2002-054-RES ELECT EXEMPTIONS FROM REQUIREMENTS OF THE HEALTH INSURANCE PORTABILITY AND ACOUNTABILITY (HIPAA) ACT AND THE PUBLIC HEALTHS SERVICES (PHS) ACT
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RESOLUTION NO. 2002-054
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 REQillREMENTS OF THE HEALTH
INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (lDPAA) AND
THE PUBLIC HEALTH SERVICES ACT (PHS); AUTHORIZING THE
EXECUTION OF THE NECESSARY ELECTION 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 and to
establish parity in the application of mental health benefits; and,
WHEREAS, the City of Paris's employe(.~ health benefit plan is a non-Federal
governmental plan, and HIP AA allows such plans to elect to be exempt from any or all of this new
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
continues to exempt itself to avoid the potential of financial penalties, and it is deemed appropriate
that such recommendation be taken; and,
WHEREAS, the form for the Election Under 42 U.S.C. Sec. 300gg-21, attached hereto
as Exhibit A, should, in all things, be approved, and the Personnel Director, as plan manager,
should be authorized to execute the same; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section I. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the form ofthe Election Under 42 U .S.C. Sec. 300gg-21, which exempts
the City of Paris from the requirements of the Health Insurance Portability and Accountability Act
(HIPAA) and the Public Health Services Act (PHS), attached hereto as Exhibit A, be, and the
same is hereby, approved.
Section 3. That the Personnel Director, as plan manager, be, and he is hereby, authorized
and directed to execute, on behalf of the City of Paris, the election form pursuant to 42 U.S.c.
Sec. 300gg-21, under the terms and conditions and in the form shown in Exhibit A, attached
hereto.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 11th day of March, 2002.
ATTEST:
Clerk
APPROVED AS TO i4'ORM:
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March 12,2002
HCFA
Attn: David Holstein
7500 Security Blvd. Room S-LI7
Baltimore, MD 21244-1850
RE: Election to be exempted from certain requirements under HIP AA
Dear Mr. Holstein:
The City of Paris elects that its group medical plan be exempted from the following
requirements of the Health Insurance Portability and Accountability Act of 1996 for the Plan Year
beginning October 1, 1999:
1.
2.
Limitations on pre-existing condition exclusion periods (146.111);
Special enrollment periods for individuals (and dependents) losing other coverage
and special enrollment periods with respect to certain dependent beneficiaries
(146.117);
Prohibitions against discriminating against individual participants and beneficiaries
based on health status (146.121);
Standards relating to benefits for mothers and newborns (section 2704 of the PHS
Act);
Parity in the application of certain limits to mental health benefits; and
Benefits relating to women's health and cancer rights (section 903 of the PHS Act).
Treatment or reduction of the non-affected breast following a mastectomy.
.
3.
4.
5.
6.
The medical benefits payable by the City's health plan are self-funded. The plan is
protected against catastrophic loss by aggregate and individual stop loss policies which reimburse
the City for medical claims paid in excess of stop loss levels.
The City of Paris group medical plan is identified as follows:
Name of Plan:
Plan Sponsor:
Plan Manager:
City of Paris, Texas Intergovernmental Employee Benefits Pool
City of Paris
W. E. Anderson
P.O. BOX 9037 · PARIS. TEXAS 75461-9037 . (903) 785-7511 · FAX (903) 785-8519
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As Plan Manager, I certify that I am authorized to make this election on behalf of the Plan
Sponsor, jthe City of Paris. A copy of the notice to our employees of our election to be exempted
is enclosed. This notice will be included as part of our plan's summary plan description, to be
distributed upon enrollment and each year to all covered employees.
We would appreciate written acknowledgment of this election.
Sincerely,
W. E. Anderson
Personnel Director
/lw
NOTICE TO PLAN PARTICIPANTS REGARDING THE CITY OF PARIS'S
ELECTION UNDER 42 U.S.C 300 22-21
THIS IS TO NOTIFY YOU THAT FEDERAL LAW IMPOSES UPON GROUP HEALTH PLANS CERTAIN
LIMITATIONS OF PREEXISTING CONDITION EXCLUSION PERIODS, SPECIAL ENROLLMENT PERIODS
FOR INDIVIDUALS (AND DEPENDENTS) LOSING OTHER COVERAGE. PROHIBITIONS AGAINST
DISCRIMINATING AGAINST INDNIDUAL PARTICIPANTS AND BENEFICIARIES BASED ON HEALTH
STATUS, STANDARDS RELATING TO BENEFITS FOR MOTHERS AND NEWBORNS. AND PARITY IN THE
APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH BENEFITS AND A WOMAN'S RIGHT TO
TREATMENT OF THE UNAFFECTED BREAST FOLLOWING A MASTECTOMY. FEDERAL LAW ALLOWS
A NON-FEDERAL GOVERNMENTAL PLAN (SUCH AS THE CITY OF PARIS'S PLAN) TO EXEMPT ITS
PLAN IN WHOLE OR IN PART FROM THESE REOUlREMENTS. THE CITY OF PARIS HAS ELECTED TO
BE EXEMPT FROM THE FOLLOWING REOUlREMENTS: LIMITATIONS ON PREEXISTING CONDITION
EXCLUSION PERIODS. SPECIAL ENROLLMENT PERIODS FOR INDIVIDUALS (AND DEPENDENTS)
LOSING COVERAGE. PROHIBITIONS AGAINST DISCRIMINATING AGAINST INDNIDUAL
PARTICIPANTS AND BENEFICIARIES BASED ON HEALTH STATUS, STANDARDS RELATING TO
BENEFITS FOR MOTHERS AND NEWBORNS, AND PARITY IN THE APPLICATION OF CERTAIN LIMITS
TO MENTAL HEALTH BENEFITS AND A WOMAN'S RIGHT TO TREATMENT OF THE UNAFFECTED
BREAST FOLLOWING A MASTECTOMY. BECAUSE OF THIS ELECTION. EMPLOYEES AND
DEPENDENTS WILL BE SUBJECT TO BENEFIT LIMITS EVEN IF THEY HAD 12 OR 18 MONTHS OF
COVERAGE UNDER ANOTHER PLAN WITHIN THE LAST 63 DAYS. THE DURATION OF A HOSPITAL
CONFINEMENT FOR A MOTHER AND NEWBORN FOLLOWING THE BIRTH OF A CHILD WILL BE
DETERMINED ON MEDICAL NECESSITY. AND MENTAL HEALTH BENEFITS HAVE AN ANNUAL
MAXIMUM WHICH IS LESS THAN THE MAXIMUMS FOR OTHER MEDICAL CONDITIONS. EVEN
THOUGH THE PLAN IS EXEMPT. EMPLOYEES AND DEPENDENTS WILL BE ABLE TO ENROLL IF THEY
HAVE A OUALIFYING EVENT DURING THE PLAN YEAR AS SET FORTH IN THIS BOOKLET AND NO
INDIVIDUAL WILL BE DECLINED COVERAGE OR CHARGED A HIGHER RATE BASED ON A MEDICAL
CONDITION. THE PLAN'S OUALIFYING EVENTS ARE MORE LIBERAL THAN THE FEDERAL LAW. THE
ENTIRE PLAN IS SUBJECT TO THIS EXEMPTION.