Where a long term care policy is offered separately from a
group health
plan it is considered an excepted benefit and is not subject to the
portability and guarantee issue requirements
of HIPAA.
In 1996, HIPAA amended ERISA to require
portability, nondiscrimination, and renewability
of health benefits provided by
group health
plans and
group health insurance issuers.
Under HIPAA (the Health Insurance
Portability and Accountability Act
of 1996), employer - sponsored (
group)
plans were allowed to impose pre-existing condition exclusion periods if a new enrollee didn't have at least 12 months
of creditable coverage (ie, had been uninsured prior to enrolling in the
group plan) without gaps
of 63 or more days (18 months
of creditable coverage could be required if the person was enrolling in the
group plan late, after his or her initial enrollment window had passed).