PUBLIC LAW 104-191—AUG. 21, 1996
110 STAT. 1965
"(5) MOVEMENT OUTSIDE SERVICE AREA.— In the case of
a health insurance issuer that offers health insurance coverage
in the market through a network plan, there is no longer
any enrollee in connection with such plan who lives, resides,
or works in the service area of the issuer (or in the area
for which the issuer is authorized to do business) and, in
the case of the small group market, the issuer would deny
enrollment with respect to such plan under section
2711(c)(1)(A).
"(6) ASSOCIATION MEMBERSHIP CEASES. —In the case of
health insurance coverage that is made available in the small
or large group market (as the case may be) only through one
or more bona fide associations, the membership of an employer
in the association (on the basis of which the coverage is provided) ceases but only if such coverage is terminated under
this paragraph luiiformly without regard to any health statusrelated factor relating to any covered individual.
" (c) REQUIREMENTS FOR UNIFORM TERMINATION OF COV-
ERAGE.—
"(1) PARTICULAR ':rYPE OF COVERAGE NOT OFFERED. —In any
case in which an issuer decides to discontinue offering a particular tj^e of group health insurance coverage offered in the
small or large group market, coverage of such type may be
discontinued by the issuer in accordance with applicable State
law in such market only if—
"(A) the issuer provides notice to each plan sponsor
provided coverage of this tj^e in such market (and participants and beneficiaries covered under such coverage) of
such discontinuation at least 90 days prior to the date
of the discontinuation of such coverage;
"(B) the issuer offers to each plan sponsor provided
coverage of this type in such market, the option to purchase
all (or, in the case of the large group market, any) other
heeJth insurance coverage currently being offered by the
issuer to a group health plan in such market; and
"(C) in exercising the option to discontinue coverage
of this t5rpe and in offering the option of coverage under
subparagraph (B), the issuer acts uniformly without regard
to the claims experience of those sponsors or any health
status-related factor relating to any participants or beneficiaries covered or new participants or beneficiaries who
may become eligible for such coverage.
" (2) DISCONTINUANCE OF ALL COVERAGE. —
"(A) IN GENERAL.— In any case in which a health insurance issuer elects to discontinue offering all health insurance coverage in. the small group market or the large
group market, or both markets, in a State, health insurance
coverage may be discontinued by the issuer only in accordance with applicable State law and if—
"(i) the issuer provides notice to the applicable
State authority and to each plan sponsor (and participants and beneficiaries covered under such coverage)
of such discontinuation at least 180 days prior to the
date of the discontinuation of such coverage; and
"(ii) all health insurance issued or delivered for
issuance in the State in such market (or markets)
are discontinued and coverage under such health insur-
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