Interim Final Rules for Nondiscrimination in Health Coverage in
the Group Market [03/09/2001]
Volume 66, Number 47, Page 14076-14078
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 54
[TD 8931]
RIN 1545-AW02
DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
29 CFR Part 2590
RIN 1210-AA77
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Care Financing Administration
45 CFR Part 146
RIN 0938-AI08
Interim Final Rules for Nondiscrimination in Health Coverage in
the Group Market
AGENCIES: Internal Revenue Service, Department of the Treasury; Pension
and Welfare Benefits Administration, Department of Labor; Health Care
Financing Administration, Department of Health and Human Services.
ACTION: Interim final rules; delay of effective date and conforming
amendments.
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SUMMARY: Consistent with the memorandum of January 20, 2001, from the
Assistant to the President and Chief of Staff, entitled ``Regulatory
Review Plan,'' published in the Federal Register on January 24, 2001
(66 FR 7702), this action delays for 60 days the effective date for the
rules entitled ``Interim Final Rules for Nondiscrimination in Health
Coverage in the Group Market,'' published in the Federal Register on
January 8, 2001 (66 FR 1378). This document also makes conforming
amendments to reflect the delay in effective date.
DATES: The effective date of the Interim Final Rules amending 26 CFR
Part 54, 29 CFR Part 2590, and 45 CFR Part 146, published in the
Federal Register on January 8, 2001, at 66 FR 1378, is delayed for 60
days, from March 9, 2001, until May 8, 2001. The conforming amendments
in this document are effective May 8, 2001.
FOR FURTHER INFORMATION CONTACT: Russ Weinheimer, Internal Revenue
Service, Department of the Treasury, at (202) 622-6080; Amy J. Turner,
Pension and Welfare Benefits Administration,
[[Page 14077]]
Department of Labor, at (202) 219-7006; or Ruth A. Bradford, Health
Care Financing Administration, Department of Health and Human Services,
at (410) 786-1565.
SUPPLEMENTARY INFORMATION: Consistent with the memorandum of January
20, 2001, from the Assistant to the President and Chief of Staff,
entitled ``Regulatory Review Plan,'' published in the Federal Register
on January 24, 2001 (66 FR 7702), this action delays for 60 days the
effective date and, for consistency, certain applicability dates for
the rules entitled ``Interim Final Rules for Nondiscrimination in
Health Coverage in the Group Market,'' published in the Federal
Register on January 8, 2001 (66 FR 1378). These rules implement
statutory provisions prohibiting discrimination based on a health
factor by group health plans and issuers offering health insurance
coverage in connection with a group health plan. The rules implement
changes made to the Internal Revenue Code of 1986, the Employee
Retirement Income Security Act of 1974, and the Public Health Service
Act, enacted as part of the Health Insurance Portability and
Accountability Act of 1996 (HIPAA), and most of the guidance contained
in these rules remains applicable for plan years beginning on or after
July 1, 2001. This document also makes conforming amendments to reflect
the delay in effective date.
To the extent that 5 U.S.C. 553 applies to this action, it is
exempt from notice and comment because it constitutes a rule of
procedure under 5 U.S.C. 553(b)(3)(A). Alternatively, the Departments'
implementation of this rule without opportunity for public comment,
effective immediately upon publication today in the Federal Register,
is based on the good cause exceptions in 5 U.S.C. 553(b)(3)(B) and
553(d)(3), in that seeking public comment is impracticable,
unnecessary, and contrary to the public interest. The 60-day delay in
effective date is necessary to give Department officials the
opportunity for further review and consideration of new regulations,
consistent with the Assistant to the President's memorandum of January
20, 2001. Given the imminence of the effective date, seeking prior
public comment on this delay would have been impractical, unnecessary,
and contrary to the public interest in the orderly promulgation and
implementation of regulations. Because the delay is only for 60 days, a
30-day comment period before the delay could be effective would exhaust
a substantial amount of time that group health plans, health insurance
issuers, and State insurance commissioner's offices could otherwise use
to review their plan documents, insurance policies, and State laws for
purposes of the orderly implementation of the interim regulations. In
addition, it would create confusion among State agencies, employers,
plan administrators, issuers, and third party administrators as to the
effective date of certain provisions, impeding their compliance and
enforcement efforts.
List of Subjects
26 CFR Part 54
Excise taxes, Health care, Health insurance, Pensions, Reporting
and recordkeeping requirements.
29 CFR Part 2590
Employee benefit plans, Employee Retirement Income Security Act,
Health care, Health insurance, Reporting and recordkeeping
requirements.
45 CFR Part 146
Health care, Health insurance, Reporting and recordkeeping
requirements, and State regulation of health insurance.
Conforming Amendments to the Regulations
Internal Revenue Service
26 CFR Chapter I
Accordingly, the publication on January 8, 2001 of the temporary
and final rules, 26 CFR Part 54, is amended as follows:
PART 54--PENSION EXCISE TAXES
Paragraph 1. The authority citation for part 54 continues to read
in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sec. 54.9802-1 [Amended]
Par. 2. Section 54.9802-1 is amended by removing the date ``March
9, 2001'' in each place it appears in paragraph (i)(1) and adding in
its place ``May 8, 2001''.
Sec. 54.9802-1T [Amended]
Par. 3. Section 54.9802-1T is amended by:
1. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(1).
2. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(3)(ii)(A) introductory text.
3. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(3)(ii)(C) Example 2 (ii).
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Approved: March 2, 2001.
Pamela F. Olsen,
Deputy Assistant Secretary of the Treasury.
Pension and Welfare Benefits Administration
29 CFR Chapter XXV
For the reasons set forth above, the publication on January 8, 2001
of the interim final rule, 29 CFR Part 2590, is amended as follows:
PART 2590--RULES AND REGULATIONS FOR HEALTH INSURANCE PORTABILITY
AND RENEWABILITY FOR GROUP HEALTH PLANS
Paragraph 1. The authority citation for part 2590 continues to read
as follows:
Authority: Secs. 107, 209, 505, 701-703, 711-713, and 731-734 of
ERISA (29 U.S.C. 1027, 1059, 1135, 1171-1173, 1181-1183, and 1191-
1194), as amended by HIPAA (Public Law 104-191, 110 Stat. 1936),
MHPA and NMHPA (Public Law 104-204, 110 Stat. 2935), and WHCRA
(Public Law 105-277, 112 Stat. 2681-436), section 101(g)(4) of
HIPAA, and Secretary of Labor's Order No. 1-87, 52 FR 13139, April
21, 1987.
Sec. 2590.702 [Amended]
Par. 2. Section 2590.702 is amended by:
1. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in the heading to paragraph (i)(1).
2. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(1).
3. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(3)(ii)(A) introductory text.
4. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(3)(ii)(C) Example 2 (ii).
Signed at Washington, DC this 16th day of February, 2001.
Alan D. Lebowitz,
Acting Assistant Secretary, Pension and Welfare Benefits
Administration, Department of Labor.
Health Care Financing Administration
45 CFR Subtitle A
For the reasons set forth above, the publication on January 8, 2001
of the interim final rule, 45 CFR part 146, is amended as follows:
[[Page 14078]]
PART 146--RULES AND REGULATIONS FOR HEALTH INSURANCE PORTABILITY
AND RENEWABILITY FOR GROUP HEALTH PLANS
Paragraph 1. The authority citation for part 146 continues to read
as follows:
Authority: Secs. 2701 through 2763, 2791 and 2792 of the Public
Health Service Act, 42 U.S.C. 300gg through 300gg-63, 300gg-91,
300gg-92 as amended by HIPAA (Public Law 104-191, 110 Stat. 1936),
MHPA and NMHPA (Public Law 104-204, 110 Stat. 2935), and WHCRA
(Public Law 105-277, 112 Stat. 2681-436), and section 102(c)(4) of
HIPAA.
Sec. 146.121 [Amended]
Par. 2. Section 146.121 is amended by:
1. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in the heading to paragraph (i)(1).
2. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(1).
3. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(3)(ii)(A) introductory text.
4. Removing the date ``March 9, 2001'' and adding in its place
``May 8, 2001'' in paragraph (i)(3)(ii)(C) Example 2 (ii).
Dated: February 20, 2001.
Michael McMullan,
Acting Deputy Administrator, Health Care Financing Administration.
Approved: March 5, 2001.
Tommy G. Thompson,
Secretary, Department of Health and Human Services.
[FR Doc. 01-5895 Filed 3-8-01; 8:45 am]
BILLING CODE 4830-01-P; 4510-29-P; 4120-01-P
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