06-G HIPAA and PHA Opt-Out - Laserfiche WebLink

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AGENDA INFORMATION SHEET PROJECT: Consider resolution exempting the City ofParis's participation in the TML health program from the Health Insurance Portability and Accountability Act (HIPAA) and the Public Health Services Act (PHS). BACKGROUND: Federal legislation allows municipalities such as the City of Paris with self-funded insurance plans, including insurance pools such as the TML Insurance Pool, to exempt itself from the requirements of the Health Insurance Portability and Accountability Act (HIPAA) and the Public Health Services Act (PHS). These exemptions are extended to municipalities as a matter of federal law and are consistent with the Federal Constitution. Cities customarily act on these exemptions because otherwise they adversely affect the cities health plans with regard to pre-qualification and coverage periods for new employees, acceptance of prior participating individuals in other health plans upon employment, and other problems. The City Council has in past years adopted the necessary resolution to exempt the City from these particular federal acts, and doing so again is consistent with said prior Council action and with the City's current involvement in the TML insurance risk pool. DESCRIPTION: Consider adoption ofthe enclosed resolution and the accompanying standard election form to exempt the City from coverage under the Federal statutes. RECOMMENDED ACTION: Consider approval ofthe resolution and the accompanying exemption form. STAFF CONTACT: Gene Anderson, Personnel Director; Larry W. Schenk, City Attorney; Michael E. Malone, City Manager COST: There is no cost incumbent on the City in exercising this opportunity for exemption; there could be considerable cost incurred to the City if the City fails to exempt itself from the statutes. SCHEDULE: The City's action in exempting itselffrom the Federal statutes mustbe completed priar to May 1, 2002. COUNCIL DATE: Consider for action at City Council's March 11, 2002, regular Council meeting. ADDITIONAL MATERIALS: See enclosed resolution and attached exemption form.