Legislation passed in 1996 called “The Health Insurance Portability and Accountability Act,” or HIPAA, sets forth various requirements that apply to employer-sponsored group health plans, as well as other entities involved in providing health care and paying health care expenses.
Some portions of HIPAA have already been imposed on employer-sponsored health plans, including restrictions on a health plan’s ability to impose certain pre-existing condition exclusions on incoming participants, and requiring group health plans to offer “special enrollment” rights to individuals at certain times in their lives (such as marriage or the birth of a child). However, for many employer-sponsored group health plans, perhaps the most burdensome of the HIPAA rules have yet to take effect. The HIPAA privacy regulations will be imposed on many employer health plans and other “covered entities” in less than nine months.
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