Subject: Newsletter: HIPAA Interim Regs Issued 4/1/97, Described in  PWBA
 Online  Publication
Date: Thu, 3 Apr 1997 00:36:50 -0500

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HIPAA INTERIM REGS ISSUED 4/1/97;
DESCRIBED IN NEW PWBA PUBLICATION
AVAILABLE ONLINE
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A pamphlet entitled "Q&A, Recent Changes in Health Care Law" was
published by the Department of Labor in December 1996 after the
passage of the Health Insurance Portability and Accountability Act
(HIPAA) to provide an overview of recent legislative changes that
affect people's health benefits.  The pamphlet provides answers to
the questions about these changes most often asked by participants
and plan sponsors.

On April 1, the Department of Labor, along with the
Departments of Health and Human Services and the Treasury, issued
interim regulations that interpret the provisions of HIPAA.  The
Department of Labor's regulations interpret the amendments made by
HIPAA to the Employee Retirement Income Security Act (ERISA).  The
regulations clarify the statutory requirements and provide
information valuable to employers and employees in understanding
their obligations and rights under the law, including their right
to a certificate of prior creditable coverage, which may be used
to reduce a preexisting condition exclusion.

The addendum to the Q&A pamphlet has been prepared to provide
additional answers to questions about HIPAA, based on the
regulations. The addendum is intended to be temporary; the
Department of Labor expects to publish a revised pamphlet that
incorporates these and other additions in the future.

The revised pamphlet can be viewed online at

   http://bubba.dol.gov/dol/pwba/public/pubs/q&aaddm.htm

and also is available through the Pension and Welfare Benefits
Administration at 1-800-998-7542.

The revised pamphlet has three important attachments:

   1. A model certificate of group health plan coverage

   2. A model notice to employees (Excerpt: "Recent changes in
      Federal law may affect your health coverage if you are
      enrolled or become eligible to enroll in health coverage
      that excludes coverage for preexisting medical conditions.
      The Health Insurance Portability and Accountability Act of
      1996 (HIPAA) limits the circumstances under which coverage
      may be excluded for medical conditions present before you
      enroll. Under the law, a preexisting condition exclusion
      generally may not be imposed for more than 12 months (18
      months for a late enrollee). The 12-month (or 18-month)
      exclusion period is reduced by your prior health coverage.
      You are entitled to a certificate that will show evidence of
      your prior health coverage.")

   3. A model description of special enrollment rights to anyone
      who declines coverage.  (Note: this link is not yet working
      on the PWBA page cited above, as of 4/2/97 -- DRB)

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