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What is HIPAA?
The Health Insurance Portability and Accountability Act of 1996 (HIPAA), amended three sets of existing federal laws: the Internal Revenue Code, the Employee Retirement Income
Security Act, and the Public Health Services Act. All group health plans which cover two or more people are subject to HIPAA rules.
The purpose of HIPAA is to improve portability
of health coverage by restricting preexisting condition exclusions and limitations in plans, and to provide credit for prior coverage to reduce or eliminate preexisting condition limitations.
HIPAA is also designed to improve availability of health coverage by providing special rights to enroll in plans in certain situations (i.e., loss of other coverage), prohibit discrimination
based on health status, and guarantee the availability and renewability of health plans for small employers.
The burden of issuing Certificates of Creditable Coverage is on the employer, and as with COBRA there are certain time restrictions involved. Some insurance plans have agreed to
issue the certificates in certain cases, however; noncompliance issues will remain the employers' burden. HIPAA Certificates of Creditable Coverage can be issued to your employees through
Choice COBRA.
*COBRA and HIPAA administration is provided by COBRA Administration and Health Services, Inc. (CAHS) under the Choice COBRA brand name. The service contract for these services is between the employer and CAHS.
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