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304.17A-220 Pre-existing condition exclusion in group coverage -- Definitions
for section.
(1)
(2)
(3)
All group health plans and insurers offering group health insurance coverage in
the Commonwealth shall comply with the provisions of this section.
Subject to subsection (8) of this section, a group health plan, and a health
insurance insurer offering group health insurance coverage, may, with respect
to a participant or beneficiary, impose a pre-existing condition exclusion only if:
(a) The exclusion relates to a condition, whether physical or mental,
regardless of the cause of the condition, for which medical advice,
diagnosis, care, or treatment was recommended or received within the six
(6) month period ending on the enrollment date. For purposes of this
paragraph:
1.
Medical advice, diagnosis, care, or treatment is taken into account
only if it is recommended by, or received from, an individual licensed
or similarly authorized to provide such services under state law and
operating within the scope of practice authorized by state law; and
2.
The six (6) month period ending on the enrollment date begins on
the six (6) month anniversary date preceding the enrollment date;
(b) The exclusion extends for a period of not more than twelve (12) months,
or eighteen (18) months in the case of a late enrollee, after the enrollment
date;
(c) 1.
The period of any pre-existing condition exclusion that would
otherwise apply to an individual is reduced by the number of days of
creditable coverage the individual has as of the enrollment date, as
counted under subsection (3) of this section; and
2.
Except for ineligible individuals who apply for coverage in the
individual market, the period of any pre-existing condition exclusion
that would otherwise apply to an individual may be reduced by the
number of days of creditable coverage the individual has as of the
effective date of coverage under the policy; and
(d) A written notice of the pre-existing condition exclusion is provided to
participants under the plan, and the insurer cannot impose a pre-existing
condition exclusion with respect to a participant or a dependent of the
participant until such notice is provided.
In reducing the pre-existing condition exclusion period that applies to an
individual, the amount of creditable coverage is determined by counting all the
days on which the individual has one (1) or more types of creditable coverage.
For purposes of counting creditable coverage:
(a) If on a particular day the individual has creditable coverage from more
than one (1) source, all the creditable coverage on that day is counted as
one (1) day;
(b) Any days in a waiting period for coverage are not creditable coverage;
(c) Days of creditable coverage that occur before a significant break in
coverage are not required to be counted; and
(d) Days in a waiting period and days in an affiliation period are not taken
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(5)
(6)
into account in determining whether a significant break in coverage has
occurred.
An insurer may determine the amount of creditable coverage in another
manner than established in subsection (3) of this section that is at least as
favorable to the individual as the method established in subsection (3) of this
section.
If an insurer receives creditable coverage information, the insurer shall make a
determination regarding the amount of the individuals creditable coverage and
the length of any pre-existing exclusion period that remains. A written notice of
the length of the pre-existing condition exclusion period that remains after
offsetting for prior creditable coverage shall be issued by the insurer. An
insurer may not impose any limit on the amount of time that an individual has to
present a certificate or evidence of creditable coverage.
For purposes of this section:
(a) "Pre-existing condition exclusion" means, with respect to coverage, a
limitation or exclusion of benefits relating to a condition based on the fact
that the condition was present before the effective date of coverage,
whether or not any medical advice, diagnosis, care, or treatment was
recommended or received before that day. A pre-existing condition
exclusion includes any exclusion applicable to an individual as a result of
information relating to an individuals health status before the
individuals effective date of coverage under a health benefit plan;
(b) "Enrollment date" means, with respect to an individual covered under a
group health plan or health insurance coverage, the first day of coverage
or, if there is a waiting period, the first day of the waiting period. If an
individual receiving benefits under a group health plan changes benefit
packages, or if the employer changes its group health insurer, the
individuals enrollment date does not change;
(c) "First day of coverage" means, in the case of an individual covered for
benefits under a group health plan, the first day of coverage under the
plan and, in the case of an individual covered by health insurance
coverage in the individual market, the first day of coverage under the
policy or contract;
(d) "Late enrollee" means an individual whose enrollment in a plan is a late
enrollment;
(e) "Late enrollment" means enrollment of an individual under a group health
plan other than:
1.
On the earliest date on which coverage can become effective for the
individual under the terms of the plan; or
2.
Through special enrollment;
(f) "Significant break in coverage" means a period of sixty-three (63)
consecutive days during each of which an individual does not have any
creditable coverage; and
(g) "Waiting period" means the period that must pass before coverage for an
employee or dependent who is otherwise eligible to enroll under the terms
of a group health plan can become effective. If an employee or dependent
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(a)
(b)
(8)
(a)
(b)
enrolls as a late enrollee or special enrollee, any period before such late
or special enrollment is not a waiting period. If an individual seeks
coverage in the individual market, a waiting period begins on the date the
individual submits a substantially complete application for coverage and
ends on:
1.
If the application results in coverage, the date coverage begins; or
2.
If the application does not result in coverage, the date on which the
application is denied by the insurer or the date on which the offer of
coverage lapses.
1.
Except as otherwise provided under subsection (3) of this section,
for purposes of applying subsection (2)(c) of this section, a group
health plan, and a health insurance insurer offering group health
insurance coverage, shall count a period of creditable coverage
without regard to the specific benefits covered during the period.
2.
A group health plan, or a health insurance insurer offering group
health insurance coverage, may elect to apply subsection (2)(c) of
this section based on coverage of benefits within each of several
classes or categories of benefits specified in federal regulations.
This election shall be made on a uniform basis for all participants
and beneficiaries. Under this election, a group health plan or insurer
shall count a period of creditable coverage with respect to any class
or category of benefits if any level of benefits is covered within this
class or category.
3.
In the case of an election with respect to a group health plan under
subparagraph 2. of this paragraph, whether or not health insurance
coverage is provided in connection with the plan, the plan shall:
a.
Prominently state in any disclosure statements concerning the
plan, and state to each enrollee at the time of enrollment under
the plan, that the plan has made this election; and
b.
Include in these statements a description of the effect of this
election.
Periods of creditable coverage with respect to an individual shall be
established through presentation of certifications described in subsection
(9) of this section or in such other manner as may be specified in
administrative regulations.
Subject to paragraph (e) of this subsection, a group health plan, and a
health insurance insurer offering group health insurance coverage, may
not impose any pre-existing condition exclusion on a child who, within
thirty (30) days after birth, is covered under any creditable coverage. If a
child is enrolled in a group health plan or other creditable coverage within
thirty (30) days after birth and subsequently enrolls in another group
health plan without a significant break in coverage, the other group health
plan may not impose any pre-existing condition exclusion on the child.
Subject to paragraph (e) of this subsection, a group health plan, and a
health insurance insurer offering group health insurance coverage, may
not impose any pre-existing condition exclusion on a child who is adopted
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(d)
(e)
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(a)
or placed for adoption before attaining eighteen (18) years of age and
who, within thirty (30) days after the adoption or placement for adoption,
is covered under any creditable coverage. If a child is enrolled in a group
health plan or other creditable coverage within thirty (30) days after
adoption or placement for adoption and subsequently enrolls in another
group health plan without a significant break in coverage, the other group
health plan may not impose any pre-existing condition exclusion on the
child. This shall not apply to coverage before the date of the adoption or
placement for adoption.
A group health plan may not impose any pre-existing condition exclusion
relating to pregnancy.
A group health plan may not impose a pre-existing condition exclusion
relating to a condition based solely on genetic information. If an individual
is diagnosed with a condition, even if the condition relates to genetic
information, the insurer may impose a pre-existing condition exclusion
with respect to the condition, subject to other requirements of this section.
Paragraphs (a) and (b) of this subsection shall no longer apply to an
individual after the end of the first sixty-three (63) day period during all of
which the individual was not covered under any creditable coverage.
1.
A group health plan, and a health insurance insurer offering group
health insurance coverage, shall provide a certificate of creditable
coverage as described in subparagraph 2. of this subsection. A
certificate of creditable coverage shall be provided, without charge,
for participants or dependents who are or were covered under a
group health plan upon the occurrence of any of the following
events:
a.
At the time an individual ceases to be covered under a health
benefit plan or otherwise becomes eligible under a COBRA
continuation provision;
b.
In the case of an individual becoming covered under a COBRA
continuation provision, at the time the individual ceases to be
covered under the COBRA continuation provision; and
c.
On request on behalf of an individual made not later than
twenty-four (24) months after the date of cessation of the
coverage described in subdivision a. or b. of this
subparagraph, whichever is later.
The certificate of creditable coverage as described under
subdivision a. of this subparagraph may be provided, to the extent
practicable, at a time consistent with notices required under any
applicable COBRA continuation provision.
2.
The certification described in this subparagraph is a written
certification of:
a.
The period of creditable coverage of the individual under the
health benefit plan and the coverage, if any, under the COBRA
continuation provision; and
b.
The waiting period, if any, and affiliation period, if applicable,
(b)
(10) (a)
imposed with respect to the individual for any coverage under
the plan.
3.
To the extent that medical care under a group health plan consists
of group health insurance coverage, the plan is deemed to have
satisfied the certification requirement under this paragraph if the
health insurance insurer offering the coverage provides for the
certification in accordance with this paragraph.
In the case of an election described in subsection (7)(a)2. of this section
by a group health plan or health insurance insurer, if the plan or insurer
enrolls an individual for coverage under the plan and the individual
provides a certification of coverage of the individual under paragraph (a)
of this subsection:
1.
Upon request of that plan or insurer, the entity that issued the
certification provided by the individual shall promptly disclose to the
requesting plan or insurer information on coverage of classes and
categories of health benefits available under the entity's plan or
coverage; and
2.
The entity may charge the requesting plan or insurer for the
reasonable cost of disclosing this information.
A group health plan, and a health insurance insurer offering group health
insurance coverage in connection with a group health plan, shall permit
an employee who is eligible but not enrolled for coverage under the terms
of the plan, or a dependent of that employee if the dependent is eligible
but not enrolled for coverage under these terms, to enroll for coverage
under the terms of the plan if each of the following conditions is met:
1.
The employee or dependent was covered under a group health plan
or had health insurance coverage at the time coverage was
previously offered to the employee or dependent;
2.
The employee stated in writing at that time that coverage under a
group health plan or health insurance coverage was the reason for
declining enrollment, but only if the plan sponsor or insurer, if
applicable, required that statement at that time and provided the
employee with notice of the requirement, and the consequences of
the requirement, at that time;
3.
The employee's or dependent's coverage described in
subparagraph 1. of this paragraph:
a.
Was under a COBRA continuation provision and the coverage
under that provision was exhausted; or
b.
Was not under such a provision and either the coverage was
terminated as a result of loss of eligibility for the coverage,
including as a result of legal separation, divorce, cessation of
dependent status, such as obtaining the maximum age to be
eligible as a dependent child, death of the employee,
termination of employment, reduction in the number of hours of
employment, employer contributions toward the coverage were
terminated, a situation in which an individual incurs a claim that
(b)
(c)
would meet or exceed a lifetime limit on all benefits, or a
situation in which a plan no longer offers any benefits to the
class of similarly situated individuals that includes the
individual; or
c.
Was offered through a health maintenance organization or
other arrangement in the group market that does not provide
benefits to individuals who no longer reside, live, or work in a
service area and, loss of coverage in the group market
occurred because an individual no longer resides, lives, or
works in the service area, whether or not within the choice of
the individual, and no other benefit package is available to the
individual; and
4.
An insurer shall allow an employee and dependent a period of at
least thirty (30) days after an event described in this paragraph has
occurred to request enrollment for the employee or the employees
dependent. Coverage shall begin no later than the first day of the
first calendar month beginning after the date the insurer receives the
request for special enrollment.
A dependent of a current employee, including the employee's spouse,
and the employee each are eligible for enrollment in the group health plan
subject to plan eligibility rules conditioning dependent enrollment on
enrollment of the employee if the requirements of paragraph (a) of this
subsection are satisfied.
1.
If:
a.
A group health plan makes coverage available with respect to
a dependent of an individual;
b.
The individual is a participant under the plan, or has met any
waiting period applicable to becoming a participant under the
plan and is eligible to be enrolled under the plan but for a
failure to enroll during a previous enrollment period; and
c.
A person becomes such a dependent of the individual through
marriage, birth, or adoption or placement for adoption;
the group health plan shall provide for a dependent special
enrollment period described in subparagraph 2. of this paragraph
during which the person or, if not otherwise enrolled, the individual,
may be enrolled under the plan as a dependent of the individual,
and in the case of the birth or adoption of a child, the spouse of the
individual may be enrolled as a dependent of the individual if the
spouse is otherwise eligible for coverage.
2.
A dependent special enrollment period under this subparagraph
shall be a period of at least thirty (30) days and shall begin on the
later of:
a.
The date dependent coverage is made available; or
b.
The date of the marriage, birth, or adoption or placement for
adoption, as the case may be, described in subparagraph 1.c.
of this paragraph.
3.
If an individual seeks to enroll a dependent during the first thirty (30)
days of the dependent special enrollment period, the coverage of
the dependent shall become effective:
a.
In the case of marriage, not later than the first day of the first
month beginning after the date the completed request for
enrollment is received;
b.
In the case of a dependent's birth, as of the date of the birth; or
c.
In the case of a dependent's adoption or placement for
adoption, the date of the adoption or placement for adoption.
(d) At or before the time an employee is initially offered the opportunity to
enroll in a group health plan, the employer shall provide the employee
with a notice of special enrollment rights.
(11) (a) In the case of a group health plan that offers medical care through health
insurance coverage offered by a health maintenance organization, the
plan may provide for an affiliation period with respect to coverage through
the organization only if:
1.
No pre-existing condition exclusion is imposed with respect to
coverage through the organization;
2.
The period is applied uniformly without regard to any health
status-related factors; and
3.
The period does not exceed two (2) months, or three (3) months in
the case of a late enrollee.
(b) 1.
For purposes of this section, the term "affiliation period" means a
period which, under the terms of the health insurance coverage
offered by the health maintenance organization, must expire before
the health insurance coverage becomes effective. The organization
is not required to provide health care services or benefits during this
period and no premium shall be charged to the participant or
beneficiary for any coverage during the period.
2.
This period shall begin on the enrollment date.
3.
An affiliation period under a plan shall run concurrently with any
waiting period under the plan.
(c) A health maintenance organization described in paragraph (a) of this
subsection may use alternative methods other than those described in
that paragraph to address adverse selection as approved by the
commissioner.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1218, effective July 15, 2010. -Amended 2006 Ky. Acts ch. 253, sec. 2, effective July 12, 2006. -- Created 1998
Ky. Acts ch. 496, sec. 4, effective April 10, 1998.
Legislative Research Commission Note (7/12/2006). A reference to "subsection
(4)(c)2." in subsection (9) of this statute has been changed in codification to
"subsection (7)(a)2." In 2006 Ky. Acts ch. 253, sec. 2, the addition of and
deletion of various subsections and paragraphs resulted in the renumbering of
succeeding provisions, but the internal reference in the existing language was
overlooked. This oversight has been corrected by the Reviser of Statutes under
the authority of KRS 7.136(1)(e) and (h).
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