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Health Insurance Portability and Accountability Act of 1996. Generally,
HIPAA restricts the use of preexisting condition exclusions, creates special
enrollment periods and prohibits discrimination based on health-status
related conditions in enrollment and premiums. HIPAA also creates an obligation
for most group health plans or their insurers to provide certificates
of creditable coverage to individuals who ceased to be covered by a group
health plan. Administration of the certificate requirements is often coordinated
with administration of COBRA. Because HIPAA requires a certificate to
be issued not only when coverage first ceases, but also when COBRA coverage
ceases, HIPAA effectively creates a new notice requirement in COBRA administration
when COBRA coverage expires or is terminated. HIPAA also protects your
Personal Health Information (PHI). This maintains confidentiality in anything
involved with your healthcare, conditions and private information.
Consolidated Omnibus Budget Reconciliation Act, a federal law in effect
since 1986. COBRA permits you and your dependents to continue in your
employer's group health plan after your job ends. If your employer has
20 or more employees, you may be eligible for COBRA continuation coverage
when you retire, quit, are fired, or work reduced hours. Continuation
coverage also extends to surviving, divorced or separated spouses; dependent
children; and children who lose their dependent status under their parent's
plan rules. You may choose to continue in the group health plan for a
limited time and pay the full premium (including the share your employer
used to pay on your behalf) plus a 2% administrative fee. COBRA continuation
coverage generally lasts 18 months, or 36 months for dependents in certain
circumstances. See also State Continuation Coverage.
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