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DRAFT F:ALICE\RESWORK\CURRENT\ HIPAA Opt-Out Res-2005 March 9, 2005 RESOLUTION NO. _______________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, ELECTING, PURSUANT TO 42 U.S.C. SEC. 300GG-21, EXEMPTION FROM THE REQUIREMENTS OF THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) AND THE PUBLIC HEALTH SERVICES ACT (PHS) AUTHORIZING THE ; EXECUTION OF THE NECESSARY ELECTION AND NOTICE FORMS UNDER 42 U.S.C. SEC. 300GG-21; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Paris has a uniform group benefits plan that is administered by the Texas Municipal League Intergovernmental Employee Benefits Pool (TML-IEBP); and, WHEREAS, effective with the first plan year following July 1, 1997, the Federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), which establishes a standard definition for what can be considered an existing condition, went into effect, with the effective date for the City of Paris being May 1, 1998; and, WHEREAS, in addition to HIPAA, the Federal Government has amended the Public Health Services Act (PHS) to standardize benefits relating to mothers and newborns, to establish parity in the application of mental health benefits, and to address women's health and cancer rights; and, WHEREAS, the City of Paris's employee health benefit plan is a non-Federal governmental plan, and HIPAA allows such plans to elect to be exempt from any or all of this legislation; and, WHEREAS, the City Council of the City of Paris has acted to approved such exemptions in the past; and, WHEREAS, because of the severe penalties which are established in the law for non- compliance, the City's plan administrator, TML-IEBP, recommends that the City of Paris continue to exempt itself to avoid the potential of financial penalties, and it is deemed appropriate that such recommendation be taken; and, WHEREAS, the forms for the election and notice to enrollees under 42 U.S.C. Sec. 300gg- 21, attached hereto as Exhibit A, the same being the model form election and notice as set out in 45 C.F.R. Part 146 of the Federal Regulations should, in all things, be approved, and the Personnel NOW, THEREFORE, Director, as plan manager, should be authorized to execute the same;