Pension & Welfare Benefits Administration

DEPARTMENT OF THE TREASURY
Internal Revenue Service 26 CFR Part 54 [TD 8931] RIN 1545-AW02 

DEPARTMENT OF LABOR 
Pension and Welfare Benefits Administration 29 CFR Part 2590 RIN
1210-AA77

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Care Financing Administration 45 CFR Part 146 RIN 0938-AI08

TITLE: Interim Final Rules for Nondiscrimination in Health Coverage
in the Group Market

AGENCIES: Internal Revenue Service, 

DEPARTMENT OF THE TREASURY;
Pension and Welfare Benefits Administration, Department of Labor;
Health Care Financing Administration, Department of Health and Human
Services.

ACTION: Interim final rules; delay of effective date and conforming
amendments.

SUMMARY: Consistent with the memorandum of January 20, 2001, from
the Assistant to the President and Chief of Staff, entitled
"Regulatory Review Plan," published in the Federal Register on
January 24, 2001 (66 FR 7702), this action delays for 60 days the
effective date for. the rules entitled "Interim Final Rules for
Nondiscrimination in Health Coverage in the Group Market," published
in the Federal Register on January 8, 2001 (66 FR 1378). This
document also makes conforming amendments to reflect the delay in
effective date.

DATES: The effective date of the Interim Final Rules amending 26 CFR
Part 54, 29 CFR Part 2590, and 45 CFR Part 146, published in the
Federal Register on January 8, 2001, at 66 FR 1378, is delayed for
60 days, from March 9, 2001, until May 8, 2001. The conforming
amendments in this document are effective May 8, 2001.

FOR FURTHER INFORMATION CONTACT: Russ Weinheimer, Internal Revenue
Service,

DEPARTMENT OF THE TREASURY, at (202) 622-6080; Amy J. Turner,
Pension and Welfare Benefits Administration, Department of Labor, at
(202) 219-7006; or Ruth A. Bradford, Health Care Financing
Administration, Department of Health and Human Services, at (410)
786-1565.

SUPPLEMENTARY INFORMATION: Consistent with the memorandum of January
20, 2001, from the Assistant to the President and Chief of Staff,
entitled "Regulatory Review Plan," published in the Federal Register
on January 24, 2001 (66 FR 7702), this action delays for 60 days the
effective date and, for consistency, certain applicability dates for
the rules entitled "Interim Final Rules for Nondiscrimination in
Health Coverage in the Group Market," published in the Federal
Register on January 8, 2001 (66 FR 1378). These rules implement
statutory provisions prohibiting discrimination based on a health
factor by group health plans and issuers offering health insurance
coverage in connection with a group health plan. The rules implement
changes made to the Internal Revenue Code of 1986, the Employee
Retirement Income Security Act of 1974, and the Public Health
Service Act, enacted as part of the Health Insurance Portability and
Accountability. Act of 1996 (HIPAA), and most of the guidance
contained in these rules remains applicable for plan years beginning
on or after July 1, 2001. This document also makes conforming
amendments to reflect the delay in effective date.

To the extent that 5 U.S.C. 553 applies to this action, it is exempt
from notice and comment because it constitutes a rule of procedure
under 5 U.S.C. 553(b)(3)(A). Alternatively, the Departments'
implementation of this rule without opportunity for public comment,
effective immediately upon publication today in the Federal
Register, is based on the good cause exceptions in 5 U.S.C. 553(b)
(3)(B) and 553(d)(3), in that seeking public comment is
impracticable, unnecessary, and contrary to the public interest. The
60-day delay in effective date is necessary to give Department
officials the opportunity for further review and consideration of
new regulations, consistent with the Assistant to the President's
memorandum of January 20, 2001. Given the imminence of the effective
date, seeking prior public comment on this delay would have been
impractical, unnecessary, and contrary to the public interest in the
orderly promulgation and implementation of regulations. Because the
delay is only for 60 days, a 30-day comment period before the delay
could be effective would exhaust a substantial amount of time that
group health plans, health insurance issuers, and State insurance
commissioner's offices could otherwise use to review their plan
documents, insurance policies, and State laws for purposes of the
orderly implementation of the interim regulations. In addition, it
would create confusion among State agencies, employers, plan
administrators, issuers, and third party administrators as to the
effective date of certain provisions, impeding their compliance and
enforcement efforts.

List of Subjects

26 CFR Part 54 Excise taxes, Health care, Health insurance,
Pensions, Reporting and recordkeeping requirements.

29 CFR Part 2590 Employee benefit plans, Employee Retirement Income
Security Act, Health care, Health insurance, Reporting and
recordkeeping requirements.

45 CFR Part 146 Health care, Health insurance, Reporting and
recordkeeping requirements, and State regulation of health
insurance.

Conforming Amendments to the Regulations Internal Revenue Service

26 CFR Chapter I Accordingly, the publication on January 8, 2001 of
the temporary and final rules, 26 CFR Part 54, is amended as
follows:

PART 54 -- PENSION EXCISE TAXES

Paragraph 1. The authority citation for part 54 continues to read in
part as follows: Authority: 26 U.S.C. 7805 * * *

§54.9802-1 [Amended] Par. 2. Section 54.9802-1 is amended by
removing the date "March 9, 2001" in each place it appears in
paragraph (i)(1) and adding in its place "May 8, 2001".

§54.9802-1T [Amended] Par. 3. Section 54.9802-1T is amended by:

1. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(1)..6

2. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(3)(ii)(A) introductory text.

3. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(3)(ii)(C) Example 2 (ii).

Robert E. Wenzel Deputy Commissioner of Internal Revenue Approved:
March 2, 2001

Pamela F. Olsen
Deputy Assistant Secretary of the Treasury.7
Pension and Welfare Benefits Administration
29 CFR Chapter XXV

For the reasons set forth above, the publication on January 8, 2001
of the interim final rule, 29 CFR Part 2590, is amended as follows:

Part 2590 - RULES AND REGULATIONS FOR HEALTH INSURANCE PORTABILITY
AND RENEWABILITY FOR GROUP HEALTH PLANS

Paragraph 1. The authority citation for Part 2590 continues to read
as follows: Authority: Secs. 107, 209, 505, 701-703, 711-713, and
731-734 of ERISA (29 U.S.C. 1027, 1059, 1135, 1171-1173, 1181-1183,
and 1191-1194), as amended by HIPAA (Public Law 104-191, 110 Stat.
1936), MHPA and NMHPA (Public Law 104-204, 110 Stat. 2935), and
WHCRA (Public Law 105-277, 112 Stat. 2681-436), section 101(g)(4) of
HIPAA, and Secretary of Labor's Order No. 1-87, 52 FR 13139, April
21, 1987.

§ 2590.702 [Amended]

Par. 2. Section 2590.702 is amended by:

1. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in the heading to paragraph (i)(1).

2. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(1).

3. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(3)(ii)(A) introductory text.

4. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(3)(ii)(C) Example 2 (ii).

Signed at Washington, DC this 16th day of February, 2001.

Alan D. Lebowitz
Acting Assistant Secretary, Pension and Welfare Benefits
Administration
U.S. Department of Labor.9
Health Care Financing Administration

45 CFR Subtitle A For the reasons set forth above, the publication
on January 8, 2001 of the interim final rule, 45 CFR Part 146, is
amended as follows:

PART 146 - RULES AND REGULATIONS FOR HEALTH INSURANCE PORTABILITY
AND RENEWABILITY FOR GROUP HEALTH PLANS

Paragraph 1. The authority citation for Part 146 continues to read
as follows: Authority: Secs. 2701 through 2763, 2791 and 2792 of the
Public Health Service Act, 42 U.S.C. 300gg through 300gg-63,
300gg-91, 300gg-92 as amended by HIPAA (Public Law104- 191, 110
Stat. 1936), MHPA and NMHPA (Public Law 104-204, 110 Stat. 2935),
and WHCRA (Public Law 105-277, 112 Stat. 2681-436), and section
102(c)(4) of HIPAA. § 146.121 [Amended]

Par. 2. Section 146.121 is amended by:

1. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in the heading to paragraph (i)(1).

2. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(1).

3. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(3)(ii)(A) introductory text.

4. Removing the date "March 9, 2001" and adding in its place "May 8,
2001" in paragraph (i)(3)(ii)(C) Example 2 (ii).

Dated: February 20, 2001

Michael McMullan
Acting Deputy Administrator, Health Care Financing Administration.

Approved: March 5, 2001

Tommy G. Thompson
Secretary, Health and Human Services

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