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AGENDA INFORMATION SHEET <br /> <br />PROJECT: Consider resolution exempting the City of Paris's participation in the TML health program from <br />the Health Insurance Portability and Accountability Act (HIPAA) and the Public Health Services Act (PHS). <br /> <br />BACKGROUND: Federal legislation allows municipalities such as the City of Paris with self-funded insurance <br />plans, including insurance pools such as the TML Insurance Pool, to exempt itself from the requirements of <br />the Health Insurance Portability and Accountability Act (HIPAA) and the Public Health Services Act (PHS). <br />These exemptions are extended to municipalities as a matter of federal law and are consistent with the Federal <br />Constitution. Cities customarily act on these exemptions because otherwise they adversely affect the cities' <br />health plans with regard to pre-qualification and coverage periods for new employees, acceptance of prior <br />participating individuals in other health plans upon employment, and other problems. The City Council has <br />in past years adopted the necessary resolution to exempt the City from these particular federal acts, and doing <br />so again is consistent with said prior Council action and with the City's current involvement in the TML <br />insurance risk pool. <br /> <br />DESCRIPTION: Consider adoption of the enclosed resolution and the accompanying standard election form <br />and notice to enrollees to exempt the City from coverage under the Federal statutes. <br /> <br />RECOMMENDED ACTION: Consider approval of the resolution and the accompanying exemption form <br />and notice to enrollees. <br /> <br />STAFF CONTACT: Gene Anderson, Personnel Director; Larry W. Schenk, City Attorney; Michael E. <br />Malone, City Manager <br /> <br />COST: There is no cost incumbent on the City in exercising this opportunity for exemption; there could be <br />considerable cost incurred to the City if the City fails to exempt itself from the statutes. <br /> <br />SCHEDULE: The City's action in exempting itself from the Federal statutes must be completed prior to May <br />1, 2003. <br /> <br />COUNCIL DATE: Consider for action at City Council's March 8, 2004, regular Council meeting. <br /> <br />ADDITIONAL MATERIALS: See enclosed resolution and attached exemption form and notice to enrollees. <br /> <br /> <br />