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Page Number: 5.0

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COVENTRY HEALTH CARE OF MO., INC. v. NEVILS 

Opinion of the Court 

can then pursue the claim against the third party.  Several 
States, however, Missouri among them, bar enforcement of
contractual subrogation and reimbursement provisions.

The  questions  here  presented:  Does  FEHBA’s  express-
preemption  prescription,  §8902(m)(1),  override  state  law 
if 
prohibiting  subrogation  and  reimbursement;  and 
§8902(m)(1)  has  that  effect,  is  the  statutory  prescription
consistent  with  the  Supremacy  Clause,  U. S.  Const.,  Art. 
VI, cl. 2?  We hold, contrary to the decision of the Missouri
Supreme  Court,  that  contractual  subrogation  and  reim-
bursement  prescriptions  plainly  “relate  to  . . .  payments
with respect to benefits,” §8902(m)(1); therefore, by statu-
tory  instruction,  they  override  state  law  barring  subroga-
tion and reimbursement.  We further hold, again contrary 
to the Missouri Supreme Court, that the regime Congress
enacted is compatible with the Supremacy Clause.  Section 
8902(m)(1)  itself,  not  the  contracts  OPM  negotiates,  trig-
gers the federal preemption.  As Congress directed, where 
FEHBA contract terms “relate to the nature, provision, or 
extent  of  coverage  or  benefits  (including  payments  with
respect to benefits),” §8902(m)(1) ensures that those terms 
will  be  uniformly  enforceable  nationwide,  free  from  state 
interference. 

I 

A 

FEHBA “establishes a comprehensive program of health
insurance  for  federal  employees.”  Empire  HealthChoice 
Assurance, Inc. v. McVeigh, 547 U. S. 677, 682 (2006).  As 
just  noted,  supra,  at  1,  FEHBA  contains  an  express-
preemption  provision,  §8902(m)(1).    FEHBA  assigns  to
OPM broad administrative and rulemaking authority over
the  program.    See  §§8901–8913.    OPM  contracts  with 
private  insurance  carriers  to  offer  a  range  of  healthcare 
plans.  §§8902, 8903. 

OPM’s contracts with private carriers have long included