REPORT TITLE:
HIPA Conformity


DESCRIPTION:
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
HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2797
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO INSURANCE CODE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 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.