Medicare News
| For Immediate Release: | Contact: |
| Tuesday, April 01, 1997 | CMS Office of Public Affairs 202-690-6145 |
For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov. |
|
REGULATIONS ISSUED UNDER THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996
The departments of Health and Human Services, Labor, and Treasury today announced publication of rules that help provide important new protections for millions of workers and their families so they can get and maintain health insurance if they change or lose their jobs.
The regulations are the first steps in implementing key provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), which was signed into law by President Clinton on Aug. 21, 1996. The regulations focus on limiting exclusions for pre-existing medical conditions, prohibiting discrimination against employees and dependents based on their health status, guaranteeing availability of health insurance to small employers, and guaranteeing renewability of insurance to all employers regardless of size.
"The Clinton administration is determined to improve access to high-quality health care. These regulations are an important step toward achieving that goal," said HHS Secretary Donna E. Shalala.
The interim final regulations are open for public comment. They were on display today at the Federal Register.
Generally, the regulations' provisions are required to be phased-in between June 1, 1997, and June 30, 1998, depending on when insurers' new plan years begin and insurance-related changes that states might make.
The first of the two regulations displayed today was issued jointly by HHS and the departments of Labor and Treasury. It applies to the group health insurance market and details how an individual's previous health coverage is counted and documented when changing to a new plan or policy. Under HIPAA, employees and their dependents will be issued "certificates of creditable coverage" by their current plan or policy when they cease coverage. This regulation interprets HIPAA provisions that limit how long coverage and payment limits can be imposed because of a preexisting condition, and prohibit discrimination in group health insurance based on health status. The law does not, however, regulate the premiums of an individual employer's plan, which remain subject to state law.
The second interim final regulation, to be administered by HHS' Health Care Financing Administration in conjunction with the states, details protections in the individual health insurance market for eligible individuals who lose group coverage and seek coverage in the individual market.
"Implementation of these provisions requires HCFA to develop a new level of partnership with the states in relationship to state regulation of health insurance," said HCFA Administrator Bruce C. Vladeck. "This increased cooperation is consistent with our commitment to improve access to health insurance for all Americans."
