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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 219-8921
A reference guide to help employees and employers understand the effects
of recent legislative changes on health plans is being issued by the U.S.
Department of Labor.
The booklet, "Questions and Answers: Recent Changes in Health Care Law,"
provides guidance concerning changes made by the Health Insurance Portability
and Accountability Act of 1996 (HIPAA), the Newborns' and Mothers' Health
Protection Act of 1996 and the Mental Health Parity Act of 1996.
"People want to know how these new laws are going to work, and we are
issuing this booklet to begin to answer their questions," said Secretary of
Labor Robert B. Reich. "The Labor Department has received thousands of calls,
particularly about the Health Insurance Portability and Accountability Act.
Callers want to know how they can carry health insurance to another job if
their new employer offers health care coverage. And they want to know when
HIPAA takes effect."
Reich added: "The other two pieces of legislation offer some new
opportunities and protections as well. For instance, mothers and newborns who
stay in the hospital an extra day can count on their health insurance to help
pay under the Newborns' and Mothers' Health Protection Act. And those who have
had severe limits placed on their mental health coverage can now be confident
that those benefits will be comparable to medical and surgical benefits under
MHPA."
"We estimate that 25 million Americans--approximately 1 in 10--could be
affected by the provisions of HIPAA and millions more by the Newborns' and
Mothers' Health Protection Act and the Mental Health Parity Act. In issuing
this publication, we hope to provide employees and their employers with some
basics."
The booklet gives an overview of each law and answers the most
frequently asked questions. Since the early fall, when the three new pieces of
legislation were passed, the Pension and Welfare Benefits Administration (PWBA)
has received several thousand calls from plan participants asking about the
effects of the new laws. As a result, the agency developed this publication to
address the most commonly asked questions. The three top questions, included in
the booklet, are:
- When is HIPAA effective?
Most of HIPAA's requirements will not take effect immediately. Under
the new law, group health plans must comply with most of the new law's health
coverage requirements at the beginning of the first plan year starting after
June 30, 1997. For example, if an employer's plan starts a new plan year on
January 1, HIPAA's provisions will not apply until January 1, 1998.
- How does the pre-existing condition provision work?
Currently, some plans do not cover pre-existing medical conditions.
HIPAA limits this practice so that most plans must cover an individual's
pre-existing condition after 12 months. At the time of a job change,
individuals who already have 12 months of continuous group health coverage will
not have to start over with a new 12-month exclusion for any pre-existing
conditions.
Archived News Release--Caution:
information may be out of date.
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