SEC. 707. REGULATIONS.
Title[ Title I\Subtitle A\Sec. 101 Contents
<<NOTE: 29 USC 1187.>>
``The Secretary, consistent with section 104 of the Health Care
Portability and Accountability Act of 1996, may promulgate such
regulations as may be necessary or appropriate to carry out the
provisions of this part. The Secretary may promulgate any interim final
rules as the Secretary determines are appropriate to carry out this
part.''.
(b) Enforcement With Respect to Health Insurance Issuers.--Section
502(b) of such Act (29 U.S.C. 1132(b)) is amended by adding at the end
the following new paragraph:
``(3) The Secretary is not authorized to enforce under this part any
requirement of part 7 against a health insurance issuer offering health
insurance coverage in connection with a group health plan (as defined in
section 706(a)(1)). Nothing in this paragraph shall affect the authority
of the Secretary to issue regulations to carry out such part.''.
(c) Disclosure of Information to Participants and Beneficiaries.--
(1) In general.--Section 104(b)(1) of such Act (29 U.S.C.
1024(b)(1)) is amended in the matter following subpara-
graph (B)--
(A) by striking ``102(a)(1),'' and inserting
``102(a)(1) (other than a material reduction in covered
services or benefits provided in the case of a group
health plan (as defined in section 706(a)(1))),''; and
(B) by adding at the end the following new
sentences: ``If there is a modification or change
described in section 102(a)(1) that is a material
reduction in covered services or benefits provided under
a group health plan (as defined in section 706(a)(1)), a
summary description of such modification or change shall
be furnished to participants and beneficiaries not later
than 60 days after the date of the adoption of the
modification or change. In the alternative, the plan
sponsors may provide such description at regular
intervals of not more than 90 days. The Secretary shall
issue regulations within 180 days after the date of
enactment of the Health Insurance Portability and
Accountability Act of 1996, providing alternative
mechanisms to
delivery by mail through which group health plans (as so
defined) may notify participants and beneficiaries of
material reductions in covered services or benefits.''.
(2) Plan description and summary.--Section 102(b) of such
Act (29 U.S.C. 1022(b)) is amended--
(A) by inserting ``in the case of a group health
plan (as defined in section 706(a)(1)), whether a health
insurance issuer (as defined in section 706(b)(2)) is
responsible for the financing or administration
(including payment of claims) of the plan and (if so)
the name and address of such issuer;'' after ``type of
administration of the plan;''; and
(B) by inserting ``including the office at the
Department of Labor through which participants and
beneficiaries may seek assistance or information
regarding their rights under this Act and the Health
Insurance Portability and Accountability Act of 1996
with respect to health benefits that are offered through
a group health plan (as defined in section 706(a)(1))''
after ``benefits under the plan''.
(d) Treatment of Health Insurance Issuers Offering Health Insurance
Coverage to Noncovered Plans.--Section 4(b) of such Act (29 U.S.C.
1003(b)) is amended by adding at the end (after and below paragraph (5))
the following:
``The provisions of part 7 of subtitle B shall not apply to a health
insurance issuer (as defined in section 706(b)(2)) solely by reason of
health insurance coverage (as defined in section 706(b)(1)) provided by
such issuer in connection with a group health plan (as defined in
section 706(a)(1)) if the provisions of this title do not apply to such
group health plan.''.
(e) Reporting and Enforcement With Respect to Certain
Arrangements.--
(1) In general.--Section 101 of such Act (29 U.S.C. 1021) is
amended--
(A) by redesignating subsection (g) as subsection
(h), and
(B) by inserting after subsection (f) the following
new subsection:
``(g) Reporting by Certain Arrangements.--The Secretary may, by
regulation, require multiple employer welfare arrangements providing
benefits consisting of medical care (within the meaning of section
706(a)(2)) which are not group health plans to report, not more
frequently than annually, in such form and such manner as the Secretary
may require for the purpose of determining the extent to which the
requirements of part 7 are being carried out in connection with such
benefits.''.
(2) Enforcement.--
(A) In general.--Section 502 of such Act (29 U.S.C.
1132) is amended--
(i) in subsection (a)(6), by striking ``under
subsection (c)(2) or (i) or (l)'' and inserting
``under paragraph (2), (4), or (5) of subsection
(c) or under
subsection (i) or (l)''; and
(ii) in the last 2 sentences of subsection
(c), by striking ``For purposes of this
paragraph'' and all that follows through ``The
Secretary and'' and inserting the following:
``(5) The Secretary may assess a civil penalty against any person of
up to $1,000 a day from the date of the person's failure or refusal to
file the information required to be filed by such person with the
Secretary under regulations prescribed pursuant to section 101(g).
``(6) The Secretary and''.
(B) Technical and conforming amendment.--Section
502(c)(1) of such Act (29 U.S.C. 1132(c)(1)) is amended
by adding at the end the following sentence: ``For
purposes of this paragraph, each violation described in
subparagraph (A) with respect to any single participant,
and each violation described in subparagraph (B) with
respect to any single participant or beneficiary, shall
be treated as a separate violation.''.
(3) Coordination.--Section 506 of such Act (29 U.S.C. 1136)
is amended by adding at the end the following new subsection:
``(c) Coordination of Enforcement With States With Respect to
Certain Arrangements.--A State may enter into an agreement with the
Secretary for delegation to the State of some or all of the Secretary's
authority under sections 502 and 504 to enforce the requirements under
part 7 in connection with multiple employer welfare arrangements,
providing medical care (within the meaning of section 706(a)(2)), which
are not group health plans.''.
(f) Conforming Amendments.--
(1) Section 514(b) of such Act (29 U.S.C. 1144(b)) is
amended by adding at the end the following new paragraph:
``(9) For additional provisions relating to group health plans, see
section 704.''.
(2)(A) Part 6 of subtitle B of title I of such Act (29
U.S.C. 1161 et seq.) is amended by striking the heading and
inserting the following:
``Part 6--Continuation Coverage and Additional Standards for Group
Health Plans''.
(B) The table of contents in section 1 of such Act is
amended by striking the item relating to the heading for part 6
of subtitle B of title I and inserting the following:
``Part 6--Continuation Coverage and Additional Standards for Group
Health Plans''.
(3) The table of contents in section 1 of such Act (as
amended by the preceding provisions of this section) is amended
by inserting after the items relating to part 6 the following
new items:
``Part 7--Group Health Plan Portability, Access, and Renewability
Requirements
``Sec. 701. Increased portability through limitation on preexisting
condition exclusions.
``Sec. 702. Prohibiting discrimination against individual participants
and beneficiaries based on health status.
``Sec. 703. Guaranteed renewability in multiemployer plans and multiple
employer welfare arrangements.
``Sec. 704. Preemption; State flexibility; construction.
``Sec. 705. Special rules relating to group health plans.
``Sec. 706. Definitions.
``Sec. 707. Regulations.''.
(g) Effective <<NOTE: 29 USC 1181 note.>> Dates.--
(1) In general.--Except as provided in this section, this
section (and the amendments made by this section) shall apply
with respect to group health plans for plan years beginning
after June 30, 1997.
(2) Determination of creditable coverage.--
(A) Period of coverage.--
(i) In general.--Subject to clause (ii), no
period before July 1, 1996, shall be taken into
account under part 7 of subtitle B of title I of
the Employee Retirement Income Security Act of
1974 (as added by this section) in determining
creditable coverage.
(ii) Special rule for certain periods.--The
Secretary of Labor, consistent with section 104,
shall provide for a process whereby individuals
who need to establish creditable coverage for
periods before July 1, 1996, and who would have
such coverage credited but for clause (i) may be
given credit for creditable coverage for such
periods through the presentation of documents or
other means.
(B) Certifications, etc.--
(i) In general.--Subject to clauses (ii) and
(iii), subsection (e) of section 701 of the
Employee Retirement Income Security Act of 1974
(as added by this section) shall apply to events
occurring after June 30, 1996.
(ii) No certification required to be provided
before june 1, 1997.--In no case is a
certification required to be provided under such
subsection before June 1, 1997.
(iii) Certification only on written request
for events occurring before october 1, 1996.--In
the case of an event occurring after June 30,
1996, and before October 1, 1996, a certification
is not required to be provided under such
subsection unless an individual (with respect to
whom the certification is otherwise required to be
made) requests such certification in writing.
(C) Transitional rule.--In the case of an individual
who seeks to establish creditable coverage for any
period for which certification is not required because
it relates to an event occurring before June 30, 1996--
(i) the individual may present other credible
evidence of such coverage in order to establish
the period of creditable coverage; and
(ii) a group health plan and a health
insurance issuer shall not be subject to any
penalty or enforcement action with respect to the
plan's or issuer's crediting (or not crediting)
such coverage if the plan or issuer has sought to
comply in good faith with the applicable
requirements under the amendments made by this
section.
(3) Special rule for collective bargaining agreements.--
Except as provided in paragraph (2), in the case of a group
health plan maintained pursuant to one or more collective
bargaining agreements between employee representatives and one
or more employers ratified before the date of the enactment of
this Act, part 7 of subtitle B of title I of Employee Retirement
Income Security Act of 1974 (other than section 701(e) thereof)
shall not apply to plan years beginning before the later of--
(A) the date on which the last of the collective
bargaining agreements relating to the plan terminates
(determined without regard to any extension thereof
agreed to after the date of the enactment of this Act),
or
(B) July 1, 1997.
For purposes of subparagraph (A), any plan amendment made
pursuant to a collective bargaining agreement relating to the
plan which amends the plan solely to conform to any requirement
of such part shall not be treated as a termination of such
collective bargaining agreement.
(4) Timely regulations.--The Secretary of Labor, consistent
with section 104, shall first issue by not later than April 1,
1997, such regulations as may be necessary to carry out the
amendments made by this section.
(5) Limitation on actions.--No enforcement action shall be
taken, pursuant to the amendments made by this section, against
a group health plan or health insurance issuer with respect to a
violation of a requirement imposed by such amendments before
January 1, 1998, or, if later, the date of issuance of
regulations referred to in paragraph (4), if the plan or issuer
has sought to comply in good faith with such requirements.
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