[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2590.731]

[Page 671]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2590_RULES AND REGULATIONS FOR GROUP HEALTH PLANS--Table of Contents
 
                      Subpart D_General Provisions
 
Sec. 2590.731  Preemption; State flexibility; construction.

    Source: 62 FR 16941, Apr. 8, 1997. Redesignated at 65 FR 82142, Dec. 
27, 2000, unless otherwise noted.


    (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 7 of subtitle B of 
title I of the 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 
requirements of this part.
    (b) Continued preemption with respect to group health plans. Nothing 
in part 7 of subtitle B of title I of the Act affects or modifies the 
provisions of section 514 of the Act with respect to group health plans.
    (c) Special rules--(1) In general. Subject to paragraph (c)(2) of 
this section, the provisions of part 7 of subtitle B of title I of the 
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 701 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 701(a)(1) of the Act and Sec. 2590.701-3(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 701(a)(2) of the Act and Sec. 2590.701-
3(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 701(c)(2)(A) and (d)(4)(A) of the Act and 
Sec. Sec. 2590.701-3(a)(1)(iii) and 2590.701-4 (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 701 (b)(2) and (d)(1) of the Act and 
Sec. 2590.701-3(b) (for purposes of the enrollment periods 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 701(d) of the Act or expands the 
exceptions described therein;
    (vi) Requires special enrollment periods in addition to those 
required under section 701(f) of the Act; or
    (vii) Reduces the maximum period permitted in an affiliation period 
under section 701(g)(1)(B) of the Act.
    (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 Island, or any agency or instrumentality of either.

[62 FR 16941, Apr. 8, 1997; 62 FR 31670, 31693, June 10, 1997. 
Redesignated at 65 FR 82142, Dec. 27, 2000]

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