Beneficiary Notification Rights Act of 1998 - Amends the Public Health Service Act, the Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code to require a health insurance issuer intending to terminate coverage or allow a policy to lapse because a group health plan failed to pay premiums necessary to maintain coverage, to: (1) notify all participants and beneficiaries of such situation; and (2) if such plan is terminated, provide all participants and beneficiaries with the option of enrollment under a conversion health plan.
[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4709 Introduced in House (IH)]
105th CONGRESS
2d Session
H. R. 4709
To amend the Public Health Service Act, the Employee Retirement Income
Security Act of 1974, and the Internal Revenue Code of 1986 to require
a health insurance issuer to notify all participants and beneficiaries
if a group health plan fails to pay premiums necessary to maintain
coverage, and provide a conversion option for such participants and
beneficiaries if the plan is terminated.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 6, 1998
Mrs. Thurman (for herself, Mr. Stark, Mr. Kucinich, and Mr. Davis of
Florida) introduced the following bill; which was referred to the
Committee on Commerce, and in addition to the Committees on Ways and
Means, and Education and the Workforce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Public Health Service Act, the Employee Retirement Income
Security Act of 1974, and the Internal Revenue Code of 1986 to require
a health insurance issuer to notify all participants and beneficiaries
if a group health plan fails to pay premiums necessary to maintain
coverage, and provide a conversion option for such participants and
beneficiaries if the plan is terminated.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Beneficiary Notification Rights Act
of 1998''.
SEC. 2. NOTIFICATION TO PARTICIPANTS AND BENEFICIARIES.
(a) Group Health Plans.--
(1) Public health service act amendments.--(A) Subpart 2 of
part A of title XXVII of the Public Health Service Act is
amended by adding at the end the following new section:
``SEC. 2706. NOTIFICATION TO PARTICIPANTS AND BENEFICIARIES.
``(a) Requirement.--If a health insurance issuer offering group
health insurance coverage intends to terminate coverage or allow a
policy to lapse because a group health plan failed to pay to the issuer
premiums necessary to maintain coverage, the issuer shall, not later
than 30 days prior to the date of termination or policy lapse, provide
written notice to all participants and beneficiaries indicating the
termination date of such coverage. The issuer may not terminate
coverage retroactively.
``(b) Conversion Option.--In a case in which a health insurance
issuer terminates health insurance coverage offered in connection with
a group health plan because a group health plan failed to pay to the
issuer premiums necessary to maintain coverage, the issuer shall, for a
period of 180 days beginning on the termination date, provide to all
participants and beneficiaries the option of enrollment under a
conversion health plan.
``(c) Notice.--A group health plan under this part shall comply
with the notice requirement under section 713(c) of the Employee
Retirement Income Security Act of 1974 with respect to the requirements
of this section as if such section applied to such plan.''.
(B) Section 2723(c) of such Act (42 U.S.C. 300gg-23(c)), as
amended by section 604(b)(2) of Public Law 104-204, is amended
by striking ``section 2704'' and inserting ``sections 2704 and
2706''.
(2) ERISA amendments.--(A) Subpart B of part 7 of subtitle
B of title I of the Employee Retirement Income Security Act of
1974 is amended by adding at the end the following new section:
``SEC. 713. NOTIFICATION TO PARTICIPANTS AND BENEFICIARIES.
``(a) Requirement.--If a health insurance issuer offering group
health insurance coverage intends to terminate coverage or allow a
policy to lapse because a group health plan failed to pay to the issuer
premiums necessary to maintain coverage, the issuer shall, not later
than 30 days prior to the date of termination or policy lapse, provide
written notice to all participants and beneficiaries indicating the
termination date of such coverage. The issuer may not terminate
coverage retroactively.
``(b) Conversion Option.--In a case in which a health insurance
issuer terminates health insurance coverage offered in connection with
a group health plan because a group health plan failed to pay to the
issuer premiums necessary to maintain coverage, the issuer shall, for a
period of 180 days beginning on the termination date, provide to all
participants and beneficiaries the option of enrollment under a
conversion health plan.
``(c) Notice Under Group Health Plan.--A group health plan, and a
health insurance issuer providing health insurance coverage in
connection with a group health plan, shall provide notice to each
participant and beneficiary under such plan regarding the imposition of
the requirements of this section in accordance with regulations
promulgated by the Secretary. Such notice shall be in writing and
prominently positioned in any literature or correspondence made
available or distributed by the plan or issuer and shall be transmitted
upon enrollment and annually thereafter, with the first notice required
in the first mailing made by the plan or issuer to the participant or
beneficiary after the date of the enactment of the Beneficiary
Notification Rights Act of 1998.''.
(B) Section 731(c) of such Act (29 U.S.C. 1191(c)), as
amended by section 603(b)(1) of Public Law 104-204, is amended
by striking ``section 711'' and inserting ``sections 711 and
713''.
(C) Section 732(a) of such Act (29 U.S.C. 1191a(a)), as
amended by section 603(b)(2) of Public Law 104-204, is amended
by striking ``section 711'' and inserting ``sections 711 and
713''.
(D) The table of contents in section 1 of such Act is
amended by inserting after the item relating to section 712 the
following new item:
``Sec. 713. Notification to participants and beneficiaries.''.
(3) Internal revenue code amendments.--Subchapter B of
chapter 100 of the Internal Revenue Code of 1986 (as amended by
section 1531(a) of the Taxpayer Relief Act of 1997) is
amended--
(A) in the table of sections, by inserting after the item
relating to section 9803 the following new item:
``Sec. 9804. Notification to participants
and beneficiaries.''; and
(B) by inserting after section 9803 the following:
``SEC. 9804. NOTIFICATION TO PARTICIPANTS AND BENEFICIARIES.
``(a) In General.--If a health insurance issuer offering group
health insurance coverage intends to terminate coverage or allow a
policy to lapse because a group health plan failed to pay to the issuer
premiums necessary to maintain coverage, the issuer shall, not later
than 30 days prior to the date of termination or policy lapse, provide
written notice to all participants and beneficiaries indicating the
termination date of such coverage. The issuer may not terminate
coverage retroactively.
``(b) Conversion Option.--In a case in which a health insurance
issuer terminates health insurance coverage offered in connection with
a group health plan because a group health plan failed to pay to the
issuer premiums necessary to maintain coverage, the issuer shall, for a
period of 180 days beginning on the termination date, provide to all
participants and beneficiaries the option of enrollment under a
conversion health plan.''.
(b) Effective Dates.--The amendments made by subsection (a) shall
apply with respect to group health plans or health insurance coverage
offered in connection with group health plans for plan years beginning
on or after January 1, 1999.
(c) Coordinated Regulations.--Section 104(1) of Health Insurance
Portability and Accountability Act of 1996 is amended by striking
``this subtitle (and the amendments made by this subtitle and section
401)'' and inserting ``the provisions of part 7 of subtitle B of title
I of the Employee Retirement Income Security Act of 1974, the
provisions of parts A and C of title XXVII of the Public Health Service
Act, and chapter 100 of the Internal Revenue Code of 1986''.
<all>
Introduced in House
Introduced in House
Referred to House Commerce
Referred to the Committee on Commerce, and in addition to the Committees on Ways and Means, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Ways and Means
Referred to House Education and the Workforce
Referred to the Subcommittee on Health and Environment.
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