110 STAT. 1984
PUBLIC LAW 104-191—AUG. 21, 1996
42 USC 300gg-
" SEC, 2744. STATE FLEXTOIUTY IN INDIVIDUAL MARKET REFORMS.
44
" (a) WAIVER OF REQUIREMENTS WHERE IMPLEMENTATION OF
ACCEPTABLE ALTERNATIVE MECHANISM.—
"(1) IN GENERAL. —The requirements of section 2741 shall
not apply with respect to health insurance coverage offered
in the individual market in the State so long as a State is
found to be implementing, in accordance with this section and
consistent with section 2746(b), an alternative mechanism (in
this section referred to as an 'acceptable alternative mechanism')—
"(A) under which all eligible individuals are provided
a choice of health insurance coverage;
"(B) under which such coverage does not impose any
,
preexisting condition exclusion with respect to such coverage;
"(C) under which such choice of coverage includes at
least one policy form of coverage that is comparable to
comprehensive health insurance coverage offered in the
individual market in such State or that is comparable
to a standard option of coverage available under the group
or individual health insurance laws of such State; and
"(D) in a State which is implementing—
"(i) a model act described in subsection (c)(1),
"(ii) a qualified high risk pool described in subsection (c)(2), or
"(iii) a mechanism described in subsection (c)(3).
"(2) PERMISSIBLE FORMS OF MECHANISMS. —A private or
public individual health insurance mechanism (such as a health
insurance coverage pool or programs, mandatory group conversion policies, guarsinteed issue of one or more plans of individual
health insurance coverage, or open enrollment by one or more
health insurance issuers), or combination of such mechsinisms,
that is designed to provide access to health benefits for individuals in the individual market in the State in accordance with
this section may constitute an acceptable alternative mechanism.
"(b) APPLICATION OF ACCEPTABLE ALTERNATIVE MECHANISMS.—
" (1) PRESUMPTION. —
"(A) IN GENERAL. — Subject to the succeeding provisions
of this subsection, a State is presumed to be implementing
an acceptable alternative mechanism in accordance with
this section as of July 1, 1997, if, by not later than April
1, 1997, the chief executive officer of a State—
"(i) notifies the Secretary that the State has
enacted or intends to enact (by not later than January
1, 1998, or July 1, 1998, in the case of a State described
in subparagraph (B)(ii)) any necessary legislation to
provide for the implementation of a mechanism reasonably designed to be an acceptable alternative mechanism as of January 1, 1998, (or, in the case of a
State described in subparagraph (B)(ii), July 1, 1998);
and
"(ii) provides the Secretary with such information
as the Secretary may require to review the mechanism
and its implementation (or proposed implementation)
under this subsection.
"(B) DELAY PERMITTED FOR CERTAIN STATES.—
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