[Code of Federal Regulations]
[Title 45, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR146.143]

[Page 619-620]
 
                        TITLE 45--PUBLIC WELFARE
 
                           AND HUMAN SERVICES
 
PART 146--REQUIREMENTS FOR THE GROUP HEALTH INSURANCE MARKET--Table of Contents
 
                 Subpart D--Preemption and Special Rules
 
Sec. 146.143  Preemption; State flexibility; construction.


    (a) Continued applicability of State law with respect to health 
insurance issuers. Subject to paragraph (b) of this section and except 
as provided in paragraph (c) of this section, part A of title XXVII of 
the PHS Act is not to be construed to supersede any provision of State 
law which establishes, implements, or continues in effect any standard 
or requirement solely relating to health insurance issuers in connection 
with group health insurance coverage except to the extent that such 
standard or requirement prevents the application of a requirement of 
part A of title XXVII of the PHS Act.
    (b) Continued preemption with respect to group health plans. Nothing 
in part A of title XXVII of the PHS Act affects or modifies the 
provisions of section 514 of ERISA with respect to group health plans.
    (c) Special rules--(1) General. Subject to paragraph (c)(2) of this 
section, the provisions of part A of title XXVII of the PHS Act relating 
to health insurance coverage offered by a health insurance issuer 
supersede any provision of State law which establishes, implements, or 
continues in effect a standard or requirement applicable to imposition 
of a preexisting condition exclusion specifically governed by section 
2701 of the PHS Act, which differs from the standards or requirements 
specified in such section.
    (2) Exceptions. Only in relation to health insurance coverage 
offered by a health insurance issuer, the provisions of this part do not 
supersede any provision of State law to the extent that such provision--
    (i) Shortens the period of time from the ``6-month period'' 
described in section 2701(a)(1) of the PHS Act and Sec. 146.111(a)(1)(i) 
(for purposes of identifying a preexisting condition);
    (ii) Shortens the period of time from the ``12 months'' and ``18 
months'' described in section 2701(a)(2) of the PHS Act and 
Sec. 146.111(a)(1)(ii) (for purposes of applying a preexisting condition 
exclusion period);
    (iii) Provides for a greater number of days than the ``63-day 
period'' described in sections 2701 (c)(2)(A) and (d)(4)(A) of the PHS 
Act and Secs. 146.111(a)(1)(iii) and 146.113 (for purposes of applying 
the break in coverage rules);
    (iv) Provides for a greater number of days than the ``30-day 
period'' described in sections 2701 (b)(2) and (d)(1) of the PHS Act and 
Sec. 146.111(b) (for purposes of the enrollment period and preexisting 
condition exclusion periods for certain newborns and children that are 
adopted or placed for adoption);
    (v) Prohibits the imposition of any preexisting condition exclusion 
in cases not described in section 2701(d) of the PHS Act or expands the 
exceptions described in that section;

[[Page 620]]

    (vi) Requires special enrollment periods in addition to those 
required under section 2701(f) of the PHS Act; or
    (vii) Reduces the maximum period permitted in an affiliation period 
under section 701(g)(1)(B).
    (d) Definitions--(1) State law. For purposes of this section the 
term ``State law'' includes all laws, decisions, rules, regulations, or 
other State action having the effect of law, of any State. A law of the 
United States applicable only to the District of Columbia is treated as 
a State law rather than a law of the United States.
    (2) State. For purposes of this section the term ``State'' includes 
a State, the Northern Mariana Islands, any political subdivisions of a 
State or such Islands, or any agency or instrumentality of either.