What is HIPAA and how does it relate to COBRA?
The Health Insurance Portability and Accountability Act, (HIPAA) became effective on July 1, 1997 with staggered effective dates for certain provisions of the law, depending on a particular plan’s official plan year. Under the new HIPAA regulations, certain requirements are imposed on group health insurance plans to make health benefits more “portable” for employees moving from one employer to another. The law also requires that any individual who had coverage under a group health plan be provided with a certificate of credible coverage, stating the actual length of the coverage period. HIPAA also prohibits denial of an individual’s coverage based on that particular individual’s health status. In addition to the above, certain limitations are now also placed on a health insurance plan’s pre-existing condition exclusions.
