Authorizes Governors of nonparticipating States to request that the Secretary establish a Federal Employees' Health Benefit Program alliance for part or all of such State.
Provides for State certification of small group health plan purchasing alliances, including interstate alliances. Sets forth a governance structure and requirements for such alliances, including marketing area and conflict of interest rules. Prohibits such alliances from involvement in the licensing of health plan issuers, assumption of financial risk on behalf of members of such alliance, or for-profit operations.
Provides for a limited preemption of otherwise restrictive State laws concerning groups organizing to purchase health insurance and premium rate reductions.
Treats such alliances as employee welfare benefit plans under the Employee Retirement Income Security Act of 1974 for enforcement purposes.