[Federal Register Volume 81, Number 107 (Friday, June 3, 2016)]
[Rules and Regulations]
[Pages 35643-35644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13136]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

42 CFR Part 403

DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Part 1331

RIN 0985-AA11


State Health Insurance Assistance Program (SHIP)

AGENCY: Administration for Community Living (ACL), Department of Health 
and Human Services (HHS) and Centers for Medicare & Medicaid Services 
(CMS), HHS.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of Health and Human Services is issuing a final 
regulation that adopts, without change, the interim final rule (IFR) 
entitled ``State Health Insurance Assistance Program (SHIP).'' This 
final rule implements a provision enacted by the Consolidated 
Appropriations Act of 2014 and reflects the transfer of the State 
Health Insurance Assistance Program (SHIP) from the Centers for 
Medicare & Medicaid Services (CMS), in the Department of Health and 
Human Services (HHS) to the Administration for Community Living (ACL) 
in HHS. Prior to the interim final rule, prior regulations were issued 
by CMS under the authority granted by the Omnibus Budget Reconciliation 
Act of 1990 (OBRA), Section 4360.

DATES: Effective June 3, 2016.

FOR FURTHER INFORMATION CONTACT: Josh Hodges, Administration for 
Community Living, telephone (202) 795-7364 (Voice). This is not a toll-
free number. This document will be made available in alternative 
formats upon request. Written correspondence can be sent to 
Administration for Community Living, U.S. Department of Health and 
Human Services, 330 C St. SW., Washington, DC 20201.

SUPPLEMENTARY INFORMATION: 

I. Background

    The State Health Insurance Assistance Program (SHIP) was created 
under Section 4360 of the Omnibus Budget Reconciliation Act (OBRA) of 
1990 (Pub. L. 101-508). This section of the law authorized the Centers 
for Medicare & Medicaid Services (CMS) to make grants to States to 
establish and maintain health insurance advisory service programs for 
Medicare beneficiaries. Grant funds were made available to support 
information, counseling, and assistance activities relating to 
Medicare, Medicaid, and other related health insurance options such as: 
Medicare supplement insurance, long-term care insurance, managed care 
options, and other health insurance benefit information. In January 
2014, in the Consolidated Appropriations Act of 2014, Congress 
transferred the funding for the SHIP program from CMS to the 
Administration for Community Living (ACL). This transfer reflects the 
existing formal and informal collaborations between the SHIP programs 
and the networks that ACL serves.
    On February 4, 2016, ACL and CMS issued an IFR (81 FR 5917) that 
transferred all provisions of the existing SHIP regulations at 42 CFR 
part 403 Subpart E, (Sec. Sec.  403.500 through 403.512), to a new part 
at 45 CFR 1331.1-1331.7. The IFR also changed all references to CMS' 
administration of the program to ACL and made a technical change to 
reflect new Uniform Administrative Requirements, Cost Principles, and 
Audit Requirements for HHS Awards, codified at 45 CFR part 75. This 
final rule adopts, without making any changes, the regulatory 
requirements established in the IFR.

II. Comments on the IFR

    HHS received one responsive comment to the IFR. The commenter 
expressed support for the rule and optimism for the new opportunities 
that come with the SHIP's transfer to ACL. We are grateful for the 
commenter's support and look forward to continuing to improve the 
program's effectiveness and efficiency.

III. Regulatory Analysis

A. Executive Order 12866

    This rule is not being treated as a ``significant regulatory 
action'' under section 3(f) of Executive Order 12866. Accordingly, the 
rule has not been reviewed by the Office of Management and Budget.

B. Regulatory Flexibility Analysis

    The Secretary certifies under 5 U.S.C. 605(b), the Regulatory 
Flexibility Act (Pub. L. 96-354), that this regulation will not have a 
significant economic impact on a substantial number of small entities. 
The primary impact of this regulation is on entities applying for SHIP 
funding opportunities, specifically researchers, States, public or 
private agencies and organizations, institutions of higher education, 
and Indian tribes and Tribal organizations. The regulation does not 
have a significant economic impact on these entities.

C. Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Ch. 3506; 5 CFR 1320 Appendix A.1) (PRA), ACL and CMS have determined 
that there are no new collections of information contained in this 
final rule.

D. Waiver of Proposed Rulemaking

    Under the Administrative Procedure Act (APA), ACL and CMS are 
required to publish a notice of proposed rulemaking and provide the 
public with an opportunity to comment on proposed regulations prior to 
establishing a final rule unless it is determined for good cause that 
the notice and comment procedure is impracticable, unnecessary or 
contrary to public interest. 5 U.S.C. 553(b). As noted previously, 
Congress has already transferred the SHIP program to ACL under the 
Consolidated Appropriations Act of 2014. This final rule makes no 
changes other than aligning the location of the regulations within the 
Code of Federal Regulations with other ACL programs; amending the name 
of the administering agency to ACL; and updating a reference to new 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for HHS Awards, which have already undergone notice and 
comment rulemaking, therefore, there is good cause under 5 U.S.C. 
553(b)(B) for waiving proposed rulemaking as unnecessary.

E. Waiver of Delayed Effective Date

    Agencies are required to delay the effective date of their final 
regulations by 30 days after publication, as required under 5 U.S.C. 
553(d), unless an exception under subsection (d) applies. Under 5 
U.S.C. 553(d), ACL and CMS may waive the delayed effective date 
requirement if they find good cause and explain the basis for the 
waiver in the final rulemaking document or if the regulations grant or 
recognize an exemption or relieve a restriction.
    In the present case, there is good cause to waive the delayed 
effective date for this final rule, because the substance of the 
regulation, other than the name of the administering agency, is 
identical to the current regulation.

[[Page 35644]]

F. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 requires 
that a covered agency prepare a budgetary impact statement before 
promulgating a rule that includes any Federal mandate that may result 
in expenditures by State, local, or Tribal governments, in the 
aggregate, or by the private sector, of $100 million, adjusted for 
inflation, or more in any one year. ACL and CMS have determined that 
this rule does not result in the expenditure by State, local, and 
Tribal government in the aggregate or by the private sector of more 
than $100 million in any one year.

G. Congressional Review

    This rule is not a major rule as defined in 5 U.S.C. Section 
804(2).

H. Assessment of Federal Regulations and Policies on Families

    Section 654 of the Treasury and General Government Appropriations 
Act of 1999 requires Federal agencies to determine whether a policy or 
regulation may affect family wellbeing. If the agency's conclusion is 
affirmative, then the agency must prepare an impact assessment 
addressing seven criteria specified in the law. These regulations do 
not have an impact on family well-being as defined in the legislation.

I. Executive Order 13132

    Executive Order 13132 on ``federalism'' was signed August 4, 1999. 
The purposes of the Order are: ``. . . to guarantee the division of 
governmental responsibilities between the national government and the 
States that was intended by the Framers of the Constitution, to ensure 
that the principles of federalism established by the Framers guide the 
executive departments and agencies in the formulation and 
implementation of policies, and to further the policies of the Unfunded 
Mandates Reform Act . . .'' Executive Order 13132 applies to actions 
with federalism implications, which are actions that have substantial 
direct effect on States, on the relationship between the Federal 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government. For actions 
that have federalism implications and preempt state law or have 
federalism implications and impose substantial compliance costs on 
states and local governments, the agency must consult with state and 
local officials before publishing the rule and include a federalism 
statement in the preamble.
    The Department certifies that this rule does not have a substantial 
direct effect on States, on the relationship between the Federal 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.
    ACL and CMS are not aware of any specific state laws that would be 
preempted by the adoption of the regulation.

List of Subjects

42 CFR Part 403

    Grant programs, Health insurance, Medicare, Reporting and 
recordkeeping requirements.

45 CFR Part 1331

    Grant programs, health insurance, Medicare, reporting and 
recordkeeping requirements.

    Accordingly, the interim final rule amending 42 CFR part 403 and 
adding 45 CFR part 1331 that published on February 4, 2016 (81 FR 
5917), is adopted as a final rule without change.

    Dated: April 29, 2016.
Andrew M. Slavitt,
Acting Administrator, Centers for Medicare & Medicaid Services.
    Dated: May 12, 2016.
Kathy Greenlee,
Administrator, Administration for Community Living.
    Approved: May 26, 2016.
Sylvia M. Burwell,
Secretary, U.S. Department of Health and Human Services.
[FR Doc. 2016-13136 Filed 6-2-16; 8:45 am]
BILLING CODE 4120-01-P