraceptive use over time. Studies indicate
that some groups tend to have higher rates of unintended pregnancies;
[[Page 7262]]
for example, one study found that 75 percent of pregnancies among teens
aged 15 to 19 years of age were unplanned,\154\ and another study
reported that nearly 70 percent of pregnancies among unmarried women
aged 20 to 29 years of age were unplanned.\155\ In 2008, unplanned
pregnancies of those covered by Medicaid or the Children's Health
Insurance Program (CHIP) were estimated to have cost Federal and State
taxpayers between $9.6 billion and $12.6 billion, and without publicly
funded family planning the costs would have been an estimated $25
billion.\156\ In addition to the costs associated with unintended
pregnancies, unintended pregnancies can pose increased health risks to
both mother and baby. Women with unplanned pregnancies are less likely
to receive prenatal care and have higher rates of postpartum depression
and mental health problems later in life.\157\ Unplanned pregnancies
have also been associated with increases in low birthweight and preterm
births, and children born due to an unplanned pregnancy are more likely
to fare worse in school achievement, have social and emotional
disorders, and have less success in the labor market later in
life.\158\ One study found evidence of a decrease in births following
the elimination of cost sharing for contraceptives under the ACA;
further, it showed a 22.2 percent reduction in birth rates for women in
the lowest income group between 2014 and 2018 (from 8 to 6.2 per 100
women).\159\ These proposed rules would reduce unintended pregnancies
and lead to better health outcomes for eligible individuals by
increasing access to contraceptive services.
---------------------------------------------------------------------------
\152\ Finer, L. & Zolna, M. (2016) ``Declines in Unintended
Pregnancy in the United States, 2008-2011.'' N Engl J Med,
374(9):843-52.
\153\ Permanency Risk Assessment Monitoring System: Prevalence
of Selected Maternal and Child Health Indicators for all Pregnancy
Risk Assessment Monitoring System (PRAMS) Sites, 2016-2020.
Available at: https://www.cdc.gov/prams/prams-data/mch-indicators/states/pdf/2020/All-Sites-PRAMS-MCH-Indicators-508.pdf.
\154\ See FN 173.
\155\ Monea, E., & Thomas, A. (2011). ``Unintended Pregnancy and
Taxpayer Spending.'' Perspectives on Sexual & Reproductive Health,
43(2), 88-93; and Sonfield, A. and Kost, K. (2013). ``Public Costs
from Unintended Pregnancies and the Role of Public Insurance
Programs in Paying for Pregnancy and Infant Care: Estimates for
2008.'' Guttmacher Institute. Available at: https://www.guttmacher.org/pubs/public-costs-of-UP.pdf.
Kaye, K., Gootman, J.A., Ng, A.S., & Finley, C. (2014). ``The
Benefits of Birth Control in America: Getting the Facts Straight.''
The National Campaign to Prevent Teen and Unplanned Pregnancy.
Available at: https://powertodecide.org/sites/default/files/resources/primary-download/benefits-of-birth-control-in-america.pdf.
\156\ Sonfield, A. & Kost, K. (2013). ``Public Costs from
Unintended Pregnancies and the Role of Public Insurance Programs in
Paying for Pregnancy and Infant Care: Estimates for 2008.''
Guttmacher Institute. Available at: https://www.guttmacher.org/pubs/public-costs-of-UP.pdf.
\157\ ``Preventing Unplanned Pregnancy.'' National Conference of
State Legislatures (2021). Available at: https://www.ncsl.org/research/health/preventing-unplanned-pregnancy.aspx.
\158\ Id.
\159\ Dalton, V., Moniz, M., et al. (2020). ``Trends in Birth
Rates After Elimination of Cost Sharing for Contraception by the
Patient Protection and Affordable Care Act.'' JAMA Network Open,
3(11): e2024398.
---------------------------------------------------------------------------
Finally, these proposed rules would increase health equity, given
the disproportionate burden of out-of-pocket spending on contraceptive
services currently faced by low-income individuals (as those
individuals with lower incomes must spend a greater percentage of their
incomes on contraceptive services). As discussed earlier in this
section, prior to the implementation of the ACA, out-of-pocket expenses
for contraceptives represented a significant portion, estimated to
range from 30 percent to 44 percent, of a woman's total out-of-pocket
health care spending.\160\ A recent study found that people of color
(and low-income people) are more likely to live in areas in which the
proportion of reproductive-aged residents have a lack of, or difficulty
obtaining, reproductive and contraceptive health care--referred to as
``contraception deserts.'' \161\ The study found that the proportion of
the population living within these types of areas ranges from
approximately 17 percent in California to approximately 50 percent in
Texas. One study has shown that in 2011, women with incomes below 100
percent of the Federal poverty level had unplanned pregnancies at a
rate seven times higher than those at or above 200 percent of the
Federal poverty level. Unplanned pregnancies were also more common in
women who have low incomes or are racial or ethnic minorities.\162\
---------------------------------------------------------------------------
\160\ Becker, N., & Polsky, D. (2015). ``Women Saw Large
Decrease in Out-Of-Pocket Spending for Contraceptives After ACA
Mandate Removed Cost Sharing.'' Health Affairs; 34(7): 1204-1211.
\161\ Kreitzer, R.J., Watts Smith, C., et al. (2021).
``Affordable but Inaccessible? Contraception Deserts in the US
States.'' Journal of Health Politics, Policy and Law 46(2): 277-304.
\162\ Finer, L. & Zolna, M. (2016) ``Declines in Unintended
Pregnancy in the United States, 2008-2011.'' N Engl J Med,
374(9):843-52 and Behn, M., Pace, LE., et al. (2019). ``The Trump
Administration's Final Regulations Limit Insurance Coverage of
Contraception.'' Women's Health Issues, 29(2): 103-106.
---------------------------------------------------------------------------
The enactment of the ACA has been shown to provide gains in
coverage and access to women's reproductive health services and
accompanying reduced costs for women who would otherwise be without
health coverage or face large out-of-pocket costs. As noted in a recent
study, even in some cases where ``medical insurance is available among
women in the same socioeconomic strata, unexplained disparities persist
and suggest that racism and other social and clinician-level issues are
factors'' that can still result in unequal access to health care and
distrust of physicians.\163\ Although it is believed that these
proposed rules would have marginal effects on the overall level of
health inequity, the presence of barriers to contraceptive coverage
would be more burdensome on insured women with lower incomes and
reducing those barriers could have the potential to reduce
socioeconomic, racial, and ethnic disparities in health outcomes.\164\
---------------------------------------------------------------------------
\163\ Sutton, M.Y., Anachebe, F., et al. (2021) Racial and
Ethnic Disparities in Reproductive Health Services and Outcomes,
2020. Obstetrics & Gynecology: 137(2): 225-233.
\164\ Behn, M., Pace, L.E., et al. (2019). The Trump
Administration's Final Regulations Limit Insurance Coverage of
Contraception. Women's Health Issues, 29(2): 103-106.
---------------------------------------------------------------------------
Costs
Participating providers of contraceptive services and issuers would
need to enter into signed agreements for reimbursement of costs
associated with the provision of contraceptive services to eligible
individuals and would therefore incur related administrative costs. In
order to estimate these costs, providers of contraceptive services have
been divided into two broad categories--clinicians or facilities, and
pharmacies. For each signed agreement between clinicians or facilities
and issuers, the Departments estimate that, on average, senior managers
would spend 4 hours (at $110.82 per hour \165\), lawyers would spend 40
hours (at $142.34 per hour), legal secretaries would spend 40 hours (at
$50.52 per hour), a clinician would spend 1 hour (at $284.82 per hour),
and a chief executive officer would spend 15 minutes (at $204.82 per
hour). The total burden for each signed agreement would be 85.25 hours,
with an associated cost of approximately $8,494. There would be an
estimated 1,090 signed agreements between 1,090 participating
clinicians or facilities and issuers. The total estimated cost for all
signed agreements between clinicians or facilities and issuers would be
approximately $9.3 million. The number of signed agreements and related
costs could be lower if multiple facilities are owned by the same
entity. For each signed agreement between pharmacy chains and issuers,
the Departments estimate that senior managers would spend 4 hours (at
$110.82 per hour), lawyers would spend 40 hours (at $142.34 per hour),
legal
[[Page 7263]]
secretaries would spend 40 hours (at $50.52 per hour), and chief
executive officers would spend 30 minutes (at $204.82 per hour). The
total burden for each signed agreement would be 84.5 hours, with an
associated cost of approximately $8,260. There would be an estimated 10
signed agreements between 10 participating pharmacy chains and issuers.
The total estimated cost for all signed agreements between pharmacy
chains and issuers would be approximately $82,601.
---------------------------------------------------------------------------
\165\ The Departments generally used data from the Bureau of
Labor Statistics to derive average labor costs (including a 100
percent increase for fringe benefits and other indirect costs). May
2021 Bureau of Labor Statistics, Occupational Employment Statistics,
National Occupational Employment and Wage Estimates, available from
https://www.bls.gov/oes/current/oes_nat.htm.
---------------------------------------------------------------------------
The total cost of 1,100 signed agreements between all providers of
contraceptive services and issuers would be approximately $9.3 million
in the first year. The Departments assume that half of these costs
would be incurred by participating providers of contraceptive services
and half by issuers (approximately $4.7 million each). Providers of
contraceptive services are likely to incorporate these costs into their
fees for providing the contraceptive services, while costs to issuers
would be offset by Federal payments in the form of user fee
adjustments. The annual costs of renegotiating and signing agreements
in future years might be lower, unless providers of contraceptive
services enter into new agreements with different issuers. The
Departments seek comment on the number of signed agreements that would
be executed annually and the magnitude of the potential administrative
costs to providers of contraceptive services and issuers.
Table 2--Annual Costs Related to Signed Agreements
----------------------------------------------------------------------------------------------------------------
Estimated
number of Estimated cost Total
Entities signed per signed estimated cost
agreements agreement
----------------------------------------------------------------------------------------------------------------
Clinicians/Facilities and Issuers............................... 1,090 $8,494 $9,258,138
Pharmacies and Issuers.......................................... 10 8,260 82,601
-----------------------------------------------
Total....................................................... 1,100 .............. 9,340,739
----------------------------------------------------------------------------------------------------------------
Participating providers of contraceptive services would also incur
administrative costs related to eligibility verification, submission of
claims, and document retention. These costs are estimated to be
approximately $14.5 million annually and are discussed in detail later
in the HHS Paperwork Reduction Act section, section VI.D of this
preamble.
Participating issuers would also incur administrative costs related
to processing of amounts received from participating providers of
contraceptive services, and submission of required information to HHS.
As mentioned previously in this preamble, HHS proposes to reimburse
participating issuers an administrative allowance of 15 percent for
administrative costs and margin. Therefore, the estimated
administrative costs and margin to issuers would be approximately $10.4
million,\166\ which would be offset by Federal payments in the form of
user fee adjustments. This total includes the estimated approximately
$11,866 in costs related to the submission of required information to
HHS as detailed later in the HHS Paperwork Reduction Act section,
section VI.D of this preamble, and approximately $4.7 million in costs
related to signing agreements discussed earlier in this section.
---------------------------------------------------------------------------
\166\ Estimated total amount = cost of contraceptive services
($49.9 million) + administrative costs to providers of contraceptive
services (= $14.5 million + $4.7 million) = $69 million. 15 percent
of $69 million = $10.4 million approximately.
---------------------------------------------------------------------------
Individuals would incur costs associated with finding providers of
contraceptive services that would be willing to participate in the
individual contraceptive arrangement. Some individuals might have to
switch providers of contraceptive services if their usual providers of
contraceptive services are not willing to participate in the individual
contraceptive arrangement. The Departments seek comment on ways to
mitigate search costs for eligible individuals and how access to the
individual contraceptive arrangement can best be promoted. One option
could be to make a list of participating providers publicly available
on a public website. The Departments also seek comment on whether
making provider information publicly available might deter provider
participation in the individual contraceptive arrangement.
Additionally, as discussed previously, people of color and low-income
people are more likely to live in areas considered contraception
deserts. If eligible individuals live in contraception deserts, they
might have to spend more time and money traveling longer distances in
order to meet with a participating provider of contraceptive services.
The Departments seek comment on the number of eligible individuals
without access to contraceptive services without cost sharing under
their existing plan or coverage or living in contraception deserts and
the potential search costs of these proposed rules on such individuals.
There would also be a reduction in health care costs for
individuals who gain access to contraceptive services and for group
health plans and coverage sponsored, arranged, or provided by exempt
entities if these proposed rules lead to a reduction in unintended
pregnancies or improved health outcomes.
Individuals who do not currently have contraceptive coverage
through group health plans and coverage sponsored by exempt entities
may turn to State-funded programs to obtain contraceptive services.
States may also currently incur costs related to unintended pregnancies
resulting from a lack of access to contraceptive services for these
individuals. These proposed rules may therefore lead to cost savings
for states, to the extent that states are currently incurring costs to
provide or fund contraceptive services or birth and maternity care for
individuals who would gain access to contraceptive services as a result
of these proposed rules. The Departments seek comment on the potential
impacts of these proposed rules on states and State finances.
Transfers
These proposed rules would result in a transfer from the Federal
Government, via the provision of user fee adjustments to issuers that
would then reimburse providers of contraceptive services for the costs
of furnishing contraceptive services, to individuals who would now have
access to contraceptive services without cost sharing and no longer
incur out-of-pocket spending on contraceptive services. As discussed
previously in the Number of Affected Entities discussion of this
section, it is estimated that at least 126,400
[[Page 7264]]
individuals would be eligible to participate in the individual
contraceptive arrangement. Based on the limited information available
from the 2019 user fee adjustment data,\167\ the Departments estimate
that the average annual cost of contraceptive services for one
individual is approximately $395. Therefore, the Departments estimate
that the provision of the individual contraceptive arrangement could
lead to a transfer from the Federal Government to individuals (via
issuers to providers of contraceptive services) of approximately $49.9
million annually.\168\ This estimate is uncertain due to the limited
information available in the 2019 user fee adjustment data, and the
Departments seek comment on the estimated average annual cost of
contraceptive services per individual. Assuming these proposed
regulations are finalized and become applicable during 2023, transfers
might be lower in 2023, since 2023 transfers would include services
furnished during only part of the year.
---------------------------------------------------------------------------
\167\ HHS used 2019 data for this estimate to better reflect
claims experience outside of the COVID-19 public health emergency.
\168\ 126,400 x $395 = $49.9 million approximately.
---------------------------------------------------------------------------
In addition, a reduction in unintended pregnancies or improved
health outcomes could lead to a reduction in premiums.
The Departments also expect that the proposed elimination of the
exemption for entities and individuals that object to contraceptive
coverage based on non-religious moral beliefs could lead to a transfer
from plans and issuers to participants, beneficiaries, and enrollees
due to reduced out-of-pocket spending on contraceptive services.
However, the Departments do not have information on the number of
entities and individuals that have claimed a moral exemption to
providing contraceptive coverage and seek comment on the number of
entities and individuals that would be affected by this proposed
change.
Uncertainty
Although the Departments expect that these proposed rules would
expand access to contraceptive services without cost sharing, as noted
earlier in this section, there are several areas of uncertainty
regarding the potential impacts of these proposed rules.
The Departments are uncertain how many providers of contraceptive
services, issuers, and eligible individuals would participate in the
individual contraceptive arrangement. The Departments seek comment on
potential barriers that might prevent providers, issuers, and eligible
individuals from participating in the individual contraceptive
arrangement. The Departments anticipate that the administrative
allowance--which would be expected to cover participating issuers'
administrative costs and provide a margin to ensure that participating
issuers receive appropriate compensation for providing reimbursements--
would incentivize issuers to participate in the individual
contraceptive arrangement.
The Departments expect that administrative costs incurred by
participating providers of contraceptive services to deliver the
services would be included in the amounts they submit to issuers for
reimbursement (as noted earlier in this section), and therefore would
not be a deterrent to participation in the individual contraceptive
arrangement. The Departments are unable to estimate these costs
precisely because these costs are expected to vary. These costs might
be lower for larger providers, due to larger economies of scale, and
for providers that might currently have contracts with participating
issuers. The Departments are uncertain as to how the number of
participating providers might vary (for example, across rural and urban
areas) and how this variation might affect access to services under the
individual contraceptive arrangement.
Due to the lack of data, the Departments are unable to develop a
precise estimate of the number of eligible individuals who might
participate in the individual contraceptive arrangement because the
Departments do not know how many entities have claimed an exemption
under the November 2018 Religious Exemption final rules. Further, take-
up of the individual contraceptive arrangement by eligible individuals
would be affected by, among other things, awareness of the individual
contraceptive arrangement, the number of providers of contraceptive
services that participate in the individual contraceptive arrangement,
and the amount of time and effort it would take an individual to find a
participating provider.
The Departments are unable to develop a more accurate estimate of
the transfers and cost to the Federal Government (discussed earlier in
this section) as there is uncertainty regarding the total amounts for
contraceptive services that would be submitted by providers of
contraceptive services to issuers for reimbursement, and therefore the
total amount of the transfer from the Federal Government to eligible
individuals, and the total amounts of the administrative costs incurred
by participating providers and issuers. Finally, this overall lack of
data leads to uncertainty regarding the magnitudes of the total cost
savings to eligible individuals and any resulting potential cost
savings to states (associated with reduced spending on State-funded
programs that provide contraceptive services or a potential reduction
in the number of unintended pregnancies that would otherwise impose
costs to states).
The Departments seek comment on all of these areas of uncertainty
regarding the impacts of these proposed rules.
C. Regulatory Alternatives
In developing these proposed rules, the Departments considered
various alternative approaches.
The Departments considered maintaining the exemption (along with
the existing accommodations and the proposed individual contraceptive
arrangement) with respect to group health plans, health insurance
issuers, and institutions of higher education that have a non-religious
moral objection to contraceptive coverage. The Departments, however,
are of the view that neither RFRA nor any other Federal statute compels
such an exemption, and propose eliminating this exemption for several
reasons, especially given the strong public interest in assuring
contraceptive coverage to women enrolled in group health plans, or
group or individual (including student) health insurance coverage.
With respect to individuals enrolled in coverage through entities
that have a religious objection to contraceptive coverage, the
Departments considered an approach under which contraceptive coverage
would be available through separate individual insurance policies that
cover only contraceptives and in which participants, beneficiaries, and
enrollees would have to separately enroll if they desired contraceptive
coverage. Because separate contraception-only coverage would not comply
with the individual market reforms, it would be necessary for the
Departments to create, by regulation, a new excepted benefit category
for individual contraceptive-only coverage.\169\ Under this approach,
issuers of this coverage would receive FFE or SBE-FP user fee
reductions to pay for this coverage, as the issuer generally would not
realize offsetting savings in pregnancy-related costs when providing
coverage separate from the plan or coverage offered by the objecting
entity. If the issuer of this coverage did not participate in the FFE
or an SBE-FP,
[[Page 7265]]
it could partner with an FFE or SBE-FP issuer to receive the user fee
adjustment.
---------------------------------------------------------------------------
\169\ See, for example, section 2791(c)(2)(C) of the PHS Act.
---------------------------------------------------------------------------
The Departments decided against this option for a number of
reasons. The Departments are concerned that issuers would not offer
these products to a sufficient extent to ensure access nationwide, as
commenters on the July 2016 RFI explained that it would be costly and
administratively burdensome for issuers to develop and implement new
eligibility, enrollment, and claims-adjudication systems for
contraception-only coverage, as they would differ from their existing
systems. Additionally, some State regulators might not have authority
or capacity to approve single-benefit insurance policies (other than
dental or vision or disease-specific excepted benefits policies) within
a relatively short period of time after Federal rules would permit
these policies. Cost-free contraception policies would also not satisfy
some State laws conditioning policy approval on a ``reasonable
premium'' or the existence of valid contracts because the prospective
policyholder would not provide consideration in exchange for the
coverage.
The Departments also considered an approach under which, if an
objecting entity designs or contracts for a health plan without
contraceptive coverage, the contraceptive coverage requirement would
apply directly to the issuer, in the case of a fully insured plan (that
is, the issuer would not be exempted from the requirement on the basis
of the objecting entity's objection), or the third party administrator,
in the case of a self-insured plan. The issuer or third party
administrator would then be required to fulfill its separate and
independent obligation to provide contraceptive coverage, in the same
manner as it is required to do so with respect to a non-exempt entity.
However, the Departments are of the view that there would not be legal
authority for imposing this obligation on a third party administrator.
With respect to issuers, the Departments decided to solicit comment on
this approach, as further described in section II.C.1 of this preamble.
With respect to the proposed changes to 45 CFR 156.50(d), in
addition to the proposed submission requirements on the part of the
participating issuer, HHS considered whether to condition a provider of
contraceptive services' participation in the individual contraceptive
arrangement for eligible individuals on the provider of contraceptive
services' agreement to submit to HHS identifying information for itself
and the participating issuer, the total dollar amount of the cost of
furnishing contraceptive services pursuant to the individual
contraceptive arrangement, and an attestation that the costs for
furnishing such services were incurred in compliance with the
requirements of the individual contraceptive arrangement. However, HHS
is of the view that conditioning participation in the individual
contraceptive arrangement on compliance with a separate submission
requirement for providers of contraceptive services would create
significant additional burden on providers of contraceptive services
and could deter participation in the individual contraceptive
arrangement, reducing access to contraceptive services for eligible
individuals.
In addition to an arrangement with a participating issuer on the
FFE or an SBE-FP, HHS considered whether to allow a provider of
contraceptive services to arrange with a third party administrator to
submit documentation to HHS on their behalf under 45 CFR 156.50(d).
Under this arrangement, a third party administrator entering into an
agreement with a provider of contraceptive services would partner with
an FFE or SBE-FP issuer to receive reimbursement for its costs of
furnishing contraceptive services and then the third party
administrator would pay the provider of contraceptive services.
Establishing a direct contractual relationship between providers of
contraceptive services and third party administrators was rejected as
more administratively complex because providers and third party
administrators do not have the same existing contractual agreements to
deliver these services as providers and issuers do. In contrast, the
proposed approach of direct agreements between providers of
contraceptive services and participating issuers on the FFE or an SBE-
FP builds upon existing relationships between providers and issuers.
D. Paperwork Reduction Act--Department of Health and Human Services
Under the Paperwork Reduction Act of 1995 (PRA), HHS is required to
provide 60-days' notice in the Federal Register and solicit public
comment before a collection of information requirement is submitted to
OMB for review and approval. To fairly evaluate whether an information
collection should be approved by OMB, section 3506(c)(2)(A) of the PRA
requires that HHS solicit comment on the following issues:
The need for the information collection and its usefulness
in carrying out the proper functions of the agency.
The accuracy of HHS' estimate of the information
collection burden.
The quality, utility, and clarity of the information to be
collected.
Recommendations to minimize the information collection
burden on the affected public, including automated collection
techniques.
1. Wage Estimates
HHS generally uses data from the Bureau of Labor Statistics to
derive average labor costs (including a 100 percent increase for the
cost of fringe benefits and other indirect costs) for estimating the
burden associated with the information collection requirements
(ICRs).\170\ Table 3 presents the mean hourly wage, the cost of fringe
benefits and other indirect costs, and the adjusted hourly wage.
---------------------------------------------------------------------------
\170\ See May 2021 Bureau of Labor Statistics, Occupational
Employment Statistics, National Occupational Employment and Wage
Estimates, available at https://www.bls.gov/oes/current/oes_nat.htm.
---------------------------------------------------------------------------
As indicated, employee hourly wage estimates have been adjusted by
a factor of 100 percent. This is necessarily a rough adjustment, both
because the cost of fringe benefits and other indirect costs vary
significantly across employers, and because methods of estimating these
costs vary widely across studies. Nonetheless, there is no practical
alternative, and HHS is of the view that doubling the hourly wage to
estimate total cost is a reasonably accurate estimation method.
[[Page 7266]]
Table 3--Adjusted Hourly Wages Used in Burden Estimates
----------------------------------------------------------------------------------------------------------------
Cost of fringe
Mean hourly benefits and Adjusted
Occupation title Occupational code wage ($/hour) other indirect hourly wage ($/
costs ($/hour) hour)
----------------------------------------------------------------------------------------------------------------
All Occupations....................... 00-0000................. $28.01 $28.01 $56.02
Actuary............................... 15-2011................. 60.24 60.24 120.48
Insurance Claims and Policy Processing 43-9041................. 22.02 22.02 44.04
Clerks.
Medical Secretaries and Administrative 43-6013................. 19.11 19.11 38.22
Assistants.
----------------------------------------------------------------------------------------------------------------
2. ICRs Regarding Adjustment of Exchange User Fees--Participating
Issuers (45 CFR 156.50(d)(2))
The proposed provisions would require a participating issuer on the
FFE or an SBE-FP seeking a user fee adjustment to submit to HHS, in the
year following the calendar year in which the contraceptive services
for which reimbursement pursuant to the proposed individual
contraceptive arrangement were furnished, the following: (A)
identifying information for the participating issuer and each provider
of contraceptive services with respect to which the participating
issuer seeks an adjustment of any user fee; (B) documentation, with
respect to each provider of contraceptive services, demonstrating that
the participating issuer and provider of contraceptive services have
agreed that the participating issuer will seek an adjustment of the
user fee to reimburse the provider of contraceptive services for the
costs of furnishing contraceptive services; and (C) for each provider
of contraceptive services, the total dollar amount of the costs of the
contraceptive services that were furnished during the applicable
calendar year pursuant to the proposed individual contraceptive
arrangement. The proposed amendments also require that a participating
issuer on the FFE or an SBE-FP receiving an adjustment to any user fee
under 45 CFR 156.50(d) for a particular calendar year must maintain
documentation for 10 years demonstrating that it timely paid each
provider of contraceptive services, with respect to which it received
such adjustment, any amount required under paragraph 45 CFR
156.50(d)(5).
Approximately 40 QHP issuers have entered into arrangements with
third party administrators under the third party administrator optional
accommodation.\171\ HHS anticipates that all (or some subset) of those
issuers that have already entered into arrangements with third party
administrators would be most likely to enter into arrangements with
providers of contraceptive services because they would already be
familiar with the process for seeking a user fee adjustment related to
payments for contraceptive services. HHS anticipates there would be an
increase in burden associated with these proposed data submission
requirements for those issuers that participate in the individual
contraceptive arrangement.
---------------------------------------------------------------------------
\171\ See 78 FR 39870 at 39875 through 39886 for additional
background on the third party administrator optional accommodation.
---------------------------------------------------------------------------
HHS would collect the required data elements for participating
issuers on the FFE or an SBE-FP to receive a user fee adjustment under
the proposed individual contraceptive arrangement through the same web
form online tool and at the same time as participating issuers complete
the data submission process for the third party administrator optional
accommodation. HHS previously estimated that for the issuers that enter
into arrangements with third party administrators, each issuer needs
approximately 3 hours of actuarial work, 5 hours of work by claims and
policy processing clerks, 2 hours for legal counsel, and 1 hour for a
top executive.\172\ For issuers that would participate in arrangements
with providers of contraceptive services, HHS estimates that each
issuer would incur an additional burden of 1 hour of work by an actuary
(at $120.48 per hour), and 4 hours of work by claims and policy
processing clerks (at $44.04 per hour) including time for
recordkeeping. The total additional burden for each issuer would be 5
hours annually, with an equivalent cost of approximately $297.
Therefore, if all 40 issuers enter into arrangements with providers of
contraceptive services, the total annual burden associated with this
requirement would be approximately 200 hours, at a cost of
approximately $11,866. These costs would be offset by Federal payments
in the form of user fee adjustments.
---------------------------------------------------------------------------
\172\ This burden is currently approved under OMB control number
0938-1285 (CMS-10492, Coverage of Certain Preventive Services Under
the Affordable Care Act: Data Submission Requirements to Receive the
Federally-facilitated Exchange User Fee Adjustment).
Table 4--Annual Burden and Costs for Participating Issuers
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated number of Estimated number of Estimated burden per response
respondents responses (hours) Total annual burden (hours) Total estimated cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
40 40 5 200 $11,866
--------------------------------------------------------------------------------------------------------------------------------------------------------
HHS will revise the information collection currently approved under
OMB control number 0938-1285 (CMS-10492), to account for this new
burden.
3. ICRs Regarding Adjustment of Exchange User Fees--Participating
Providers of Contraceptive Services (45 CFR 156.50(d)(8))
The proposed provisions require that, as a condition of
participation in the proposed individual contraceptive arrangement,
providers of contraceptive services would be required to maintain
documentation for 10 years demonstrating that the costs of furnishing
contraceptive services were
[[Page 7267]]
made in compliance with the individual contraceptive arrangement,
including a representation by (or on behalf of) the individual
demonstrating the individual's eligibility for the individual
contraceptive arrangement, and the total dollar amount of the costs of
the contraceptive services furnished. As discussed previously in
section VI.B.2 of this preamble, HHS estimates that at least 2,180
providers of contraceptive services (1,090 pharmacies, and 1,090
clinicians and facilities), and 126,400 individuals would participate
in the individual contraceptive arrangement. Eligible individuals could
receive contraceptive services from more than one provider of
contraceptive services (1,090 pharmacies, and 1,090 clinicians or
facilities). HHS anticipates that eligible individuals would likely
receive contraceptive services from more than one provider of
contraceptive services (for example, during a visit to a clinician or
facility and during a visit to a pharmacy to fill a prescription) and
more than once a year. HHS therefore estimates that each provider of
contraceptive services would furnish contraceptive services to
approximately 116 eligible individuals annually, on average.
HHS assumes that a provider of contraceptive services (for example,
clinician, facility, or pharmacy) would confirm eligibility for each
individual only once annually and submit all claims for all eligible
individuals together to the issuer. HHS estimates that for each
provider of contraceptive services, a medical secretary would need, on
average, approximately 1.5 hours (at $38.22 per hour) to record each
representation demonstrating an individual's eligibility for the
individual contraceptive arrangement, calculate and record the costs
associated with the contraceptive services furnished throughout the
year, submit the amounts to the participating issuer on the FFE or an
SBE-FP, and maintain records. The total burden for each provider of
contraceptive services would be, on average, 1.5 hours for each
individual, with an associated cost of $57.33. For 2,180 providers of
contraceptive services, the total burden related to furnishing
contraceptive services to 126,400 individuals (assuming each individual
receives contraceptive services from 2 providers on average each year)
would be 379,200 hours with an associated cost of approximately $14.5
million. These estimates constitute the lower bound, as burden and
costs would be higher if the number of eligible individuals is higher,
or if eligible individuals see more than two providers of contraceptive
services in a year. Providers of contraceptive services would be likely
to incorporate these costs into their fees for providing the
contraceptive services.
Table 5--Annual Burden and Costs for Participating Providers of Contraceptive Services
----------------------------------------------------------------------------------------------------------------
Estimated
Estimated Estimated burden per Total annual Total
Provider or facility type number of number of response burden (hours) estimated cost
respondents responses (hours)
----------------------------------------------------------------------------------------------------------------
Clinicians or Facilities........ 1,090 126,400 1.5 189,600 $7,246,512
Pharmacies...................... 1,090 126,400 1.5 189,600 7,246,512
-------------------------------------------------------------------------------
Total....................... 2,180 252,800 1.5 379,200 14,493,024
----------------------------------------------------------------------------------------------------------------
HHS will revise the information collection currently approved under
OMB control number 0938-1285 (CMS-10492), to account for this new
burden.
4. ICRs Regarding Confirmation of Eligibility for the Individual
Contraceptive Arrangement (45 CFR 147.131(a)(3)(ii))
Individuals could confirm their eligibility for the individual
contraceptive arrangement with a provider of contraceptive services by
providing a summary of benefits that includes the relevant information
provided under the plan, or by providing an attestation. These proposed
rules include, in 45 CFR 147.131(d)(2), an example of language that
could be used by participants, beneficiaries and enrollees or their
authorized representatives to confirm eligibility. The Departments
estimate that at least 126,400 individuals would be eligible for the
individual contraceptive arrangement and would need to confirm their
eligibility, and that each eligible individual would need, on average,
5 minutes (at an equivalent cost of $56.02 per hour) to do so. The
total burden for all individuals to confirm their eligibility for the
individual contraceptive arrangement to their provider of contraceptive
services would be approximately 10,533 hours with an equivalent cost of
approximately $590,077. The Departments consider these estimates to be
a lower bound, as the total burden and costs would be higher if the
number of eligible individuals that take part in the individual
contraceptive arrangement is higher. As HHS, DOL, and the Department of
the Treasury share jurisdiction, HHS would account for 50 percent of
the burden, or approximately 5,267 hours annually, with an equivalent
annual cost of $295,039. DOL and the Department of the Treasury would
each account for 25 percent of the burden, as discussed in section VI.E
of this preamble.
Table 6--Annual Burden and Costs for Individuals
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated number of Estimated number of Estimated burden per
respondents responses response (hours) Total annual burden (hours) Total estimated cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
63,200 63,200 0.08 5,267 $295,039
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 7268]]
HHS will revise the information collection currently approved under
OMB control number 0938-1344 (CMS-10653),\173\ to account for this new
burden.
---------------------------------------------------------------------------
\173\ OMB Control Number: 0938-1344 (CMS-10653, Coverage of
Certain Preventive Services Under the Affordable Care Act).
---------------------------------------------------------------------------
5. ICRs Regarding the Existing Optional Accommodation for Exempt
Entities (45 CFR 147.131(b))
An entity seeking to be treated as an eligible organization for the
existing optional accommodation may self-certify (by using EBSA Form
700), prior to the beginning of the first plan year to which an
accommodation is to apply, that it meets the definition of an eligible
organization. An eligible organization may submit a notification to HHS
as an alternative to submitting the EBSA Form 700 to the eligible
organization's health insurance issuer or third party administrator.
The burden related to this optional accommodation is currently
approved under OMB Control Number: 0938-1344 (CMS-10653). HHS will
revise this information collection to update the EBSA Form 700 and
model notice to HHS to reflect the proposal to remove the moral
exemption. However, the burden estimates would not be affected by the
provisions in these proposed rules as the Departments did not
previously expect any entities with non-religious moral objections to
use the existing optional accommodation.
6. ICRs Regarding Notice of Availability of Separate Payments for
Contraceptive Services (45 CFR 147.131(c))
A health insurance issuer or third party administrator providing or
arranging separate payments for services for participants and
beneficiaries in insured plans (or student enrollees and covered
dependents in student health insurance coverage) of eligible
organizations exercising the existing optional accommodation is
required to provide a written notice to the plan participants and
beneficiaries (or student enrollees and covered dependents) informing
them of the availability of these payments. As discussed previously in
section II.D.1 of this preamble, the Departments propose to amend the
model language for this notice. The burden related to this notice is
currently approved under OMB Control Number: 0938-1344 (CMS-10653). HHS
will revise this information collection to update the model notice to
reflect this proposed amendment. The Departments previously estimated
that 109 respondents will incur an annual burden of 136.25 hours with
an equivalent cost of approximately $7,000, and materials and mailing
cost of approximately $358,000 annually to comply with this ICR. The
burden and cost estimates would not be affected by the proposed change
in model language for the notice.
7. Summary of Annual Burden Estimates for Proposed Information
Collection Requirements
Table 7--Annual Recordkeeping and Reporting Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average
Burden per Total hourly Total
Regulation section OMB control No. Respondents Responses response annual labor labor Total cost
(hours) burden cost of cost of
(hours) reporting reporting
--------------------------------------------------------------------------------------------------------------------------------------------------------
45 CFR Sec. 156.50(d)(2)............ 0938-1285............... 40 40 5 200 $59.33 $11,866 $11,866
45 CFR Sec. 156.50(d)(8)............ 0938-1285............... 2,180 252,800 1.5 379,200 38.22 14,493,024 14,493,024
45 CFR Sec. 147.131(a)(3)(ii)....... 0938-1285............... 63,200 63,200 0.08 5,267 56.02 295,039 295,039
---------------------------------------------------------------------------------------
Total............................. ........................ 65,420 63,200 .......... 384,667 .......... 14,799,928 14,799,928
--------------------------------------------------------------------------------------------------------------------------------------------------------
8. Submission of PRA-Related Comments
HHS has submitted a copy of these proposed rules to OMB for its
review of the rule's information collection and recordkeeping
requirements. These requirements are not effective until they have been
approved by the OMB.
To obtain copies of the supporting statement and any related forms
for the proposed collections, please visit CMS's website at https://www.cms.gov/Regulations-and-Guidance/Legislation/PaperworkReductionActof1995/PRA-Listing. HHS invites public comments on
these potential information collection requirements. If you wish to
comment, please submit your comments electronically as specified in the
ADDRESSES section of these proposed rules and identify the rule (CMS-
9903-P), the ICR's CFR citation, CMS ID number, and OMB control number.
ICR-related comments are due April 3, 2023.
E. Paperwork Reduction Act--Department of Labor and Department of the
Treasury
As part of their continuing effort to reduce paperwork and
respondent burden, the Department of Labor and the Department of the
Treasury conduct a preclearance consultation program to allow the
general public and Federal agencies to comment on proposed and
continuing collections of information in accordance with the PRA.\174\
This helps to ensure that the public understands the Departments'
collection instructions, respondents can provide the requested data in
the desired format, reporting burden (time and financial resources) is
minimized, collection instruments are clearly understood, and the
Departments can properly assess the impact of collection requirements
on respondents.
---------------------------------------------------------------------------
\174\ 44 U.S.C. 3506(c)(2)(A) (1995).
---------------------------------------------------------------------------
Currently, the Department of Labor and the Department of the
Treasury are soliciting comments concerning the proposed information
collection request (ICR) included in the Coverage of Certain Preventive
Services under the Affordable Care Act--Private Sector. To obtain a
copy of the ICR, contact the PRA addressee shown below or go to https://www.RegInfo.gov.
The Departments have submitted a copy of these proposed rule to OMB
in accordance with 44 U.S.C. 3507(d) for review of its information
collections. The Departments and OMB are particularly interested in
comments that:
Evaluate whether the collection of information is
necessary for the functions of the agency, including whether the
information will have practical utility;
[[Page 7269]]
Evaluate the accuracy of the agency's estimate of the
burden of the collection of information, including the validity of the
methodology and assumptions used;
Enhance the quality, utility, and clarity of the
information to be collected and minimize the burden of the collection
of information on those who are to respond, including through the use
of appropriate automated, electronic, mechanical, or other
technological collection techniques or other forms of information
technology (for example, permitting electronically delivered
responses).
Commenters may send their views on the Departments' PRA analysis in
the same way they send comments in response to the proposed rule as a
whole (for example, through the www.regulations.gov website), including
as part of a comment responding to the broader proposed rule. Comments
are due by April 3, 2023 to ensure their consideration.
PRA Addressee: Address requests for copies of the ICR to James
Butikofer, Office of Research and Analysis, U.S. Department of Labor,
Employee Benefits Security Administration, 200 Constitution Avenue NW,
Room N-5718, Washington, DC 20210; or send to [email protected].
1. ICRs Regarding Confirmation of Eligibility for the Individual
Contraceptive Arrangement (26 CFR 54.9815-2713A(a)(3)(iii), 29 CFR
2590.715-2713A(a)(3)(iii))
Individuals could confirm their eligibility for the individual
contraceptive arrangement with a provider of contraceptive services by
providing a summary of benefits that includes the relevant information
provided under the plan, or by providing an attestation. The
Departments propose, in 26 CFR 54.9815-2713A(a)(3)(iii) and 29 CFR
2590.715-2713A(a)(3)(iii), an example of language that could be used by
participants, beneficiaries, and enrollees or their authorized
representatives to confirm eligibility. The Departments estimate that
at least 126,400 individuals would be eligible for the individual
contraceptive arrangement and would need to confirm their eligibility,
and that each eligible individual would need, on average, 5 minutes (at
an equivalent cost of $68.96 per hour) to do so. The total burden for
all individuals to confirm their eligibility for the individual
contraceptive arrangement to their provider of contraceptive services
would be approximately 10,533 hours with an equivalent cost of
approximately $726,356. The Departments consider these estimates to be
a lower bound, as the total burden and costs would be higher if the
number of eligible individuals that take part in the individual
contraceptive arrangement is higher. As HHS, DOL, and the Department of
the Treasury share jurisdiction, HHS would account for 50 percent of
the burden, as discussed in section VI.D of this preamble and DOL and
the Department of the Treasury would each account for 25 percent of the
burden, or approximately 2,633 hours annually with an equivalent annual
cost of $181,572.
The burden related to the confirmation of eligibility for the
individual contraceptive arrangement will be included under OMB Control
Number: 1210-0150 (Coverage of Certain Preventive Services under the
Affordable Care Act--Private Sector). The information collection has a
current expiration date of November 30, 2024.
2. ICRs Regarding the Existing Optional Accommodation for Exempt
Entities (26 CFR 54.9815-2713A, 29 CFR 2590.715-2713A)
An entity seeking to be treated as an eligible organization for the
existing optional accommodation may self-certify (by using EBSA Form
700), prior to the beginning of the first plan year to which an
accommodation is to apply, that it meets the definition of an eligible
organization. An eligible organization may submit a notification to HHS
as an alternative to submitting the EBSA Form 700 to the eligible
organization's health insurance issuer or third party administrator.
The burden related to this optional accommodation is currently
approved under OMB Control Number: 1210-0150 (Coverage of Certain
Preventive Services under the Affordable Care Act--Private Sector). The
Departments will revise this information collection to update the EBSA
Form 700 and model notice to HHS to reflect the proposal to remove the
moral exemption. However, the burden estimates would not be affected by
the provisions in these proposed rules, as the Departments did not
previously expect entities with non-religious moral objections to use
the existing optional accommodation. The information collection has a
current expiration date of November 30, 2024.
3. ICRs Regarding Notice of Availability of Separate Payments for
Contraceptive Services (26 CFR 54.9815-2713A, 29 CFR 2590.715-2713A)
A health insurance issuer or third party administrator providing or
arranging separate payments for contraceptive services for participants
and beneficiaries in insured plans (or student enrollees and covered
dependents in student health insurance coverage) of eligible
organizations exercising the existing optional accommodation is
required to provide a written notice to such plan participants and
beneficiaries (or such student enrollees and covered dependents)
informing them of the availability of such payments. The Departments
propose to amend the model language for this notice. The burden related
to this notice is currently approved under OMB Control Number: 1210-
0150 (Coverage of Certain Preventive Services under the Affordable Care
Act--Private Sector). The Departments will revise this information
collection to update the model notice to reflect this proposed
amendment. The Departments previously estimated that 109 respondents
will incur an annual burden of 136.25 hours with an equivalent cost of
approximately $7,000, and materials and mailing cost of approximately
$358,000 annually to comply with this ICR. The burden and cost
estimates would not be affected by the proposed change in model
language for the notice. The information collection has a current
expiration date of November 30, 2024.
4. Summary of Annual Burden Estimates for Proposed Information
Collection Requirements
A summary of paperwork burden estimates follows:
Type of Review: Revision.
Agency: Employees Benefits Security Administration, U.S. Department
of Labor.
Title: Coverage of Certain Preventive Services under the Affordable
Care Act--Private Sector.
OMB Control Number: 1210-0150.
Affected Public: Individuals and households, Businesses or other
for-profits, Not-for-profit institutions.
Estimated Number of Respondents: 31,630.
Estimated Number of Annual Responses: 329,255.
Frequency of Response: Annual.
Estimated Total Annual Burden Hours: 2,669.
Estimated Total Annual Burden Cost: $80,873.
Agency: Internal Revenue Service, Department of the Treasury.
Title: Coverage of Certain Preventive Services under the Affordable
Care Act--Private Sector.
OMB Control Number: 1545-NEW.
Affected Public: Individuals and households, Businesses or other
for-profits, Not-for-profit institutions.
[[Page 7270]]
Estimated Number of Respondents: 31,630.
Estimated Number of Annual Responses: 329,255.
Frequency of Response: Annual.
Estimated Total Annual Burden Hours: 2,669.
Estimated Total Annual Burden Cost: $80,873.
F. Regulatory Flexibility Act
The Regulatory Flexibility Act, (5 U.S.C. 601, et seq.), requires
agencies to prepare an initial regulatory flexibility analysis to
describe the impact of proposed rules on small entities, unless the
head of the agency can certify that the rules will not have a
significant economic impact on a substantial number of small entities.
The RFA generally defines a ``small entity'' as (1) a proprietary firm
meeting the size standards of the Small Business Administration (SBA),
(2) a not-for-profit organization that is not dominant in its field, or
(3) a small government jurisdiction with a population of less than
50,000. States and individuals are not included in the definition of
``small entity.'' The Departments use a change in revenues of more than
3 to 5 percent as its measure of significant economic impact on a
substantial number of small entities.
The provisions in these proposed rules would affect health
insurance issuers and providers that furnish contraceptive services
(including clinicians, facilities, and pharmacies). Health insurance
issuers would be classified under the North American Industry
Classification System (NAICS) code 524114 (Direct Health and Medical
Insurance Carriers). According to SBA size standards,\175\ entities
with average annual receipts of $41.5 million or less are considered
small entities for this NAICS code. Issuers could possibly be
classified in 621491 (HMO Medical Centers) and, if this is the case,
the SBA size standard would be $39 million or less. The Departments
expect that few, if any, insurance companies underwriting comprehensive
health insurance policies (in contrast, for example, to travel
insurance policies or dental discount policies) fall below these size
thresholds. Based on data from medical loss ratio (MLR) annual report
\176\ submissions for the 2020 MLR reporting year, approximately 78 out
of 481 issuers of health insurance coverage nationwide had total
premium revenue of $41.5 million or less. This estimate may overstate
the actual number of small health insurance companies that may be
affected, since over 72 percent of these small companies belong to
larger holding groups, and many, if not all, of these small companies
are likely to have non-health lines of business that will result in
their revenues exceeding $41.5 million. In addition, costs incurred by
issuers would be offset by Federal payments in the form of user fee
adjustments.
---------------------------------------------------------------------------
\175\ https://www.sba.gov/document/support--table-size-standards, as of October 2022.
\176\ Available at https://www.cms.gov/CCIIO/Resources/Data-Resources/mlr.html.
---------------------------------------------------------------------------
Clinicians and facilities would be classified under either NAICS
code 621111 (Offices of Physicians) with a size standard of $14 million
or less or NAICS code 621399 (Offices of All Other Miscellaneous Health
Practitioners) with a size standard of $9 million or less. Facilities
could also be classified under NAICS code 621410 (Family Planning
Centers), with a size standard of $16.5 million or less. The
Departments estimate that approximately 1,090 clinicians and facilities
would participate in the individual contraceptive arrangement and would
incur costs related to signing agreements with participating issuers,
eligibility verification, and recordkeeping. Most, if not all,
participating clinicians and facilities might be considered small
entities. As discussed earlier in section VI.D of this preamble, these
costs per clinician or facility are estimated to be approximately
$10,895 annually \177\ and would likely be accounted for in amounts
submitted to participating issuers for reimbursement by the Federal
Government. The Departments assume that clinicians or facilities would
not participate in the individual contraceptive arrangement if it
results in a decline in their revenues or profitability.
---------------------------------------------------------------------------
\177\ Total administrative costs for 1,090 clinicians and
facilities = $4,629,069 in administrative costs for signed
agreements + $7,246,512 in administrative costs related to providing
contraceptive services = $11,875,581. Average administrative costs
for each clinician or facility = $10,895.
---------------------------------------------------------------------------
Pharmacies would be classified under NAICS code 446110 (Pharmacies
and Drug Stores) with a size standard of $30 million or less. The
Departments assume that 10 pharmacy chains would participate in the
individual contraceptive arrangement and would incur costs related to
signing agreements with participating issuers, eligibility
verification, and recordkeeping. As discussed earlier in section VI.D
of this preamble, these costs per pharmacy chain are estimated to be
approximately $728,781 annually.\178\ These costs would likely be
accounted for in amounts submitted to participating issuers for
reimbursement by the Federal Government. The major pharmacy chains
would not fall below this size threshold. The Departments assume that
independent pharmacies or small pharmacy chains would not participate
in the individual contraceptive arrangement if it results in a decline
in their revenues or profitability.
---------------------------------------------------------------------------
\178\ Total administrative costs for 10 pharmacy chains =
$41,300 in administrative costs for signed agreements + $7,246,512
in administrative costs related to providing contraceptive services
= $7,287,812. Average administrative costs for each pharmacy chain =
$728,781.
---------------------------------------------------------------------------
Therefore, the Departments do not anticipate that participation in
the individual contraceptive arrangement would have a significant
effect on a substantial number of small entities. The Departments seek
comment on this analysis.
In addition, section 1102(b) of the Social Security Act requires
HHS to prepare a regulatory impact analysis if a rule may have a
significant economic impact on the operations of a substantial number
of small rural hospitals. This analysis must conform to the provisions
of section 604 of the RFA. This rule is not subject to section 1102 of
the Social Security Act, HHS does not expect that these proposed rules
would have a significant economic impact on the operations of a
substantial number of small rural hospitals. Some providers of
contraceptive services might be affiliated with small rural hospitals,
and these providers might choose to participate in the individual
contraceptive arrangement and therefore incur related costs, which
would ultimately be reimbursed by the Federal Government.
G. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires that agencies assess anticipated costs and benefits and take
certain other actions before issuing a proposed rule or any final rule
for which a general notice of proposed rulemaking was published that
includes any Federal mandate that may result in expenditures in any 1
year by State, local, or Tribal governments, in the aggregate, or by
the private sector, of $100 million in 1995 dollars, updated annually
for inflation. In 2022, that threshold is approximately $165 million.
As discussed earlier in section VI of this preamble, providers of
contraceptive services and issuers that choose to participate in the
individual contraceptive arrangement would incur costs to comply with
the proposed provisions of these proposed rules,
[[Page 7271]]
which would likely be reimbursed and ultimately incurred by the Federal
Government. The Departments estimate the combined impact on State,
local, or Tribal governments and the private sector would not be above
the threshold.
H. Federalism
Executive Order 13132 outlines fundamental principles of
federalism. It requires adherence to specific criteria by Federal
agencies in formulating and implementing policies that have
``substantial direct effects'' on the states, the relationship between
the national government and states, or on the distribution of power and
responsibilities among the various levels of government. Federal
agencies promulgating regulations that have these federalism
implications must consult with State and local officials and describe
the extent of their consultation and the nature of the concerns of
State and local officials in the preamble to the proposed rules.
The Departments do not anticipate that these proposed rules would
have any federalism implications or limit the policy making discretion
of the states, in compliance with the requirement of Executive Order
13132.
While developing this rule, the Departments attempted to balance
the states' interests in regulating health insurance issuers with the
need to ensure market stability. By doing so, the Departments complied
with the requirements of Executive Order 13132.
List of Subjects
26 CFR Part 54
Excise taxes, Health care, Health insurance, Pensions, Reporting
and recordkeeping requirements.
29 CFR Part 2590
Continuation coverage, Disclosure, Employee benefit plans, Group
health plans, Health care, Health insurance, Medical child support,
Reporting and recordkeeping requirements.
45 CFR Part 147
Aged, Citizenship and naturalization, Civil rights, Health care,
Health insurance, Individuals with disabilities, Intergovernmental
relations, Reporting and recordkeeping requirements, Sex
discrimination.
45 CFR Part 156
Administrative practice and procedure, Advertising, Advisory
committees, Aged, Alaska, Brokers, Citizenship and naturalization,
Civil rights, Conflicts of interests, Consumer protection, Grant
programs-health, Grants administration, Health care, Health insurance,
Health maintenance organizations (HMO), Health records, Hospitals,
Indians, Individuals with disabilities, Intergovernmental relations,
Loan programs-health, Medicaid, Organization and functions (Government
agencies), Prescription drugs, Public assistance programs, Reporting
and recordkeeping requirements, Sex discrimination, State and local
governments, Sunshine Act, Technical assistance, Women, Youth.
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Accordingly, the Treasury Department and the IRS propose to amend
26 CFR part 54 as follows:
PART 54--PENSION EXCISE TAXES
0
Paragraph 1.The authority citation for part 54 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *
0
Par 2. Section 54.9815-2713 is amended by revising paragraphs (a)(1)
introductory text and (a)(1)(iv) to read as follows:
Sec. 54.9815-2713 Coverage of preventive health services.
(a) * * *
(1) In general. Beginning at the time described in paragraph (b) of
this section, a group health plan, or a health insurance issuer
offering group health insurance coverage, must provide coverage for and
must not impose any cost-sharing requirements (such as a copayment,
coinsurance, or a deductible) for--
* * * * *
(iv) With respect to women, such additional preventive care and
screenings not described in paragraph (a)(1)(i) of this section as
provided for in evidence-informed comprehensive guidelines supported by
the Health Resources and Services Administration for purposes of
section 2713(a)(4) of the Public Health Service Act, subject to 45 CFR
147.131 and 147.132.
* * * * *
0
Par 3. Section 54.9815-2713A is revised to read as follows:
Sec. 54.9815-2713A Alternate availability of certain preventive
health services.
(a) Organizations eligible for optional accommodations and
individuals eligible for individual contraceptive arrangements. (1) An
eligible organization is an organization that meets the criteria of
paragraphs (a)(1)(i) through (iii) of this section.
(i) The organization is an objecting entity described in 45 CFR
147.132(a)(1)(i) through (iii);
(ii) Notwithstanding its exempt status under 45 CFR 147.132(a), the
organization voluntarily seeks to be considered an eligible
organization to invoke the optional accommodation under paragraph (b)
or (c) of this section; and
(iii) The organization self-certifies in the form and manner
specified by the Secretary of Labor or provides notice to the Secretary
of Health and Human Services as described in paragraph (b) or (c) of
this section. To qualify as an eligible organization, the organization
must make such self-certification or notice available for examination
upon request by the first day of the first plan year to which the
accommodation in paragraph (b) or (c) of this section applies. The
self-certification or notice must be executed by a person authorized to
make the certification or provide the notice on behalf of the
organization and must be maintained in a manner consistent with the
record retention requirements under section 107 of ERISA.
(2) An eligible organization may revoke its use of the
accommodation under paragraph (b) or (c) of this section, and its
issuer or third party administrator must provide participants and
beneficiaries written notice of the revocation; the eligible
organization's revocation of the accommodation will be effective no
sooner than the first day of the first plan year that begins on or
after 30 days after the date of the revocation.
(3) An eligible individual is an individual who--
(i) Is a participant or beneficiary enrolled in a group health plan
established or maintained by an objecting entity described in 45 CFR
147.132(a) that, to the extent eligible, has not invoked the optional
accommodation under paragraph (b) or (c) of this section; and
(ii) Confirms (such as by making an attestation) to a provider of
contraceptive services that agrees to meet the conditions in paragraph
(d)(1) of this section that the individual is enrolled in a group
health plan or group health insurance coverage that does not provide
coverage for all or a subset of contraceptive services as generally
required under Sec. 54.9815-2713(a)(1)(iv).
(b) Optional accommodation--self-insured group health plans. (1) A
group health plan established or maintained by an eligible organization
that provides benefits on a self-insured basis may voluntarily elect an
optional accommodation under which its third party administrator(s)
will provide or arrange payments for all or a subset of contraceptive
services for one or more
[[Page 7272]]
plan years. To invoke the optional accommodation process:
(i) Except as provided in paragraph (b)(5) of this section, the
eligible organization or its plan must contract with one or more third
party administrators.
(ii) The eligible organization must provide either a copy of the
self-certification to each third party administrator it contracts with
to provide administrative services in connection with the plan or a
notice to the Secretary of Health and Human Services that it is an
eligible organization and of its objection as described in 45 CFR
147.132 to coverage of all or a subset of contraceptive services.
(A) When a copy of the self-certification is provided directly to a
third party administrator, the self-certification must include a notice
that obligations of the third party administrator are set forth in in
29 CFR 2510.3-16 and this section.
(B) When a notice is provided to the Secretary of Health and Human
Services, the notice must include the name of the eligible
organization; a statement that it objects as described in 45 CFR
147.132 to coverage of some or all contraceptive services (including an
identification of the subset of contraceptive services the eligible
organization objects to covering, if applicable), but that it would
like to elect the optional accommodation process; the plan name and
type (that is, whether it is student health insurance coverage within
the meaning of 45 CFR 147.145(a) or a church plan within the meaning of
section 414(e) or section 3(33) of ERISA); and the name and contact
information for any of the plan's third party administrators. If there
is a change in any of the information required to be included in the
notice, the eligible organization must provide updated information to
the Secretary of Health and Human Services for the optional
accommodation process to remain in effect. The Department of Labor
(working with the Department of Health and Human Services) will send a
separate notification to each of the plan's third party administrators
informing the third party administrator that the Secretary of Health
and Human Services has received a notice under paragraph (b)(1)(ii) of
this section and describing the obligations of the third party
administrator under 29 CFR 2510.3-16(c) and this section.
(2) If a third party administrator receives a copy of the self-
certification from an eligible organization or a notification from the
Department of Labor, as described in paragraph (b)(1)(ii) of this
section and is willing to enter into or remain in a contractual
relationship with the eligible organization or its plan to provide
administrative services for the plan, then the third party
administrator will provide or arrange payments for contraceptive
services, using one of the following methods--
(i) Provide payments for the contraceptive services for plan
participants and beneficiaries without imposing any cost-sharing
requirements (such as a copayment, coinsurance, or a deductible),
premium, fee, or other charge, or any portion thereof, directly or
indirectly, on the eligible organization, the group health plan, or
plan participants or beneficiaries; or
(ii) Arrange for an issuer or other entity to provide payments for
contraceptive services for plan participants and beneficiaries without
imposing any cost-sharing requirements (such as a copayment,
coinsurance, or a deductible), premium, fee, or other charge, or any
portion thereof, directly or indirectly, on the eligible organization,
the group health plan, or plan participants or beneficiaries.
(3) If a third party administrator provides or arranges payments
for contraceptive services in accordance with either paragraph
(b)(2)(i) or (ii) of this section, the costs of providing or arranging
such payments may be reimbursed through an adjustment to the Federally-
facilitated Exchange or State Exchange on the Federal platform user
fees for a participating issuer pursuant to 45 CFR 156.50(d).
(4) A third party administrator may not require any documentation
other than a copy of the self-certification from the eligible
organization or notification from the Department of Labor described in
paragraph (b)(1)(ii) of this section.
(5) Where an otherwise eligible organization does not contract with
a third party administrator and it files a self-certification or notice
under paragraph (b)(1)(ii) of this section, the obligations under
paragraph (b)(2) of this section do not apply, and the otherwise
eligible organization is not required to provide coverage or payments
for contraceptive services to which it objects. The plan administrator
for that otherwise eligible organization may, if it and the otherwise
eligible organization choose, arrange for payments for contraceptive
services from an issuer or other entity in accordance with paragraph
(b)(2)(ii) of this section, and such issuer or other entity may receive
reimbursements in accordance with paragraph (b)(3) of this section.
(6) Where an otherwise eligible organization is a church plan
within the meaning of section 3(33) of ERISA or section 414(e) and it
files a self-certification or notice under paragraph (b)(1)(ii) of this
section, the obligations under paragraph (b)(2) of this section do not
apply, and the otherwise eligible organization is under no requirement
to provide coverage or payments for contraceptive services to which it
objects. The third party administrator for that otherwise eligible
organization may, if it and the otherwise eligible organization choose,
provide or arrange payments for contraceptive services in accordance
with paragraph (b)(2)(i) or (ii) of this section, and receive
reimbursements in accordance with paragraph (b)(3) of this section.
(c) Optional accommodation--insured group health plans--(1) A group
health plan established or maintained by an eligible organization that
provides benefits through one or more group health insurance issuers
may voluntarily elect an optional accommodation under which its health
insurance issuer(s) will provide payments for all or a subset of
contraceptive services for one or more plan years. To invoke the
optional accommodation process:
(i) The eligible organization or its plan must contract with one or
more health insurance issuers.
(ii) The eligible organization must provide either a copy of the
self-certification to each issuer it contracts with to provide coverage
in connection with the plan or a notice to the Secretary of Health and
Human Services that it is an eligible organization and of its objection
as described in 45 CFR 147.132 to coverage for all or a subset of
contraceptive services.
(A) When a copy of the self-certification is provided directly to
an issuer, the issuer has sole responsibility for providing such
coverage in accordance with Sec. 54.9815-2713(a)(1)(iv).
(B) When a notice is provided to the Secretary of Health and Human
Services, the notice must include the name of the eligible
organization; a statement that it objects as described in 45 CFR
147.132 to coverage of some or all contraceptive services (including an
identification of the subset of contraceptive services to which
coverage the eligible organization objects, if applicable), but that it
would like to elect the optional accommodation process; the plan name
and type (that is, whether it is student health insurance coverage
within the meaning of 45 CFR 147.145(a) or a church plan within the
meaning of
[[Page 7273]]
section 414(e) or section 3(33) of ERISA); and the name and contact
information for any of the plan's health insurance issuers. If there is
a change in any of the information required to be included in the
notice, the eligible organization must provide updated information to
the Secretary of Health and Human Services for the optional
accommodation to remain in effect. The Department of Health and Human
Services will send a separate notification to each of the plan's health
insurance issuers informing the issuer that the Secretary of Health and
Human Services has received a notice under paragraph (c)(1)(ii) of this
section and describing the obligations of the issuer under this
section.
(2) If an issuer receives a copy of the self-certification from an
eligible organization or the notification from the Department of Health
and Human Services as described in paragraph (c)(1)(ii) of this section
and does not have an objection as described in 45 CFR 147.132 to
providing the contraceptive services identified in the self-
certification or the notification from the Department of Health and
Human Services, the issuer will provide payments for contraceptive
services as follows--
(i) The issuer must expressly exclude contraceptive coverage from
the group health insurance coverage provided in connection with the
group health plan and provide separate payments for any contraceptive
services required to be covered under Sec. 54.9815-2713(a)(1)(iv) for
plan participants and beneficiaries for so long as they remain enrolled
in the plan.
(ii) With respect to payments for contraceptive services, the
issuer may not impose any cost-sharing requirements (such as a
copayment, coinsurance, or a deductible), premium, fee, or other
charge, or any portion thereof, directly or indirectly, on the eligible
organization, the group health plan, or plan participants or
beneficiaries. The issuer must segregate premium revenue collected from
the eligible organization from the monies used to provide payments for
contraceptive services. The issuer must provide payments for
contraceptive services in a manner that is consistent with the
requirements under sections 2706, 2709, 2711, 2713, and 2719 of the PHS
Act, as incorporated into section 9815, and section 9822. If the group
health plan of the eligible organization provides coverage for some but
not all of any contraceptive services required to be covered under
Sec. 54.9815-2713(a)(1)(iv), the issuer is required to provide
payments only for those contraceptive services for which the group
health plan does not provide coverage. However, the issuer may provide
payments for all contraceptive services at the issuer's option.
(3) A health insurance issuer may not require any documentation
other than a copy of the self-certification from the eligible
organization or the notification from the Department of Health and
Human Services described in paragraph (c)(1)(ii) of this section.
(d) Notice of availability of separate payments for contraceptive
services--self-insured and insured group health plans. For each plan
year to which the optional accommodation in paragraph (b) or (c) of
this section is to apply, a third party administrator required to
provide or arrange payments for contraceptive services pursuant to
paragraph (b) of this section, and an issuer required to provide
payments for contraceptive services pursuant to paragraph (c) of this
section, must provide to plan participants and beneficiaries written
notice of the availability of separate payments for contraceptive
services contemporaneous with (to the extent possible), but separate
from, any application materials distributed in connection with
enrollment (or re-enrollment) in group health coverage that is
effective beginning on the first day of each applicable plan year. The
notice must specify that the eligible organization does not administer
or fund contraceptive benefits, but that the third party administrator
or issuer, as applicable, provides or arranges separate payments for
contraceptive services, and must provide contact information for
questions and complaints. The following model language, or
substantially similar language, may be used to satisfy the notice
requirement of this paragraph (d): ``Your employer has certified that
your group health plan qualifies for an accommodation with respect to
the Federal requirement to cover contraceptive services for women,
including all Food and Drug Administration-approved, cleared, or
granted contraceptives, as prescribed by a health care provider,
without cost sharing. This means that your employer will not contract,
arrange, pay, or refer for contraceptive coverage. Instead, [name of
third party administrator/health insurance issuer] will provide
separate payments for contraceptive services that you use, without cost
sharing and at no other cost, for so long as you are enrolled in your
group health plan. Your employer will not administer or fund these
payments. If you have any questions about this notice, contact [contact
information for third party administrator/health insurance issuer].''
(e) Individual contraceptive arrangements for eligible individuals.
(1) An eligible individual may elect an individual contraceptive
arrangement under which a willing provider of contraceptive services
furnishes the eligible individual with contraceptive services that a
group health plan or health insurance issuer would have been required
to cover pursuant to Sec. 54.9815-2713(a)(1)(iv), if not for the
plan's or issuer's exempt status under 45 CFR 147.132(a). Under this
individual contraceptive arrangement, the willing provider of
contraceptive services must furnish contraceptive services (including
items and services that are integral to the furnishing of the
contraceptive services) to the eligible individual without imposing a
fee or charge of any kind, directly or indirectly, on the eligible
individual or any other entity for the cost of the items and services
or any portion thereof, except that the provider of contraceptive
services may seek payment from, and be reimbursed by, an issuer for the
costs of providing the items and services through an adjustment to the
issuer's Federally-facilitated Exchange or State Exchange on the
Federal platform user fees pursuant to 45 CFR 156.50(d).
(2) The following language may, but is not required to, be used by
a participant or beneficiary (or an authorized representative of a
participant or beneficiary) to confirm to a provider of contraceptive
services that the plan or coverage is sponsored, provided, or arranged
by an objecting entity and does not provide coverage for all or a
subset of contraceptive services as generally required under Sec.
54.9815-2713(a)(1)(iv): ``I certify that I am enrolled (or am an
authorized representative of a person who is enrolled) in an employer-
sponsored health plan or health insurance coverage that does not
provide coverage for all or a subset of contraceptive services as
generally required under the Affordable Care Act.'' A participant or
beneficiary (or an authorized representative of a participant or
beneficiary) may use other means to confirm to a provider of
contraceptive services that the plan or coverage is sponsored,
provided, or arranged by an objecting entity and does not provide
coverage for all or a subset of contraceptive services.
(f) Reliance--insured group health plans. (1) If an issuer
reasonably and in good faith relies on a representation by an eligible
organization indicating that the organization is eligible for the
accommodation in paragraph (c) of this section, and the representation
is later
[[Page 7274]]
determined to be incorrect, the issuer is considered to comply with any
applicable requirement under Sec. 54.9815-2713(a)(1)(iv) to provide
contraceptive coverage if the issuer complies with the obligations
under this section applicable to such issuer.
(2) A group health plan is considered to comply with any applicable
requirement under Sec. 54.9815-2713(a)(1)(iv) to provide contraceptive
coverage if the plan complies with its obligations under paragraph (c)
of this section, without regard to whether the issuer complies with the
obligations under this section applicable to such issuer.
(g) Definitions. (1) For the purposes of this section, reference to
``contraceptive'' services, benefits, or coverage includes
contraceptive or sterilization items, procedures, or services, or
related patient education or counseling, to the extent specified for
purposes of Sec. 54.9815-2713(a)(1)(iv).
(2) For the purposes of this section, the term ``provider of
contraceptive services'' means any health care provider (including a
clinician, pharmacy, or other facility) acting within the scope of that
provider's license, certification, or authority under applicable law to
provide contraceptive services (as defined in paragraph (g)(1) of this
section).
(h) Severability. Any provision of this section held to be invalid
or unenforceable by its terms, or as applied to any person or
circumstance, shall be construed so as to continue to give maximum
effect to the provision permitted by law, unless such holding shall be
one of utter invalidity or unenforceability, in which event the
provision shall be severable from this section and shall not affect the
remainder thereof or the application of the provision to persons not
similarly situated or to dissimilar circumstances.
DEPARTMENT OF LABOR
Employee Benefits Security Administration
For the reasons stated in the preamble, the Department of Labor
proposes to amend 29 CFR part 2590 as set forth below:
PART 2590--RULES AND REGULATIONS FOR GROUP HEALTH PLANS
0
4. The authority citation for part 2590 continues to read as follows:
Authority: 29 U.S.C. 1027, 1059, 1135, 1161-1168, 1169, 1181-
1183, 1181 note, 1185, 1185a-n, 1191, 1191a, 1191b, and 1191c; sec.
101(g), Pub. L.104-191, 110 Stat. 1936; sec. 401(b), Pub. L. 105-
200, 112 Stat. 645 (42 U.S.C. 651 note); sec. 512(d), Pub. L. 110-
343, 122 Stat. 3881; sec. 1001, 1201, and 1562(e), Pub. L. 111-148,
124 Stat. 119, as amended by Pub. L. 111-152, 124 Stat. 1029;
Division M, Pub. L. 113-235, 128 Stat. 2130; Pub. L. 116-260 134
Stat. 1182; Secretary of Labor's Order 1-2011, 77 FR 1088 (Jan. 9,
2012).
0
5. Section 2590.715-2713 is amended by revising paragraphs (a)(1)
introductory text and (a)(1)(iv) to read as follows:
Sec. 2590.715-2713 Coverage of preventive health services.
(a) * * *
(1) In general. Beginning at the time described in paragraph (b) of
this section, a group health plan, or a health insurance issuer
offering group health insurance coverage, must provide coverage for and
must not impose any cost-sharing requirements (such as a copayment,
coinsurance, or a deductible) for--
* * * * *
(iv) With respect to women, such additional preventive care and
screenings not described in paragraph (a)(1)(i) of this section as
provided for in evidence-informed comprehensive guidelines supported by
the Health Resources and Services Administration for purposes of
section 2713(a)(4) of the Public Health Service Act, subject to 45 CFR
147.131 and 147.132; and
* * * * *
0
6. Section 2590.715-2713A is revised to read as follows:
Sec. 2590.715-2713A Alternate availability of certain preventive
health services.
(a) Organizations eligible for optional accommodations and
individuals eligible for individual contraceptive arrangements.
(1) An eligible organization is an organization that meets the
criteria of paragraphs (a)(1)(i) through (iii) of this section.
(i) The organization is an objecting entity described in 45 CFR
147.132(a)(1)(i) through (iii);
(ii) Notwithstanding its exempt status under 45 CFR 147.132(a), the
organization voluntarily seeks to be considered an eligible
organization to invoke the optional accommodation under paragraph (b)
or (c) of this section; and
(iii) The organization self-certifies in the form and manner
specified by the Secretary or provides notice to the Secretary of
Health and Human Services as described in paragraph (b) or (c) of this
section. To qualify as an eligible organization, the organization must
make such self-certification or notice available for examination upon
request by the first day of the first plan year to which the
accommodation in paragraph (b) or (c) of this section applies. The
self-certification or notice must be executed by a person authorized to
make the certification or provide the notice on behalf of the
organization and must be maintained in a manner consistent with the
record retention requirements under section 107 of ERISA.
(2) An eligible organization may revoke its use of the
accommodation under paragraph (b) or (c) of this section, and its
issuer or third party administrator must provide participants and
beneficiaries written notice of the revocation; the eligible
organization's revocation of the accommodation will be effective no
sooner than the first day of the first plan year that begins on or
after 30 days after the date of the revocation.
(3) An eligible individual is an individual who--
(i) Is a participant or beneficiary enrolled in a group health plan
established or maintained by an objecting entity described in 45 CFR
147.132(a) that, to the extent eligible, has not invoked the optional
accommodation under paragraph (b) or (c) of this section; and
(ii) Confirms (such as by making an attestation) to a provider of
contraceptive services that agrees to meet the conditions in paragraph
(d)(1) of this section that the individual is enrolled in a group
health plan or group health insurance coverage that does not provide
coverage for all or a subset of contraceptive services as generally
required under Sec. 2590.715-2713(a)(1)(iv).
(b) Optional accommodation--self-insured group health plans. (1) A
group health plan established or maintained by an eligible organization
that provides benefits on a self-insured basis may voluntarily elect an
optional accommodation under which its third party administrator(s)
will provide or arrange payments for all or a subset of contraceptive
services for one or more plan years. To invoke the optional
accommodation process:
(i) Except as provided in paragraph (b)(5) of this section, the
eligible organization or its plan must contract with one or more third
party administrators.
(ii) The eligible organization must provide either a copy of the
self-certification to each third party administrator it contracts with
to provide administrative services in connection with the plan or a
notice to the Secretary of Health and Human Services that it is an
eligible
[[Page 7275]]
organization and of its objection as described in 45 CFR 147.132 to
coverage of all or a subset of contraceptive services.
(A) When a copy of the self-certification is provided directly to a
third party administrator, the self-certification must include a notice
that obligations of the third party administrator are set forth in
Sec. 2510.3-16 of this chapter and this section.
(B) When a notice is provided to the Secretary of Health and Human
Services, the notice must include the name of the eligible
organization; a statement that it objects as described in 45 CFR
147.132 to coverage of some or all contraceptive services (including an
identification of the subset of contraceptive services the eligible
organization objects to covering, if applicable), but that it would
like to elect the optional accommodation process; the plan name and
type (that is, whether it is student health insurance coverage within
the meaning of 45 CFR 147.145(a) or a church plan within the meaning of
section 414(e) of the Internal Revenue Code or section 3(33) of ERISA);
and the name and contact information for any of the plan's third party
administrators. If there is a change in any of the information required
to be included in the notice, the eligible organization must provide
updated information to the Secretary of Health and Human Services for
the optional accommodation process to remain in effect. The Department
of Labor (working with the Department of Health and Human Services)
will send a separate notification to each of the plan's third party
administrators informing the third party administrator that the
Secretary of Health and Human Services has received a notice under
paragraph (b)(1)(ii) of this section and describing the obligations of
the third party administrator under Sec. 2510.3-16(c) of this chapter
and this section.
(2) If a third party administrator receives a copy of the self-
certification from an eligible organization or a notification from the
Department of Labor, as described in paragraph (b)(1)(ii) of this
section and is willing to enter into or remain in a contractual
relationship with the eligible organization or its plan to provide
administrative services for the plan, then the third party
administrator will provide or arrange payments for contraceptive
services, using one of the following methods--
(i) Provide payments for the contraceptive services for plan
participants and beneficiaries without imposing any cost-sharing
requirements (such as a copayment, coinsurance, or a deductible),
premium, fee, or other charge, or any portion thereof, directly or
indirectly, on the eligible organization, the group health plan, or
plan participants or beneficiaries; or
(ii) Arrange for an issuer or other entity to provide payments for
contraceptive services for plan participants and beneficiaries without
imposing any cost-sharing requirements (such as a copayment,
coinsurance, or a deductible), premium, fee, or other charge, or any
portion thereof, directly or indirectly, on the eligible organization,
the group health plan, or plan participants or beneficiaries.
(3) If a third party administrator provides or arranges payments
for contraceptive services in accordance with either paragraph
(b)(2)(i) or (ii) of this section, the costs of providing or arranging
such payments may be reimbursed through an adjustment to the Federally-
facilitated Exchange or State Exchange on the Federal platform user
fees for a participating issuer pursuant to 45 CFR 156.50(d).
(4) A third party administrator may not require any documentation
other than a copy of the self-certification from the eligible
organization or notification from the Department of Labor described in
paragraph (b)(1)(ii) of this section.
(5) Where an otherwise eligible organization does not contract with
a third party administrator and it files a self-certification or notice
under paragraph (b)(1)(ii) of this section, the obligations under
paragraph (b)(2) of this section do not apply, and the otherwise
eligible organization is not required to provide coverage or payments
for contraceptive services to which it objects. The plan administrator
for that otherwise eligible organization may, if it and the otherwise
eligible organization choose, arrange for payments for contraceptive
services from an issuer or other entity in accordance with paragraph
(b)(2)(ii) of this section, and such issuer or other entity may receive
reimbursements in accordance with paragraph (b)(3) of this section.
(c) Optional accommodation--insured group health plans. (1) A group
health plan established or maintained by an eligible organization that
provides benefits through one or more group health insurance issuers
may voluntarily elect an optional accommodation under which its health
insurance issuer(s) will provide payments for all or a subset of
contraceptive services for one or more plan years. To invoke the
optional accommodation process:
(i) The eligible organization or its plan must contract with one or
more health insurance issuers.
(ii) The eligible organization must provide either a copy of the
self-certification to each issuer it contracts with to provide coverage
in connection with the plan or a notice to the Secretary of Health and
Human Services that it is an eligible organization and of its objection
as described in 45 CFR 147.132 to coverage for all or a subset of
contraceptive services.
(A) When a copy of the self-certification is provided directly to
an issuer, the issuer has sole responsibility for providing such
coverage in accordance with Sec. 2590.715-2713(a)(1)(iv).
(B) When a notice is provided to the Secretary of Health and Human
Services, the notice must include the name of the eligible
organization; a statement that it objects as described in 45 CFR
147.132 to coverage of some or all contraceptive services (including an
identification of the subset of contraceptive services to which
coverage the eligible organization objects, if applicable), but that it
would like to elect the optional accommodation process; the plan name
and type (that is, whether it is student health insurance coverage
within the meaning of 45 CFR 147.145(a) or a church plan within the
meaning of section 414(e) of the Internal Revenue Code or section 3(33)
of ERISA); and the name and contact information for any of the plan's
health insurance issuers. If there is a change in any of the
information required to be included in the notice, the eligible
organization must provide updated information to the Secretary of
Health and Human Services for the optional accommodation to remain in
effect. The Department of Health and Human Services will send a
separate notification to each of the plan's health insurance issuers
informing the issuer that the Secretary of Health and Human Services
has received a notice under paragraph (c)(1)(ii) of this section and
describing the obligations of the issuer under this section.
(2) If an issuer receives a copy of the self-certification from an
eligible organization or the notification from the Department of Health
and Human Services as described in paragraph (c)(1)(ii) of this section
and does not have an objection as described in 45 CFR 147.132 to
providing the contraceptive services identified in the self-
certification or the notification from the Department of Health and
Human Services, the issuer will provide
[[Page 7276]]
payments for contraceptive services as follows--
(i) The issuer must expressly exclude contraceptive coverage from
the group health insurance coverage provided in connection with the
group health plan and provide separate payments for any contraceptive
services required to be covered under Sec. 2590.715-2713(a)(1)(iv) for
plan participants and beneficiaries for so long as they remain enrolled
in the plan.
(ii) With respect to payments for contraceptive services, the
issuer may not impose any cost-sharing requirements (such as a
copayment, coinsurance, or a deductible), premium, fee, or other
charge, or any portion thereof, directly or indirectly, on the eligible
organization, the group health plan, or plan participants or
beneficiaries. The issuer must segregate premium revenue collected from
the eligible organization from the monies used to provide payments for
contraceptive services. The issuer must provide payments for
contraceptive services in a manner that is consistent with the
requirements under sections 2706, 2709, 2711, 2713, and 2719 of the PHS
Act, as incorporated into section 715 of ERISA, and section 722 of
ERISA. If the group health plan of the eligible organization provides
coverage for some but not all of any contraceptive services required to
be covered under Sec. 2590.715-2713(a)(1)(iv), the issuer is required
to provide payments only for those contraceptive services for which the
group health plan does not provide coverage. However, the issuer may
provide payments for all contraceptive services at the issuer's option.
(3) A health insurance issuer may not require any documentation
other than a copy of the self-certification from the eligible
organization or the notification from the Department of Health and
Human Services described in paragraph (c)(1)(ii) of this section.
(d) Notice of availability of separate payments for contraceptive
services--self-insured and insured group health plans. For each plan
year to which the optional accommodation in paragraph (b) or (c) of
this section is to apply, a third party administrator required to
provide or arrange payments for contraceptive services pursuant to
paragraph (b) of this section, and an issuer required to provide
payments for contraceptive services pursuant to paragraph (c) of this
section, must provide to plan participants and beneficiaries written
notice of the availability of separate payments for contraceptive
services contemporaneous with (to the extent possible), but separate
from, any application materials distributed in connection with
enrollment (or re-enrollment) in group health coverage that is
effective beginning on the first day of each applicable plan year. The
notice must specify that the eligible organization does not administer
or fund contraceptive benefits, but that the third party administrator
or issuer, as applicable, provides or arranges separate payments for
contraceptive services, and must provide contact information for
questions and complaints. The following model language, or
substantially similar language, may be used to satisfy the notice
requirement of this paragraph (d): ``Your employer has certified that
your group health plan qualifies for an accommodation with respect to
the Federal requirement to cover contraceptive services for women,
including all Food and Drug Administration-approved, cleared, or
granted contraceptives, as prescribed by a health care provider,
without cost sharing. This means that your employer will not contract,
arrange, pay, or refer for contraceptive coverage. Instead, [name of
third party administrator/health insurance issuer] will provide
separate payments for contraceptive services that you use, without cost
sharing and at no other cost, for so long as you are enrolled in your
group health plan. Your employer will not administer or fund these
payments. If you have any questions about this notice, contact [contact
information for third party administrator/health insurance issuer].''
(e) Individual contraceptive arrangements for eligible individuals.
(1) An eligible individual may elect an individual contraceptive
arrangement under which a willing provider of contraceptive services
furnishes the eligible individual with contraceptive services that a
group health plan or health insurance issuer would have been required
to cover pursuant to Sec. 2590.715-2713(a)(1)(iv), if not for the
plan's or issuer's exempt status under 45 CFR 147.132(a). Under this
individual contraceptive arrangement, the willing provider of
contraceptive services must furnish contraceptive services (including
items and services that are integral to the furnishing of the
contraceptive services) to the eligible individual without imposing a
fee or charge of any kind, directly or indirectly, on the eligible
individual or any other entity for the cost of the items and services
or any portion thereof, except that the provider of contraceptive
services may seek payment from, and be reimbursed by, an issuer for the
costs of providing the items and services through an adjustment to the
issuer's Federally-facilitated Exchange or State Exchange on the
Federal platform user fees pursuant to 45 CFR 156.50(d).
(2) The following language may, but is not required to, be used by
a participant or beneficiary (or an authorized representative of a
participant or beneficiary) to confirm to a provider of contraceptive
services that the plan or coverage is sponsored, provided, or arranged
by an objecting entity and does not provide coverage for all or a
subset of contraceptive services as generally required under Sec.
2590.715-2713(a)(1)(iv): ``I certify that I am enrolled (or am an
authorized representative of a person who is enrolled) in an employer-
sponsored health plan or health insurance coverage that does not
provide coverage for all or a subset of contraceptive services as
generally required under the Affordable Care Act.'' A participant or
beneficiary (or an authorized representative of a participant or
beneficiary) may use other means to confirm to a provider of
contraceptive services that the plan or coverage is sponsored,
provided, or arranged by an objecting entity and does not provide
coverage for all or a subset of contraceptive services.
(f) Reliance--insured group health plans. (1) If an issuer
reasonably and in good faith relies on a representation by an eligible
organization indicating that the organization is eligible for the
accommodation in paragraph (c) of this section, and the representation
is later determined to be incorrect, the issuer is considered to comply
with any applicable requirement under Sec. 2590.715-2713(a)(1)(iv) to
provide contraceptive coverage if the issuer complies with the
obligations under this section applicable to such issuer.
(2) A group health plan is considered to comply with any applicable
requirement under Sec. 2590.715-2713(a)(1)(iv) to provide
contraceptive coverage if the plan complies with its obligations under
paragraph (c) of this section, without regard to whether the issuer
complies with the obligations under this section applicable to such
issuer.
(g) Definitions. (1) For the purposes of this section, reference to
``contraceptive'' services, benefits, or coverage includes
contraceptive or sterilization items, procedures, or services, or
related patient education or counseling, to the extent specified for
purposes of Sec. 2590.715-2713(a)(1)(iv).
(2) For the purposes of this section, the term ``provider of
contraceptive services'' means any health care provider (including a
clinician, pharmacy, or other facility) acting
[[Page 7277]]
within the scope of that provider's license, certification, or
authority under applicable law to provide contraceptive services (as
defined in paragraph (g)(1) of this section).
(h) Severability. Any provision of this section held to be invalid
or unenforceable by its terms, or as applied to any person or
circumstance, shall be construed so as to continue to give maximum
effect to the provision permitted by law, unless such holding shall be
one of utter invalidity or unenforceability, in which event the
provision shall be severable from this section and shall not affect the
remainder thereof or the application of the provision to persons not
similarly situated or to dissimilar circumstances.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
For the reasons stated in the preamble, the Department of Health
and Human Services proposes to amend 45 CFR parts 147 and 156 as set
forth below:
PART 147--HEALTH INSURANCE REFORM REQUIREMENTS FOR THE GROUP AND
INDIVIDUAL HEALTH INSURANCE MARKETS
0
7. The authority citation for part 147 continues to read as follows:
Authority: 42 U.S.C. 300gg through 300gg-63, 300gg-91, 300gg-92,
and 300gg-111 through 300gg-139, as amended, and section 3203, Pub.
L. 116-136, 134 Stat. 281.
0
8. Section 147.130 is amended by revising paragraphs (a)(1)
introductory text and (a)(1)(iv) to read as follows:
Sec. 147.130 Coverage of preventive health services.
(a) * * *
(1) In general. Beginning at the time described in paragraph (b) of
this section, a group health plan, or a health insurance issuer
offering group or individual health insurance coverage, must provide
coverage for and must not impose any cost-sharing requirements (such as
a copayment, coinsurance, or a deductible) for--
* * * * *
(iv) With respect to women, such additional preventive care and
screenings not described in paragraph (a)(1)(i) of this section as
provided for in evidence-informed comprehensive guidelines supported by
the Health Resources and Services Administration for purposes of
section 2713(a)(4) of the Public Health Service Act, subject to
Sec. Sec. 147.131 and 147.132; and
* * * * *
0
9. Section 147.131 is revised to read as follows:
Sec. 147.131 Alternate availability of certain preventive health
services.
(a) Organizations eligible for optional accommodations and
individuals eligible for individual contraceptive arrangements. (1) An
eligible organization is an organization that meets the criteria of
paragraphs (a)(1)(i) through (iii) of this section.
(i) The organization is an objecting entity described in Sec.
147.132(a)(1)(i) through (iii);
(ii) Notwithstanding its exempt status under Sec. 147.132(a), the
organization voluntarily seeks to be considered an eligible
organization to invoke the optional accommodation under paragraph (b)
of this section; and
(iii) The organization self-certifies in the form and manner
specified by the Secretary of Health and Human Services or provides
notice to the Secretary of Health and Human Services as described in
paragraph (b) of this section. To qualify as an eligible organization,
the organization must make such self-certification or notice available
for examination upon request by the first day of the first plan year to
which the accommodation in paragraph (b) of this section applies. The
self-certification or notice must be executed by a person authorized to
make the certification or provide the notice on behalf of the
organization and must be maintained in a manner consistent with the
record retention requirements under section 107 of ERISA.
(2) An eligible organization may revoke its use of the
accommodation under paragraph (b) of this section, and its issuer must
provide participants and beneficiaries written notice of the
revocation; the eligible organization's revocation of the accommodation
will be effective no sooner than the first day of the first plan year
that begins on or after 30 days after the date of the revocation.
(3) An eligible individual is an individual who--
(i) Is a participant or beneficiary enrolled in a group health plan
established or maintained, or an enrollee in individual health
insurance coverage offered or arranged, by an objecting entity
described in Sec. 147.132(a) that, to the extent eligible, has not
invoked the optional accommodation under paragraph (b) of this section;
and
(ii) Confirms (such as by making an attestation) to a provider of
contraceptive services that agrees to meet the conditions in paragraph
(d)(1) of this section that the individual is enrolled in a group
health plan or group or individual health insurance coverage that does
not provide coverage for all or a subset of contraceptive services as
generally required under Sec. 147.130(a)(1)(iv).
(b) Optional accommodation--insured group health plans. (1) A group
health plan established or maintained by an eligible organization that
provides benefits through one or more group health insurance issuers
may voluntarily elect an optional accommodation under which its health
insurance issuer(s) will provide payments for all or a subset of
contraceptive services for one or more plan years. To invoke the
optional accommodation process:
(i) The eligible organization or its plan must contract with one or
more health insurance issuers.
(ii) The eligible organization must provide either a copy of the
self-certification to each issuer it contracts with to provide coverage
in connection with the plan or a notice to the Secretary of Health and
Human Services that it is an eligible organization and of its objection
as described in Sec. 147.132 to coverage for all or a subset of
contraceptive services.
(A) When a copy of the self-certification is provided directly to
an issuer, the issuer has sole responsibility for providing such
coverage in accordance with Sec. 147.130(a)(1)(iv).
(B) When a notice is provided to the Secretary of Health and Human
Services, the notice must include the name of the eligible
organization; a statement that it objects as described in Sec. 147.132
to coverage of some or all contraceptive services (including an
identification of the subset of contraceptive services to which
coverage the eligible organization objects, if applicable), but that it
would like to elect the optional accommodation process; the plan name
and type (that is, whether it is student health insurance coverage
within the meaning of Sec. 147.145(a) or a church plan within the
meaning of section 3(33) of ERISA or section 414(e) of the Internal
Revenue Code); and the name and contact information for any of the
plan's health insurance issuers. If there is a change in any of the
information required to be included in the notice, the eligible
organization must provide updated information to the Secretary of
Health and Human Services for the optional accommodation to remain in
effect. The Department of Health and Human Services will send a
separate notification to each of the plan's health insurance issuers
informing the issuer that the Secretary of Health and Human Services
has received a notice under paragraph (b)(1)(ii) of this section and
[[Page 7278]]
describing the obligations of the issuer under this section.
(2) If an issuer receives a copy of the self-certification from an
eligible organization or the notification from the Department of Health
and Human Services as described in paragraph (b)(1)(ii) of this section
and does not have an objection as described in Sec. 147.132 to
providing the contraceptive services identified in the self-
certification or the notification from the Department of Health and
Human Services, the issuer will provide payments for contraceptive
services as follows--
(i) The issuer must expressly exclude contraceptive coverage from
the group health insurance coverage provided in connection with the
group health plan and provide separate payments for any contraceptive
services required to be covered under Sec. 147.130(a)(1)(iv) for plan
participants and beneficiaries for so long as they remain enrolled in
the plan.
(ii) With respect to payments for contraceptive services, the
issuer may not impose any cost-sharing requirements (such as a
copayment, coinsurance, or a deductible), premium, fee, or other
charge, or any portion thereof, directly or indirectly, on the eligible
organization, the group health plan, or plan participants or
beneficiaries. The issuer must segregate premium revenue collected from
the eligible organization from the monies used to provide payments for
contraceptive services. The issuer must provide payments for
contraceptive services in a manner that is consistent with the
requirements under sections 2706, 2709, 2711, 2713, 2719, and 2799A-7
of the PHS Act. If the group health plan of the eligible organization
provides coverage for some but not all of any contraceptive services
required to be covered under Sec. 147.130(a)(1)(iv), the issuer is
required to provide payments only for those contraceptive services for
which the group health plan does not provide coverage. However, the
issuer may provide payments for all contraceptive services at the
issuer's option.
(3) A health insurance issuer may not require any documentation
other than a copy of the self-certification from the eligible
organization or the notification from the Department of Health and
Human Services described in paragraph (b)(1)(ii) of this section.
(c) Notice of availability of separate payments for contraceptive
services--insured group health plans and student health insurance
coverage. For each plan year to which the optional accommodation in
paragraph (b) of this section is to apply, an issuer required to
provide payments for contraceptive services pursuant to paragraph (b)
of this section must provide to plan participants and beneficiaries
written notice of the availability of separate payments for
contraceptive services contemporaneous with (to the extent possible),
but separate from, any application materials distributed in connection
with enrollment (or re-enrollment) in group health coverage that is
effective beginning on the first day of each applicable plan year. The
notice must specify that the eligible organization does not administer
or fund contraceptive benefits, but that the issuer provides separate
payments for contraceptive services, and must provide contact
information for questions and complaints. The following model language,
or substantially similar language, may be used to satisfy the notice
requirement of this paragraph (c): ``Your [employer/institution of
higher education] has certified that your [group health plan/student
health insurance coverage] qualifies for an accommodation with respect
to the Federal requirement to cover contraceptive services for women,
including all Food and Drug Administration-approved, cleared, or
granted contraceptives, as prescribed by a health care provider,
without cost sharing. This means that your [employer/institution of
higher education] will not contract, arrange, pay, or refer for
contraceptive coverage. Instead, [name of health insurance issuer] will
provide separate payments for contraceptive services that you use,
without cost sharing and at no other cost, for so long as you are
enrolled in your [group health plan/student health insurance coverage].
Your [employer/institution of higher education] will not administer or
fund these payments. If you have any questions about this notice,
contact [contact information for health insurance issuer].''
(d) Individual contraceptive arrangements for eligible individuals.
(1) An eligible individual may elect an individual contraceptive
arrangement under which a willing provider of contraceptive services
furnishes the eligible individual with contraceptive services that a
group health plan or health insurance issuer would have been required
to cover pursuant to Sec. 147.130(a)(1)(iv), if not for the plan's or
issuer's exempt status under Sec. 147.132(a). Under this individual
contraceptive arrangement, the willing provider of contraceptive
services must furnish contraceptive services (including items and
services that are integral to the furnishing of the contraceptive
services) to the eligible individual without imposing a fee or charge
of any kind, directly or indirectly, on the eligible individual or any
other entity for the cost of the items and services or any portion
thereof, except that the provider of contraceptive services may seek
payment from, and be reimbursed by, an issuer for the costs of
providing the items and services through an adjustment to the issuer's
federally-facilitated Exchange or State Exchange on the Federal
platform user fees pursuant to Sec. 156.50(d) of this subchapter.
(2) The following language may, but is not required to, be used by
a participant, beneficiary, or enrollee (or an authorized
representative of a participant, beneficiary, or enrollee) to confirm
to a provider of contraceptive services that the plan or coverage is
sponsored, provided, or arranged by an objecting entity and does not
provide coverage for all or a subset of contraceptive services as
generally required under Sec. 147.130(a)(1)(iv): ``I certify that I am
enrolled (or am an authorized representative of a person who is
enrolled) in an employer-sponsored health plan or individual health
insurance coverage that does not provide coverage for all or a subset
of contraceptive services as generally required under the Affordable
Care Act.'' A participant, beneficiary, or enrollee (or an authorized
representative of a participant, beneficiary, or enrollee) may use
other means to confirm to a provider of contraceptive services that the
plan or coverage is sponsored, provided, or arranged by an objecting
entity and does not provide coverage for all or a subset of
contraceptive services.
(e) Reliance. (1) If an issuer reasonably and in good faith relies
on a representation by an eligible organization indicating that the
organization is eligible for the accommodation in paragraph (b) of this
section, and the representation is later determined to be incorrect,
the issuer is considered to comply with any applicable requirement
under Sec. 147.130(a)(1)(iv) to provide contraceptive coverage if the
issuer complies with the obligations under this section applicable to
such issuer.
(2) A group health plan is considered to comply with any applicable
requirement under Sec. 147.130(a)(1)(iv) to provide contraceptive
coverage if the plan complies with its obligations under paragraph (b)
of this section, without regard to whether the issuer complies with the
obligations under this section applicable to such issuer.
[[Page 7279]]
(f) Rule of construction. In the case of student health insurance
coverage, this section is applicable in the same manner as it is
applicable to group health insurance coverage provided in connection
with a group health plan established or maintained by a plan sponsor
that is an employer, and references to ``plan participants and
beneficiaries'' will be interpreted as references to student enrollees
and their covered dependents.
(g) Definitions. (1) For the purposes of this section, reference to
``contraceptive'' services, benefits, or coverage includes
contraceptive or sterilization items, procedures, or services, or
related patient education or counseling, to the extent specified for
purposes of Sec. 147.130(a)(1)(iv).
(2) For the purposes of this section, the term ``provider of
contraceptive services'' means any health care provider (including a
clinician, pharmacy, or other facility) acting within the scope of that
provider's license, certification, or authority under applicable law to
provide contraceptive services (as defined in paragraph (g)(1) of this
section).
(h) Severability. Any provision of this section held to be invalid
or unenforceable by its terms, or as applied to any person or
circumstance, shall be construed so as to continue to give maximum
effect to the provision permitted by law, unless such holding shall be
one of utter invalidity or unenforceability, in which event the
provision shall be severable from this section and shall not affect the
remainder thereof or the application of the provision to persons not
similarly situated or to dissimilar circumstances.
0
10. Section 147.132 is amended by revising paragraphs (a)(1)(i)
introductory text, (a)(1)(iv), and (b) to read as follows:
Sec. 147.132 Religious exemptions in connection with coverage of
certain preventive health services.
(a) * * *
(1) * * *
(i) A group health plan and health insurance coverage provided in
connection with a group health plan, to the extent the non-governmental
sponsor of the plan or coverage objects as specified in paragraph
(a)(2) of this section. Such non-governmental plan sponsors include the
following entities--
* * * * *
(iv) A health insurance issuer offering group or individual health
insurance coverage to the extent the issuer objects as specified in
paragraph (a)(2) of this section. Where a health insurance issuer
providing group health insurance coverage is exempt under this
paragraph (a)(1)(iv), the group health plan established or maintained
by the plan sponsor with which the health insurance issuer contracts
remains subject to any requirement to provide coverage for
contraceptive services under guidelines issued under Sec.
147.130(a)(1)(iv) unless it is also exempt from that requirement.
Notwithstanding Sec. Sec. 146.150 of this subchapter and 147.104, a
health insurance issuer may not offer coverage that excludes some or
all contraceptive services to any entity or individual that is not an
objecting entity or objecting individual under paragraph (a) or (b) of
this section, respectively.
* * * * *
(b) Objecting individuals. (1) Guidelines issued under Sec.
147.130(a)(1)(iv) by the Health Resources and Services Administration
must not provide for or support the requirement of coverage or payments
for contraceptive services with respect to an individual who objects to
coverage or payments for some or all contraceptive services based on
sincerely held religious beliefs. Thus, the following entities will be
exempt from any Health Resources and Services Administration guidelines
requirements that relate to the provision of contraceptive services
with respect to such an individual:
(i) A health insurance issuer offering group or individual health
insurance coverage willing to provide the plan sponsor (with respect to
the individual) or individual, as applicable, with a separate policy,
certificate, or contract of insurance; or
(ii) A group health plan willing to provide the individual a
separate group health plan or benefit package option.
(2) For purposes of this paragraph (b), if an individual objects to
some but not all contraceptive services and the issuer, to the extent
permitted by applicable State law, and the plan sponsor, as applicable,
are willing to provide the plan sponsor or individual, as applicable,
with a separate policy, certificate or contract of insurance or a
separate group health plan or benefit package option that omits all
contraceptives, and the individual agrees, then the exemption applies
as if the individual objects to all contraceptive services.
* * * * *
Sec. 147.133 [Removed]
0
11. Section 147.133 is removed.
PART 156--HEALTH INSURANCE ISSUER STANDARDS UNDER THE AFFORDABLE
CARE ACT, INCLUDING STANDARDS RELATED TO EXCHANGES
0
12. The authority citation for part 156 continues to read as follows:
Authority: 42 U.S.C. 18021-18024, 18031-18032, 18041-18042,
18044, 18054, 18061, 18063, 18071, 18082, and 26 U.S.C. 36B.
0
13. Section 156.50 is amended in paragraph (a) by adding the definition
of ``provider of contraceptive services'' in alphabetical order and
revising paragraph (d) to read as follows:
Sec. 156.50 Financial support.
(a) * * *
Provider of contraceptive services has the meaning given to the
term in Sec. 147.131(g)(2) of this subchapter.
* * * * *
(d) Adjustment of Exchange user fees. (1) A participating issuer
offering a plan through a Federally-facilitated Exchange or State
Exchange on the Federal platform may qualify for an adjustment of the
federally-facilitated Exchange user fee specified in paragraph (c)(1)
of this section or the State Exchange on the Federal platform user fee
specified in paragraph (c)(2) of this section, to the extent that the
participating issuer--
(i) Made payments for contraceptive services on behalf of a third
party administrator pursuant to 26 CFR 54.9815-2713A(b)(2)(ii) or 29
CFR 2590.715-2713A(b)(2)(ii);
(ii) Seeks an adjustment in the Federally-facilitated Exchange user
fee or State Exchange on the Federal platform user fee with respect to
a third party administrator that, following receipt of a copy of the
self-certification referenced in 26 CFR 54.9815-2713A(a)(1)(iii) or 29
CFR 2590.715-2713A(a)(1)(iii), made or arranged for payments for
contraceptive services pursuant to 26 CFR 54.9815-2713A(b)(2)(i) or
(ii) or 29 CFR 2590.715-2713A(b)(2)(i) or (ii); or
(iii) Seeks an adjustment in the federally-facilitated Exchange
user fee or State Exchange on the Federal platform user fee with
respect to a provider of contraceptive services that, following receipt
of a representation by or on behalf of an individual that the
individual is an eligible individual (as defined in 26 CFR 54.9815-
2713A(a)(3), 29 CFR 2590.715-2713A(a)(3), or Sec. 147.131(a)(3) of
this subchapter), furnished contraceptive services to the eligible
individual, without imposing a fee or charge of any kind, directly or
indirectly, on the eligible individual or any other entity for the cost
of the items
[[Page 7280]]
and services or any portion thereof pursuant to 26 CFR 54.9815-
2713A(e), 29 CFR 2590.715-2713A(e), or Sec. 147.131(d) of this
subchapter.
(2) For a participating issuer described in paragraph (d)(1) of
this section to receive an adjustment of a user fee under this
section--
(i) The participating issuer must submit to HHS, in the manner and
timeframe specified by HHS, in the year immediately following the
calendar year in which the contraceptive services for which payments
pursuant to 26 CFR 54.9815-2713A(b)(2) or (e), 29 CFR 2590.715-
2713A(b)(2) or (e), or Sec. 147.131(d) of this subchapter were
provided--
(A) Identifying information for the participating issuer and each
third party administrator that received a copy of the self-
certification referenced in 26 CFR 54.9815-2713A(a)(1)(iii) or 29 CFR
2590.715-2713A(a)(1)(iii), whether or not the participating issuer was
the entity that made the payments for contraceptive services, and each
provider of contraceptive services that furnished contraceptive
services in compliance with 26 CFR 54.9815-2713A(e), 29 CFR 2590.715-
2713A(e), or 45 CFR 147.131(d) to an eligible individual (as defined in
26 CFR 54.9815-2713A(a)(3), 29 CFR 2590.715-2713A(a)(3), or Sec.
147.131(a)(3) of this subchapter), with respect to which the
participating issuer seeks an adjustment of the user fee specified in
paragraph (c)(1) or (2) of this section, as applicable;
(B) Identifying information for each self-insured group health plan
with respect to which a copy of the self-certification referenced in 26
CFR 54.9815-2713A(a)(1)(iii) or 29 CFR 2590.715-2713A(a)(1)(iii) was
received by a third party administrator, and with respect to which the
participating issuer seeks an adjustment of the user fee specified in
paragraph (c)(1) or (2) of this section, as applicable;
(C) For each such self-insured group health plan, the total dollar
amount of the payments that were made pursuant to 26 CFR 54.9815-
2713A(b)(2) or 29 CFR 2590.715-2713A(b)(2) for contraceptive services
that were provided during the applicable calendar year. If such
payments were made by the participating issuer directly as described in
paragraph (d)(1)(i) of this section, the total dollar amount should
reflect the amount of the payments made by the participating issuer; if
the third party administrator made or arranged for such payments, as
described in paragraph (d)(1)(ii) of this section, the total dollar
amount should reflect the amount reported to the participating issuer
by the third party administrator;
(D) Documentation, with respect to each provider of contraceptive
services, demonstrating that the participating issuer and the provider
of contraceptive services have a signed written agreement providing
that the participating issuer will reimburse (or has reimbursed) the
provider of contraceptive services for the costs of furnishing
contraceptive services during the applicable calendar year in
compliance with 26 CFR 54.9815-2713A(e), 29 CFR 2590.715-2713A(e), or
Sec. 147.131(d) of this subchapter, and will seek an adjustment of the
user fee specified in paragraph (c)(1) or (2) of this section as a
result of the agreement to reimburse the provider's costs under 26 CFR
54.9815-2713A(e), 29 CFR 2590.715-2713A(e), or Sec. 147.131(d) of this
subchapter; and
(E) For each provider of contraceptive services as specified in
paragraph (d)(2)(i)(A) of this section, the total dollar amount of the
costs of furnishing contraceptive services during the applicable
calendar year pursuant to 26 CFR 54.9815-2713A(e), 29 CFR 2590.715-
2713A(e), or Sec. 147.131(d) of this subchapter.
(ii) Each third party administrator that intends to seek an
adjustment on behalf of a participating issuer of the Federally-
facilitated Exchange user fee or the State-based Exchange on the
Federal platform user fee based on payments for contraceptive services,
must submit to HHS a notification of such intent, in a manner specified
by HHS, by the 60th calendar day following the date on which the third
party administrator receives the applicable copy of the self-
certification referenced in 26 CFR 54.9815-2713A(a)(1)(iii) or 29 CFR
2590.715-2713A(a)(1)(iii).
(iii) Each third party administrator identified in paragraph
(d)(2)(i)(A) of this section must submit to HHS, in the manner and
timeframe specified by HHS, in the year following the calendar year in
which the contraceptive services for which payments were made pursuant
to 26 CFR 54.9815-2713A(b)(2) or 29 CFR 2590.715-2713A(b)(2) were
provided--
(A) Identifying information for the third party administrator and
the participating issuer;
(B) Identifying information for each self-insured group health plan
with respect to which a copy of the self-certification referenced in 26
CFR 54.9815-2713A(a)(1)(iii) or 29 CFR 2590.715-2713A(a)(1)(iii) was
received by the third party administrator and with respect to which the
participating issuer seeks an adjustment of the user fee specified in
paragraph (c)(1) or (2) of this section, as applicable;
(C) The total number of participants and beneficiaries in each such
self-insured group health plan during the applicable calendar year; and
(D) For each such self-insured group health plan with respect to
which the third party administrator made payments pursuant to 26 CFR
54.9815-2713A(b)(2) or 29 CFR 2590.715-2713A(b)(2) for contraceptive
services, the total dollar amount of such payments that were provided
during the applicable calendar year. If such payments were made by the
participating issuer directly as described in paragraph (d)(1)(i) of
this section, the total dollar amount should reflect the amount
reported to the third party administrator by the participating issuer;
if the third party administrator made or arranged for such payments, as
described in paragraph (d)(1)(ii) of this section, the total dollar
amount should reflect the amount of the payments made by or on behalf
of the third party administrator.
(E) An attestation that the payments for contraceptive services
were made in compliance with 26 CFR 54.9815-2713A(b)(2) or 29 CFR
2590.715-2713A(b)(2).
(3) If the requirements set forth in paragraph (d)(2) of this
section are met, the participating issuer will be provided a reduction
in its obligation to pay the user fee specified in paragraph (c)(1) or
(2) of this section, as applicable, equal in value to the sum of the
following:
(i) The total dollar amount of the payments for contraceptive
services submitted by the applicable third party administrators, as
described in paragraph (d)(2)(iii)(D) of this section;
(ii) The total dollar amount of the costs of furnishing
contraceptive services submitted by the participating issuer on behalf
of applicable providers of contraceptive services, described in
paragraph (d)(2)(i)(E) of this section; and
(iii) An allowance for administrative costs and margin. The
allowance will be no less than 10 percent of the total dollar amount of
the payments for contraceptive services and the costs of furnishing
contraceptive services specified in paragraphs (d)(3)(i) and (d)(3)(ii)
of this section. Unless a new allowance is specified for an applicable
year in the HHS notice of benefit and payment parameters or other
rulemaking, HHS will maintain the allowance that was last specified in
rulemaking.
(4) If the amount of the adjustment under paragraph (d)(3) of this
section is greater than the amount of the participating issuer's
obligation to pay
[[Page 7281]]
the user fee specified in paragraph (c)(1) or (2) of this section, as
applicable, in a particular month, the participating issuer will be
provided a credit in succeeding months in the amount of the excess.
(5) The participating issuer may reimburse each third party
administrator and provider of contraceptive services for payments for
contraceptive services submitted by the third party administrator or
the provider of contraceptive services' costs of furnishing
contraceptive services, as described in paragraphs (d)(2)(iii)(D) and
(d)(2)(i)(E) of this section, as soon as the services are delivered.
The participating issuer must pay, within 60 days of receipt of any
adjustment of a user fee under this section, each third party
administrator and provider of contraceptive services with respect to
which it received any portion of such adjustment an amount that is no
less than the portion of the adjustment attributable to the total
dollar amount of the payments for services submitted by the third party
administrator or the provider of contraceptive services' costs of
furnishing contraceptive services, as described in paragraphs
(d)(2)(iii)(D) and (d)(2)(i)(E) of this section. No payment to a third
administrator or provider of contraceptive services is required with
respect to the allowance for administrative costs and margin described
in paragraph (d)(3)(iii) of this section. This paragraph does not apply
if the participating issuer made the payments for contraceptive
services on behalf of the third party administrator, as described in
paragraph (d)(1)(i) of this section, or is in the same issuer group as
the third party administrator.
(6) A participating issuer that receives an adjustment in the user
fee specified in paragraph (c)(1) or (2) of this section for a
particular calendar year must maintain for 10 years following that
year, and make available upon request to HHS, the Office of the
Inspector General, the Comptroller General, and their designees,
documentation demonstrating that it timely paid each third party
administrator and provider with respect to which it received any such
adjustment any amount required to be paid to the third party
administrator or provider under paragraph (d)(5) of this section.
(7) A third party administrator of a plan with respect to which an
adjustment of the user fee specified in paragraph (c)(1) or (2) of this
section is received under this section for a particular calendar year
must maintain for 10 years following that year, and make available upon
request to HHS, the Office of the Inspector General, the Comptroller
General, and their designees, all of the following documentation:
(i) A copy of the self-certification referenced in 26 CFR 54.9815-
2713A(a)(1)(iii) or 29 CFR 2590.715-2713A(a)(1)(iii) for each self-
insured plan with respect to which an adjustment is received.
(ii) Documentation demonstrating that the payments for
contraceptive services were made in compliance with 26 CFR 54.9815-
2713A(b)(2) or 29 CFR 2590.715-2713A(b)(2).
(iii) Documentation supporting the total dollar amount of the
payments for contraceptive services submitted by the third party
administrator, as described in paragraph (d)(2)(iii)(D) of this
section.
(8) A provider of contraceptive services that has furnished
contraceptive services in compliance with the individual contraceptive
arrangement, with respect to which a participating issuer received an
adjustment of the user fee specified in paragraph (c)(1) or (2) of this
section for a particular calendar year must, as a condition of
participating in the individual contraceptive arrangement, maintain for
10 years following the contraceptive service being provided, and make
available upon request to HHS, the Office of the Inspector General, the
Comptroller General, and their designees, all of the following
documentation:
(i) Documentation demonstrating that the provider of contraceptive
services furnished contraceptive services in compliance with 26 CFR
54.9815-2713A(e), 29 CFR 2590.715-2713A(e), or Sec. 147.131(d) of this
subchapter.
(ii) Documentation supporting the total dollar amount of the costs
of furnishing contraceptive services submitted by the provider of
contraceptive services under paragraph (d)(2)(i)(E) of this section.
(9) If a provider of contraceptive services relies reasonably and
in good faith on a representation by or on behalf of an individual that
the individual is an eligible individual (as defined in 26 CFR 54.9815-
2713A(a)(3), 29 CFR 2590.715-2713A(a)(3), or Sec. 147.131(a)(3) of
this subchapter), and the representation is later determined to be
incorrect, the provider of contraceptive services is considered to
comply with the applicable requirements under paragraphs (d)(1)(iii),
(d)(2)(i)(A), and (d)(8)(i) of this section.
(10) If a participating issuer relies reasonably and in good faith
on a representation by a provider of contraceptive services that the
provider of contraceptive services furnished contraceptive services to
an eligible individual (as defined in 26 CFR 54.9815-2713A(a)(3), 29
CFR 2590.715-2713A(a)(3), or Sec. 147.131(a)(3) of this subchapter),
without imposing a fee or charge of any kind, directly or indirectly,
on the eligible individual or any other entity for the cost of the
items and services or any portion thereof, and the representation that
the provider of contraceptive services received from or on behalf of
the individual is later determined to be incorrect, the participating
issuer is considered to comply with the applicable requirements under
paragraphs (d)(1)(iii) and (d)(2)(i)(A) of this section.
(11) If a participating issuer relies reasonably and in good faith
on a representation by a provider of contraceptive services that the
provider of contraceptive services furnished contraceptive services to
an eligible individual (as defined in 26 CFR 54.9815-2713A(a)(3), 29
CFR 2590.715-2713A(a)(3), or Sec. 147.131(a)(3) of this subchapter),
without imposing a fee or charge of any kind, directly or indirectly,
on the eligible individual or any other entity for the cost of the
items and services or any portion thereof, and the representation by
the provider of contraceptive services is determined to be incorrect
after the participating issuer has paid the provider of contraceptive
services the amount described in (d)(2)(i)(E) of this section, the
participating issuer is considered to comply with the applicable
requirements under paragraphs (d)(1)(iii) and (d)(2)(i)(A) of this
section.
Melanie R. Krause,
Acting Deputy Commissioner for Services and Enforcement, Internal
Revenue Service.
Lisa M. Gomez,
Assistant Secretary, Employee Benefits Security Administration,
Department of Labor.
Xavier Becerra,
Secretary, Department of Health and Human Services.
[FR Doc. 2023-01981 Filed 1-30-23; 11:15 am]
BILLING CODE 4150-28-P