HIPA Conformity

Clarifies citations to federal law appearing in the section of
the insurance code providing for applicability of the federal
Health Insurance Portability Act of 1996 to group and individual
health insurance as regulated under the insurance code.  (HB2797

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section HRS 431:2-201.5, Hawaii Revised
 2 Statutes, is amended to read as follows:
 3      "431:2-201.5  Conformity to federal law.(a)  The
 4 provisions of [the Health Insurance Portability and
 5 Accountability Act of 1996, P.L. 104-191,] title 42 United States
 6 Code section 300(gg), et seq., as it relates to group and
 7 individual health insurance and to long-term care insurance to
 8 the extent provided in article 10H of chapter 431, shall apply to
 9 title 24, except:
10      (1)  Where state law provides greater health benefits or
11           coverage than [the Health Insurance Portability and
12           Accountability Act of 1996, P.L. 104-191] title 42
13           United States Code section 300(gg), et seq., then the
14           state law shall be applicable;
15      (2)  This section shall not be applicable or affect life
16           insurance, endowment, or annuity contracts, or any
17           supplemental contract thereto, described in
18           section 431:10A-101(4);

Page 2                                                     2797
                                     H.B. NO.           H.D. 1

 1      (3)  The following definitions shall be used when applying
 2           [the Health Insurance Portability and Accountability
 3           Act of 1996, P.L. 104-191:] title 42 United States Code
 4           section 300(gg), et seq.:
 5           (A)  "Employee" means an employee who works on a full-
 6                time basis with a normal workweek of twenty hours
 7                or more;
 8           (B)  "Group health issuer" means all persons offering
 9                [benefits under group health plans,] health
10                insurance coverage to any group or association,
11                but shall not include those persons offering
12                benefits exempted from Title I of the Health
13                Insurance Portability and Accountability Act of
14                1996, P.L. 104-191 under section 706(c) of the
15                Employee Retirement Income Security Act of 1974
16                and sections 2747 and 2791(c) of the Public Health
17                Service Act; and
18           (C)  "Small employer" means an employer who employs
19                between one and no more than fifty employees;
20      (4)  All group health issuers shall offer all group health
21           plans to small employers whose employees live, work, or
22           reside in the group health issuer's service areas;
23           provided that the commissioner may exempt a group

Page 3                                                     2797
                                     H.B. NO.           H.D. 1

 1           health issuer if the commissioner determines that the
 2           group health issuer does not have the capacity to
 3           deliver services adequately to enrollees of additional
 4           groups given its obligation to existing employer
 5           groups; and
 6      (5)  A group health issuer shall be prohibited from imposing
 7           any preexisting condition exclusion.
 8      (b)  The insurance commissioner may adopt rules to
 9 implement, clarify, or conform title 24 to [the Health Insurance
10 Portability and Accountability Act of 1996, P.L. 104-191.] title
11 42 United States Code section 300(gg), et seq.
12      (c)  The adoption of the Health Insurance Portability and
13 Accountability Act of 1996, P.L. 104-191 for the purposes of
14 title 24 is not an adoption for any purposes for income taxes
15 under chapter 235.
16      (d)  The State shall have jurisdiction over any matter that
17 title 42 United States Code section 300(gg), et seq., permits,
18 including jurisdiction over enforcement."
19      SECTION 2.  Statutory material to be repealed is bracketed.
20 New statutory material is underscored.
21      SECTION 3.  This Act shall take effect on July 1, 2000.