(Reid) Managers Amendment re: Non-profit insurance entity stipulation -

[pinto]

1 TITLE X—STRENGTHENING QUALITY, AFFORDABLE HEALTH CARE FOR ALL AMERICANS

pages 54, 55

20 ‘‘SEC. 1334. MULTI-STATE PLANS.

21 ‘‘(a) OVERSIGHT BY THE OFFICE OF PERSONNEL
22 MANAGEMENT.—

23 ‘‘(1) IN GENERAL.—The Director of the Office
24 of Personnel Management (referred to in this section
25 as the ‘Director’) shall enter into contracts with


1 health insurance issuers (which may include a group
2 of health insurance issuers affiliated either by com-
3 mon ownership and control or by the common use of
4 a nationally licensed service mark), without regard
5 to section 5 of title 41, United States Code, or other
6 statutes requiring competitive bidding, to offer at
7 least 2 multi-State qualified health plans through
8 each Exchange in each State. Such plans shall pro-
9 vide individual, or in the case of small employers,
10 group coverage.

11 ‘‘(2) TERMS.—Each contract entered into
12 under paragraph (1) shall be for a uniform term of
13 at least 1 year, but may be made automatically re
14 newable from term to term in the absence of notice
15 of termination by either party. In entering into such
16 contracts, the Director shall ensure that health bene-
17 fits coverage is provided in accordance with the
18 types of coverage provided for under section
19 2701(a)(1)(A)(i) of the Public Health Service Act.

20 ‘‘(3) NON-PROFIT ENTITIES.—In entering into
21 contracts under paragraph (1), the Director shall
22 ensure that at least one contract is entered into with
23 a non-profit entity.

http://democrats.senate.gov/reform/managers-amendment.pdf

[Eric J in MN]

1. No bid contracts.

"without regard to section 5 of title 41, United States Code, or other statutes requiring competitive bidding"

[pinto]

2. Section 5, Title 41 -

TITLE 41--PUBLIC CONTRACTS

CHAPTER 5--JUDICIAL REVIEW OF ADMINISTRATIVE DECISIONS


Sec. 321. Limitation on pleading contract provisions relating to
finality; standards of review

No provision of any contract entered into by the United States,
relating to the finality or conclusiveness of any decision of the head
of any department or agency or his duly authorized representative or
board in a dispute involving a question arising under such contract,
shall be pleaded in any suit now filed or to be filed as limiting
judicial review of any such decision to cases where fraud by such
official or his said representative or board is alleged: Provided,
however, That any such decision shall be final and conclusive unless the
same is fraudulent or capricious or arbitrary or so grossly erroneous
as necessarily to imply bad faith, or is not supported by substantial
evidence.

TITLE 41--PUBLIC CONTRACTS

CHAPTER 5--JUDICIAL REVIEW OF ADMINISTRATIVE DECISIONS


Sec. 322. Contract provisions making decisions final on
questions of law

No Government contract shall contain a provision making final on a
question of law the decision of any administrative official,
representative, or board.

(May 11, 1954, ch. 199, Sec. 2, 68 Stat. 81.)

[Luminous Animal]

3. If I have explained once, I've explained a thousand times.

Non-profit does not mean no profit. A for profit entity distributes profits to its shareholders. A non-profit distributes profits back into the organization. That can mean that a non-profit can distribute its profits towards management or even acquiring shares in for profit entities (witness non-profits which lost a lot of money when they invested in Maddoff's schemes).

[FLDCVADem]

4. Excellent point

I've wondered, and perhaps you can answer, is that why such entities are sometimes referred to as "not for profit" rather than "non profit"? Seems like a subtle difference, but a difference all the same.