Regulatory and legislative bodies are among the important environmental forces in the health plan industry.

Federal guidelines exist to direct health plans on compliance issues when a health plan encounters conflicting state laws in a given service area.

Administrative rules and regulations do not carry the force of law.

As stakeholders in the health plan industry, federal and state governments exert tremendous influence over a health plan's formation and operations.

In recent years, the number of health plan bills in the state and the federal legislatures has decreased.